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Well, the good thing is that there is no money here for this child to rip off. As far as co-signing, no one of a collector bent is able to touch social security, and it sounds like that is all going to care in any case. So no matter the co-signing, it is the poor company that doesn't take the time to check things out that will bite the bullet.
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I would turn them in for credit card fraud.

We all pay when scam artists steal.
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playing the devils advocate here.
If the parent you are talking about is the one in your profile you say this person is in Independent Living. Has this parent been officially diagnosed as not being competent? (one could argue that there are plenty of incompetent people running around. Not being cognizant is another thing.)
If the POA is in effect then any document signed after the POA became effective would come into question.
I would notify the credit card company, report the possibility of fraud.
You might want to put a freeze on the parents Credit. Contact each of the reporting companies and place a freeze. This way no card would be authorized.
If the bank is unaware that there is a POA in effect you might want to notify them that this person can not make a withdrawal nor can they write checks. (just in case anyone tries to bring the parent to the bank.)

If this is a concern for other things that might happen it might be a good idea that there are no visitors that are not on an "approved" list others have to have supervised visits. And the other suggestion would be to switch the parent to Memory Care so they can not sign out themselves but the person taking them out must sign in and out.
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This person should not be in Assisted Living, we go there several times a day to clean a pressure sore and do meds. The case manager will not approve a nursing home.

The judge said "incompetent", not me.
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