Family CFO Checklist
My mother recently called me to discuss a “strange” call she had received from Medicare. From the basic details she provided, I was worried that she was a victim of a scam. After all, there is ample evidence of elder fraud, a fact underscored by a recent analysis from the Federal Trade Commission.
The report shows a huge jump in scam-related losses reported by people 60 and over. “From 2020 to 2024, the number of reports from older adults who lost $10,000 or more to imposter scams increased more than fourfold, and the losses of more than $100,000 from imposter scams increased eight-fold, to $445 million in 2024."
Although my mother was not a victim, her call prompted an all hands-on-deck meeting with me, my sister and my mother. Our goal was to create a Family CFO Checklist, which would allow the three of us to get on the same page with information. The most powerful protection against most financial fraud isn't a sophisticated security system or expensive monitoring service. It's conversation among family members that can flag issues before they become problems.
The Consumer Financial Protection Bureau (CFPB) recommends that you ask three essential questions as part of this process:
Do you know all your family's account numbers and how to access them? This includes banks, credit unions, investment accounts, credit cards and retirement funds. Without this information, it is difficult to monitor for suspicious activity or assist during emergencies.
Do you understand what property and investments your loved ones own, and who the beneficiaries are?
Do you know where all household income is deposited? Understanding the flow of Social Security, pensions, and other income sources helps identify when something goes wrong.
Once you have gathered the information, it’s time to put the safety measures into place. You don’t have to be a joint owner of an account to help with monitoring. Rather, you can be added as a “trusted contact” at any financial firm. This will allow the financial institution to alert you if they notice suspicious activity. As an added precaution, you can also ask to receive copies of statements.
Our next step was to freeze mom’s credit record. A credit freeze restricts access to your credit file, making it harder for identity thieves to open new accounts in your name. You will need to enact the freeze at all three major agencies, either via their websites or by phone. Equifax: (888) 298-0045, Experian: (888) 397-3742, TransUnion: 800-916-8800. Just remember that during a freeze, the person can’t apply for new credit, so if your relative is applying for a loan, you will need to unfreeze the account and then freeze it after the process is complete.
In addition to finances, it also makes sense to drill down on medical and health information, including insurance, contact information for doctors and specialists, prescription records and list of allergies, medical and vaccination records. Most providers use some form of electronic communication or portal, so consider adding someone from the family to gain access so they can monitor doctor’s visits and communicate directly with providers. To help navigate Medicare, the covered person must send a letter that provides someone with the ability to speak and act on their behalf. The wording should be that this permission “is an ongoing release/authorization”.
Once you have gathered your Family CFO Checklist, it should be locked away or stored digitally with strong password protection. And while it is far from perfect, establish robocall blocking and SMS blocking. Most phone service providers offer these tools. And remind your loved ones NOT to click on any text messages or answer phone calls from random numbers.