Most of us think we know what we would do if an older parent were being scammed.

We would show them the evidence. Explain what is happening. Tell them to stop sending money.

Problem solved.

Unfortunately, it may not be that simple.

Today’s scammers can spend weeks or months building a relationship with someone. They may offer friendship, romance, companionship, or even an investment opportunity. By the time family members discover what is happening, the victim may trust the scammer more than the people trying to protect them.

And that creates a very difficult question:

How do you help someone who doesn’t believe they need help?

Why This Matters

Financial scams targeting older adults have become far more sophisticated.

Many scammers are not simply sending random emails asking for money. They build relationships. They learn about the person. They gain trust. And they may gradually convince the victim that family members, banks, or others who question the relationship are trying to interfere.

That emotional connection can make facts surprisingly ineffective.

A family member might uncover a fake photograph, a false name, or other clear evidence of a scam. But presenting that evidence may not end the problem. In some cases, confronting the person too aggressively can cause them to become defensive and even more protective of the scammer.

Banks are beginning to recognize this problem. Some are training employees not only to identify suspicious transactions, but also to understand the psychology involved when talking with someone who may be under a scammer’s influence.

The financial industry has added another important safeguard. Brokerage firms are required to make a reasonable effort to have clients name a “trusted contact person.” This rule applies to clients of all ages, not just seniors. But there is an additional protection for people age 65 and older, as well as certain younger adults who may have difficulty protecting themselves. If the brokerage firm reasonably suspects financial exploitation, it may temporarily hold a suspicious withdrawal or transaction while it looks into what is happening and may contact the trusted person. The trusted contact does not have control over the account and cannot make financial decisions for you. Think of that person as an extra set of eyes the financial firm can turn to when something doesn’t seem right.

Families can learn from that approach too.

Instead of starting with:

“You’re being scammed.”

Try asking questions.

“How did you meet this person?”

“Have you ever met in person?”

“Why are they asking you to send money?”

“Would you be willing to wait a few days before sending anything else?”

The goal is to help the person begin questioning the situation themselves.

It also helps to avoid embarrassment. Intelligent, capable people get scammed every day. If someone feels foolish or ashamed, they may hide what is happening rather than ask for help.

Estate Planning Can Provide Another Layer of Protection

This is also where good planning can make a difference.

A properly prepared financial power of attorney allows someone you trust to help manage financial matters if you are no longer able to handle them yourself.

But there is an important limitation.

If a person still has the legal ability to make their own decisions, a power of attorney generally does not give a child or other agent the right to simply take control away from them.

That is why planning should happen before a crisis.

Families may want to discuss who should help if financial judgment begins to decline, who should be watching for unusual activity, and when trusted family members should become involved.

In some situations, additional safeguards may also make sense depending on the person’s age, circumstances, and financial situation.

Simple Lesson

Protecting an aging parent from financial exploitation takes more than recognizing a scam.

It takes communication, patience, and planning before there is a problem.

The best protection is often a combination of trusted people, a thoughtful estate plan, and a family that is comfortable talking about money before something goes wrong.

Action Step

Have a conversation with your parents or other older family members before there is a crisis.

Ask who they would want involved if someone became concerned about unusual financial activity. Make sure their estate plan and financial authorizations are current. And consider whether the people they have chosen are prepared to step in when needed.

If this topic raises questions for you or your family, feel free to call (517) 548-7400 or contact us online: https://www.michiganestateplans.com/contact-us