How can I protect my elderly parent's money? 10 safeguards

1. 1

   Start with permission, not paperwork

   Your parent's money is legally theirs to manage while they can. Every step below works best when your parent chooses it. Ask, "If a scammer ever got to you, who would you want the bank to call?" That one question opens most of these doors.

2. 2

   Turn on account alerts

   Many banks and card issuers can send a text or email for large withdrawals, transfers, new payees, and card use. Set a low threshold. Alerts can go to your parent, and some banks let them go to a second person too. Ask each bank what it offers, since options vary.

3. 3

   Name a trusted contact at the bank

   A trusted contact is someone the bank or credit union can reach "when they are unable to reach you or when they suspect possible financial exploitation," according to the CFPB. That person cannot see account information without your parent's consent. The CFPB suggests asking the bank to explain its trusted contact policy: what it would share, and when.

4. 4

   Name a trusted contact at the brokerage

   Brokerage and retirement accounts have the same option. FINRA describes a trusted contact as "like an emergency contact." The firm may reach out if it can't reach your parent or suspects exploitation. It gives the contact no authority to act, see balances or make decisions, and does not make them a power of attorney.

5. 5

   Ask about view-only access

   Some banks let an account holder give a family member read-only access to see activity without being able to move money. The CFPB has encouraged banks to "offer view-only access for authorized third parties." Not every bank does. If your parent's bank offers it, this is often the easiest way to spot a strange transfer early.

6. 6

   Freeze their credit

   A credit freeze stops new credit accounts being opened in your parent's name. The FTC says placing and lifting a freeze is free and does not affect the credit score. Contact Equifax (1-800-685-1111), Experian (1-888-397-3742) and TransUnion (1-888-909-8872).

7. 7

   Use credit cards for risky spending

   Bank accounts have fewer fraud protections than credit cards. The FTC warns that if someone is tricked into moving money out of a bank account, they "probably won't get that money back." Suggest a credit card for online shopping and phone orders, and keep the debit card for the ATM.

8. 8

   Be careful with joint accounts

   Adding yourself to your parent's bank account can feel like the simple fix, but it has legal and tax consequences. The CFPB's guide for agents under a power of attorney says not to move a parent's funds into joint accounts or your own accounts without legal advice first. Ask an attorney or the bank about alternatives before you do it.

9. 9

   Plan a durable financial power of attorney

   A financial power of attorney gives someone legal authority to make financial decisions if your parent can't. The CFPB and SEC suggest talking to a lawyer about whether a durable one is right. It only works if signed while your parent can still decide. Read more in power of attorney and scams.

10. 10

    Know that Social Security is separate

    A power of attorney does not cover Social Security payments. SSA says the Treasury "does not recognize power of attorney for negotiating federal payments." If your parent needs help managing benefits, you must apply to SSA to become a representative payee.

A one-hour bank visit checklist

Go with your parent, in person if you can. Bring photo ID for both of you. Ask:

• "Can you set up alerts for withdrawals, transfers and new payees? Can a copy go to my son or daughter?"
• "How do we add a trusted contact? What would you tell them, and when?"
• "Do you offer view-only access for a family member?"
• "Can we lower the daily limit for transfers and Zelle?" (Policies vary by bank.)
• "Do you have your own power of attorney form, or will you accept ours?"
• "What number should we call if we think it's fraud?" Write it on the statement folder.

One family money rule

Agree on this, out loud: any call, text or email that asks to move money, buy gift cards or share a code gets a call to me first. Bank impostors often say your money is "at risk" and must be moved to a "safe" account. The FTC says your money "is fine where it is."

Where OwlGuardian fits

Many money scams start with an email: a fake invoice, a "renewal" charge, a bank login warning. OwlGuardian screens your parent's Gmail and moves suspicious messages to quarantine before they see them, then alerts you to decide. It does not monitor bank accounts or credit, so use it alongside the safeguards above.

Questions people ask