Financial Elder Abuse

As many as 5 million older adults suffer from elder abuse annually, making it a widespread and devastating social issue [1]. One of the most common forms is elder financial abuse, which is estimated to take $28.3 billion a year from elderly individuals [2]. 

Family members must report elder financial abuse to Adult Protective Services and contact an experienced elder abuse lawyer, who can help you take legal action on behalf of your elderly loved one. Our team can assist you in reporting, investigating, and proving elder financial exploitation and recovering money or personal property from the perpetrator.

What is Financial Elder Abuse

The National Center on Elder Abuse defines financial elder abuse as the exploitation of an elderly person to benefit from their monetary resources [3]. Common examples of elder financial abuse include theft, fraud, misusing assets, exploiting power of attorney, or gaining access to the victim’s money under false pretenses. 

Misusing an elder’s finances is one of the most common forms of elder abuse. The World Health Organization notes that 6.8% of older adults in community settings report financial abuse. About 13.8% of residents or their family members in institutional settings, like nursing homes or assisted living facilities, also report financial exploitation [4]. 

Elderly financial abuse can have devastating effects on the victim, especially those who are no longer working. When elder financial abuse occurs, the victims may no longer have the resources to care for themselves, leaving them in a precarious financial situation. 

Who are the Perpetrators of Elder Financial Abuse?

Anyone can commit elder financial abuse, including family members, financial caregivers, and friends. Financial advisors and healthcare providers may commit financial abuse by taking sensitive documents, copying financial information, and withdrawing additional resources from accounts beyond what they are owed for services [5].

Strangers can also perpetrate financial elder abuse through online scams. A University of Florida study found that as people age, they become vulnerable to different types of scams, particularly those suffering from cognitive decline [6]. 

An older adult with impaired cognitive abilities may no longer be able to make sound financial decisions or identify fake information, putting them at higher risk of elder abuse. They may not understand newer technology, which scammers can exploit. 

Common Forms of Financial Elder Abuse

Elder financial abuse can come in many different forms, making it crucial that loved ones stay alert for warning signs and report their concerns to local authorities as soon as possible. 

Misuse of Assets and Funds

The abuser may gain access to the victim’s credit cards and use them for unauthorized purposes. If the victim has given their bank account numbers to the abuser, they may withdraw money. It’s also possible for the abuser to forge signatures on checks.

This can happen with government benefits. For example, a professional caregiver may commit Medicare or Medicaid fraud by convincing the victim to let them handle their accounts and then make fraudulent claims on the account. 

Fraud and Scams

Elderly individuals are prime targets of online scams that promise them access to large sums of money if they send over a small amount first. They may assist the victim, like setting them up with a life insurance account, then pocket the money.

Scammers may impersonate a financial institution or government agency, like the Social Security Administration or the Internal Revenue Service, warning them of consequences if they don’t send money to clear a debt. Abusers may commit identity theft by stealing their account information or Social Security number.

One growing issue is gift card scams. Like with other scam types, the perpetrator will claim that the victim has a debt they must pay, but they will ask for the funds in the form of gift cards, such as Apple gift cards or Visa gift cards that can be used anywhere. 

They may also claim they require payment in gift cards for fraudulent services, like sweepstakes entries. According to federal data, consumers have lost over $690 million to gift card scams since 2020 [7]. 

The Better Business Bureau explains that gift card scams tend to be much higher than other types of scams because the funds are more challenging to recover despite being treated like cash. According to Better Business Bureau reports, none of the consumers who reported gift card scams could recover their money [8].

Undue Influence

Financial elder abuse can be perpetrated by loved ones or trusted authority figures, who manipulate the elderly person into making financial situations that benefit the abuser. 

A family member may convince the person to give them power of attorney and make themselves the beneficiary of retirement pensions. A financial advisor may tell the victim to sign over their benefits to them so they can manage the funds.

Coercion and Threats

Abusers may use threats, intimidation, or isolation to perpetrate elder financial abuse. Adult children may pressure their parents to give them money or property by threatening to withhold care, support, or visitation with grandchildren. In some cases, they may physically intimidate the victim. 

Signs and Red Flags of Financial Elder Abuse

Warning signs of financial abuse may be subtle unless the family looks at financial transactions or asks the right questions during visits. Loved ones must stay active in their family member’s care and act quickly if they suspect elder financial abuse. 

Unexplained Financial Transactions

Unexplained withdrawals or drastic changes in credit reports can suggest that someone is using the person’s accounts without their knowledge. A careful perpetrator may not make large withdrawals from bank accounts but rather a series of smaller withdrawals to avoid suspicion, making it vital to check bank statements carefully.

Unpaid bills or strange charges on credit card statements are a significant sign of elder financial abuse. New loans or credit cards the person does not remember opening suggest identity theft, while changes in account beneficiaries suggest undue influence. 

Loved ones should also be alert for large gift card purchases, as these are often used to funnel cash to scammers. They should ask the elderly individual what the gift card is for and who asked them to purchase one.

