Protecting Yourself and Family Members Against Elder Financial Abuse By Scott Montgomery, CLU, ChFC

According to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN), financial abuse of Americans aged 60 and older continues to grow at an alarming rate, with total losses exceeding $28 billion. While it is common for the perpetrators of these scams and thefts to be unknown to the victims, they are too often the people older adults know and trust, including their appointed caregivers, fiduciaries and even their family members. Recognizing the risks and signs of financial abuse are the first steps you need to take to protect yourself and your loved ones from these frauds.

Types of Financial Abuse

Financial crimes committed against the elderly are often divided into elder scams, which involve the transfer of money to a stranger or imposter for a promised benefit the victim does not receive, and elder thefts, in which the victim’s assets or income are stolen by someone they know and trust. Common schemes involve identity theft, computer account takeovers, and criminals posing as government agencies, charities and even victims’ grandchildren.

Understand the Definition and Role of a Fiduciary

The people you name to manage your money or property are considered fiduciaries who you entrust to make decisions in your best interest. They should be trustworthy and capable of managing your affairs and maintaining meticulous records. To help ensure fiduciaries carry out their obligations to you, share their names and contact information with all your trusted advisors, including lawyers, accountants, financial advisors and family members.

Be Cautious when Assigning Power of Attorney

The number one rule when selecting anyone to have legal authority over your financial and health decisions is to make sure they know and have knowledge of your specific wishes and needs. Naming a hired or paid caregiver as your agent under a power of attorney should be avoided at all costs. No matter who you select, share their names and contact information with your trusted circle of friends, family members and advisors. When you draw up a power of attorney in advance of a specific need, you can implement controls to protect your interest, such as requiring a lawyer or financial advisor to authorize checks or withdrawals over a certain amount.

Minimize Risk through Education

Anyone can fall prey to financial crime, but the elderly are typically more at risk, especially when they are not technologically proficient, unfamiliar with managing finances or physically or cognitively impaired and dependent on others. The best form of protection against these crimes is education.

• Do not respond to unsolicited phone calls, emails or texts asking for your private information.
• Shred documents that contain your personal information, including your Social Security number, and consider locking up your checkbook and financial statements when someone you do not know is in your home for an extended period.
• Be safe using the internet and email by employing virus protection software and learning the telltale signs of a scam.
• Never click on links or attachments in emails and text messages unless you are sure of the sender.
• Consider adding a trusted contact person to all your brokerage and bank accounts. This allows the financial institution to have a trusted resource to contact if they see unusual activity.
• Check references when hiring advisors and caregivers.
• Never rush to make financial decisions.
• Don’t fall for high-pressure sales tactics.
• Always request a written explanation of any investment opportunities.
• Document conversations and communications with others.
• Make payments with check or credit cards, rather than cash, to create a money trail.
• Make checks payable to financial institutions or companies and never to individuals you do not know.
• Act quickly if you sense an issue or if a problem occurs. The sooner you get help, the more likely you will resolve the issue with minimal impact.

About the Author: Scott Montgomery is a director and financial planner with Provenance Wealth Advisors (PWA), an Independent Registered Investment Advisor affiliated with Berkowitz Pollack Brant Advisors + CPAs and a registered representative with PWA Securities, LLC. He can be reached at the firm’s Ft. Lauderdale, Fla. office at (954) 712-8888 or info@provwealth.com.

Provenance Wealth Advisors (PWA), 200 E. Las Olas Blvd., 19^th Floor, Ft. Lauderdale, Fla. 33301 (954) 712-8888.

Scott Montgomery is a registered representative of and offers securities through PWA Securities, LLC, Member FINRA/SIPC.

This material is being provided for information purposes only and is not a complete description or a recommendation. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. There is no guarantee that these statements, opinions or forecasts provided herein will prove correct.

Any opinions are those of the advisors of PWA and not necessarily those of PWA Securities, LLC. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of PWAS, we are not qualified to render advice on tax or legal matters. You should discuss any tax or legal matters with the appropriate professional. Prior to making any investment decision, please consult your financial advisor about your individual situation.

To learn more about Provenance Wealth Advisors financial planning services click here or contact us at info@provwealth.com

Posted on July 16, 2025