Understanding Elder Financial Exploitation
Elder financial exploitation is a pervasive and devastating crime that strips older adults of their hard-earned assets and can leave them financially ruined. It is a subset of elder abuse, which also includes physical, emotional, and sexual abuse, as well as neglect. The exploitation can be carried out by strangers, but all too often, the perpetrators are people the senior knows and trusts, such as family members, caregivers, or professional advisors.
The consequences of this type of abuse are severe and far-reaching. Victims may lose their life savings, homes, and ability to afford essential medical care or living expenses. Beyond the financial loss, the emotional toll can be immense, leading to depression, anxiety, and a profound sense of betrayal.
How Financial Exploitation Happens
Financial exploitation of a senior can occur in a variety of ways, ranging from simple theft to complex scams. It preys on the vulnerability of older adults who may be socially isolated, have physical or cognitive impairments, or simply trust those around them. Methods of exploitation include:
- Theft: Misusing or stealing an older person's money or possessions directly.
- Scams: Deceptive schemes designed to trick seniors into giving up their money. Common examples include grandparent scams, lottery or sweepstakes scams, and tech support scams.
- Undue Influence: Using coercion, manipulation, or intimidation to overpower a senior's will and coerce them into making financial decisions they wouldn't otherwise make. This can include altering wills, trusts, or property deeds.
- Misuse of Legal Authority: Abusing a position of trust, such as a power of attorney, to gain access to and steal assets.
- Caregiver Fraud: A caretaker misusing their access to an older adult's funds.
- Financial Neglect: A person who manages a senior's finances failing to use those resources to maintain the senior's well-being.
Recognizing the Warning Signs
It is crucial for family members, friends, and financial professionals to be vigilant for the signs of elder financial exploitation. Early detection is key to stopping the abuse and mitigating the damage. Some red flags include:
- Sudden financial changes: Unexplained large withdrawals, frequent wire transfers, or a sudden decrease in funds.
- Changes in documents: Abrupt and unusual changes to a will, power of attorney, or property deeds.
- Unusual account activity: Forging checks or suspicious new credit card accounts in the senior's name.
- Social isolation: A new friend or caregiver isolates the senior from family and other loved ones.
- Poor living conditions: A senior living in neglect or poverty despite having adequate financial resources.
- Missing possessions: Valuables, cash, or jewelry disappearing from the senior's home.
- New 'best friend': A new individual quickly becomes heavily involved in the senior's financial affairs.
Protecting Your Loved Ones: Prevention and Reporting
Taking proactive steps can help protect seniors from exploitation. A combination of careful monitoring and open communication is essential. Consider the following measures:
- Maintain open communication: Regularly discuss financial matters with older family members and encourage them to be transparent about their accounts.
- Monitor financial statements: With permission, help monitor bank and credit card statements for any unusual activity. Many banks have protocols for flagging suspicious transactions involving seniors.
- Establish legal protections: A durable power of attorney or setting up account limits can prevent large, unauthorized withdrawals. It is best to use a trusted, professional third party for this role.
- Vet caregivers and visitors: Be cautious of new relationships and vet all caregivers thoroughly. Background checks are a must.
- Educate the senior: Talk openly with the senior about common scams and financial exploitation tactics without causing alarm.
Financial Exploitation vs. Other Elder Abuse
| Feature | Financial Exploitation | Physical Abuse | Psychological Abuse |
|---|---|---|---|
| Focus | Taking or misusing assets | Causing bodily harm | Causing emotional distress |
| Perpetrator | Often family, caregiver, or stranger | Often caregiver or family | Often family or caregiver |
| Evidence | Financial records, missing assets | Bruises, unexplained injuries | Fear, anxiety, isolation |
| Detection | Requires financial vigilance | Often visible signs | Behavioral changes |
| Reporting | Adult Protective Services (APS), Police | APS, Police, 911 | APS, specialized services |
What to Do If You Suspect Elder Financial Exploitation
If you suspect that a senior is being taken advantage of, it is critical to act immediately. Reporting the issue can prevent further harm. Here are the steps to take:
- Report to Adult Protective Services (APS): APS is the primary agency for investigating elder abuse and can be found in every state. They can conduct an assessment and intervene to protect the senior.
- Contact law enforcement: If there is an immediate threat or if criminal activity like theft or fraud is suspected, contact the local police or Sheriff's office to file a report.
- Utilize federal resources: The Department of Justice runs the Elder Justice Initiative, which offers resources, and the National Elder Fraud Hotline (1-833-FRAUD-11) is available for reporting incidents.
- Consult legal counsel: A lawyer specializing in elder law can help navigate legal avenues to recover assets and protect the senior's interests, particularly in cases involving undue influence or misuse of power of attorney.
For more information and resources on elder financial abuse, visit the Consumer Financial Protection Bureau's guide on the topic.
Conclusion: Taking a Stand Against Exploitation
What is it called when someone takes advantage of a senior citizen? It's called a crime, and it’s a blight on our society. The term is elder financial exploitation, and understanding what it is, how it manifests, and what to do about it is the first step toward prevention. By staying informed, being watchful for warning signs, and knowing the proper channels for reporting, we can better protect our vulnerable senior citizens. It requires a community effort to ensure the dignity and security of our elders are upheld against those who seek to harm them. The financial, emotional, and social well-being of seniors depends on our collective vigilance.
