Elder financial abuse is a significant issue affecting many older adults nationwide. It involves someone exploiting or misusing an older person’s finances or assets for personal gain. Often, the perpetrator is in a position of trust, be it a family member, abusive partner, or paid caregiver.
Recovering from elder financial abuse, both financially and emotionally, can be challenging. However, there are several strategies and resources available to help these victims.
Types of Elder Financial Fraud
Sadly, there are seemingly limitless financial fraud schemes that affect older Americans. The impact of financial abuse is enormous. One 2023 AARP report found that adults over age 60 lose more than $28 billion a year through all types of abusive financial acts.
Tech support scams are one of the most often reported. However, confidence fraud and romance scams cost elderly victims the most money. (In confidence fraud, someone befriends a senior and gains their confidence. They then abuse their relationship by getting access to their money and assets.)
Other forms of financial abuse of seniors include the following:
- Business email and email account compromise
- Investment
- Personal data breach
- Real estate or rental
- Government impersonation
- Identity theft
- Sweepstakes, lottery, and inheritance scams
- Non-payment or non-delivery
- Credit card fraud and advanced fee
First Steps Against Elder Financial Abuse
If you suspect an older person is the victim of financial abuse, report it immediately to the appropriate authorities.
You can begin by contacting your local Adult Protective Services agency (APS) or law enforcement to file a report. The sooner you make a report, the sooner an investigation into the situation can occur. Of utmost importance is taking actions to protect the victim and prevent further abuse. With these services, you can assess the scope of the financial abuse and identify the extent of financial losses.
Secondly, establish a support network for the victim. Surround the older individual with supportive family members, friends, and professionals who can provide emotional support. The victim will need other types of guidance throughout recovery. This network of professionals may include attorneys, financial advisors, therapists, and social workers.
In many cases, the perpetrator of the abuse is a trusted family member or professional caretaker. Remove them immediately from contact with the victim. They also should no longer have access to any accounts that would allow them to further the financial abuse.
Elder Financial Abuse Recovery Process
Experienced professionals can be crucial in helping with elder financial abuse and recovery, who understand the laws and regulations surrounding elder abuse and financial exploitation. They can provide personalized advice related to your specific circumstances. In addition, they can explain your legal rights and options available to rectify the situation.
Gathering and organizing the necessary documentation and evidence to support a case of financial abuse can be complex. Collecting bank statements, financial records, contracts, and other relevant documents will be necessary to build a compelling case. An attorney can work with financial institutions and other authorities to recover any misused or stolen assets. They may also file lawsuits against the abuser or explore other legal remedies to recover the stolen funds.
Notifying major credit reporting agencies like Equifax, Experian, and TransUnion about a case of elder financial abuse is crucial. It can help protect the victim’s credit and prevent further financial abuse via fraud alerts. These agencies also can institute a credit freeze. This blocks abusers from opening new accounts or accessing credit in the victim’s name.
In some cases, the abuser continues to have access to the older individual or their assets. It may be necessary to obtain protection orders or injunctions to prevent further harm. These legal measures can prohibit the abuser from contacting or approaching the older person and safeguard their financial resources.
Estate Planning and Asset Protection
An elder law attorney can develop comprehensive estate plans that protect the older person’s assets during their lifetime. They also can provide for their future needs through various legal tools, such as trusts and powers of attorney. This way, the older individual can safeguard their finances and ensure their loved ones honor their wishes.
If these documents are not in place and the victim no longer has the legal capacity to sign them, a guardian may be appropriate when older adults can’t manage their financial affairs on their own. An elder law attorney can help establish legal guardianship. In a guardianship, a trusted individual or institution manages the senior’s finances and makes decisions on their behalf.
If you suspect someone you love is experiencing elder financial abuse, contact an elder law attorney as part of the recovery and prevention process. Most importantly, consult the appropriate authorities as soon as possible if you believe someone is being victimized.
