Familiar fraud is surprisingly common. According to AARP, about 6 in 10 instances of financial elder abuse are committed by relatives. But familial theft can affect anyone at any age.
Since your family members often have access to your home and belongings, it may be easier for them to steal your identity and wreak havoc on your finances. If you suspect a relative is betraying you by stealing your money, here are 12 signs that you may be correct.
1. Missing Funds
Missing funds is perhaps the most straightforward sign of financial theft. Regularly noticing money disappearing from your bank accounts or wallet without any valid explanation or record is a red flag. It’s essential to keep track of your bank accounts and spending cash to ensure you’ll notice any discrepancies.
2. Unauthorized Transactions
In a similar vein, it’s important to keep a close eye on your credit card transaction history and bank statements. If you spot charges for items or services you didn’t authorize or receive, it suggests someone may be using your financial accounts without your consent.
3. New Credit Accounts
If you notice new accounts on your credit report that you didn’t authorize or receive strange calls from debt collectors, it’s possible a family member has stolen your identity. FTC estimates suggest that 9% of identity theft cases are committed by relatives, who may have easier access to your personal information.
For that reason, it’s a good idea to keep sensitive documents like your Social Security card in a locked filing cabinet to maintain your privacy. You can also freeze your credit to prevent family members from committing theft and racking up debt in your name.
4. Sudden Generosity Or Lifestyle Changes
If your family member suddenly displays extravagant generosity without a logical explanation, it may indicate they are using funds obtained illicitly. Keep an eye out for significant changes in the family member’s lifestyle that seem incongruent with their known income or financial resources. For instance, if they suddenly start living in a more upscale neighborhood, driving expensive cars, or giving elaborate gifts, it could raise suspicion.
5. Secretive Or Manipulative Behavior
If a family member exhibits secretive or evasive behavior regarding finances, it could indicate they have something to hide. It’s a red flag if they dodge your questions about their recent lifestyle changes or respond angrily. Watch out for manipulative behavior like gaslighting and guilt-tripping, especially in response to financial inquiries.
6. Blocking Your Access To Communication Channels
Family perpetrators may also try to hide the victim’s mail and block their phone access. This prevents them from learning about unauthorized credit accounts and debt charges, allowing the financial theft to continue unabated. So if your family member insists on going through your mail or answering your phone, it could be a sign of financial abuse.
7. Missing Valuables
Another sign of familial fraud is discovering that valuable items are missing from your home without any evidence of theft from outside sources. It’s possible that your family member could be stealing your belongings and pawning them for cash. This type of behavior could escalate into other more damaging types of financial fraud, such as racking up significant debt in your name, so be wary.
8. Forged Signatures
Finding forged signatures on financial documents or checks is a serious matter. It suggests that someone is illegally accessing your funds or manipulating financial transactions without your consent.
9. Pressure To Complete A Financial POA
In cases of elder abuse, a familial fraudster may pressure their relative to sign a financial power of attorney. Once they have control of the victim’s accounts, they’ll be able to steal money for their own gain.
10. Borrowing Money Frequently
While occasional requests to borrow money are common among family members, frequent loans without repayment can be a warning sign. Someone who feels entitled to take your money in this way may be willing to escalate their behavior to financial fraud if you stop giving them “loans.”
11. Pressure To Change Your Will Or Beneficiaries
It may be a bad sign if a family member is insistent that you make changes to your will to give them a bigger slice of the pie. A fraud perpetrator could also pressure you to list them as a beneficiary on your life insurance and retirement accounts, or add them as an authorized user on your credit cards or bank accounts.
12. Medical Services You Never Received
Another form of familial theft to watch out for is medical fraud. If you receive bills for medical services you didn’t receive or see office visits you don’t recognize on your explanation of benefits, it could be a sign of medical identity theft. Watch out for conditions you don’t have on your medical records and calls from collectors about medical debts you never incurred, which can point to fraud.
Protect Yourself
It’s troubling to imagine that family members could be capable of stealing from you. But it’s better to be safe than sorry. Taking steps to protect yourself, such as freezing your credit and keeping sensitive documents locked away, can reduce your risk of becoming a victim of familiar fraud.
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Vicky Monroe is a freelance personal finance and lifestyle writer. When she’s not busy writing about her favorite money saving hacks or tinkering with her budget spreadsheets, she likes to travel, garden, and cook healthy vegetarian meals.