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Essential Steps to Prevent Fraud and Identify Theft Thumbnail

Essential Steps to Prevent Fraud and Identify Theft

Behavioral Finance Grant Reeves

| February 11, 2025

Fraud and identity theft crimes are on the rise and are becoming ever more sophisticated. While anyone can fall victim, seniors are often targeted in particular and need to have plans and preventative steps in place ahead of time.

  1. Build a Trusted Support Network
    • Designate trusted contacts who can help manage finances and spot unusual activity. These can actually be designated with your providers to give them a point of contact if issues arise.
    • Establish a power of attorney (PoA) to ensure financial and legal matters are handled responsibly.
    • Choose a preferred guardian (likely on your PoA) and create a clear plan for your assets to prevent disputes or financial exploitation.
  2. Recognize and Avoid Common Scams
    • Phone and Email Scams: Never trust unsolicited calls, texts or emails. Always verify contact information independently.
    • Family Emergency Scams: Scammers may pose as a relative in distress. Advancements in AI can make these extremely convincing. Have a family verification system with personal questions only your real loved ones would know (e.g., “What color did you paint your room in middle school?”).
    • Medicare, Social Security or IRS Scams: Government agencies will never demand payment over the phone or threaten arrest.
  3. Strengthen Digital Security
    • Use Strong Spam Filters: These help block phishing emails and scam messages before they reach you.
    • Install Antivirus and Anti-Ransomware Software: This prevents malware attacks. If you’re not tech-savvy, ask a trusted person for help.
    • Keep Devices Updated: Regular software updates include security patches that help protect against cyber threats.
  4. Plan for the Future
    • Set up a fraud response plan in case you or a loved one falls victim to a scam.
    • Regularly monitor bank accounts and credit reports for suspicious activity.
    • Educate family members so they can help protect aging relatives from fraud.

Taking these steps now can prevent financial loss and provide peace of mind. 

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If you have any questions, you can reach out to Grant here.