As one of our most vulnerable populations, senior citizens are at a higher risk of becoming victims of abuse and exploitation. They may be lonely. They may have disabilities that make them dependent on others, and they may also be living with conditions that rob them of their mental faculties. Unfortunately, these facts make them a target for scammers. While you may think of abuse as being primarily physical, there is another form of abuse that can be just as detrimental to a senior’s quality of life: financial abuse(exploitation).
Elder financial abuse refers to the exploitation of a senior’s financial resources and assets for the benefit of the abuser. An FBI report released in 2021 estimated that over 92,000 seniors were affected by financial abuse that year, and more recent FBI data shows that the number of complaints they receive related to this crime is rising every year.
If you have an elderly loved one, especially one who has diminished mental or physical capacities, you need to be on the lookout for the following signs of financial abuse:
- Missing Money – The most obvious form of financial abuse is outright theft of money. This could be cash they have stored in their home, money from their bank accounts, retirement accounts, or any other money they have saved. Scammers may also target their benefits checks from pensions and government programs like Social Security and Medicare. If your loved one trusts you to have this information, ask them to allow you to review their financial statements each month. If you notice any money missing, they may have become the victim of a scammer or other financial abuser. You can also check in with them monthly (or more frequently) to ensure they have received their benefits checks and successfully deposited them.
- A New “Friend” – Many financial abusers will attempt to strike up a personal relationship with a senior to gain their trust. If you notice that a new person has subtly inserted themselves into your loved one’s life or has moved into their home, it’s reasonable to be suspicious. This person may be extremely helpful but don’t allow this to lull you into a false sense of security. They may be pretending to care so they can foster dependence. If you notice your loved one is always talking about their new friend and is spending a great deal of time with them, be sure to meet this person, ask them questions, and look into their background. If their intentions are genuine, they will have no qualms about providing you with the information you want to know.
- Sudden Changes to Estate Planning Documents – Your loved one’s new friend may push them to make changes to their estate plan, like adding them to their will. They may also try to get your loved one to change their powers of attorney to allow them control. That’s why it is so important for you to take an active role in your loved one’s estate planning. Ask them if you can be present at any meetings they have with their estate planning attorney and speak to their lawyer about the potential for financial abuse. If your loved one consents, you can be included in communications regarding any changes to their estate planning documents. If your loved one has diminished mental capacity, you may also want to talk to them about granting you their powers of attorney or about becoming their guardian. This will ensure any financial decisions, medical decisions, or estate planning changes will need to be approved by you personally.
When it comes to preventing elder financial abuse, communication is the first line of defense. Scammers and abusers specifically target seniors who are isolated from family and friends. You can stop their schemes by being there for your elderly loved one. Call or visit regularly, check up on them, and ask to be informed about any financial decisions they plan to make. It’s also a good idea to speak to them about meeting together with an elder law attorney. An experienced elder care attorney like Robert Slutsky can help you draft documents like powers of attorney and guardianship arrangements to prevent your loved one from becoming a victim. Get in touch with Rob if you are looking for guardianship attorneys in Montgomery County, PA, or anywhere else nearby. Request a consultation or call our office at 610-940-0650 today.
Of course, if you suspect that financial abuse has already occurred or your loved one reports it to you, the best thing to do is speak to the authorities. In Pennsylvania, you can call the Statewide Abuse Reporting Hotline at 1-800-490-8505, contact your local police department, or file a report with the PA Attorney General’s Office.