Elder Financial Exploitation

I had never heard of the term "Elder Financial Exploitation" under just recently. Here is some information from the National Adult Protective Services Association.

• Financial exploitation is a fast-growing form of abuse of seniors and adults with disabilities. Situations of financial exploitation commonly involve trusted persons in the life of the vulnerable adult such as: caretakers, family members, friends and acquaintenances, attorneys. 
• 90% of abusers are family members or trusted others
• Elder-abuse is vastly under-reported; only one in 44 cases of financial abuse is ever reported.
• Conitive impairment and the need for help with activities of daily living makes victims more vulnerable to financial abuse.

For more information see: 

National Committee for the Prevention of Elder Abuse

Financial Abuse
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

[Read More]

Financial exploitation is a fast-growing form of elder abuse

A number of years ago, one of the investment advisors at the bank befriended my mother and got her to a large sum of cash out of her account at one institution to her local bank. While the bank advisor might have had good intentions, my mother was not mentally competent to make that decision. The investment advisor some how had her convinced that she in order to get her affairs in order, transferring the money was a good idea. It was unfortunate but my mother did not tell me until after it was done. I would like to see some legislation in this area that further protects seniors from this. Here is a recent article from the Chicago Tribune on finanical elder abuse: Financial exploitation is a fast-growing form of elder abuse It's one thing for a confused senior to make a mistake in trusting the wrong person -- or falling for the "free lunch" deals. But the problem of taking advantage of seniors rises to another level when investment ignorance is supplanted by actual financial elder abuse. Over the years I've written several columns about the fast-growing problem of elder financial abuse. It happens even to those who have concerned family members. Their adult children are afraid to discuss the issues of estate planning and budgeting and bill payment with their aging parents. As a result, many seniors send their money to online ministries or are victimized by home repair scams or all sorts of other fraudulent activities. [Read More]