No one likes to think of their parents getting older and needing assistance, but it is the reality many of us face. If you are in the Sandwich Generation, you may find yourself caught between the responsibility of caring for aging parents and supporting your own children’s needs. Among the many challenges Sandwich Generation individuals face, protecting parents from elder financial abuse is of utmost importance. Baby Boomers and the Silent Generation are getting older, and with their accumulated assets, they have a higher chance of being defrauded than those who are younger. According to one estimate, seniors collectively lose up to $36.5 billion a year to elder abuse. Below, we will delve into the topic of elder financial abuse and offer practical steps you can take to safeguard your parents’ finances.


Understanding Elder Financial Abuse

Elder financial abuse is a distressing reality affecting thousands of senior citizens every year. This exploitation can take various forms, such as scams, fraudulent schemes, undue influence, and unauthorized use of financial resources. Unfortunately, older adults are often targeted due to their vulnerability, cognitive decline, and lack of familiarity with new technology.  


Some warning signs of elder financial abuse may include:


  • Unusual activity in bank accounts; such as large or unexplained withdrawals
  • Withdrawals from an inactive account
  • A newly opened bank or brokerage account
  • New credit card or cards with balances
  • Bank, credit card or brokerage account statements sent somewhere other than the standard mailing address
  • Suspicious looking signatures
  • Closing / cashing in of a Certificate of Deposit or sale of an investment without worrying about penalties


Protecting Your Parents from Financial Abuse


Tip #1: Open Lines of Communication

The foundation of protecting your parents from financial abuse lies in maintaining open, honest, and respectful communication with them. Initiate regular conversations about their finances, estate planning, and financial goals. Create a safe space where they feel comfortable discussing any concerns they may have regarding their financial matters. Listen more than talk.


Tip #2: Educate Your Parents

Many seniors are not fully aware of the potential risks and scams prevalent in the digital age. It’s important to educate your parents about common types of financial fraud, such as phishing emails, fake charities, fake lotteries, and fraudulent investment schemes. The opportunity to ‘teach’ by showing or talking about specific examples can help them know how to identify warning signs. It can be beneficial to regularly emphasize the importance of never sharing sensitive information with those they don’t know.


Tip #3: Monitor Financial Accounts

When reviewing estate planning with your parents, establish a Durable Power of Attorney (DPOA). With your parents' consent via the DPOA, regularly monitor their financial accounts for suspicious activity. Keep an eye out for unusual transactions, large withdrawals, or significant changes in their financial patterns. Stay vigilant, especially if your parents have hired caregivers or others who have access to their accounts.


Tip #4: Collaborate with Trusted Professionals

You may already have a team of trusted professionals, including attorneys and a financial advisor or Family CFO, who assist in your own financial planning. Engage these professionals to help safeguard your parents’ finances as well. If you are interested in a Team to assist and coordinate these steps with you, our Family CFO services provide this type of assistance.


Tip #5: Set Up Automated Systems

Consider setting up automated systems for bill payments and regular expenses to minimize the risk of missed payments or late fees. Automatic deposits can also ensure their retirement income is received safely and consistently.  In contrast with the traditional investment focused financial planners, as a Family CFO we can assist with the development and monitoring of ongoing cash flows.  


Tip #6: Stay Informed on Scams and Trends

Elder abuse tactics are constantly evolving. Stay informed about the latest scams and trends in financial exploitation to better protect your parents. Regularly update your parents on potential risks and precautions they can take to stay secure. If you suspect elder fraud, don’t wait to call and report the fraud.


Tip #7: Proactively Address Cognitive Decline

It’s unnerving as you notice signs of cognitive decline in your parents, however not taking action can lead to greater challenges. Encourage, or take them to visit their healthcare provider for evaluation and, if necessary, explore options for financial management support. Buttonwood works with professionals like Advocates for Seniors.


Tip #8: Freeze Credit Lines

If your parent is no longer in need of their credit for future purchases due to advancing age or a surplus of assets, you can freeze their credit lines at the three credit agencies: Experian, Equifax, and TransUnion. This can prevent thieves from accessing your parents' credit for fraudulent purchases and credit lines.


Tip #9: Add to "Do Not Call" List

If they are not already registered, we recommend registering your parent for the National Do Not Call Registry and the National Do Not Mail List to remove unsolicited phone calls and junk mail offers.


As the key ingredient to the Sandwich, our Generation is juggling the challenging responsibilities of caring for both parents and children. However, with these responsibilities comes the opportunity to protect your parents from elder financial abuse. Together, we can create a secure financial environment for our loved ones in their golden years. Contact us today to learn more. 

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The families and individuals we serve aren't looking for surface answers and financial products. They're looking for an experienced team that has been tested across market conditions, that communicates honestly, and that approaches every client relationship from a fiduciary capacity in a long-term commitment. That's what an established boutique wealth management firm looks like in practice. What experience really means Experience in this industry isn't about credentials alone. It means you have been present with clients through market downturns and periods of uncertainty. You have worked alongside families through estate complexity, business transitions, and inheritance conversations. You have coordinated tax strategy, cash flows, and generational goals at the same time; because for most families, those things can't be separated. Our Team brings that depth to every engagement. 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Our advisors work with individuals, families, and business owners on comprehensive, fiduciary-driven financial plans built around your long-term goals. Frequently Asked Questions What is the Buttonwood Agreement? The Buttonwood Agreement was a compact signed on May 17, 1792, by 24 stockbrokers and merchants in New York City. It established standardized rules for securities trading, dealing only among members, and charging a fixed commission. It is considered the founding document of the New York Stock Exchange. When is Buttonwood Agreement Day? Buttonwood Agreement Day is observed annually on May 17, marking the date the original agreement was signed in 1792 outside 68 Wall Street in New York City. Why is the Buttonwood Agreement significant in finance? The Buttonwood Agreement replaced chaotic, unregulated securities auctions with a system of structured, trust-based trading. 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All investing involves risk, including possible loss of principal. Please consult a qualified professional for advice specific to your situation.

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