Seniors and Financial Abuse 6/2010
What is Senior Financial Abuse?
Senior financial abuse is the use of a senior’s money or assets contrary to the needs, desires, or best interests of the senior or for the personal gain of the abuser. Seniors are often targeted by relatives as well as con artists.
Elder financial abuse can manifest itself in many forms. Some examples of abuse:
- Taking property or money from the senior’s home or bank accounts.
- Selling, transferring, or leveraging the senior’s home against his/her wishes or best interests.
- Using the senior’s credit cards for unauthorized purchases or using the senior’s name and/or good credit to open additional credit cards for illegal use by the abuser.
- Misusing the senior’s power of attorney.
- Creating or modifying living trusts or wills to benefit the abuser.
The abusers may be:
- Family members
- Caregivers
- Strangers met in public, over the telephone, or those who go door to door.
- Professionals hired to help and guide the senior – accountants, bankers, attorneys, or doctors.
What are the signs of financial abuse?
Financial activity:
- Unusual or inappropriate bank account activity: withdrawals from ATMs when the senior cannot walk; numerous large withdrawals in a short period of time; the transfer of funds to accounts that were not used before.
- New authorized signers on accounts and/or new account beneficiaries.
- A withdrawal from CDs or savings accounts, despite large penalties.
- Frequent checks for “Cash” are written for a caregiver or financial professional.
- Increased credit card activity.
Legal activity:
- Recent change in will or trust.
- Change in property title(s).
- Recent change in power of attorney for the senior.
- Behavioral signs:
- The senior is placed in a nursing home that is well below the means of the senior’s estate.
- The caregiver attempts to isolate the senior from others.
- The caregiver is evasive about financial arrangements.
- The caregiver is overly concerned with the senior’s finances.
- The caregiver often speaks for the senior, even in the senior’s presence.
What can be done to combat financial abuse?
If you suspect that an elderly friend or relative has been a victim of financial abuse, contact your local Agency on Aging. The Agency on Aging will investigate alleged abuse and make the proper referrals to law enforcement, if necessary. All reports of abuse can remain confidential.
If you have an elderly relative or friend and he or she has not been victimized by financial abuse, you can continue to reduce the likelihood of abuse by practicing these good habits regarding the seniors’ affairs:
- Attempt to keep the senior from being isolated.
- Have checks directly deposited into the senior’s account(s).
- Conduct thorough background and reference checks on any potential caregivers. For example, does the caregiver have a criminal record?
- Limit the power of attorney.
- Communicate frequently with the senior’s bank to supervise financial activity.
- Keep a team of individuals responsible for the senior to avoid secrecy.
- If a caregiver is staying in the home, lock up the senior’s credit cards and checkbook unless a trusted third party is present.
“Senior Swindles”:
Are unscrupulous family members, professionals, and caregivers the only possible perpetrators of financial abuse? No. Often, seniors fall victim to a large number of scams that are devised to prey upon the trusting nature of the elderly. Below is a list of many of the most popular “senior swindles.”
Phony sweepstakes winner – Often a senior will receive a phone call or a letter in the mail that informs them that they have won a large prize, or even the lottery. The only condition for claiming the prize is for the senior to send a payment for “taxes” related to the prize before it is shipped. The senior then pays the taxes and receives nothing.
Utility inspector scam – A person impersonating a “utility inspector” arrives at a senior’s home and distracts the senior while someone else burglarizes the home.
Latin lotto scam – A person who poses as an “illegal alien” contacts a senior and claims to have a winning lottery ticket. The “illegal alien” offers the senior a share of the winnings if he or she claims the ticket in his/her name. The “alien” asks for some “good-faith” money to help claim the phony winnings.
Fortune teller / faith healer scam – A person posing as a psychic or faith healer informs the senior that his/her money or jewelry is cursed. They then convince the senior to turn over the money or jewelry to have the “curse” removed. The money/jewelry is never seen again.
How can these scams be avoided?
These simple tips will help seniors to avoid scams:
If the situation seems unusual or too good to be true, it probably is.
- If a senior feels uncomfortable with any aspect of a questionable proposition, he or she should just walk away.
- Remember: No financial institution or government agency will ever use customers as part of an internal investigation.
- Trust only people you know. Do not fall prey to people because they have a friendly face or voice, or because they appear to be a figure of authority.
- Consult with your banker or a law enforcement official before withdrawing large sums of money at the request of someone else.
How can I learn more about reporting Senior Financial Abuse?
To find out more information, contact your local Agency on Aging office.
By phone, you can call the 2-1-1 Idaho CareLine by dialing 2-1-1 or 1-800-926-2588 to get the contact information of your local Agency on Aging office.
You can search for your local Agency on Aging office contact information in the 2-1-1 Idaho CareLine online database.