Security Corner Blog

Elder Financial Exploitation on the Rise

• One in nine seniors reported being abused, neglected, or exploited in the past twelve months; the rate of financial exploitation is extremely high, with 1 in 20 older adults indicating some form of perceived financial mistreatment occurring in the recent past

• Elder abuse is vastly under-reported; only one in 44 cases of financial abuse is ever reported

• Abused seniors are 3x more likely to die and elder abuse victims are four times more likely to go into a nursing home

• 90% of abusers are family members or trusted others

• Almost 1 in 10 financial abuse victims will turn to Medicaid as a direct result of their own money being stolen from them

• Cognitive impairment and the need for help with activities of daily living make victims more vulnerable to financial abuse

*NAPSA

Fraud and Financial Scams Against Seniors

Situations of financial exploitation commonly involve trusted persons in the life of the vulnerable adult.

While the vast majority of reports involve perpetrators who are related to, or in a trusting relationship with, the victim, scams, and frauds by strangers are also very common.

Common Scams by Strangers

• Lottery & sweepstakes scams: “You’ve already won! Just send $2,500 to cover your taxes”

• Home repair/traveling conmen: “We’re in your area and can coat your driveway/roof really cheaply”

• Grandparent scam: "Your grandson is in jail and needs money immediately"

• Charity scams: falsely soliciting funds for good causes; very common after disasters

• I’m from the utility company: "I need you to come outside with me for a minute" (while an accomplice steals valuables)

• Telemarketing scams and accompanying threats

Common Scams by “Professionals”

• Predatory lending: seniors pressured into taking out inappropriate reverse mortgages or other loans

• Annuity sales: the senior may be pressured into using the equity realized from a reverse mortgage (or other liquid assets) to buy an expensive annuity which may not mature until the person is well into their 90s or over 100

• Investment/securities schemes: pyramid schemes; unrealistic returns promised; the dealer is not licensed

• Internet phishing: false emails about bank accounts

• Identity theft: credit cards opened fraudulently, etc.

• Medicare scams: these are the costliest in terms of dollar amounts

Common Ways Family and Trusted Others Exploit Vulnerable Adults

• Using a Power of Attorney, given by the victim to allow another person to handle his/her finances, as a license to steal the victim’s monies for the perpetrator’s own use

• Taking advantage of joint bank accounts in the same way

• Using ATM cards and stealing checks to withdraw money from the victim’s accounts

• Threatening to abandon, hit, or otherwise harm the victim unless he or she gives the perpetrator what he/she wants

• Refusing to obtain needed care and medical services for the victim in order to keep the person’s assets available for the abuser

• In-home care providers charging for services; keeping change from errands, paying bills that don’t belong to the vulnerable adult, asking the vulnerable adult to sign falsified time sheets, spending their work time on the phone and not doing what they are paid to do

Intervention

If you or someone you know has experienced elder financial abuse, contact the appropriate authorities. Any member of the public, including an older or dependent adult seeking help, or family members and friends, can make a report.

You can visit eldercare.gov to find your local adult protective services agency and other service providers that can help, or call the statewide, 24-hour Adult Protective Services Hotline at 1-866-800-1409.

The National Association of Senior Advocates (NAOSA) was founded to protect our senior population from unethical business practices, scams, and businesses that attempt to target and take advantage of not only seniors but all consumers. Visit www.naosa.org to take advantage of their resources.

This article is for educational purposes only. Content sources include: *The National Adult Protective Services Association | riolindaonline.com