Missing Belongings or Property

Missing valuables, like jewelry or electronics, or changes in property titles can be indicators of financial elder abuse. Caregivers may also have new, expensive items, like cars, jewelry, or clothing, purchased with the stolen money.

Changes in Wills or Legal Documents

Loved ones should carefully monitor wills and trusts for suspected financial abuse. Abusers may manipulate or threaten the victim into making them a beneficiary of their estate or change wills so they inherit everything. 

Reluctance to Discuss Finances

Being unwilling to discuss finances can be a sign of elder financial abuse. The victim may be embarrassed to have fallen for a scam, or an abuser may have warned them not to talk about changes to legal agreements. Additionally, the victim may not know what’s happening with their finances and get defensive if confronted with the evidence of financial abuse. 

Protecting Elders from Financial Abuse

Identifying and reporting elder financial abuse is crucial to the victim’s financial, emotional, and physical well-being. Abusers may completely clear out accounts and leave the victim with nothing to live on, while suspicious transactions could lead a bank or credit card company to close accounts the victim relied on. 

Staying proactive, working with an attorney to safeguard finances, and acting quickly if you suspect financial abuse can ensure your loved one has the funds they need to live comfortably during their retirement. 

Open Communication and Monitoring

Isolation, such as not living with a family member, can also make it difficult for others to notice elder financial exploitation. As such, loved ones must be involved in their elderly relative’s care and monitor their accounts for suspicious activity. Always be willing to ask questions about finances, even if the topic is uncomfortable.

Legal and Financial Planning

To prevent financial abuse, you must create strong legal agreements that identify beneficiaries and explain how the elderly person’s money or personal property should be distributed. A durable power of attorney given to a responsible loved one should be signed when the older individual still has sufficient mental capacity and can make their own decisions.

Living trusts can also help prevent financial abuse. They place the person’s assets in an account managed by attorneys or financial institutions, like credit unions. This makes it easier to avoid fraud and can help prove elderly financial abuse.

Getting appropriate legal aid to set up these legal frameworks can prevent the misuse of funds. Work with an estate planning attorney or financial advisor while the individual is still of sound mind, and ensure that everyone in the family is aware of these documents. 

Reporting Suspected Abuse

You must report cases of elder abuse to the appropriate authorities as soon as possible. Contact local law enforcement, Adult Protective Services, and the Department of Health and Human Services immediately if you suspect someone is financially abusing an older person. A financial abuse attorney from our law firm can help you report per state laws.

The Role of a Nursing Home Injury Lawyer

Our nursing home abuse lawyers can assist you in thoroughly investigating potential abuse and holding perpetrators accountable through civil court, as well as guiding you to resources that will help you and your family recover from financial exploitation.

Investigating Financial Exploitation in Nursing Homes

Investigating abuse in an institutional setting can be more challenging than in a community setting, as there may be multiple perpetrators, or the specific perpetrator may not be evident due to the large pool of potential suspects. 

Our team will thoroughly review all financial records to identify suspicious transactions, including contacting banks or credit card companies to subpoena their records. We’ll also carefully review all transactions and records before reviewing who may have access to the accounts, such as an administrator, nurse, or nursing assistant. 

For example, we may cross-reference recent hires with the timeline of exploitation to see whether a new employee could have been responsible or if the sudden withdrawals stopped when one employee left the facility. This can help us focus our search.

We will interview witnesses who may have additional information about the suspected abuse. This can include the victim, other employees, and other residents. By examining the incident from all angles, we can fully understand the circumstances that will support our argument.

Holding Perpetrators Accountable

You have multiple legal options for pursuing justice after elder abuse, including civil and criminal charges. We will assist you in recovering misappropriated funds or assets whenever possible. For example, you can sue in civil court to recover assets or gain compensation for lost funds. Our team can also connect you to other resources to press criminal charges if necessary. 

Protecting Residents’ Rights

At the Nursing Home Law Center, we aim to ensure that all elderly individuals have the right to live with dignity and security. We advocate for residents’ rights in institutional settings like nursing homes and hold abusers accountable for their failure to respect those under their care.

Unfortunately, elder abuse is highly underreported due to stigma, shame, or a lack of awareness. By holding perpetrators responsible for their behavior, we help shed light on institutional exploitation and prevent others from being harmed. 

Secure Expert Legal Representation!

Financial elder abuse in nursing homes and other institutional settings can have devastating impacts on vulnerable adults, leaving them without the resources they need to thrive. Our elder abuse attorneys at Nursing Home Law Center are at the forefront of protecting elder rights, ensuring that those who harm senior citizens are held responsible for their abuse.

If you or a loved one has been the victim of elder financial abuse, help is available. Schedule a free legal consultation with an experienced financial elder abuse attorney by calling (800) 926-7565 or using our online contact form. 

References: [1] United States Department of Justice, [2] National Council on Aging, [3] National Center on Elder Abuse, [4] World Health Organization, [5] Investopedia, [6] University of Florida, [7] Better Business Bureau, [8] Better Business Bureau