Three-fourths of financial advisors are working with clients with diminished capacity, according to Fidelity Clearing & Custody, which is providing a new program for advisors to help them spot clients with problems, Fidelity announced Monday.

Because of the aging population, it is becoming critical for advisors to know what to look for in order to prevent financial abuse of their older clients, Fidelity says. One-fifth of advisors have already seen clients who experienced financial abuse.

Fidelity is working with EverSafe, a technology firm that provides a daily monitoring service that scans financial accounts and credit reports for suspicious activity and identity theft. The Fidelity program also includes education to help advisors protect clients.

“Although no two situations are alike, advisors should be aware of indicators that might signal diminished capacity in their aging clients, including confusion and memory loss,” says David Canter, executive vice president, practice management and consulting, Fidelity Clearing & Custody. “Our goal with this offering is to help advisors implement policies and procedures to identify changes in their clients' behavior, monitor their financial accounts and mitigate the potential for financial abuse.”

EverSafe, founded by Howard Tischler, is designed to identify potential abuse at the beginning before a client's money disappears, Tischler says.

In addition to monitoring accounts for unusual spending, advisors should discuss the possibility of dementia with older clients to plan what to do if the client begins to experience memory loss or confusion, Fidelity says.

Advisors also should look for changes in a client’s behavior, such as confusion with simple concepts, repeating instructions or questions, disorientation of time and place, and difficulty performing familiar tasks.

Advisors should speak with older clients frequently and follow the conversations with a letter recapping the discussion and outlining any action to be taken. An investment policy statement should be reviewed annually with the client and the advisor should provide the tools for a client to be financially organized.

Fidelity notes that part of an advisor’s role is to identify trusted family members and involve them as much as possible so that a client’s future wishes are honored, money management risks are minimized and any misunderstandings over money are eliminated.