Seniors face issues during their golden years
By Diana DeCharles
July 13, 2009
While many of today's senior citizens are fully capable of handling all of their own financial matters, elder financial fraud and abuse remains a problem. Elder financial abuse, as defined by the National Center on Elder Abuse is, "the illegal taking, misuse, or concealment of funds, property, or assets of a vulnerable elder at risk for harm by another due to changes in physical functioning, mental functioning or both."
According to a study called "Broken Trust: Elders, Family and Finances" which was done in collaboration with the Mature Market Institute, National Committee for Prevention of Elder Abuse, and Center for Gerontology at Virginia Tech, financial loss is estimated to be at least $2.6 billion dollars annually. A much actual larger dollar amount is actually suspected since many such cases go unreported.
According to the FBI's Web site there are many forms of fraud, including health insurance fraud, telemarketing fraud, and the Sweetheart Scam.
Medicare schemes often involve medical equipment manufacturers offering free products in exchange for a Medicare beneficiary's Medicare number. To avoid these scams, never ever sign a blank insurance form and keep accurate records. If you have any questions about a transaction, call your insurance company immediately.
In telemarketing fraud, a scam artist will call and say that you've won a prize, free gift or a vacation. Unfortunately, in order to receive your "free" prize you must send money or give them a bank account or credit card number. Never ever give such information to a caller. To avoid this type of fraud, do not pay for a "free" prize, don't buy from a company you don't know, and check with the Better Business Bureau, the state Attorney General or the National Fraud Information Center before you agree to anything.
A "Sweetheart Scam" occurs when a woman, often younger, "befriends" an older man. She wins his affections and manipulates him into letting her take over his estate and financial affairs.
Another major area of elder financial abuse is perpetuated on seniors by family, friends, and even strangers. In fact 55 percent of the time families, friends, neighbors and caregivers are found to have been involved. One of the reasons the elderly are at more risk is their larger net worth and their greater vulnerability.
There are three action steps you can take to avoid being a victim:
· Be organized. Develop a system for keeping up with your bills, investment accounts. Use a shredder. Have the bank send copies of your statements to a trusted adult child or financial manager. (Two sets of eyes are better than one.)
· Be informed. Know where you can go if you suspect financial abuse. Work with your attorney to review all of your estate planning documents periodically as well as to keep your power of attorney updated.
· Be alert. Keep valuables in a secure place. Before you sign any documents have someone you trust review them.
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