Scamming Grandma: Financial Abuse of Seniors Hits Record

[mahatmakanejeeves]

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Scamming Grandma: Financial Abuse of Seniors Hits Record
Banks report 12% increase of suspected cases as they step up efforts to detect and stop fraud

By Yuka Hayashi
Jan. 24, 2019 10:48 a.m. ET

U.S. banks reported a record 24,454 suspected cases of elder financial abuse to the Treasury Department last year, more than double the amount five years earlier, according to government data.

The increase occurred as new federal and state laws are prompting banks to take a more active role in trying to address frauds and scams that target older customers. For their part, banks are beefing up training programs for employees on how to detect, stop and report issues without violating a customer’s privacy. Employees are even...

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[KT2000]

1. double-edged sword sometimes

My SIL and her brother have power of attorney over their mother who is in "memory care." She thinks she is on a cruise ship or train but she thinks she still gets off to drive her car.
None of her mother's banks accept dual power of attorney so they will not release funds to pay for her care. The4y insist the mother come to the bank to straighten this out but she has no idea where she is! My SIL is now tearing through her retirement funds to pay the $10,000 a month it takes at the care facility while this gets fixed.

Sons and daughters have to now keep up with law changes even if the parents appear to be in good health. The parents thought they were being equitable at the time, but now my SIL is the one losing her money at warp speed.

[Farmer-Rick]

2. I get around that by putting another person on my accounts

That way if I go crazy or become incapacitated, that other person can access all the money in my accounts.

But you have to have complete trust that person won't access our accounts unnecessarily.

[KT2000]

3. I've done that too

but with these new fraud laws, I am going to double check that there would not be a problem, as in requiring me to OK the other person using the money while I am crazy or unconscious. Banks are immovable when they fear a lawsuit.

[Farmer-Rick]

4. Yeah, that's not a bad idea.