8 ways to prevent financial abuse against seniors - Houston weather, traffic, news | FOX 26 | MyFoxHouston

By Andrew Housser

Every year, an estimated 7 million senior citizens -- one in five Americans over age 65 -- become victims of financial abuse, a crime that collectively robs them of nearly $3 billion. This type of fraud deprives older people of the monetary resources they need to live comfortably and healthfully throughout the remainder of their lives. These steps can help in safeguarding aging loved ones from this type of abuse.

1. Educate your loved ones.

Victims often do not realize they are being exploited. Do not wait for them to come to you with a concern. Even if they suspect something is amiss, they may be too embarrassed to admit it. Talk to the seniors in your life regularly about potential problems.

2. Go with an outsider.

A power-of-attorney (POA) document gives a person legal authority to act on another person's behalf. A financial POA covers the ability to handle items such as bills, savings and retirement accounts, estate planning and wills for another individual. In assigning a financial POA, it is wise to keep in mind that family members are responsible for nearly 80 percent of elder fraud cases (caregivers and strangers account for the rest). Therefore, it can be wise to assign POA duties to someone with no vested interest in your family's financial holdings. If an elder wants to assign POA to a family member or friend, set limits. For example, have another person monitor the person with POA, ask for periodic written reports of financial transactions, or assign joint powers of attorney.

3. Register on the do-not-call list.

According to the Federal Bureau of Investigation, women over 60 who live alone are vulnerable targets of phony telemarketing scams. These telemarketers may be selling bogus products or services, soliciting charitable contributions for a recent tragedy, or claiming the senior has won a prize that requires money to cover the tax bill. You cannot stop all calls, but listing a phone number on the National Do Not Call Registry is a smart protective step. Registration is free and fast. Telemarketers are not supposed to call a phone number once it has been on the registry for 31 days. Remind the elders in your life not to share personal or financial information over the phone. This information includes Social Security, bank account and credit card numbers.

4. Monitor investments.

Before your loved one signs up with a broker or makes an investment, visit the North American Securities Regulators Association. On the website, find a state securities regulator in your area. This regulator can verify that a broker is properly licensed, provide background information on the broker and help with complaints. Contact the Securities and Exchange Commission to report suspected fraud.

5. Don't fall for free lunches.

Seniors often receive invitations to attend free financial workshops. Many of these events lure seniors with an offer of a free lunch or dinner. Regulators found that more than 10 percent of these seminars include fraudulent practices, such as the sale of fictitious investments. Even events pitched as "informational" can be high pressure. Let your loved ones know you will buy them lunch any time -- with no strings attached.

6. Monitor the mail.

You can regularly help your loved one sort through their mail. Check for credit card statements bearing another person's name, such as a family member or caregiver. Shred new credit card offers and bank statements. Seniors are often victims of magazine subscription scams, so watch for magazines the senior wouldn't normally read, as well as renewal and cancellation notices.

7. Check credit reports.

To ensure seniors are not victims of identity theft, routinely check credit reports. Everyone is legally entitled to free reports every 12 months from each of the three major credit bureaus: Equifax, TransUnion and Experian. You can request these reports online or via their toll-free numbers.

8. Beware of isolation.

The most vulnerable seniors are those who feel isolated from family and friends. This makes it easier for a caregiver (a relative, friend or outsider) to convince them to change their estate plans in the caregiver's favor. Prevent this isolation by being a constant, loving presence in your loved one's life. Visit or call regularly.

Make it a point to chat monthly about the senior's financial situation and concerns. Ask other family members, too, to join these conversations. Report suspected elder abuse of any kind to the loved one's state via the National Center on Elder Abuse.

Andrew Housser is a co-founder and CEO of Bills.com, a free one-stop online portal where consumers can educate themselves about personal finance issues and compare financial products and services. He also is co-CEO of Freedom Financial Network, LLC providing comprehensive consumer credit advocacy and debt relief services. Housser holds a Master of Business Administration degree from Stanford University and Bachelor of Arts degree from Dartmouth College.