Financial Wellness for Seniors: Embracing Technology while Staying Safe
Technology has simplified the way we handle our money. It allows us to do transactions and check our accounts online. This eliminates the need to do everything in person. These tools are simple to use, getting better every year, and don’t cost any more than the traditional methods.
But there are risks involved, especially for our seniors. This group is at higher risk of being targeted by scams and mistreatment due to the rise of technology. Scams like phishing, fake lotteries, and deceitful caregivers are increasing in frequency and complexity.
There are ways to mitigate these risks. Here are five essential strategies that should help:
Facilitate Discussions: Prevention starts with awareness. Initiate regular family conversations about the various forms of financial abuse. This approach helps seniors learn and feel safe to share their worries in a supportive environment. Discussing news stories, sharing articles, or attending community workshops on financial scams can be part of these discussions.
Simplify Finances: Streamlining finances can significantly help elders in managing their money. This can involve reducing the number of credit cards, consolidating bank accounts, and setting up automatic bill payments. Simplification makes it easier for seniors to track and monitor their finances, reducing the risk of unnoticed fraudulent activity.
Regular Monitoring: It’s important to consistently review your financial statements for suspicious activity. Key warning signs include:
Unusual withdrawals or transfers: Large, unexplained withdrawals or unfamiliar transfers can indicate unauthorized access to accounts.
Missing deposits: Expected deposits that do not appear in the account as scheduled could suggest interference.
Odd charges: Charges from unknown sources or for unfamiliar services/products need investigation.
Changes in spending patterns: A deviation from regular spending habits may signal that someone else is using the account.
Additionally, setting up alerts for these activities is beneficial. Seniors can designate trusted individuals—be it family members, friends, or a family lawyer—to receive these alerts. This network of trusted contacts ensures that if the senior misses something, someone else can catch it.
Secure Legal Documents: Keep legal documents like wills, trusts, and powers of attorney updated and stored securely. It's very important. Engaging a trusted attorney or financial advisor for periodic reviews helps in maintaining their relevance and understanding.
Limit the number of people who can access these papers. Choose a family member or a money expert to have access. Inform the rest of the family about the location of the papers.
Exercise Caution in Sharing Information: Emphasize to your loved ones the critical importance of never sharing personal information, such as Social Security numbers, account numbers, or other financial details, over the phone unless they are the one initiating the call. This is vital in preventing identity theft.
Teach people to verify the identity of callers and the authenticity of their requests. This applies even if the callers claim to be from well-known organizations.
It is important to teach seniors about scammers' tricks. These tricks include rushing them or using scary words. The purpose of this is to prevent seniors from giving away personal details.
Bottom Line
We use these strategies to keep seniors safe from potential scams and fraudsters. Additionally, these strategies also help seniors feel confident and capable when it comes to managing their finances securely. In doing so, we ensure that their golden years are marked by peace and security, rather than uncertainty and risk.
Sources:
https://oechsli.com/my-account/us/library/89168/
Disclosures:
This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.
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This material is provided as a courtesy and for educational purposes only. Please consult your investment professional, legal or tax advisor for specific information pertaining to your situation.
These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.