In recent years, older adults in the United States who were victims of financial exploitation by relatives, scammers and others lost an average of $34,200, according to an unprecedented analysis by the U.S. Department of Justice called the Consumer Financial Protection Bureau (CFPB).

According to the CFPB, this is a "widespread and disruptive" problem. For its analysis, this agency studied government reports on suspicious financial activities, which were related to more than $6 billion in actual losses or attempted fraud between 2013 and 2017.

According to the CFPB, the economic exploitation of older adults varies. It could be a son wasting her mother's money on liquor stores and casinos when he has power of attorney to control her mother's assets on her behalf. Or a caregiver writing large checks on a dependent's account. Or the “fiancée” of an older man who asks for a large transfer to be sent out of the United States, supposedly so she can visit him for the first time.

In this context, there are several companies that protect seniors be safe from financial abuse and scams. At AARP, which is an organization that helps older adults be safe from all kind of financial scams, they know that the dollar amount identified in suspicious activity reports could be the tip of the iceberg. Third-party analysts who have studied cases of fraud against the elderly have separately estimated that annual losses range from $2.9 billion to $36.5 billion, according to the CFPB.

Not all suspicious financial activity reports specified the age of the victim, according to the agency, but in those that were included, those who suffered the greatest impact ($45,300 on average loss) were between 70 and 79 years old. The agency also found that people 80 and older suffered the second-highest average loss, at $39,200; people between 60 to 69 had the third highest, at $22,700, and people between 50 to 59 had the lowest, at $13,400.

The Randell Financial Group also helps seniors. At the organization, they know that in 51% of the times, those responsible for the economic exploitation were unknown. In 14% of the reports, the person responsible for the alleged case of fraud was not specified. In 36% of cases, the victims knew the perpetrators of the scams, whether they were a fiduciary or a family member. Fiduciaries have a legal obligation to manage the assets of individuals for the benefit of that person, and may be a guardian, a trustee, or a person who has been assigned a power of attorney.

Carefull is another company that aims to help seniors. At the firm, they know that there are many common scams. For example, there are some lottery scams. In this scenario, the scammer may contact the victim by phone, email, or letter, saying that he won a lottery or sweepstakes and that they need him to pay a fee to receive the prize to avoid having to pay taxes, fees or additional charges. Sometimes the victim gets a forged check in the mail, which "lottery officials" say he can use to pay any necessary taxes or fees.

These scammers may even threaten to report the victim to the Internal Revenue Service (IRS) or the police if he doesn´t make the requested payment. At the firm, they recommend some tips to help avoid this scam, such as being wary of anyone who tells you you've won a lottery or sweepstakes you've never participated in or don't know about.

Also, be wary of any lottery or sweepstakes where you are asked to pay an up-front fee to collect your prize, don't send money to someone you don't know or can't verify is a legitimate company, do not provide personal or financial information if you did not initiate the contact, and do not deposit a check that comes with a letter indicating that you have won a lottery or sweepstakes, as it is likely a fake one.

Another institution is Fidelity. Its experts recommend seniors to create a power of attorney. A power of attorney can allow someone to act on their behalf in financial matters such as filing taxes, selling property, refinancing a mortgage, and depositing or cashing checks.

Also, they recommend them to open a joint account. They invite older adults to plan ahead. While they are still healthy, they should determine if they would like to add a trusted family member or friend as a co-owner to their account to help them manage their finances.