Elder abuse can take many forms, and it’s a problem that the National Center on Elder Abuse estimates affects one in every ten people over the age of 60. While physical abuse and neglect often show outward signs that can lead to intervention, there is one type of abuse that is more difficult to detect: financial abuse and exploitation. This type of abuse can include scams and theft of assets, and the Treasury Department’s Financial Crimes Enforcement Network reported that the amount of money lost by seniors was around $27 billion during the one-year period from June 2022 to June 2023.
Although more recent data is not available at this time, it’s clear that elder financial abuse continues to be a problem. If you have a loved one who is vulnerable to this type of abuse and exploitation, it’s important that you know the signs so you can protect them. Read on to find out more about the signs of elder financial abuse and some ways you can protect your loved ones.
Signs of Elder Financial Abuse
Understand that Rob Slutsky’s 25+ years as solicitor to the Montgomery County Office of Aging Services has provided significant insight into elder financial exploitation. Most people who are victims of this type of abuse have no outward signs of cognitive impairment. The instructions that the scammers give are usually in several steps to avoid investigation. People with significant cognitive impairment are unable to perform the steps necessary to be exploited. So, do not assume someone needs to be noticeably impaired to be exploited. It is usually people who are in all other ways living a normal life. Frequently the victims continue, even after admitting they were exploited, to believe the scammer has their best interest at heart.
Recognizing the signs of elder financial abuse usually requires access to bank statements, account information, and documents, which is one reason why it can be so difficult to spot. If you have a vulnerable loved one, talk to them about financial abuse and let them know that they can trust and confide in you. If they are comfortable with it, ask them if you can regularly review their financial statements with them and discuss any potential abuse.
Some signs of elder financial abuse you might see include:
- Changes in banking activities, like a large withdrawal your loved one can’t account for;
- Changes to their bank signature card that include names of people unknown to you or of people who shouldn’t have access;
- The unauthorized or uncharacteristic use of ATM cards;
- Changes to wills, powers of attorney, and other legal documents;
- Missing funds or possessions – including Social Security checks or other funds that should have been deposited;
- Unpaid bills;
- Forged signatures on banking documents;
- Previously unknown parties that claim a right to your loved one’s property, money, or possessions;
- The provision of unneeded services;
- Unexplained credit card charges.
In addition to these signs, your loved one may also report financial abuse to you, as some of their actions may have been taken under coercion. If you receive a report like this, don’t ignore it; your loved one could be at serious risk.
Protecting Your Loved Ones from Financial Abuse
If you recognize any of the signs listed above, it’s your responsibility to take action, especially if your loved one is unable to do it on their own. Report unauthorized charges or changes in documents to their bank or to the authorities if necessary. If you see changes to a will or power of attorney, speak to the lawyer who made them to ensure those changes were not made under duress. The most important way to protect your loved ones is to keep an open line of communication. When you go over their banking documents with them, do so without judgment; you don’t want them to feel embarrassed about being the victim of a scammer or financial predator.
One reason why seniors are targeted by scammers is that they are often living with decreased cognitive ability or are lonely and isolated. They may not be able to fully understand what is happening to them. In cases like these, you will want to talk to your loved one about powers of attorney or even a guardianship arrangement. Through these legal means, you or another person can review and authorize any financial moves before they are made.
A financial power of attorney, for example, will give you the power to authorize any transactions or transfers so you can be sure they are legitimate. A guardianship arrangement will give you full control over your loved one’s decision-making, although taking this step is not always necessary if powers of attorney are already in place.
If you are concerned that your loved one may become the victim of elder financial abuse, you should meet together with an elder law attorney like Rob Slutsky. During your meeting, you can talk about the potential for financial abuse and the steps you can take to prevent it. Over his more than 30 years practicing as an elder law attorney in Pennsylvania, Rob has advised countless clients about elder financial abuse and other perils faced by older Americans. Get in touch with him right away if you are looking for guardianship attorneys in Delaware County, PA, or nearby communities.
With the help of Elder Law Attorney Robert Slutsky, you can prevent your loved one from becoming a victim of elder financial abuse. Call (610) 940-0650 or fill out our online contact form to request your consultation today!