Banking security: protecting someone with dementia from financial fraud

Financial fraud is a deliberate crime where criminals use deception to steal money or gain access to someone's financial accounts and personal information. These scams can range from fake phone calls claiming to be from banks to sophisticated email schemes designed to trick people into revealing their banking details.

Banking fraud specifically targets people's relationship with their financial institutions, exploiting the trust we naturally place in our banks and the anxiety we feel when told our money might be at risk. Fraudsters understand that most people will act quickly when they believe their financial security is threatened, and they use this natural response to bypass our usual caution.

People with dementia face particular risks when it comes to financial fraud. Changes in memory, judgement and reasoning that come with dementia can make it harder to recognise warning signs that might have been obvious before. Someone might forget recent genuine contact from their bank, making a scammer's call seem credible, or they might struggle to spot inconsistencies in fraudsters' stories that would normally raise alarm bells.

Scammers deliberately target older adults and people with cognitive changes because they often have accumulated savings, may be more trusting and polite, and are less likely to hang up on callers or immediately report suspicious contact. They also know that people with dementia might find it embarrassing to discuss being targeted, meaning these crimes often go unreported.

However, banking fraud often follows predictable patterns and there are ways to help protect against it. Banks have sophisticated fraud detection systems and legal obligations to protect customers, especially those who are vulnerable. With the right knowledge and protective measures in place, you can significantly reduce the risk whilst maintaining independence and confidence in financial matters.

Understanding these threats is the first step in building effective defences. The good news is that most banking scams can be stopped simply by knowing what to look for and having a clear plan for responding to suspicious contact.

How banking scams target people with dementia

Banking scams have become incredibly sophisticated, with fraudsters able to make calls appear to come from genuine bank numbers and create convincing emails that look official. For someone with dementia, these scams can be particularly dangerous because they might struggle to remember recent conversations with their real bank or find it difficult to spot inconsistencies in scammers' stories.

Phone-based banking scams typically involve professional-sounding callers claiming there's suspicious activity on the account. They create urgency by saying the account needs immediate attention to prevent closure or further fraud. Someone with memory problems might not remember recent genuine contact from their bank, making these calls seem credible.

Email and text scams follow similar patterns, asking people to click links to secure accounts or update details. The sense of urgency these messages create can bypass the usual caution someone might exercise.

Card replacement scams involve calls saying cards need replacing for security reasons, sometimes even offering to send someone to collect the old card. This can seem like helpful customer service to someone who might struggle with visiting the bank themselves.

The golden rule for banking security

The most crucial thing to understand is that banks will never ask for PINs, passwords or full security details by phone, email or text. They will never ask someone to move money to a "safe account" or send couriers to collect cards.

If anyone makes these requests, it's always a scam, no matter how convincing they sound. The response should always be to hang up immediately and call the bank using the number on the back of their bank card.

Using the 159 service for protection

The 159 service is invaluable for anyone concerned about banking scams. After any unexpected call about banking or money matters, you or the person you care for can hang up and dial 159 from any UK phone. This connects directly to their bank's fraud team, where you can verify if the original call was genuine.

This service is free and covers most major UK banks.

Setting up banking protections together

Working with their bank to establish additional security measures provides ongoing protection:

Account alerts can be set up to notify you both by text or email when transactions over a certain amount are made, when cards are used online, or when new direct debits are established. This creates an early warning system for unusual activity.

Daily spending limits on debit cards can prevent large unauthorised transactions while still allowing normal daily purchases. These limits can be temporarily increased for legitimate larger purchases when needed.

Trusted contact arrangements allow banks to notify you of unusual account activity. Many banks have formal schemes for this, which can be invaluable if someone is becoming more vulnerable to scams.

Enhanced security services are offered by most banks for vulnerable customers, providing additional monitoring and staff training to recognise when customers might need extra support.

Managing identity protection

Identity theft involves criminals stealing personal information to open accounts or make purchases in someone's name.

Secure document storage becomes crucial. Help organise important documents like passports, bank statements and utility bills in a locked filing cabinet or secure drawer. Establish a routine of shredding documents containing personal information.

Regular monitoring together means checking bank statements, credit card bills and investment accounts regularly. Look for any transactions that seem unfamiliar, no matter how small. Making this a shared weekly activity helps maintain their involvement while ensuring nothing is missed.

Address change management requires prompt action if they move house. Contact all utility providers, banks and other organisations with new address details, and set up Royal Mail's redirection service to prevent important post going to the wrong address.

Lost or stolen item procedures should be clearly understood by both of you. If bank cards, passports or driving licences go missing, contact the relevant organisations immediately for cancellation or freezing.

Online banking considerations

If the person you care for uses online banking, additional precautions become important:

• Ensure they never access accounts using public WiFi

• Help them understand the importance of logging out completely after each session

• Consider whether simplified online access might be more appropriate

• Never allow unknown callers remote access to their computer or phone

• Keep their devices updated with current security software

If online banking becomes too complex or risky, consider managing it yourself through appropriate legal arrangements.

Practical money management strategies

Several approaches can limit potential losses while maintaining independence:

Cash management might involve keeping only small amounts of cash at home and using cards for most purchases, making it easier to track spending and reverse fraudulent transactions.

Prepaid card solutions can be excellent for someone who's been targeted by scammers. These cards can be loaded with weekly or monthly amounts, limiting potential losses while maintaining purchasing independence.

Automatic bill payments for regular utilities and services reduce the risk of confusion about what's been paid and prevent scammers from exploiting concerns about unpaid bills.

Joint account arrangements might be appropriate in some situations, allowing you to monitor activity while they retain access to their money.

Legal protections: Lasting Power of Attorney

Setting up a Lasting Power of Attorney (LPA) for Property and Financial Affairs while someone still has capacity provides crucial legal protection. This allows you to:

• Speak directly with banks about concerns

• Set up monitoring systems and spending limits

• Take immediate action if scams are detected

• Cancel fraudulent subscriptions or services

The earlier this is arranged, the better – once capacity is significantly impaired, the process becomes much more complex and expensive.

When scams occur

If you discover someone has been targeted by banking scams:

• Contact their bank immediately using the number on their bank card

• Banks can often stop payments or reverse transactions if contacted quickly

• Gather all evidence including phone numbers, emails or letters from scammers

• Report incidents to Action Fraud on 0300 123 2040

• Don't let them feel embarrassed – emphasise that scammers are professional criminals who target vulnerable people

Maintaining independence

The goal is protection without unnecessary restriction of independence. Regular conversations about banking security, shared monitoring of accounts, and clear procedures for suspicious contact can provide safety while preserving their autonomy.

Remember that banks have sophisticated fraud detection systems and experienced teams to help when problems arise. The key is establishing good protective systems early and responding quickly when concerns arise.