Protecting a person with dementia from financial scams requires a combination of vigilance, education, legal safeguards, and practical tools to reduce their vulnerability. Dementia can impair judgment and memory, making individuals more susceptible to fraudsters who exploit confusion or trust.
First, it is important to recognize early warning signs that a person with dementia may be at risk. These include unopened mail, missed bill payments, unexplained withdrawals, or confusion about financial matters. Noticing these signs early allows family members or caregivers to intervene before scams cause serious harm[1][5].
Setting up legal protections while the person still has mental capacity is crucial. Establishing a Lasting Power of Attorney (LPA) allows a trusted individual to manage finances on their behalf, preventing unauthorized transactions. Organizing important documents in a shared, secure system and creating clear family protocols for financial decisions can also help prevent exploitation[1].
Technology can be a powerful ally in protecting against scams. Enabling two-factor authentication on banking and email accounts, setting up spending alerts, and using password managers reduce the risk of unauthorized access. Banks often offer vulnerable customer protections such as withdrawal limits and special monitoring services. Some institutions provide caregiver banking programs that allow trusted parties to set spending controls and receive alerts about unusual activity[1][2][7].
Education plays a key role. Teaching the person with dementia and their family about common scams—such as fake IRS calls, tech support fraud, or “grandparent” scams—helps them recognize red flags. For example, legitimate agencies never demand immediate payment by gift cards or threaten arrest over the phone. Seniors should be advised never to share personal or financial information over unsolicited calls or emails and to verify any suspicious contact by calling official numbers directly[1][3][4][6].
Communication protocols within the family are essential. Establish rules like never making financial decisions under pressure, always consulting a family member before sending money, and being wary if someone asks to keep financial matters secret. These guidelines help create a safety net around the person with dementia[1].
If a scam attempt is suspected or money has been lost, immediate action is necessary. Document all suspicious communications, contact the bank to freeze accounts or stop payments, and report the incident to authorities such as Action Fraud or the Federal Trade Commission. Consulting an elder law attorney can provide legal options for recovery and future protection[1][3][4].
Avoiding risky behaviors like using public Wi-Fi for financial transactions and being cautious with online purchases also reduces exposure to fraud. Regular monitoring of accounts by trusted family members or caregivers helps catch unusual transactions early[3][6].
In summary, protecting a person with dementia from financial scams involves early detection of vulnerability, legal and technological safeguards, education about scams, clear family communication, and prompt response to suspicious activity.
Sources
https://www.knowyourdosh.com/blog/help-aging-parents-manage-finances-avoid-scams
https://thefinancialbrand.com/news/digital-banking/how-banks-can-help-block-elder-fraud-194189
https://frankkraft.com/resources/frequently-asked-questions/financial-exploitation-of-seniors/
https://www.comfortinghome.com/posts/how-to-stay-safe-from-scams-that-target-older-people
https://www.allaboutestates.ca/aarp-banksafe-dementia-hub/
https://www.helpinghandshomecare.co.uk/care-advice/how-to-help-the-elderly-avoid-scams/
https://getcarefull.com/articles/what-financial-institutions-need-to-know-about-new-elder-financial-exploitation-laws
