By Daniel Korleski, MBA
It only takes one convincing phone call, email, or “helpful” person to create a costly problem. Elder financial abuse is a widespread problem, costing more than $28 billion each year, and affecting about 1 in 6 adults age 60 and older. In many cases, it happens gradually and can be hard to spot in the moment. And it’s not always a stranger; often it’s someone who already has access, influence, or trust. But a few small safeguards can make it much harder for anyone to take advantage of you.
This article shares clear, practical steps to help you recognize red flags, strengthen safeguards around your finances, and stay in control as you age.
Common Forms of Elder Financial Abuse
Elder financial abuse can take many different forms. Sometimes financial abuse is more subtle:
- Money vanishing from your account
- A check you never wrote
- A new credit card you didn’t open
Other times, it’s more straightforward, like valuable things that don’t belong in your home, or someone insisting you sign legal documents you don’t entirely understand.
Some warning signs you need to watch out for include:
- Unexplained withdrawals of cash or transfers of money
- New loans or credit accounts opened under your name
- Bank balance changing suddenly
- Changes to legal documents made without your knowledge or consent
- Someone else signing and cashing checks
Any of these signs could be an indication that someone is trying to exploit your trust.
Who Commits Financial Abuse Against Seniors?
Financial abuse often comes from people you know and even love. Most elder financial abuse cases are perpetrated by family members, typically adult children, followed by grandchildren and nieces or nephews. They might:
- Empty joint bank accounts.
- Make a promise to provide care in exchange for money or property and then vanish.
- Just take what isn’t theirs, confident you won’t notice or speak up.
Isolation often leaves seniors more vulnerable, particularly when someone appears to help or provide companionship but wants something in return.
Preventive Strategies for Seniors
Here are a few simple but powerful steps you can take.
Build a Trusted Circle
Find someone you trust completely, like a friend, family member, or advisor. While they don’t need full access to your accounts, they should be someone who can assist you if something doesn’t feel right.
For instance, if you have close family members you trust, involve them in your financial planning. Having regular family meetings to discuss major financial decisions or changes to accounts can help keep things open and make it more difficult for anyone to act in secret.
Lock Down Your Personal Information
Here’s how to guard your personal and financial information:
- Shred old bank statements, medical bills, or anything with sensitive information.
- Avoid giving account numbers, passwords, or your Social Security number to someone who calls you out of the blue.
- Use different strong passwords for each of your accounts.
- Enable two-factor authentication on your financial accounts, if possible.
These simple precautions can make a big difference in shielding your information and, ultimately, enjoying a comfortable retirement.
Stay Social and Connected
The more isolated you are, the more likely you are to be vulnerable. A lot of elder financial abuse takes place behind closed doors, especially when no one else is around. That’s why being socially active matters. Consider signing up for a club, checking out your local senior center, or just picking up the phone and calling a friend.
Regular social contact means more eyes and ears looking out for you, and more people you can call if something doesn’t seem right.
Work With a Team Trained to Help Prevent Elder Financial Abuse
A reliable way to help guard against financial abuse is to have a clear plan and people you trust overseeing it. When you have someone in your corner who knows your plan and your priorities, it becomes much harder for financial abuse or manipulation to go unnoticed. Together, we can put safeguards in place to help protect your accounts, honor your wishes, and reduce the chances of someone taking advantage of you.
At Cobalt Private Wealth, we understand that aging can bring new challenges and new risks. As a fiduciary, fee-based firm, our goal is to give you steady guidance and a flexible plan that helps you feel confident so you can move through retirement with more clarity and peace. Reach out to me at danielkorleski@cobaltprivatewealth.com or 719-332-3863 to schedule a meeting.
About Dan
Daniel Korleski is the President & CEO for Cobalt Private Wealth, where he helps his clients grow, manage, and protect their wealth so they can work toward a stronger financial future. With over 30 years of experience in the financial services industry, Dan has served as the managing director for Investment Trust Company, chief investment officer for the Wealth Management Group at American National Bank in Denver, and regional investment manager for the Greater Colorado Region of the Private Bank at Wells Fargo, where he oversaw the management of over $2 billion. In 2008, he was appointed by the mayor of Colorado Springs to the City’s Investment Advisory Committee. Dan holds an MBA in investment management from Midwestern State University in Wichita Falls, Texas, a Bachelor of Science in Finance from Florida State University, and is a member of both the CFA Society Colorado and The Financial Planning Association.
Dan loves to give of his time to his community and is currently serving as the Board Chair of Catholic Charities of Central Colorado and oversees the Homebound Ministry at St. Paul Catholic Church. He has also served as Chair of the Board of Trustees of Pikes Peak Hospice Foundation, President of the Broadmoor Rotary Club, and Vice President of the Board for the Pikes Peak Chapter of Trout Unlimited. Dan was born and raised in Spain and is fluent in Spanish. To learn more about Dan, connect with him on LinkedIn.
