What is financial fraud against the elderly?

Financial fraud against seniors is the misuse of a senior person’s assets or resources by an external party for personal gain. This type of financial fraud can be committed by strangers or someone known to the victim, such as a caregiver, relatives, or friends.

How Does Financial Fraud Against Seniors Work?

Financial fraud occurs when one person takes or misuses another person’s assets or property for their personal benefit. When the victim is a senior, it is referred to as financial fraud against seniors or financial exploitation.

In terms of how financial fraud against seniors works, it can take various forms. It typically involves people targeting seniors who:

• Are 80 years old or older
• Are isolated from their communities and loved ones or friends
• Depend on others for care
• Experience a decline in mental abilities
• Are physically disabled

Note: Financial fraud against seniors is a serious problem, with about five million Americans becoming victims each year, resulting in losses of $36.5 billion.

Perpetrators of financial fraud against seniors can be strangers or people known to the victim. The type of fraud that occurs often depends on who is exploiting the senior. For example, there are many fraudulent schemes that target elderly seniors, including:

• Home improvement scams
• Lottery and sweepstakes scams
• Charity fraud
• Healthcare and prescription drug fraud
• Phone, text, or email scams

With these types of financial fraud against seniors, the goal is usually to convince the victim to hand over their personal or financial information. For example, an elderly person might be told they won a sweepstakes, but to claim the prize, they need to transfer $500 to the sweepstakes company’s bank account first.

Financial fraud against seniors by a “trusted person” involves exploitation by someone known to the victim. The trusted person may have access to the senior’s assets, or they may threaten or coerce the victim into granting them access to bank accounts or handing over their property. In some cases, the victim may also face physical abuse.

Note: Women tend to be more vulnerable to financial fraud against seniors than men.

Financial fraud against seniors can be treated as a crime, depending on where you live. Each state defines financial fraud against seniors and their exploitation differently.

Example of Financial Fraud Against Seniors

Here we take a closer look at how financial fraud against seniors works. Let’s say your 80-year-old mother shows early signs of dementia. She refuses to be placed in a nursing home, so she hires a home nurse to visit her daily and take care of her basic needs.

After a few months, you notice that checks have gone missing from your mother’s checkbook. Debt collection notices from credit card companies pile up in the mail, and collectors call frequently. Your mother surprises you by informing you that she has changed her will to leave her property to the nurse.

When you ask about the changes, your mother refuses to discuss them and appears embarrassed or even frightened. The nurse acts defensively when questioned or tries to cut off your contact with your mother. These are all classic signs of a situation where someone is financially exploiting a senior for their personal gain.

Takeaway

Financial fraud against seniors involves the misuse or exploitation of a senior person’s resources or assets for the benefit of another person. Financial fraud against seniors can take the form of scams or exploitation by a person known to the victim.

In

Many states, although not all of them, consider financial fraud against the elderly a crime. Knowing how to spot the signs of financial fraud against seniors is the best way to prevent someone you love from becoming a victim.

If you suspect that an elderly person you know is being financially exploited or otherwise, you can contact Adult Protective Services to report it.

Frequently Asked Questions

What are the categories of crimes related to financial fraud against the elderly?

Financial fraud against the elderly can be categorized based on who commits the fraud. Generally, financial fraud against seniors is perpetrated by strangers or persons known to them, such as caregivers, relatives, or other trusted individuals.

How can you report financial fraud against the elderly?

If you believe that an elderly person is being exploited or if you think you are a victim, you can reach out to Adult Protective Services to report it. Suspected financial crimes can also be reported to the victim’s bank. If you also suspect physical abuse, you may be able to report it to the victim’s doctor.

What should you do if you suspect financial fraud against the elderly?

If you suspect financial fraud against the elderly, you can first try to speak to the person you believe is being exploited. They may be unable to speak or may not be able to communicate if they are being exploited. If they are hesitant to talk, you can reach out to their other loved ones or their doctor to try to confirm what you suspect. You can also report the suspected fraud to Adult Protective Services and/or the police.

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Sources: The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts in our articles. Read our editorial process to learn more about how we fact-check and maintain the accuracy, reliability, and quality of our content.

Consumer Financial Protection Bureau. “Reporting Elder Financial Abuse.”

State of New York. “What is Financial Exploitation of Seniors?”

National Council on Aging. “Get the Facts About Elder Abuse.”

Source: https://www.thebalancemoney.com/what-is-elder-financial-abuse-6272305