The call comes on a Tuesday afternoon. The voice is calm and official. It says there is a problem, a legal one, and it needs a Social Security number to fix. Your mother with dementia stays on the line. She wants to be helpful. That is how most of these scams work.
Why dementia raises the stakes for fraud
The Alzheimer's Foundation of America, citing the FBI, estimates that scammers steal about $7 billion from seniors each year. It adds that seniors with dementia face even greater risk because of how the disease affects the brain. Read that again. The risk comes from the illness. It does not come from carelessness or poor character.
Losses also land harder on older adults. The CFPB notes that losing money to a scam can be especially devastating for older adults, who may not be able to earn back what they lost. Identity theft stretches the damage out. A stolen Social Security number does not expire when the phone call ends. It can be used months later, in places the family never thought to look.
Protection is a family job. If you handle a relative's mail, bills, or accounts, you are part of the defense. This article is educational only. It does not replace advice from a lawyer, a financial professional, or a tax advisor.
Setting up a trusted contact and working with the bank
The CFPB suggests choosing a trusted contact person to help protect money. In plain terms, that is someone a financial institution can reach if something looks wrong. Think of it as a second set of eyes. The details differ by institution, so ask how it works before you assume anything.
The CFPB also recommends working with the family member's bank or credit union to guard against financial exploitation. A good first question is simple: what protections do you offer for older account holders? Expect different answers from different places. Write them down.
The CFPB has a consumer advisory on planning for diminished capacity and illness. Planning works best early. While your relative can still take part in decisions, the conversation is easier and the choices are theirs. After a crisis, options narrow fast.
Credit freezes and monitoring for identity protection
The FTC publishes guidance titled "Get a credit freeze to stop identity thieves." A freeze is a tool meant to make it harder for a thief to open new credit in someone's name. This article does not cover how to place, lift, or pay for one. Read the FTC's credit freeze page for the steps.
The FTC also has guidance on managing someone else's money, including protections against identity theft and fraud. What a caregiver can do depends on the situation. Read the full text rather than a summary, including this one.
Steps for checking credit reports are best taken from the credit bureaus' own consumer pages, since procedures change. No step here promises any particular credit score result. A freeze or a report check is about spotting and blocking misuse, not about moving a number.
Recognizing red flags and reporting fraud
The DOJ warns about one pattern worth knowing. Callers claim to be from the National Elder Fraud Hotline, threaten to sue, and ask for personal information or money. Real hotline staff do not need either to take a report. The DOJ advises not to give a Social Security number or money in response.
- A caller claims to be from a hotline or agency you did not contact.
- The call includes a threat of a lawsuit.
- The caller asks for a Social Security number.
- The caller asks for money.
If you suspect fraud, report it. The National Elder Fraud Hotline is free for anyone age 60 or older. Call 833-FRAUD-11 (833-372-8311), Monday to Friday, 10:00 a.m. to 6:00 p.m. Eastern. Reporting is the first step. A case manager stays as the point of contact and helps with federal, state, and local reporting and other resources.
Some limits apply. The sources here do not list other places to report identity theft, and they do not explain power of attorney or guardianship. State law matters too. The DOJ's statute page notes that elder abuse laws vary considerably. Missouri, for example, defines an eligible adult as someone 60 or older who cannot protect their own interests, and lists financial exploitation as abuse. Your state may read differently. Look it up.
