Elderly must guard money from the unscrupulous

BOSTON - Whether it's a rebate check from Medicare, an oil spill in the Gulf of Mexico, or any other headline news, there's likely a scam artist not far behind. And more often than not, the victim is an older American.

More than 7.3 million older Americans - one out of every five citizens over the age of 65 - already have been victimized by a financial swindle, according to a survey released as part of World Elder Abuse Awareness Day, which was June 15.

One problem is that few professionals or adult children appear prepared to spot when an older American may be vulnerable to financial abuse. A new program launched last week seeks to train medical professionals to assess when older patients might be likely to fall prey to elder investment fraud and financial exploitation.

The gist of this program is that medical professionals are in the best possible position to not only diagnose cases where elders are being swindled but also to alert state securities regulators or what some call "adult protective services professionals" about suspected investment fraud involving these at-risk patients.

The program, a new partnership between the Investor Protection Trust, the North American Securities Administrators Association, and the National Adult Protective Services Association, was based on a pilot program in Texas that produced three cases resulting in fines and prison sentences, including a 99-year sentence for one Edward S. Digges Jr. who raised at least $10 million from about 130 Texas investors, the majority of whom were elderly.

According to Don Blandin, president and CEO of Investor Protection Trust, the centerpiece of the new program is the Clinician's Pocket Guide, which contains a list of questions that medical professionals can ask older patients. Doctors can get a sense of their patient's financial capacity by asking the following questions:

- Who manages your money day to day? How is that going?

- Do you run out of money at the end of the month?

- Do you regret or worry about financial decisions you've recently made?

- Have you given power of attorney to another person?

- Do you have a will? Has anyone asked you to change it?

If the answers to those questions raise suspicion, the doctors are then urged to probe for further details by asking whether the patient is having any of the following concerns:

- I have trouble paying bills because the bills are confusing to me.

- I don't feel confident making big financial decisions alone.

- I don't understand financial decisions that someone else is making for me.

- I give loans or gifts more than I can afford.

- My children or others are pressuring me to give them money.

- People are calling me or mailing me asking for money, lotteries.

- Someone is accessing my accounts or money seems to be disappearing.

If there's any cause for concern, the doctor is asked to consider sending the patient to one of four referral services. In fact, the doctor is required in most states to report cases where fraud or exploitation may have occurred to an adult protection service. In other cases, the doctor might send the patient for further medical testing for cognitive, neurological, or other conditions.

But there's no reason to wait on medical professionals to spot cases of seniors who are being swindled. For instance, the program gives doctors a list of red flags. There's no reason why you - either as an older American, an adult child of one, or a financial professional - can't do the same. Ask yourself: Are you an older adult or do you know one who:

- Is socially isolated, depressed or lonely?

- Has experienced a change in the ability for self-care?

- Depends on someone to provide everyday care?

- Is uncomfortable with the person providing care?

- Has just lost a loved one, such as a spouse?

- Is financially responsible for an adult child or spouse?

- Has given power of attorney to someone else to manage his or her finances?

If the answer to any of those questions is yes, then it might be well worth going into high-alert mode. In fact, it might be worth staying in high-alert for the rest of this century. Why? According to Blandin, those elders at greatest risk of being scammed are those with mild cognitive impairment who can perform most daily functions, but have trouble or become confused with others, such as following their medicine regimen or managing their finances. That may be quite a few people. According to at least one study, more than one-third of the 25 million people over age 71 in the U.S. either have Alzheimer's or mild cognitive impairment. That represents quite a few potential scams.

(c) 2010, McClatchy-Tribune Information Services.