Avoiding Elder Financial Abuse
April 3rd, 2023
Elder financial abuse is a growing problem that has been observed globally. It is a crime that can be committed by anyone, including family members, caregivers, and strangers. It involves the illegal or improper use of an elder’s funds, property, or assets. According to the National Council on Aging, over 5 million older Americans are victims of elder abuse each year, with financial exploitation being one of the most common forms of abuse. In this article, we will discuss the ten most prevalent causes of elder financial abuse.
- Scams: Criminals and scammers target the elderly through telephone, mail, and email scams. They use tactics such as offering fake prizes, investment opportunities, or charities to steal money from unsuspecting elders.
- Caregiver exploitation: Caregivers can take advantage of their position of trust to exploit an elder’s finances. They may steal money or property, coerce the elder into providing financial support, or forge checks.
- Family members: Family members can also be perpetrators of elder financial abuse. They may take advantage of their close relationship with the elder to access their finances, take out loans, or coerce them into changing their will.
- Power of attorney abuse: A power of attorney is a legal document that gives someone the authority to act on behalf of an elder. However, some people abuse this power by using the elder’s funds for their own benefit or fraudulently transferring assets.
- Internet fraud: The internet has made it easier for scammers to target the elderly. They may use phishing emails or fake websites to obtain personal and financial information, which is then used to commit fraud or identity theft.
- Investment schemes: Some investment schemes specifically target the elderly, promising high returns on investments. These schemes are often fraudulent, and elders can lose significant amounts of money.
- Reverse mortgage scams: A reverse mortgage is a type of loan that allows seniors to access the equity in their home. However, scammers may offer fake reverse mortgages or pressure elders into taking out a reverse mortgage, which can result in significant financial losses.
- Door-to-door scams: Some criminals go door-to-door, offering services such as home repairs or yard work. They may overcharge for these services or fail to complete the work altogether.
- Financial advisors: Some financial advisors may take advantage of their clients, particularly those who are elderly and vulnerable. They may recommend unsuitable investments or charge excessive fees, resulting in financial losses for the elder.
- Identity theft: Identity theft occurs when someone steals personal information, such as a social security number or credit card number, and uses it for fraudulent purposes. Elders are particularly vulnerable to identity theft, as they may be less likely to monitor their credit reports or notice fraudulent activity.
In conclusion, elder financial abuse is a growing problem that affects millions of individuals each year. It is important to be aware of the warning signs of financial abuse and to take steps to prevent it from occurring. If you or someone you know is a victim of elder financial abuse, it is important to report it to the authorities and seek legal assistance. By working together, we can help to prevent elder financial abuse and protect our seniors.