From Victor Lustig selling the Eiffel Tower (twice), to the collapse of Enron, to Sam Bankman-Fried’s fraudulent crypto empire, scams have always been part of humanity.
But lately, it feels like fraud is hitting closer to home. Nearly everyone has a story—an aunt duped by a “grandchild” in trouble, a neighbor who clicked the wrong link, or a parent who answered the wrong phone call.
And the data backs it up.
According to the Federal Trade Commission, consumers reported over $12.5 billion in losses to fraud in 2024. This represents a 25% increase from 2023. With the rise of artificial intelligence making scams more sophisticated and harder to detect, we can expect this trend to continue.
So what can we do to protect ourselves and the people we care about? Here are a few practical steps:
1.) Have the hard conversation sooner rather than later
It’s never easy to talk to a parent or loved one about the risk of being scammed. No one wants to feel judged or incapable, so these conversations require empathy and patience. However, it's also one of those conversations that only gets harder the longer you wait.
2.) DON'T add yourself to their accounts
This may feel like the easiest way to "keep an eye on things," but it can create more problems than it solves. For example, I’ve seen situations where a child was added to a parent’s brokerage account and it accidentally eliminated one of the most valuable estate planning benefits: the step-up in cost basis. Joint ownership can also lead to legal complications, gift tax issues, unexpected creditor risk, and inheritance headaches.
3.) Ask to be their trusted contact
Most banks and financial institutions allow account holders to add a “trusted contact.” This is an excellent alternative to joint ownership. It doesn’t give you access or control—it simply allows the institution to notify you if something looks suspicious. It’s a non-invasive safeguard that can make a big difference.
4.) Consider power of attorney documents
A financial power of attorney (POA) allows a trusted individual to act on behalf of your loved one if they’re ever unable to manage their finances. Unlike joint ownership, a POA preserves their control while still giving you the ability to help when necessary. It should be created with an attorney and tailored to your loved one's needs.
5.) Help them find a class through a trusted resource
Organizations like Senior Planet (through AARP) offer free in-person and online classes to help older adults spot common scams, use technology safely, and stay informed. Local community colleges or libraries often provide similar workshops.
6.) Help them freeze their credit
Freezing your credit with the major bureaus (Experian, TransUnion, and Equifax) is one of the most effective ways to prevent new accounts from being fraudulently opened. It’s free and a worthwhile safeguard for anyone not planning to take out new loans. If a loan is needed later, unfreezing your credit is quick and easy.
7.) When in doubt, assume it's a scam
Remind your loved ones that it’s better to be cautious than compromised. A false alarm might mean a minor delay or a follow-up call—but the alternative could mean losing savings, identity theft, or worse.
Scammers are getting smarter, so we have to get more proactive. The best time to talk to your loved ones about protecting themselves was yesterday. The second-best time is today. If you’d like help thinking through these conversations or putting guardrails in place, I'm here to help.