This is an old story: Scamsters target older folks because they are trusting — and vulnerable.
It doesn’t have to be that way if “trusted contacts” are involved. They are designated third parties who can screen scams before they happen.
Setting up a trusted contact puts a layer of vigilance between fraud merchants and their victims.
“A trusted contact is a person authorized by the investor to allow financial firms, in limited circumstances, to contact them when there are concerns about activity in an account,” according to the North American Securities Administrators Association.
A trusted contact may be a family member, attorney, accountant or another third-party that respects the investor’s privacy and understands how to handle the responsibility.
The best trusted contact has no financial interest in a person’s assets or estates and is a fiduciary, which means they can be held liable if anything is amiss.
For helpful videos on trusted contacts, click here.