Every year, an estimated $2.6 billion dollars is lost by elderly Americans as a result of elder financial abuse. This form of fraud is growing rapidly. Criminals also often defraud seniors quite easily by gaining access to a blank or canceled check and then proceeding to syphon funds out of the seniors account—especially if checks do not incorporate security features that help combat counterfeiting and alteration.
Unfortunately, while scams and frauds created by strangers are incredibly common, it’s even more likely that financial abuse is being perpetrated by people who are in a trusting relationship with the individual. Most financial abusers are actually family members.
Who Are the Perpetrators of Elder Financial Abuse?
The perpetrators of elder financial abuse are most often family members, including children, grandchildren, and spouses. Many of them have substance abuse issues, gambling problems, or financial issues they can’t escape. Often, they justify their actions because they stand to inherit when their loved one is gone and feel that they are taking what is “almost” or “rightfully” theirs. Financial abusers may fear that their elderly family member will get sick or use up all of their savings before their death, depriving them of their inheritance. They may also have negative feelings associated with siblings or other loved ones, making the financial abuse an attempt to stop them from inheriting or acquiring the senior’s assets.
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What are Common Methods of Exploitation?
In many cases, the abuser may have power of attorney or durable power of attorney for their family member. They may have joint bank accounts that they can use at will. In many cases, they will misuse ATM cards, credit cards and checks. In other cases, they’ll simply take money, property, or valuables. They might “borrow” money with no intention of paying it back, cash or sign pension or social security checks without permission, or create deed or title transfers to shift money and property to themselves or those they trust. They might give away the elder’s money or possessions, including doling it out to family and friends without the elder’s consent.
Other times, financial abuse is directly related to medical care. Needed care, including medications, durable medical equipment, and more, may be denied in order to conserve funds. In-home care providers may charge the adult to provide services. They may choose to keep the change from errands instead of returning it or use the senior’s funds to pay bills that don’t belong to them. In some cases, the individual who is supposed to be providing care may force the senior to sign falsified time sheets or spend their work time on the phone instead of interacting with the senior. They may not keep up with regular work tasks or care for the adult the way they’re being paid to.
What are Indicators of Financial Abuse?
The first indication of financial abuse is often unpaid bills. Notices of eviction or that utilities will be discontinued may be the first chance someone on the outside has to see that anything is wrong. Other times, the first sign may be unexplained withdrawals from bank accounts or transfers to other accounts, particularly joint accounts with the abuser. Any time there is unusual activity on their accounts, from large withdrawals to inexplicable care charges that seem inappropriate, it’s important to take note and take action. If bank statements and canceled checks aren’t arriving at the senior’s home, it’s also a sign that they may be a victim of financial abuse.
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Caregivers and loved ones should also take note of the people who come into a senior’s life. A new “best friend” who comes out of nowhere could be taking advantage of them financially. A family member who has never come around before, but who is suddenly a frequent visitor, should also be a red flag. Pay attention to people who show excessive interest in how much is being spent on a loved one’s care, including family members who stand to inherit. Always pay close attention to the elderly individual’s property: if it suddenly goes missing, it’s important to examine where it went.
Legal documentation is a tremendous source of evidence about financial abuse. Make sure that your loved one understands any legal documents, especially powers of attorney, when they sign them. Pay attention to suspicious signatures on checks and other legal documents. If the elder gives unrealistic or confusing explanations for financial transactions or doesn’t appear to understand transactions that have been made on their behalf, it’s critical to examine their origins.
Addressing Financial Exploitation
If financial abuse has occurred, close any joint bank accounts and revoke power of attorney immediately. Restart utilities if they have been shut off, and speak with the company to make arrangements if bills are behind. Find a responsible person or agency to manage the victim’s finances in the future, and reduce their isolation so that they are less shut off and better able to discuss their financial arrangements with others. It’s also important to work closely with your loved one’s banks to identify financial abuse, report it, and investigate it.
Financial abusers often use silence to mask their schemes. Don’t get caught in that trap! If you recognize any of these scenarios, speak up as soon as possible. If you strongly suspect that your loved one is being financially abused, don’t be afraid to call your local police department to report it. Seniors should be protected, and they shouldn’t have to tolerate financial abuse from anyone.
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