Financial Abuse of the Elderly

Often times when people hear the term “elder abuse” they think of physical abuse. However, anyone who lacks the ability to care for one’s self – such as those who may be physically or mentally incapacitated – can be taken advantage of, exploited and abused financially.

What is Financial Abuse?

Financial and emotional abuse are more common among the elderly and are particularly disturbing since they may be harder to detect. While it can be done by a stranger, it is frequently committed by those closest to the victim – such as a child, grandchild, a caregiver or an agent who the victim named under a financial power of attorney.

Some ways a victim can be abused include:

• Transferring assets from the victim directly to the offender
• Taking money or other items from the elder’s home or bank accounts
• Using the elder’s credit cards for unauthorized purchases
• Using the elder’s name or good credit to open new credit accounts
• Selling or transferring the elder’s property against their wishes or best interests
• Re-titling property or assets – such as real estate or bank accounts
• Changing the victim’s estate plans, such as beneficiary designations on life insurance policies or on the victim’s will
• Misusing the elder’s Power of Attorney (POA)
• Isolating the victim from family members or other close friends

How it Happens

Those who abuse an elder financially can do so with a number of methods. Steps they typically take include:

• Providing unsolicited work or assistance
• Perpetrator claims to have a sum of money for the elder and can split it if the elder first withdraws money as a sign of good faith
• Perpetrator represents him- or herself as a bank examiner and convinces the elder to withdraw funds Isolating the elder from contact with other family members, friends and society
• Controlling the elder’s mail, phone calls, visitors and outings
• Falsely promising the elder to take care of them for the rest of their life
• Falsely worrying the elder with the fear they will lose their house and be placed in a nursing home Lying to the elder and saying that no one else cares about them except the abuser
• Manipulating or withholding the elder’s food or medication so they become weak and compliant Threatening the elder with harm, neglect or abandonment if they do not agree to do what they are told.

Thus, a senior may not report the incident due to:

• Fear of retaliation from their abusers
• Worry that they will not be believed
• Fear of institutionalization or separation from their family and familiar surroundings Concern regarding the possible loss of their independence
• Intimidation by the criminal justice system
• A desire to protect the abuser
• Embarrassment
• Guilt and shame associated with reporting their children or other relatives
• Limited contact with others outside the home
• Uncertainty about where to turn for help
• Inability to report due to mental impairment, memory loss or difficulty with communication

Signs to Look For

It is important to know the warning signs and share the information with friends, relatives and neighbors. They include:

• Sudden inability to pay bills.
• Unexplained withdrawals from accounts.
• Unusual interest by a family member in a senior’s assets.
• Change in the will.
• Disparity between assets and living conditions.
• ATM use by a physically impaired person.
• Numerous new withdrawals, usually in round numbers ($50, $100, etc.).
• Increased activity on credit cards.
• Withdrawals made from savings or CDs despite penalty assessments.
• Change in account beneficiaries.
• New authorized signers on accounts.
• Elder is confused about recent financial arrangements.
• Change in property title, quitclaim deed, or new or refinanced mortgage.
• Recent change in Power of Attorney or Durable Power of Attorney.
• Reluctance by the elder to discuss once routine matters.
• Apprehension by the elder of the outside world.
• The elder is suddenly worried about money.
• A caregiver that says the elder is less willing or able to accept visits or calls.
• A caregiver who speaks for the elder, even when the elder is present.
• A caregiver who has no means of support other than the elder’s income.

If Financial Abuse is Suspected

In all states, elder abuse is a criminal offense. However, unless the abuse is extreme or physical, authorities may decline to aggressively pursue criminal charges. Nonetheless, the police should be consulted because they may provide additional resources to the complainant.

State or county government agencies, such as the Department of Aging or the Public Guardians Office, may be more appropriate sources of assistance in some cases. These agencies have the authority to file civil suits and seek information from the alleged abuser or entities where the victim may transact business – such as banks and credit card companies – to determine whether the victim is being financially exploited.

Among other remedies, an order of protection can be sought to prevent further contact between the abuser and the victim and an order appointing a different person to care for the victim’s needs.

Additionally, every state has a court division, which is designed specifically to deal with elder-related issues. They are commonly called Probate Courts or, in some states, Orphans Courts.

These courts have jurisdiction to hear guardianship petitions. A guardianship petition is a request where the petitioner (the person who filed) seeks to take control of an individual’s financial and personal affairs. The person to be protected is called a "ward.” The petitioner must allege and prove the ward is unable to care for his or her personal and financial needs. This inability is commonly called “incompetence.”

If the purpose is also to protect the ward from elder abuse, the petitioner can allege this and also ask the court to void a power of attorney that named the abuser as the ward’s agent – if the ward had a power of attorney in place.

Ways to Protect an Elder

While no recommendation can completely eliminate the possibility of elder financial exploitation and abuse, these tips are helpful:

• Keep in regular contact with the elder – either in-person visits or telephone calls
• If professional caregiving services are utilized, hire from a reputable company. Check the Better Business Bureau for any complaints. Also, check the Attorney General’s website of the state where caregiving is to take place to see if that entity has ever initiated a lawsuit against the agency.
• Do a criminal background check on individual caregivers.

Resources

National Committee for the Prevention of Elder Abuse: www.preventelderabuse.org

©2023 ComPsych ® Corporation. All rights reserved. This information is for educational purposes only. It is always important to consult with the appropriate professional on financial, medical, legal, behavioral or other issues. As you read this information, it is your responsibility to make sure that the facts and ideas apply to your situation.