Between 2006 and 2010, the identities of more than 2 million parents were stolen by a younger family member, according to a recent study.
Laws in most states add extra penalties to identity theft charges when the victim is a senior adult, and senators Amy Klobuchar (D-MN) and Bill Nelson (D-FL) introduced legislation last week to protect seniors from fraud by court-appointed guardians and conservators.
The typical scenario in this type of theft is when an adult child starts helping an elderly parent with his or her finances. The sad part is that the crime can go unnoticed for long periods of time, because the elderly don’t check their credit reports as frequently as their younger counterparts.
And even when the theft is reported, it’s often reported to the person in charge of the senior’s finances – not the senior. If the person told about the theft is the one doing the stealing, the theft could go on indefinitely, and with no consequences to the thief.
To avoid identity theft of this nature, two people should review all transactions of the elderly family member – one should be an independent person, like an attorney or accountant. This will help to safeguard both when a relative is given signatory authority for financial accounts or has durable power of attorney, and to make sure the parent is preyed on by anyone else.
Senior adults should also pay close attention to their bank and credit card statements, as well as their credit reports. Look for fraudulent or incorrect entries. If the elderly person is unable to do so, a trusted person should take care of it and report to the senior.
