Elder
financial abuse spans a broad spectrum of conduct, including:
- Taking
money or property
- Forging
an older person's signature
- Getting
an older person to sign a deed, will, or power of attorney
through deception, coercion, or undue influence
- Using
the older person's property or possessions without permission
- Promising
lifelong care in exchange for money or property and not
following through on the promise
- Confidence
crimes ("cons") are the use of deception to gain victims'
confidence
- Scams
are fraudulent or deceptive acts
- Fraud
is the use of deception, trickery, false pretence, or
dishonest acts or statements for financial gain
- Telemarketing
scams. Perpetrators call victims and use deception, scare
tactics, or exaggerated claims to get them to send money.
They may also make charges against victims' credit cards
without authorization
Who
are the perpetrators?
Family
members, including sons, daughters, grandchildren, or spouses.
They may:
- Have
substance abuse, gambling, or financial problems
-
Stand to inherit and feel justified in taking what they
believe is "almost" or "rightfully" theirs
-
Fear that their older family member will get sick and
use up their savings, depriving the abuser of an inheritance
- Have
had a negative relationship with the older person and
feel a sense of "entitlement"
- Have
negative feelings toward siblings or other family members
whom they want to prevent from acquiring or inheriting
the older person's assets
Predatory
individuals who seek out vulnerable seniors with the intent
of exploiting them. They may:
- Profess
to love the older person ("sweetheart scams")
- Seek
employment as personal care attendants, counselors, etc.
to gain access
- Identify
vulnerable persons by driving through neighborhoods (to
find persons who are alone and isolated) or contact recently
widowed persons they find through newspaper death announcements
- Move
from community to community to avoid being apprehended
(transient criminals)
Unscrupulous
professionals or businesspersons, or persons posing as such.
They may:
- Overcharge
for services or products
- Use
deceptive or unfair business practices
- Use
their positions of trust or respect to gain compliance
Who
is at risk?
The following conditions or factors increase an older person's
risk of being victimized:
- Isolation
- Loneliness
- Recent
losses
- Physical
or mental disabilities
- Lack
of familiarity with financial matters
- Have
family members who are unemployed and/or have substance
abusers problems
Why
are the elderly attractive targets?
- Persons
over the age of 50 control over 70% of the nation's wealth
- Many
seniors do not realize the value of their assets (particularly
homes that have appreciated markedly)
- The
elderly are likely to have disabilities that make them
dependent on others for help. These "helpers" may have
access to homes and assets, and may exercise significant
influence over the older person
-
They may have predictable patterns (e.g. because older
people are likely to receive monthly checks, abusers can
predict when an older people will have money on hand or
need to go to the bank)
- Severely
impaired individuals are also less likely to take action
against their abusers as a result of illness or embarrassment
- Abusers
may assume that frail victims will not survive long enough
to follow through on legal interventions, or that they
will not make convincing witnesses
- Some
older people are unsophisticated about financial matters
- Advances
in technology have made managing finances more complicated
What
are the indicators?
Indicators
are signs or clues that abuse has occurred. Some of the
indicators listed below can be explained by other causes
or factors and no single indicator can be taken as conclusive
proof. Rather, one should look for patterns or clusters
of indicators that suggest a problem.
- Unpaid
bills, eviction notices, or notices to discontinue utilities
- Withdrawals
from bank accounts or transfers between accounts that
the older person cannot explain
- Bank
statements and canceled checks no longer come to the elder's
home
- New
"best friends"
- Legal
documents, such as powers of attorney, which the older
person didn't understand at the time he or she signed
them
- Unusual
activity in the older person's bank accounts including
large, unexplained withdrawals, frequent transfers between
accounts, or ATM withdrawals
- The
care of the elder is not commensurate with the size of
his/her estate
-
A caregiver expresses excessive interest in the amount
of money being spent on the older person
- Belongings
or property are missing
- Suspicious
signatures on checks or other documents
- Absence
of documentation about financial arrangements
- Implausible
explanations given about the elderly person's finances
by the elder or the caregiver
- The
elder is unaware of or does not understand financial arrangements
that have been made for him or her
How
can I learn more?
Nerenberg,
L. (1999). Forgotten victims of elder financial crime
and abuse: A report and recommendations. Produced by
the Goldman Institute on Aging for the National Center on
Aging (NCEA), this report summarized four roundtable discussions
sponsored by NCEA, which focused on four components of the
legal system: the state and criminal justice system, federal
investigative and regulatory agencies, the civil legal system,
and the victim witness assistance network. Professionals
from each system described challenges they face in handling
financial abuse cases and made recommendations for improving
each system's response. To view, click
here to download it from the NCEA web site.
Volume
12 Number 2 (2000) of the Journal of Elder Abuse & Neglect
is devoted to elder financial abuse. For more information
about JEAN and a listing of articles in the issue, click
here.
A/PACT: Aging Parents and Children Together. Produced by
the American Association of Retired Persons (AARP) and the
Federal Trade Commission (FTC), this consumer education
series includes 10 1-3 page articles focusing on consumer
fraud, daily money management, alternatives to guardianship,
etc. Contact the AARP
for more information.
Last
Updated March 2003
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