Financial elder abuse, also known as financial exploitation, is a devastating crime that can strip older adults of their independence and life savings. It is a violation of trust, often perpetrated by family members, caregivers, or other trusted individuals. Addressing this issue requires a swift, decisive, and multi-faceted approach.
Recognizing the Signs of Financial Elder Abuse
Knowing the red flags is the first step toward protecting a vulnerable senior. The signs can vary depending on whether the abuser is a trusted person or a stranger.
Red Flags from Trusted Individuals (Family, Friends, Caregivers)
- Unusual Banking Activity: Large, frequent, or unexplained withdrawals, especially when the senior is accompanied by another person.
- Unpaid Bills or Eviction Notices: Despite the elder having sufficient financial resources, their bills go unpaid.
- Changes to Documents: Abrupt and unexplained changes to a will, power of attorney, trust, or other legal and financial documents.
- Disappearing Assets: Valuable possessions, funds, or property go missing.
- Isolation: A new "friend" or caregiver isolates the senior from family and trusted advisors to gain control.
- Lack of Care: The senior receives substandard care despite adequate financial resources being available.
Red Flags from Strangers and Scams
- Lottery or Sweepstakes Scams: The elder is asked to pay a fee or taxes to collect "winnings".
- Grandparent Scams: A fraudster impersonates a grandchild in distress and asks for emergency funds.
- Tech Support Scams: A pop-up or phone call claims to be from a tech company and convinces the senior to grant remote access or pay for unnecessary services.
- New, Unnecessary Credit Accounts: New credit cards or bank accounts are opened in the senior's name without their knowledge.
Immediate Steps to Take
If you suspect financial elder abuse, prompt action is critical to stop the exploitation and prevent further harm.
Secure Assets
- Notify the Bank: Alert the financial institution about the suspicious activity immediately. They may be able to freeze accounts or place a hold on transactions.
- Review and Cancel Accounts: Close any accounts that have been compromised and cancel credit cards with unusual charges.
- Protect Important Documents: Secure all financial documents, including bank statements, deeds, and legal papers.
Document Everything
- Keep Detailed Records: Write down dates, times, and descriptions of all suspected incidents of abuse. Include names of anyone involved and any witnesses.
- Gather Evidence: Collect financial statements, cancelled checks, and legal documents that show suspicious changes or transactions.
Reporting Financial Elder Abuse
Reporting is essential, and multiple agencies should be contacted.
Contact Adult Protective Services (APS)
APS investigates reports of elder abuse, including financial exploitation. Every state has a local APS office, which you can locate through the National Adult Protective Services Association. Filing a report with APS is often the first step, as they can initiate protective actions.
Notify Law Enforcement
For criminal activity like theft or fraud, contact your local police department or sheriff's office. In urgent cases, call 911. You can also file a report with the FBI's Internet Crime Complaint Center (IC3) for internet-facilitated scams.
Alert Financial Institutions and Other Agencies
- Bank/Credit Union: Report suspicious transactions and seek their assistance in stopping fraudulent activities.
- Federal Trade Commission (FTC): For scams and fraudulent schemes, file a report with the FTC.
- Social Security Administration (SSA): If benefits are being misused, contact the SSA directly.
- Court (for Guardianship/POA issues): If a court-appointed guardian or conservator is the abuser, report to the court that made the appointment.
Legal Options and Intervention
Depending on the circumstances, legal action may be necessary to recover assets and protect the senior.
Power of Attorney (POA) Abuse
If the abuser has a Power of Attorney, you can ask a court to revoke it. A financial durable power of attorney should be given to someone the elder trusts completely, with provisions for oversight, such as requiring regular accountings to an outside party.
Civil vs. Criminal Cases
- Civil Court: Victims or their advocates can file a civil lawsuit to recover money or property. Some states have laws allowing survivors to file civil cases to recover assets, sometimes with punitive or treble damages.
- Restraining Order: In some cases, a judge can issue a restraining order to prevent the perpetrator from contacting the elder.
- Criminal Charges: Law enforcement and the District Attorney can pursue criminal charges, which may include theft, fraud, or embezzlement.
Prevention Strategies
Preventing financial elder abuse involves proactive planning and ongoing communication.
Setting Up Safeguards
- Trusted Contact: Add a trusted contact to financial accounts. This person can be alerted by the bank if unusual activity occurs.
- Digital Trail: Encourage the use of checks and credit cards instead of cash to create a paper trail for all transactions.
- Automated Payments: Use automatic bill pay for routine expenses to prevent missed payments.
- Review Financial Statements: Arrange for a trusted person to regularly review bank statements and credit reports for any anomalies.
- Secure Documents: Keep sensitive financial and personal documents in a secure place and shred them before disposal.
Fostering Communication
- Open Discussion: Encourage open, non-judgmental conversations about finances and potential scams with your older loved one. The more a topic is discussed, the more comfortable everyone becomes.
- Family Financial Plan: Create a family financial management plan that details who has access to what, and what to do in case of an emergency.
- Educate About Scams: Regularly discuss common scams and the importance of never giving personal financial information to unsolicited requests.
Comparison of Reporting Channels
| Feature | Adult Protective Services (APS) | Law Enforcement | Financial Institution |
|---|---|---|---|
| Primary Function | Investigate allegations of abuse and neglect, including financial exploitation. | Investigate and prosecute crimes like theft, fraud, and embezzlement. | Identify and stop fraudulent account activity. |
| Focus | Protecting the vulnerable adult's well-being and safety. | Bringing criminal charges against the perpetrator. | Protecting the victim's assets within the institution. |
| What to Report | All types of abuse, neglect, or exploitation impacting an adult's welfare. | Criminal acts, including theft, forgery, and embezzlement. | Suspicious account activity, fraudulent withdrawals, or wire transfers. |
| Example Scenario | A family member misusing a senior's funds for personal gain. | A caregiver forging checks or stealing assets from the senior. | Large, unexplained withdrawals from a savings account. |
| Intervention | Can provide protective services, case management, and financial assistance. | Can arrest and prosecute the abuser, potentially leading to asset recovery through court orders. | Can freeze accounts, reverse fraudulent charges, and place holds on transactions. |
Conclusion
Financial elder abuse is a complex and painful issue, but it is not a helpless situation. By learning to recognize the subtle warning signs and knowing the clear steps to take—from securing assets and documenting evidence to reporting to the right authorities and exploring legal options—you can provide a vital layer of protection. Proactive measures, such as open family communication and implementing financial safeguards, are also crucial for prevention. Empowering older adults and their families with this knowledge is the most effective way to combat this growing threat.
