Seniors will want to know about a resource that regulators published June 15, 2021, to help train financial firms to implement the Senior Safe Act. The regulators involved in the project are the Financial Industry Regulatory Authority (FINRA), the U.S. Securities and Exchange Commission (SEC) and the North American Securities Administrators Association (NASAA).

The rationale for the Senior Safe Act (which can be read in its entirety here: tinyurl.com/wcde5tax), which was signed into law in 2018 as part of the Economic Growth, Regulatory Relief, and Consumer Protection Act, was essentially to help prevent the financial exploitation or abuse of seniors. How? By giving the financial industry a method of reporting suspected abuse to regulators. But there were strings attached. Firms had to train their employees on what to look for -- which meant articulating exactly the type of behavior that rose to reportable exploitation.

That question is answered in the training program that was just released. Called “Addressing and Reporting Financial Exploitation of Senior and Vulnerable Adult Investors” (tinyurl.com/2nhtj68s), the idea behind the program is to train employees on what to look for, how to help and how to prevent the exploitation of these at-risk investors.

The reason you need to know about the program is this: It lays out how to identify people who could be victims of financial exploitation. That’s what I’d like you to focus on, both for yourself and for those older friends and relatives whom you might be helping out with their financial affairs.

Here are the red flags cited in the program: If someone you know is displaying these behaviors, he or she could be a victim of a scammer or financial predator:

* “Uncharacteristic and repeated cash withdrawals or wire transfers.

* “Appearing with new and unknown associates, friends, or relatives.

* “Uncharacteristic nervousness or anxiety when visiting the office or conducting telephonic transactions.

* “Lacking knowledge about his, her, or their financial status.

* “Having difficulty speaking directly with the client or customer without interference by others.

* “Unexplained or unusual excitement about an unexplained or ‘too good to be true’ windfall; reluctance to discuss details.

* “Sudden changes to financial documents such as powers of attorney, account beneficiaries, wills, or trusts.

* “Large, atypical withdrawals or closing of accounts without regard to penalties.

* “Frequent password reset requests or new online account access requests.”

For additional red flags, you’ll want to read “A Guide for Developing Practices and Procedures for Protecting Senior Investors and Vulnerable Adults from Financial Exploitation” (tinyurl.com/7btcb4zx), by the NASAA.

If you would like to view the training presentation, you can access it on the FINRA website at tinyurl.com/274nr6a2.

As I mentioned in last week’s column when discussing World Elder Abuse Awareness Day, protecting older Americans from abuse is a cause that is worthy of attention. That protection is even more effective when both industries and individuals are working toward that goal.

What can you do if you suspect a friend or family member might be a victim of financial exploitation?

That depends on the circumstances and how close you are to the victim. For example, if the victim is a close relative, it would be appropriate to engage in a conversation with that relative directly to see if you can stop any further damage. If I were in that situation, I would close accounts and appoint an attorney-in-fact to act on the victim’s behalf. It’s never a one-size-fits-all solution since each situation will be different. You may not be able to identify the perpetrator, who in the worst cases could be an employee, a banker or financial adviser, or even a friend or family member.

If the situation is dire, with fraud already committed, the Justice Department’s National Elder Fraud Helpline (1-833-372-8311) can help. The hotline has resources for reporting the situation. Also, each state has a version of adult protective services, providing more resources for reporting potential scams. A national listing can be found at the nonprofit National Adult Protective Services Association (tinyurl.com/225zmzra).

Red flags call for action. This is not the time to ignore the situation.

Julie Jason, JD, LLM, a personal money manager (Jackson, Grant Investment Advisers Inc. of Stamford, Connecticut) and award-winning author, welcomes your questions/comments (readers@juliejason.com). Please visit www.juliejason.com.

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I sometimes wonder about the need to name a “day” to draw attention to a cause. However, in this case, the cause is one that needs attention: protecting older Americans from abuse. June 15 is World Elder Abuse Awareness Day, launched in 2006 by the International Network for the Prevention of Elder Abuse and the World Health Organization, according to the University of Southern California’s Center for Elder Justice (tinyurl.com/3k6y3phy).

There is no question that scammers prey on older people. The FBI reports that every year, “millions of elderly Americans fall victim to some type of financial fraud or confidence scheme, including romance, lottery, and sweepstakes scams, to name a few.” (See the link to “Scams and Safety: Elder Fraud” at the end of this column).

Here is an example of a scam that can attract the attention of an innocent senior as it relates to Social Security. Someone poses as a Social Security employee and contacts the target with a story that implies that the senior’s Social Security number is linked to a crime.

There are many other scams, some dealing with COVID. For example, scammers call seniors to sell them vaccines, even though COVID vaccines are free. Then there is the “grandparent scam,” which entails criminals posing as a relative -- usually a child or grandchild -- claiming to be in immediate financial need. The “charity scam” involves scammers pretending to be legitimate charities that are seeking “donations.” Investment scams can be anything from pressure to buy quickly to promising high returns at little risk.

If you have elderly relatives, watch for any of these signs of potential fraud:

* A sudden reluctance to discuss financial matters

* Changes in spending habits, or in a will, trust or beneficiary designation

* Checks made out to “cash”

* Unexplained loans

* Signatures on checks that don’t look like the senior’s

* A new friend who is “overly protective”

* A sudden change of feelings about somebody

Keep in mind that seniors may be embarrassed or reluctant to talk about these topics.

