Jill on Money: Protecting Family Members from Scams and Financial Fraud

The Rise of Impostor Scams

• 📈 Losses from impostor scams among those aged 60 and over have soared in the past five years.
• 💰 The number of individuals losing $10,000 or more has increased more than fourfold.
• 💸 Losses exceeding $100,000 have seen an eightfold increase.

Initiating the Conversation

• 💬 The most powerful protection against financial fraud is open conversation among family members.
• 📝 Start by creating a family checklist to answer three essential questions:
  • 1. All account numbers and access methods.
  • 2. Property and investments owned, and their beneficiaries.
  • 3. Where household income is deposited, which can flag errors early.

Practical Protection Measures

• 🤝 You don't need joint accounts; being added as a trusted contact at a financial firm allows institutions to alert you and the account owner of suspicious activity.
• 📄 Requesting a copy of financial statements, even without control, provides another set of eyes to review for potential issues.

Freezing Credit Records

• 🔒 Freezing a credit record is a highly recommended protection that restricts access to a credit file, making it harder for identity thieves to open new accounts.
• ⚠️ While cumbersome, a freeze must be enacted at all three major credit agencies.
• 🚗 To apply for new credit (like a car loan), the freeze must be temporarily unfrozen and then re-established afterward.