Protecting Your Loved One’s Retirement and Benefits from Exploitation
Elderly abuse is a rampant problem in the United States. Every year, at least 10 million seniors are abused or neglected. I say “at least,” because in actuality, countless others are likely suffering in silence. These kinds of cases often go unreported.
I’ve written before about the range of forms elderly abuse can take. It can be physical, taking the shape of pressure ulcers or dehydration. It can be emotional.
But today I want to talk about a different form of abuse among adults, one that is rapidly growing and also massively underreported: financial exploitation.
- It can start with endless phone calls asking a senior citizen, whose health has begun to decline, for money to save kids with cancer.
- Or it could start with notifications in the mail saying Grandpa has won the sweepstakes and just needs to pay a small amount to cover taxes.
- Or perhaps you visit the home of a relative who’s been living alone, and you realize they’ve been giving money away to someone they barely know or met online.
Financial exploitation among elders — which is defined as the illegal or improper use of an elder’s funds, property, or assets — is widespread. And with social media and the rise of AI, it’s become an almost impossible threat to contain.
Who Is Most Vulnerable?
Heartbreakingly enough, those who are suffering from cognitive impairments that are already tragic in themselves, such as Alzheimer’s and other forms of dementia, are particularly susceptible to these crimes. A decline in mental or physical health is a big factor in financial exploitation cases.
Generally speaking, elders living fairly isolated lives and who need assistance with day-to-day activities, are most at risk.
A 2011 Study of Financial Elder Abuse by Metlife found that victims are often between the ages of 80 and 89. Women are more likely to be victims than men.
However, these days even much younger people can fall prey to scams. Voice cloning and other tech advances can make it hard to know what’s real when someone contacts you. So all of this advice could apply to most anyone, of any age.
Often, Abusers Already Know the Victims
People who are poised to take advantage of an elder’s cognitive decline are often close friends or relatives. Some studies put that number as high as 90%. They tend to fall into a pattern and fit the following characteristics:
- Abusers feel a sense of entitlement with respect to the abused elder’s belongings, and may stand to inherit money or material possessions when the elder dies.
- They may have personally struggled with finances, drugs, or alcohol.
- They may have negative feelings or personal tension with other relatives who also stand to inherit something from the elder.
- Caregivers and other personal care providers may also target their clients.
In the case of technology, some scams work to gain the person’s trust as much as possible over a long period of time. By the point the victim sends money, the person (who is almost always faking their identity) feels like a close personal friend.
How Can We Prevent It?
We all need to take steps to prevent financial abuse before the warning signs are visible.
Those who are isolated are the most susceptible to exploitation. With that in mind, one of the best strategies for protecting a senior is to create a strong support system. Have enough conversations over time to help you understand your loved one’s state of financial affairs and overall health.
Here are a few other tips to help protect yourself or your loved one against financial abuse and scams against the elderly:
Set Up Financial Safeguards
Encourage your loved one to establish trusted financial safeguards, like appointing a power of attorney or setting up a trusted contact person for bank accounts and investments to monitor transactions and prevent unauthorized activity.
Stay Educated About Common Scams
Regularly discuss common scams, such as phishing calls, fake lottery winnings, and charity frauds, so they can recognize red flags and avoid sharing personal information or money with unknown individuals.
Monitor Bank and Credit Card Statements
Regularly review bank and credit card statements for any suspicious or unfamiliar transactions. Setting up alerts for large withdrawals or unusual spending can also help catch fraudulent activity early.
Be Cautious with New “Friends” or Caregivers
Be wary of new acquaintances, caregivers, or even family members who show sudden interest in an elderly person’s finances. Encourage open communication about any new people who offer help with money or financial decisions.
Encourage Legal Protections
Help your loved one create legal documents like a durable power of attorney, a living will, or a trust, which can outline their financial wishes and designate trusted people to manage their finances if they’re no longer able to do so themselves.
A Financial Elder Abuse Lawyer in Memphis TN
If you suspect that you or an elder in your life has been neglected or abused — including through financial abuse — call us at (901) 327-2100 or contact us online.
Our award-winning attorneys are here to help. You can rest assured we want to put an end to this awful abuse and protect you and your loved one’s future.