Can you offer some tips on how someone can protect against financial scams? My neighbor's sister was recently swindled out of $10,000 and I want to make sure my sister is protected.

Financial scams continue to be a big problem in the U.S. In fact, it's estimated that about 5 million Americans over age 60 are scammed out of roughly $3 billion every year. Here are some tips that can help you spot a scam and protect your family.

Scam Watching

Spotting a scam is not always easy to do. Con artists can be shady advisers or slick-talking telemarketers. They can be professional caregivers or relatives who steal from the very people they're supposed to be looking after.

The most common scams come in the form of seminars selling dubious financial products, tricky/high-pressure telemarketing calls or endless junk mail peddling free vacation packages, sweepstakes and more. Of course, there are also the ongoing problems of identity theft, Medicare fraud, door-to-door scams, credit card theft as well as Internet and email scams.

The best way to spot a scam is with proper financial management. If you have a loved one who you fear might become a victim of fraud, help them manage their accounts. Reviewing financial statements each month can alert you to questionable checks, credit card charges or large withdrawals.

There are other things to look out for as well. For example: Is your sister getting a lot of junk mail for contests, free trips, and sweepstakes? Is she receiving calls from strangers offering awards or moneymaking deals? Also pay attention to whether her spending habits have changed, whether she has complained about being short of money lately or has suddenly become secretive or defensive about her finances. All these may be signs of trouble.

Protection Pays

The most effective way to help protect your loved ones is to alert them to the different kinds of scams out there. The easiest way to do this is by visiting the Financial Fraud Enforcement Task Force website (stopfraud.gov – click on "Protect Yourself"). The site will give you a rundown of the different types of scams making the rounds these days. The Better Business Bureau Scam Stopper site at bbb.org/scam-stopper is another good resource. If your sister doesn't have access to a computer, print out the materials yourself and use them to start a conversation.

Here are four more tips. First, keep close tabs on your sister's social circle. Has she acquired any questionable new friends lately or is she seeing anyone who's giving her advice, financial or otherwise?

Second, remind your sister to never give out her Social Security number or financial information unless she initiated the contact and knows the institution.

Third, see if your sister would be willing to let you sort her mail before she opens it so you can weed out the junk. To reduce the junk mail and/or email she gets, use the Direct Marketing Association consumer opt-out service at dmachoice.org. To stop credit card and insurance offers, use the Consumer Credit Reporting Industry opt-out service at optoutprescreen.com or call 888-567-8688. They will ask for your sister's Social Security number and date of birth.

Fourth, register your sister's home and cell phone numbers on the National Do Not Call Registry (donotcall.gov, 888-382-1222) to reduce telemarketers. Additionally, help her get a free copy of her credit report at annualcreditreport.com to make sure she isn't a victim of identity theft.

Report It

If you suspect your sister has been the victim of financial fraud report it to your state securities regulator's office (see nasaa.org for contact information) or your state's Adult Protective Services agency (call 800-677-1116 for contact information) that investigates reports of financial abuse.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Senior" book. The articles are offered as a helpful and informative service to our friends and may not always reflect this organization's official position on some topics. Jim invites you to send your senior questions to: Savvy Senior, P.O. Box 5443, Norman, OK 73070.