Financial Abuse of the Elderly

Financial abuse of the elderly refers to the unauthorized or improper use of an older person’s funds, property, or assets. This financial exploitation of the elderly often targets seniors who have cognitive impairments, such as dementia, making them more vulnerable to deceit and manipulation.

What Types of Financial Abuse Can the Elderly Face?

Elderly individuals can face a myriad of financial exploitation tactics. Internet fraud, often in the form of phishing scams or fake investment opportunities, is increasingly common. Other methods include telemarketing scams, theft of property or money, forgery, identity theft, or abusing a position of trust, like a power of attorney, to gain unauthorized access to funds.

Internet Fraud

Elderly individuals are particularly vulnerable to internet fraud tactics. Examples include phishing scams where seniors receive deceptive emails mimicking legitimate organizations, such as their bank, pressing them to divulge personal details due to a purported account issue. There’s also the menace of fake investment opportunities, pitching them on nonexistent ventures with the allure of high returns.

Telemarketing Scams

These scams, typically conducted over the phone, deceive the elderly into parting with their money. They may be sold worthless products, convinced to donate to sham charities, or tricked by the notorious “grandparent scam,” where the caller feigns being a grandchild in financial distress, begging for immediate funds.

Theft of Property or Money

Here, elders fall victim to direct theft. Caregivers, acquaintances, or even family might exploit an elder’s cognitive vulnerabilities to steal valuables or cash. For instance, a trusted aide might suddenly “misplace” a piece of expensive jewelry or money.

Forgery

Financial exploitation can also manifest through forgery. Perpetrators might alter documents or produce counterfeit ones to benefit from the elder’s assets illicitly. Common instances include forging an elderly person’s signature on checks or fraudulently modifying a will.

Identity Theft

Elders aren’t immune to identity theft, where miscreants steal personal details, like Social Security numbers or banking data, to perpetrate fraud. They might open credit accounts in the senior’s name, incur massive debts, or deceitfully claim tax returns.

Abusing a Position of Trust

This form of exploitation is especially insidious since it often involves someone the senior inherently trusts. Whether family, friends, or caregivers, these individuals may misuse their position for financial gain. A classic example is the abuse of power of attorney: the assigned individual might, without genuine consent, sell the senior’s assets or drain their bank accounts, often under the pretense of acting in their best interest.

What Are the Signs of Elder Financial Abuse?

Regular, large, or even multiple small withdrawals from a bank account that cannot be accounted for can be a major red flag. Especially if the elderly person cannot explain these withdrawals or seems oblivious to them, it could indicate that someone else has gained unauthorized access to their funds.

New and Unfamiliar Loans

If an elder suddenly has new loans or credit lines in their name that they can’t explain, it might mean someone is exploiting their creditworthiness. Such debts can dramatically affect their financial stability, and unfamiliar loans suggest someone might be taking advantage of their lack of awareness or comprehension.

Disappearance of Valuable Items

Valuables like jewelry, artwork, or heirlooms going missing without a logical explanation can signify theft. If these items are sold without the knowledge or consent of the elderly individual, it’s a clear sign of financial abuse.

Unpaid Bills Despite Having the Means to Pay

If you notice utility notices, eviction warnings, or other unpaid bills piling up even when the elder has adequate resources, it’s a cause for concern. Someone might be diverting funds meant for these expenses for personal gain.

Elder Being Secretive or Defensive About Their Financial Transactions

If an elderly person becomes unusually secretive about their financial dealings or gets defensive when questioned about discrepancies, it might indicate that they’re either being manipulated or are aware of a financial anomaly but are too fearful or embarrassed to admit it.

Behavioral Changes such as Fear or Anxiety When Discussing Finances

Emotional and behavioral changes, particularly when finances are brought up, can be indicative of abuse. If an elder exhibits sudden anxiety, fear, or even aggression when finances are mentioned, it might mean they are under pressure or threat from someone with malicious intent. This emotional strain is especially telling if they were previously open about financial matters.

How Can You Prevent Elderly Financial Abuse?

To prevent financial exploitation:

Educate the Elderly About Common Scams

One of the best defenses against scams is awareness. Hold regular discussions with elderly loved ones about the latest scams and fraud tactics. Encourage them to attend workshops or seminars on elder financial protection or watch relevant programs on TV or online.

Provide them with materials, perhaps pamphlets or printouts, detailing various scams so they can recognize red flags. Remind them never to share personal details over the phone or online unless they’re sure about the recipient’s authenticity.

Regularly Review Their Bank and Credit Card Statements

Maintain a regular check on financial statements to catch any suspicious activity early on. Set up monthly reviews of their bank and credit card statements, looking for unauthorized transactions. If the elderly person isn’t tech-savvy, you can obtain physical statements or guide them through online banking portals. In cases where cognitive decline is a concern, it might be wise for a trusted family member to have account oversight to detect and report anomalies.

Ensure Estate Planning Documents Are Up-to-Date

Review wills, trusts, and other estate planning documents periodically to ensure they reflect the elderly individual’s current wishes. These documents should evolve as circumstances and relationships change to prevent potential exploitation. It might be prudent to consult an elder law attorney during these reviews to ensure all documents comply with current laws and best practices.

Limit the Power of Attorney or Make It a Joint Power Requiring Two Signatures

To protect against the misuse of power, consider restructuring the power of attorney to necessitate two signatures for major financial decisions. This way, no single person has unilateral control over the elderly individual’s assets. Another tactic is to limit the scope of the power of attorney, ensuring it only covers specific areas, like healthcare decisions, instead of blanket financial control.

Stay Connected with Your Elderly Loved Ones

Frequent and open communication is key. Ensure you or other family members maintain a regular connection with elderly relatives. This doesn’t just mean checking on their financial well-being but also their emotional and physical health. Familiarity allows you to detect sudden or unexpected changes in their behavior, financial circumstances, or living conditions that might hint at exploitation or abuse. Regular visits, phone calls, and video chats can help build and maintain this connection.

What Are the Legal Consequences of Financial Abuse of the Elderly?

Perpetrators can face criminal charges ranging from theft to fraud. Penalties might include imprisonment, fines, or restitution orders. Beyond criminal charges, there can also be civil consequences, allowing victims or their families to sue for damages.

Should I Consult an Attorney for Assistance with Elder Financial Abuse?

Absolutely. If you suspect that an elderly loved one is a victim of financial exploitation, it’s crucial to act swiftly. An experienced elder law attorney can guide you through the process of protecting your loved one’s rights and assets.

If you need help finding a qualified attorney, consider LegalMatch, a platform that can connect you with an elder law attorney in your area.