Financial Exploitation

The elderly lose millions of dollars each year because of financial exploitation. Sometimes the exploitation is the result of a con artist's scam. Other typical abusers include caretakers (paid or volunteer) and professionals. Sometimes, the victim's own family and friends take advantage of or steal their financial resources.

Financial exploitation can range from misuse of an elder’s funds to fraud, taking money under false pretenses, forgery, forced property transfers, purchasing expensive items with the older person’s money without the older person’s knowledge or permission, or denying the older person access to his or her own funds or home. It includes the improper use of legal guardianship arrangements, powers of attorney, or conservatorships.

Financial abuse can be defined as the improper or illegal use of the resources of an older person, without his/her consent, for someone else's benefit. Typical examples include con artists soliciting donations for charities, friends or family persuading the older person to give money, or even power of attorney.

As the number and percentage of individuals 65 and over has increased in this country, so to have the incidences of financial abuse of the elderly. By 2030, there will be about 70 million older individuals, more than twice their number in 2000. Thousands will fall prey to financial abuse.

Education, awareness and reporting cases are critical for preventing financial exploitation of the elderly. Seniors are often afraid to report or are too embarrassed to admit they have experienced financial abuse. Lack of reporting makes abuse easier for those prone to take advantage of an aging population. Family members, friends and neighbors can also watch for and report financial abuse. Some signs of potential financial exploitation include:

• Elder's use of an ATM when they are physically unable to leave the home;
• Numerous cash withdrawals from a checking account in a short period of time, inconsistent with the elder's spending habits;
• Increased activity on credit cards;
• Change in account beneficiaries;
• New authorized signers on accounts;
• Change in property titles, deeds, or other ownership documents;
• A refinanced mortgage;
• Change in Power of Attorney;
• Abrupt changes in a will or trust;
• Bank or credit card statements sent to an address other than the elder's home address;
• Living situation not reflective of elder's expenditures (bills unpaid, lack of new personal items); and
• Valuable personal items such as jewelry, art, and furs are missing.

There are specific things seniors can do to protect themselves. Seniors should:

• Use direct deposit for checks;
• Never give another person a signed blank check;
• Never sign anything they don't understand;
• Never give their ATM card and/or PIN to anyone;
• Never leave money or valuables in plain view;
• Use joint checking accounts knowledgeably;
• Review bank and credit card statements carefully for unauthorized withdrawals or charges;
• Report suspected or known financial abuse to family, friends, and appropriate agencies;
• Hang up on telemarketers;
• Select personal advisors with care;
• Protect their social security number and other private information;
• Research and understand all investments before purchasing; and
• Give to charities only after knowing how much of their contribution will actually go to the cause.

If you believe an elderly person you know is the victim of financial exploitation, it may be wise to consult with an attorney with experience in protecting the elderly against financial exploitation. At the Blackman Legal Group we have helped many elderly people right the wrongs that have been committed against them.