Recently an elderly client fell the victim to financial abuse. This client lives alone and gets confused when conversations move too quickly. So, it was no surprise that when a phone scammer contacted him with an elaborate story asking for money, he was a target for financial elder abuse.
Having found a willing victim, the scammer connected with our client on multiple occasions harassing and pressuring him for money each time. We became suspicious after the client contacted us requesting to redeem money from his retirement account. This behavior was out of character for him and when questioned as to why he needed additional money his answers didn’t add up.
All advisors have an obligation to process a client’s request even if they suspect the client is experiencing a form of financial elder abuse or making poor choices due to diminished capacity. To complicate the issue further, due to confidentially, advisors are not able to share our suspicions with anyone.
Thankfully, this client had designated a trusted contacted person (TCP) on his file. We reached out to the client’s TCP and discussed our suspicions but no more (maintaining financial details confidential). This was enough for the TCP to connect with our client and 1) confirm that there was indeed a scam and 2) take steps to stop any payments, help change phone numbers etc.
A trusted contact person (TCP) can be a responsible friend or relative we can reach out to if we suspect you are being financially exploited or are making unusual choices due to diminished capacity. Unlike a power of attorney, a TCP has no authority over your account and is not to privy to your financial information.
If you would like to learn more about choosing or adding trusted contact person to your account, please contact the office to chat with Ryan.
