Of the various forms of elder abuse and exploitation, elder financial abuse is one of the most common. Current estimates suggest that there may be at least 5 million victims each year. It may be defined as any illegal or improper use of an elder's funds, property, or assets.
Examples of financial abuse include:
- cashing of an elderly person's checks without authorization or permission
- forging of an elderly person's signature
- misusing or stealing of an older person's money or possessions
- coercing or deceiving an older person into signing any document
- improper use of a health care proxy
Risk Factors and Vulnerabilities
Several factors increase a person's vulnerability to financial abuse:- recent bereavement
- estrangement from children
- physical disability
- isolation
- depression
- cognitive deficits
Undue Influence
Undue influence connotes excessive pressure to act in a way that negates the person's free will. Often the perpetrator will promise to care for the person if funds or material goods are transferred. Unfortunately the list of potential perpetrators is long:
- family members
- caregivers
- neighbors
- friends
- con artists
- attorneys
- trustees
In one study, the perpetrator was a family member, neighbor, friend or caregiver in 55% of cases, while the perpetrator was a financial professional working for the victim in 18% of the cases. Only 21% of the fraud was committed by a scam artist previously unknown to the victims.
The worst predators are those who establish long-term controlling relationships with their elderly victims. They may instill paranoia and suspicion in the victim to increase the sense of helplessness and dependency. Assets are gained through deceit, intimidation, and psychological abuse. Business professionals may cheat the victim through bogus investments or financial advice. Consequences are too often devastating, including early death.
It's not to say that all of the individuals that fall into the above categories are to be of concern. Certainly, there are good people out there who only have the best of intentions when helping an elderly person, even with his or her finances. But if you think something fishy may be up, it's worth examining closer for signs of elder financial abuse.
Source
Fact Sheet, National Center on Elder Abuse. Accessed: May 26, 2010. http://www.ncea.aoa.gov/NCEAroot?Main_Site/Index.aspx
