How to Identify Elder Financial Abuse Types Signs amp Prevention
How to Identify Elder Financial Abuse - Types, Signs & Prevention Skip to content
Motley Fool Stock Advisor recommendations have an average return of 397%. For $79 (or just $1.52 per week), join more than 1 million members and don't miss their upcoming stock picks. 30 day money-back guarantee. Sign Up Now Coercion Through Neglect and Violence. Some financial abusers coerce the elderly into turning over money and property through violence or threats of violence. Caretakers of severely disabled elders may withhold food or other basic care until the elderly individual turns over their assets.Draining Joint Accounts. Some older individuals hold joint savings, checking, or credit card accounts with their children, grandchildren, or other family members. This makes it easy for abusers to withdraw money for their own use without the approval of the joint account holder.Frequent Demands for Money. Family members, neighbors, or even romantic partners and spouses take advantage of an older person’s willingness to lend or provide funds, particularly if the elderly individual has memory loss.Theft of Property. Abusers sometimes steal an elder’s property, buying an item from the elder at a price far below the item’s market value, or “borrowing” something and never returning it.Mismanagement of Assets. Some elders appoint a friend, family member, or lawyer to manage their funds through power of attorney. Unscrupulous people use power of attorney to rob the elder of his or her funds and property.Investment Schemes. Abusers might persuade the elderly to funnel money into high-risk investments or business deals. While there is nothing wrong with an elder making legitimate investments, deals recommended by an abuser are often dangerous to an elderly person’s financial security.Street and Internet Scams. Con artists often target the elderly, and elders who use the Internet may be particularly vulnerable to common online scams, largely because they are unfamiliar with how the Internet works. One common Internet con game is the Nigerian 419 scam, in which someone emails the elder (or contacts them on Facebook) about an inheritance or a large amount of money that the elder can help bring into the United States. The scammer asks the victim for his or her bank account information with the promise to deposit funds into it. Of course, the reverse happens and the scammer ends up draining the account, leaving the victim with nothing.Identity Theft. Abusers may use the victim’s credit history to take out loans or obtain credit. Other forms of identity theft involve using the victim’s identity to obtain medical care, or as an alias when committing additional crimes.Real Estate Fraud. Methods vary, but may include tricking an elderly person into signing over the deed to their home, encouraging an elderly person to take out an unnecessary mortgage at a high interest rate, or filing a forged deed with the county recorder’s office.Bequests and Life Insurance. Financial abusers with patience may persuade an elder to make the abuser an heir or name the abuser as a life insurance beneficiary.Lodgers and Roommates. Some elderly people agree to allow a friend or family member to stay with them in exchange for rent or caretaking duties. These arrangements often work well for both parties, but sometimes the lodger doesn’t meet his or her obligations under the arrangement. Some types of financial abuse don’t neatly fit these descriptions, so you have to rely on your instinct and the evidence you uncover to determine whether the elder has been victimized.
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By Lainie Petersen Date January 31, 2022FEATURED PROMOTION
It seems that every few months, the media reports a case about an elderly person who was bilked out of his or her savings, investments, or home by an unscrupulous caretaker, family member, or garden-variety con artist. In fact, the American Psychological Association claims that there are at least four million cases of elder abuse and neglect each year, with as many as 23 unreported cases for every case that comes to the attention of the authorities. Preventing and addressing financial elder abuse is a major concern, and one that is only going to grow as the population ages.What Is Elder Financial Abuse
Financial abuse is the theft or mismanagement of an elderly person’s funds, real estate, investments, or personal property. Like all abusers, financial elder abusers perceive the elderly as vulnerable and unlikely to fight back or expose the abuse. Financial abuse can be a one-time incident or it can continue for many years.Types of Financial Abuse
Not all financial abusers use the same techniques to take money from their victims. Here are some of the ways that financial abusers exploit the elderly:Motley Fool Stock Advisor recommendations have an average return of 397%. For $79 (or just $1.52 per week), join more than 1 million members and don't miss their upcoming stock picks. 30 day money-back guarantee. Sign Up Now Coercion Through Neglect and Violence. Some financial abusers coerce the elderly into turning over money and property through violence or threats of violence. Caretakers of severely disabled elders may withhold food or other basic care until the elderly individual turns over their assets.Draining Joint Accounts. Some older individuals hold joint savings, checking, or credit card accounts with their children, grandchildren, or other family members. This makes it easy for abusers to withdraw money for their own use without the approval of the joint account holder.Frequent Demands for Money. Family members, neighbors, or even romantic partners and spouses take advantage of an older person’s willingness to lend or provide funds, particularly if the elderly individual has memory loss.Theft of Property. Abusers sometimes steal an elder’s property, buying an item from the elder at a price far below the item’s market value, or “borrowing” something and never returning it.Mismanagement of Assets. Some elders appoint a friend, family member, or lawyer to manage their funds through power of attorney. Unscrupulous people use power of attorney to rob the elder of his or her funds and property.Investment Schemes. Abusers might persuade the elderly to funnel money into high-risk investments or business deals. While there is nothing wrong with an elder making legitimate investments, deals recommended by an abuser are often dangerous to an elderly person’s financial security.Street and Internet Scams. Con artists often target the elderly, and elders who use the Internet may be particularly vulnerable to common online scams, largely because they are unfamiliar with how the Internet works. One common Internet con game is the Nigerian 419 scam, in which someone emails the elder (or contacts them on Facebook) about an inheritance or a large amount of money that the elder can help bring into the United States. The scammer asks the victim for his or her bank account information with the promise to deposit funds into it. Of course, the reverse happens and the scammer ends up draining the account, leaving the victim with nothing.Identity Theft. Abusers may use the victim’s credit history to take out loans or obtain credit. Other forms of identity theft involve using the victim’s identity to obtain medical care, or as an alias when committing additional crimes.Real Estate Fraud. Methods vary, but may include tricking an elderly person into signing over the deed to their home, encouraging an elderly person to take out an unnecessary mortgage at a high interest rate, or filing a forged deed with the county recorder’s office.Bequests and Life Insurance. Financial abusers with patience may persuade an elder to make the abuser an heir or name the abuser as a life insurance beneficiary.Lodgers and Roommates. Some elderly people agree to allow a friend or family member to stay with them in exchange for rent or caretaking duties. These arrangements often work well for both parties, but sometimes the lodger doesn’t meet his or her obligations under the arrangement. Some types of financial abuse don’t neatly fit these descriptions, so you have to rely on your instinct and the evidence you uncover to determine whether the elder has been victimized.