What Is Elder Financial Exploitation? – Understanding the Dangers and Prevention Tips

Introduction

As the elderly population grows, so does the risk of elder financial exploitation. According to the National Council on Aging (NCOA), elder financial exploitation costs older Americans an estimated $3 billion every year. It’s a serious problem that can have devastating effects on the victims and their families.

Definition of Elder Financial Exploitation

Elder financial exploitation is defined as “the illegal or improper use of an older adult’s funds, property, or assets by another person.” It can take many forms, from scams and frauds to unauthorized use of funds or abuse of power of attorney.

Overview of Elder Financial Exploitation

Elder financial exploitation is a growing concern for older adults, as they are often targeted due to their age and vulnerability. “Seniors are particularly vulnerable to financial exploitation because they may have physical, mental, or social limitations that can make them easier targets for criminals,” says NCOA.

The perpetrators of elder financial exploitation can be anyone – family members, caregivers, neighbors, or even strangers. Unfortunately, it’s often difficult to detect, making it essential to be aware of the warning signs and to take steps to protect yourself and your loved ones.

Examples of Elder Financial Exploitation

Scams and Frauds: Scams and frauds are one of the most common forms of elder financial exploitation. Scammers will often target seniors with offers of free products or services, such as medical alert systems or home security systems. They may also offer investment opportunities or sweepstakes winnings in exchange for money or personal information.

Unauthorized Use of Funds: In some cases, family members or caregivers may misuse an older adult’s funds without their knowledge or permission. This could include using the individual’s credit cards or bank accounts for their own benefit, or taking out loans in their name.

Abuse of Power of Attorney: Power of attorney is a legal document that grants someone else the authority to make decisions on behalf of an individual. Unfortunately, there have been cases where this power has been abused, resulting in the misappropriation of funds or other assets.

Warning Signs of Elder Financial Exploitation

It’s important to be aware of the warning signs of elder financial exploitation. The following are some of the most common signs to look out for:

• Unexplained withdrawals or transfers of money from bank accounts or other assets
• Changes in spending habits, such as sudden increases in credit card charges or purchases
• Missing belongings, such as jewelry or other valuables
• Sudden changes in legal or financial documents, such as wills or powers of attorney

Steps to Prevent Elder Financial Exploitation

There are steps you can take to help protect yourself or your loved ones from elder financial exploitation:

• Create a financial plan – A financial plan should include a budget, ways to save, and strategies to protect against fraud and scams.
• Establish financial controls – Make sure that all finances are handled responsibly and that there are safeguards in place to prevent fraud or abuse.
• Have an advocate – Have someone you trust who can help monitor finances and alert you to any suspicious activity.

Laws and Regulations Surrounding Elder Financial Exploitation

At the federal level, the Elder Justice Act of 2009 established the Elder Justice Coordinating Council to coordinate efforts to prevent, detect, treat, intervene in, and prosecute elder abuse, neglect, and exploitation. Additionally, the Consumer Financial Protection Bureau (CFPB) has issued rules to protect seniors from financial exploitation.

At the state level, each state has its own laws and regulations regarding elder financial exploitation. To find out what laws apply in your state, contact your state’s department of aging or attorney general’s office.

Resources for Victims of Elder Financial Exploitation

If you or someone you know is a victim of elder financial exploitation, there are resources available to help. Here are some of the most useful:

• Government Agencies – Contact your local police department or district attorney’s office for assistance. You can also file a complaint with the CFPB or contact Adult Protective Services.
• Non-Profit Organizations – Organizations such as the National Center on Elder Abuse (NCEA) provide resources and support for victims of elder financial exploitation.

Conclusion

Elder financial exploitation is a serious problem that affects millions of seniors every year. It’s important to be aware of the warning signs and to take steps to protect yourself and your loved ones. If you or someone you know is a victim of elder financial exploitation, there are resources available to help.