What Can I do to Prevent Financial Fraud?

Unfortunately, financial fraud is rampant – and older Americans are often the targets. Once the fraud has happened it can be hard to recover what’s been stolen. Here are two strategies recommended by the Consumer Financial Protection Bureau:

Choose a trusted contact person

Banks, credit unions, and brokerage services usually offer the option to identify a trusted contact who can be notified if you cannot be reached when they suspect fraudulent transactions may be occurring.

You’ll want to make sure that you understand the trusted contact policy and how to replace or add a new trusted contact if needed.

Plan for diminished capacity or illness

No one wants to think about not being able to independently make wise financial decisions, but planning ahead for others to step in can help ease the transition for loved ones and prevent fraud or financial abuse.

One important preparation step is to organize your important documents and keep them in a secure place, available to your trusted contact or family members in case of an emergency.

• Make a list of your bank and brokerage account numbers. Keep a separate list of online passwords or PINs.
• Make a list of all other financial accounts like mortgages, insurance policies, and retirement benefits.
• Identify your Social Security status and how payments are directed.
• Create a contact list of your medical, business and financial professionals, like doctors, accountants, bankers, brokers and insurance agents.

Creating a durable financial power of attorney is a good way to establish the legal authority for someone to make financial decisions if you are not able. Consult a lawyer to help you understand if this legal strategy make sense for you.

An experienced Shelbourne Law attorney will listen to what’s important to you and help you plan for how to protect your assets from potential fraud. You can call us at 843-871-2210 to get started or complete the contact form on our website and we will contact you.