Dementia and scams: how to protect a parent with memory loss

Why the risk goes up

The Alzheimer's Association says dementia can make it hard to recognize or report mistreatment, and that strangers may target people whose memory problems make them easier to take advantage of.

Research points the same way. AARP describes a Johns Hopkins study of more than 81,000 Medicare beneficiaries, published in 2020 in JAMA Internal Medicine. People later diagnosed with dementia were more likely to miss bill payments and see credit score drops, starting as early as six years before diagnosis. AARP also cites a 2016 study that found older adults with mild cognitive impairment were more susceptible to scams.

Early money signs to watch for

• Trouble keeping track of monthly bills. The Alzheimer's Association lists this among early signs.
• Poor judgment with money, not just an occasional bad decision.
• Bills going unpaid when there is enough money to cover them.
• Lots of sweepstakes, contest or health product mail and email.
• A sudden change in their financial situation, which the Alzheimer's Association says may be the result of exploitation.
• A careful person suddenly becoming less careful with paperwork.

Practical controls that help

1. Bank alerts and duplicate statements

   Ask the bank to send alerts for large withdrawals and unusual activity. AARP describes families arranging a second set of statements to watch for patterns.

2. A trusted contact on every account

   The CFPB says a bank can reach out to a trusted contact if it suspects exploitation. It does not give that person control of the money.

3. A credit freeze

   Free at all three bureaus, and it lasts until lifted. It blocks new credit in your parent's name.

4. Secure important papers

   Keep checkbooks, tax returns and statements out of easy reach, as AARP suggests.

5. Fewer scam calls

   Turn on the carrier's free scam call protection and the phone's unknown-caller screening.

6. Screened email

   With dementia, the risk is not just one bad click. It is forgetting a warning a day later. OwlGuardian quarantines suspicious Gmail before your parent sees it and asks you, the Trusted Contact, to decide. Your parent sees nothing different.

7. A family code word

   The Alzheimer's Association recommends a private code word to confirm identity in urgent calls. Write it somewhere only family knows.

Legal tools to plan for

Legal planning works best early, while your parent can still make their own choices. The Alzheimer's Association notes that a person with dementia keeps the right to make decisions as long as they have legal capacity.

• Durable financial power of attorney: Your parent names someone to handle money if they can no longer do it. "Durable" means it stays valid after incapacity.
• Health care power of attorney: Names someone to make medical decisions.
• Living trust: Another way to give instructions about money and property.
• Guardianship or conservatorship: A court-appointed role, usually a last resort when no plan is in place.

Free help for caregivers

The Alzheimer's Association says you do not need proof to report suspected abuse. Investigating is the professionals' job.

• Alzheimer's Association 24/7 Helpline: 1-800-272-3900. Free and confidential, around the clock, with interpreters in over 200 languages.
• Eldercare Locator: 1-800-677-1116. Finds local help, including Adult Protective Services.
• National Elder Fraud Hotline: 1-833-372-8311, Monday to Friday, 10am to 6pm Eastern, if your parent has lost money to fraud.
• If your parent is in danger right now: Call 911.

Questions people ask