Financial Elder Abuse
aDDRESSING FRAUD AND FINANCIAL EXPLOITATION OF VULNERABLE SENIORS
Introduction to Elder Financial Abuse Prevention
Defining Financial Elder Abuse
Financial Elder Abuse is the illegal or improper use of an older person’s money or property.
It’s a widespread problem that occurs through various means, including scams, fraud, and exploitation.
Alarming Statistics
- In 2014, 2.6 million individuals over the age of 65 experienced identity theft.
- Over 13% of older Americans fall victim to financial fraud each year.
- Shockingly, only 1 in 44 cases of financial abuse is reported.
- Seniors with cognitive incapacity suffer more significant economic losses. It’s crucial to understand the magnitude of the problem and its impact on the elderly population.
Consumer Financial Protection Bureau analysis of elder financial exploitation suspicious activity reports filed between April 2013 and December 2017 (176,690 SARs)
Rising Risk with Aging Population
The aging population is on the rise, presenting an increased risk of financial abuse against older adults. As the baby-boomer generation ages, it becomes imperative to get involved in recognizing and preventing suspicious activities.
In Person
Financial abuse can occur in person, such as door-to-door scams, family exploitation, investment fraud, legal scams, and caregiver abuse. Caution and verification are crucial when dealing with individuals offering services, whether known or unknown.
On TV or Radio
TV and radio scams involve products with exorbitant shipping charges or deceptive advertisements for anti-aging or health products. Awareness of such schemes is essential for preventing financial exploitation.
On the Phone
Be wary of scam calls, including IRS or Treasury Department impostors, grandparent scams, and telemarketing tactics. Unsolicited calls with threats, high-pressure tactics, or repetitive calls may indicate potential scams.
Through the Mail
Financial abuse can occur through various channels. One common method is through the mail, involving mass mailings, lottery scams, fake charities, and investment seminars. Awareness and caution are crucial in identifying and reporting such fraudulent activities.
Online
Computerized financial elder abuse includes phishing scams, online dating fraud, work-at-home schemes, and other internet-based scams. Vigilance against phishing emails and online scams is paramount to safeguarding personal information.
Identifying Financial Abusers
Identifying financial abusers involves recognizing them among family, friends, professionals, and even strangers. Substance abuse issues, financial troubles, and sudden new friendships could be red flags. Stay vigilant against those looking to exploit vulnerable individuals for personal gain.
Financial elder abuse can originate from various sources, including family, friends, neighbors, professionals like lawyers and doctors, caregivers, guardians, and even strangers such as telemarketers or door-to-door salespeople. Abusers may fall into categories like family members with substance abuse or debt issues, sudden new friends seeking money, or professionals and strangers engaging in scams.
Unveiling Complications
Financial abuse brings about various complications, including blaming oneself for falling victim to scams, embarrassment, loss of trust, and a lack of confidence in decision-making. The repercussions extend to depression, anger, anxiety, social isolation, and other mental health disorders. In severe cases, financial abuse can contribute to premature death. Reporting and cutting off communication are essential to stop scammers.
Recognizing Signs
Warning signs of financial abuse include unpaid bills, unusual credit card activity, neglect by caregivers or family, changes in personality, missing valuables, and constant phone calls.
Further signs of financial abuse encompass unusual changes in a will, social isolation, calls from debt collectors, strange charges on medical bills, and a home in disrepair. The refusal of family members or friends to grant access to a loved one or let the older adult speak up may also indicate potential abuse. Being aware of these signs helps in taking preventive measures.
If you notice such signs in yourself or others, getting involved and seeking help is the first step to safety.
Why Are Older Adults Targeted?
Older adults become targets for financial abuse due to factors like being at home, having assets, experiencing loneliness, possessing a nest egg, and being more trusting. Factors such as forgetfulness, health issues, and dependency on others make them vulnerable. Those with mild cognitive impairment are at a greater risk.
Avoiding and Reporting Financial Elder Abuse
Staying vigilant, recognizing signs of financial abuse, and taking proactive steps are crucial in safeguarding against financial exploitation. By sharing information, seeking help, and reporting abuse, individuals can contribute to preventing financial elder abuse. Local resources and contact information are valuable for further assistance.
Getting involved and staying informed are key to stopping elder financial abuse. When elder abuse is suspected acting quickly is essential to limiting the harm.
Preventing and stopping elder abuse requires active intervention.
Ready to chat? Schedule a consultation.
Don’t see a time slot that works for you? Send a message and we’ll work with you to schedule a consultation.