What Constitutes Taking Advantage of an Elder?
Taking advantage of an older adult, or elder financial exploitation, is a form of elder abuse involving the unlawful or improper use of an elder's financial resources or assets. This can occur with or without the victim's explicit knowledge and can involve manipulation, intimidation, and false pretenses to gain control over their finances. While financial exploitation is one of the most common forms of elder abuse, it is also one of the most underreported.
Elder financial abuse can deprive older adults of their life savings and independence, with devastating and long-lasting consequences. Perpetrators, who are often family members, caregivers, or others in a position of trust, use a variety of tactics to exploit the victim's vulnerabilities. Risk factors that make elders more vulnerable include cognitive impairment, social isolation, and reliance on others for care.
Common Signs of Elder Financial Exploitation
Recognizing the signs of financial abuse is the first and most critical step in preventing it. These indicators can appear gradually and may be subtle at first. Family members, friends, and financial professionals should be vigilant for the following red flags:
- Unusual Financial Activity: This includes unexplained withdrawals of large sums of money, an unusual increase in credit card debt, frequent ATM withdrawals by an elder who doesn't typically use one, or checks written as "gifts" or "loans."
- Sudden Changes to Documents: Abrupt changes in legal or financial documents, such as a will, power of attorney, or property deed, are major warning signs. Similarly, the sudden appearance of previously uninvolved relatives claiming rights to property can be suspicious.
- Unpaid Bills: A senior may have plenty of money but still have overdue bills or utility shutoff notices because someone else is misusing their funds.
- Missing Possessions: Cash, valuables, and other personal property may disappear from the elder's home without a logical explanation.
- Isolation from Loved Ones: The perpetrator may try to cut off the older adult from family and friends to exert more control and prevent outside interference.
- Involvement of a New Person: A new "friend" or romantic partner who suddenly takes a keen interest in the elder's finances or pressures them into financial decisions is a significant red flag.
Types of Elder Exploitation and Associated Scams
Exploitation can be perpetrated by a trusted person or a stranger. While the tactics may differ, the goal is the same: to illicitly obtain the elder's assets.
| Type of Exploitation | Description | Examples |
|---|---|---|
| Financial Abuse by a Known Person | Misuse of an elder's funds or assets by a family member, caregiver, or trusted individual through undue influence or theft. | Abusing power of attorney, forging signatures on checks, stealing cash or valuables, or coercing a senior into changing their will. |
| Financial Fraud by a Stranger | Scams and fraudulent schemes initiated by unknown criminals using deceptive tactics to steal money or information. | Grandparent scams, tech support scams, lottery scams, or government impersonation schemes. |
| Neglect and Abandonment | When a caregiver fails to provide necessary care, which can indirectly lead to financial exploitation through the misuse of funds intended for the elder's needs. | A caregiver failing to pay an elder's rent or bills with their money, leading to financial hardship. |
Why Are Elders Targeted?
Older adults are often targeted by scammers and unscrupulous individuals for several reasons. These factors can create vulnerabilities that make exploitation easier to carry out:
- Accumulated Wealth: Elders collectively hold a significant portion of the country's wealth, making them an attractive target for financial predators.
- Cognitive Decline: Conditions like dementia or other forms of cognitive impairment can make an older person less capable of managing their finances and more susceptible to manipulation.
- Trust and Politeness: Many seniors are more trusting and polite, making them less likely to hang up on a telemarketer or question an authoritative-sounding individual.
- Social Isolation: A lack of social contact makes it easier for an abuser to isolate the victim and hide their fraudulent activities from others.
- Physical or Mental Frailty: An elder's dependency on a caregiver can give the abuser significant leverage and control, as the victim may fear retaliation like being put in a nursing home.
How to Prevent and Report Elder Financial Exploitation
Protecting an older adult from being taken advantage of requires a combination of proactive planning, vigilance, and open communication.
Prevention strategies include:
- Open Communication: Encourage conversations about finances with your loved ones. This helps foster a trusting environment and makes it easier to spot issues. Consider using a family password or phrase to verify identities during unexpected calls or requests.
- Advance Planning: Help the elder put legal protections in place, such as a Durable Power of Attorney for finances. This can help manage their financial affairs, but it is critical to appoint a highly trusted agent and build in protections like a third-party audit.
- Manage Accounts Securely: Assist with setting up automatic bill pay to ensure essential expenses are always covered. Monitor accounts regularly for suspicious activity and be cautious about giving out personal information over the phone or internet.
- Reduce Isolation: Encourage and facilitate social connections with family, friends, and community members. Isolation is a major risk factor, and a broader social network makes abuse harder to hide.
- Shred Sensitive Documents: Shredding bank statements, unused credit card offers, and other documents with personal information can prevent identity theft.
Reporting abuse and finding help:
If you suspect that an elder is being taken advantage of, it is important to take action immediately.
- Call 9-1-1: If the elder is in immediate, life-threatening danger, call 9-1-1 or local police.
- Contact Adult Protective Services (APS): APS agencies in each state receive and investigate reports of suspected elder abuse, neglect, or exploitation. The Eldercare Locator is a resource to find the nearest APS office.
- Use the National Elder Fraud Hotline: Run by the Department of Justice, this helpline (1-833-FRAUD-11) is available to assist victims and their families.
- Report Internet Scams to the FBI: File a complaint with the FBI's Internet Crime Complaint Center (IC3) for online crimes.
Conclusion
Understanding what is taking advantage of elders is the first step toward protecting them from harm. This form of abuse, most often perpetrated by a trusted individual, is alarmingly common and can result in significant financial loss and emotional distress. By recognizing the signs, implementing proactive prevention strategies, and knowing how to report suspicions, families and communities can work together to safeguard the financial well-being and independence of older adults. Education and vigilance are our most powerful tools in combating this devastating crime.
