Note to retirees: Beware the family.

Financial swindles are one of the fastest-growing forms of elder abuse. By some estimates, as many as five million senior citizens are victimized each year, says Sara Aravanis, director of the nonprofit National Center on Elder Abuse, which provides information to federal and state policy makers. Because of the problem's spread, "many states have laws authorizing financial institutions to report suspicions of elderly abuse," says Bruce Jay Baker, general counsel for the Illinois Bankers Association. Earlier this summer, the Securities and Exchange Commission hosted a Seniors Summit to highlight the issue, with SEC Chairman Christopher Cox noting that protecting seniors' pocketbooks "is one of the most important issues of our time."

Yet it's not dodgy financial experts or crooked caregivers who are the biggest threat. It's family. Children, siblings, grandchildren, nieces and nephews, and even spouses are the people most likely to rob the elderly, according to elder-law advocates and attorneys. The data that exist -- albeit in a spotty manner -- suggest that financial crimes rank as the third-most prevalent abuse of the elderly.

For victims and family members out to help, the way to combat the crime is to know what to look for and how to prevent it.
• The abuses: Some of the offenses are straightforward: A grandson swipes checks and makes them out to "cash"; a daughter uses the power-of-attorney over Mom's bank account to apply for an ATM card and withdraws money without authority; a son taking care of Dad's finances uses his father's credit card for personal purchases.

Other crimes are more intricate and generally depend on manipulating an elderly person's emotions. Over time, a niece hired to help an elderly aunt persuades her to redirect certain assets to the niece in a will or to designate the niece as the beneficiary of investment accounts or insurance policies; a nephew coerces an uncle to put the nephew's name on the deed to the uncle's house. In some instances, a sibling caring for a brother or sister pays for substandard care and lets bills go unpaid in order to preserve assets the sibling stands to inherit.

• How to detect it: If you're a retiree, you should be wary if a family member you've entrusted to help with your finances rationalizes ways to keep you from your accounts. The person might say the credit-card bill is paid and the checkbook already balanced, so there's no need for you to look at it. That could be a sign the person is trying to keep you from seeing big, unwarranted expenses or checks made out to cash.

If a family member seems eager to take you to the lawyer to sign a power-of-attorney, or talks to you about changing a will, deed or beneficiary designation on financial accounts and insurance policies, be cautious. The same holds true if the person insists on sitting in on your meeting with an attorney to help you understand what's going on. Attorneys are capable of explaining legal arrangements simply -- just ask.

For family members watching from the outside to see if an elderly person is being exploited, a lifestyle change for the elderly relative or the caregiver is a big hint. If Mom or Dad is suddenly cut off from the rest of the family, no longer pursues activities away from home -- such as church functions or a weekly card game -- or gets calls screened by another family member who always has an excuse for why the parent isn't available, "that's a big red flag," says Sally Hurme, an attorney with AARP Financial Security, an educational-outreach arm of AARP.

A family member suddenly driving a new car or living a grander lifestyle than seems reasonable should sound warning bells as well.
Approaching the victim can be tricky; retirees often balk at talking about abuse for fear they'll be seen as incapable of managing their lives. Still, communication is the first recourse. If you're convinced that abuse is occurring, contact an Adult Protective Services agency.

• How to prevent it: Start with legal documents. Retirees often want a trusted family member to manage various aspects of their lives when they can't manage it themselves. A power-of-attorney allows that -- but it can also be a license to steal if misused.

To build in safeguards, structure the document to limit what your agent can do and the accounts that are accessible. Stipulate that someone else -- a lawyer, an accountant or a different family member -- receive routine account updates, and ask your financial institution to send duplicate copies of trading records and account statements to this third party.

Establish a relationship with a local elder-law attorney (you can find one through the National Elder Law Foundation, www.nelf.org). These lawyers can help set up legal safeguards. More important: They can read between the lines if you show up with someone else in tow looking to change your will or power-of-attorney.

"When you've worked with so many families, you begin to be more aware of certain traits in people that can be signs of a problem," says Donna Beshaw, president of the National Academy of Elder Law Attorneys. Such attorneys are likely to request time to speak with you alone to gauge what might be happening behind the scenes.

Finally, if you are a retiree, listen to outside observers. You might not want to believe a family member is exploiting you, but outsiders often have a clearer view. Hear what they're saying. Then, look for the signs yourself.

Tips for Seniors
Ways to protect your finances:
• Monitor your credit-card activity.

• If you receive Social Security, have it directly deposited in your bank account.

• Be wary if a family member you aren't close to offers to help you with your finances.

• If you suspect something's wrong, find another family member you trust to talk to.

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