Learn how to protect family and loved ones from elder financial abuse and exploitation.
What is Elder Financial Abuse?
Elder financial abuse, also known as financial exploitation, is the illegal, unauthorized, or improper use of an older person’s property or financial assets, often by someone they know and trust, resulting in financial, physical, and emotional harm. Elder financial abuse can have devastating consequences, including financial ruin, homelessness, and even premature mortality.
Examples of Exploitation by Family, Acquaintance, or Fiduciary:
- Misappropriation of income or assets, basically theft.
- Mismanagement of income or assets. Elders not having basic needs met. Neglect, possibly for future benefit of caregiver or the caregiver is incapable of management
- Obtaining money or property by undue influence, misrepresentation or fraud, basically coercion. This includes threats of violence, withholding food or medication, isolation and persuading elders to take action believing they will benefit.
- Improper or fraudulent use of the power of attorney or fiduciary authority. For example, altering the will, disposing of assets, borrowing in the elder’s name.
- Signing documents without elder’s consent, basically forgery.
- Charging excessive rent or fees for services. Fees may be for transportation, meals, laundry, personal care, or caregiver services provided by family or friends.
Why are elders vulnerable to exploitation?
Elders (age 60 or older) may be:
- Socially isolated
- Dependent on others for assistance
- Afraid to report or speak out
- Embarrassed
- Trusting
- Cognitively or physically declining
- Experiencing changes in financial or economic status
Warning Signs of Financial Exploitation
- Sudden changes in bank accounts or banking practices. For instance, an unexplained withdrawal of large sums of money by a person accompanying the older adult.
- The inclusion of additional names on an older adult’s bank signature card.
- Unauthorized withdrawal of the older adult’s funds using their ATM card.
- Abrupt changes in a will or other financial documents.
- Unexplained disappearance of funds or valuable possessions.
- Provision of substandard care or bills left unpaid despite the availability of adequate financial resources.
- Discovery of a forged signature for financial transactions or for the titles of the older adult’s possessions
- Sudden appearance of previously uninvolved relatives claiming their rights to an older adult’s property or possessions.
- Unexplained sudden transfer of assets to a family member or someone outside the family.
- The provision of services that are not necessary.
- An older adult’s report of financial exploitation.
- Unexplained credit card charges.
What are some scams and confidence schemes perpetrated by strangers?
- Bogus charities
- Fraudulent accident ploys
- Internet, telemarketing and mail fraud
- Phishing scams
- Sweepstakes and prizes
- Phony checks
- Unsolicited work
- Unscrupulous contractors
What to do if you suspect Elder Financial Abuse:
If you suspect elder financial abuse of an older person (age 60+) report it to Adult Protective Services (APS). APS are social services programs that serve older adults and adults with disabilities. To file a report, contact the Rhode Island Office of Healthy Aging at 401.462.0555.