And keep in mind that one technique fraudsters use is to isolate their victims from their families and friends. Consider also the added impact of social isolating we have been experiencing during the pandemic.

This may be a good time to engage your older relatives in a talk about scams.

Share some examples and some signs of untoward behavior. Ask them how they would react if contacted by phone, email, mail or in person by someone they don’t know for a request for money or information. Also share some resources, such as these:

• FINRA Foundation report, “Exposed to Scams: What Separates Victims From Non-Victims?” (tinyurl.com/kw6f8u8).

• “What fraud and scams should I know about,” on the Social Security website at ssa.gov/coronavirus.

• “Scams and Safety: Elder Fraud” from the FBI at tinyurl.com/ny8wnv2p.

• “Social Isolation and the Risk of Investment Fraud” (tinyurl.com/yfwpshp6), which is a combined effort by the Financial Industry Regulatory Authority (FINRA), the North American Securities Administrators Association (NASAA) and the Securities and Exchange Commission’s Office of Investor Education and Advocacy to raise awareness.

World Elder Abuse Awareness Day serves as an important reminder about protecting older people. Everyone needs to stay up-to-date about the many scams that are out there, and if you have elderly friends and relatives, make sure that they know you are there to help them if something like this happens to them.

Julie Jason, JD, LLM, a personal money manager (Jackson, Grant Investment Advisers Inc. of Stamford, Connecticut) and award-winning author, welcomes your questions/comments (readers@juliejason.com). Please visit www.juliejason.com.

DISTRIBUTED BY ANDREWS MCMEEL SYNDICATION

Last week, we talked about 529 plans. Now, let’s go through additional resources that can be helpful when planning for -- and paying for -- college.

Financial Aid: If parents or teenagers are looking for financial aid for college, one important place to visit is the U.S. Department of Education’s Federal Student Aid website (studentaid.gov). It offers categories such as “Understand Financial Aid” (tinyurl.com/597reubt), which includes details on grants and work-study jobs, and “Apply for Financial Aid” (tinyurl.com/yj4yuyd6), which provides information about, and links to, FAFSA (Free Application for Federal Student Aid), a key component of the financial aid process.

Borrowing: If you are looking to borrow money for college, the Consumer Financial Protection Bureau (CFPB), a U.S. government agency, announced last year that it had added a new section, “Managing Your Student Loans,” to its Financial inTuition podcast section (tinyurl.com/vdcb92w5). The topics in the series include “Managing Student Loans and Money while in College” and “Postgraduate Degree Repayment Options.” The new category joins other CFPB podcasts, including sections on “Understanding Your Financial Aid Offer” and “Managing Your Money.”

Saving: Saving for College (tinyurl.com/3cf2d5fx), an independent firm, offers a host of resources, including a College Savings Calculator and an interactive map that details what 529 college savings plans are available in each state, along with what tax benefits (if any) the plans have. Among the articles found on the website is “How to Go to College for Free” (tinyurl.com/vb5ybys), a resource worth reading.

High school students: For high school students seeking more information about SAT testing and AP courses, there is the College Board (tinyurl.com/464sp4eu), a not-for-profit organization focused on helping students prepare for the transition to college.

Employers: When the Coronavirus Aid, Relief and Economic Security (CARES) Act became law in March 2020, one of its provisions allowed employers to make contributions of up to $5,250 per year toward eligible education expenses like tuition and student loan assistance, with the contribution not counting toward an employee’s gross taxable income. That benefit was extended to 2025 by the Consolidated Appropriations Act, 2021.

Loans: The U.S. Department of Education website also provides information on managing federal student loans (tinyurl.com/yks36vmr) for those who are paying them back. Through an additional extension of a relief policy in the CARES Act, principal and interest payments on federally held student loans have been suspended through at least Sept. 30, 2021, along with collections on defaulted loans. However, if you are in a financial position to pay back the loans, it’s a good idea to do so. After all, who wants to start a career with a lot of debt? As reported in 401(k) Specialist magazine (tinyurl.com/3zzs7se4) by Gregory Poulin, the CEO of Goodly, a provider of student loan and college savings employee benefits, 70% of college students who graduate each year begin their career with roughly $40,000 in education debt, which will take 22 years to pay off. That kind of debt can interfere with many other financial goals, including saving for retirement.

Taxes: The IRS provides important details related to the American Opportunity Tax Credit (tinyurl.com/593xabt9) and the Lifetime Learning Credit (tinyurl.com/478d4x52). Note that both higher education tax credits can affect the use of college-related plans like 529s, as you’ll need to avoid “double-dipping.” Saving for College provides insight (tinyurl.com/y29tk7rp and tinyurl.com/395ua35b), but you’ll also want to discuss this with your tax adviser.

The above list offers just some of the many resources available when it comes to paying for college. It’s worth doing some homework.

Julie Jason, JD, LLM, a personal money manager (Jackson, Grant Investment Advisers Inc. of Stamford, Connecticut) and award-winning author, welcomes your questions/comments (readers@juliejason.com). Please visit www.juliejason.com.

DISTRIBUTED BY ANDREWS MCMEEL SYNDICATION