Two scenarios fall under financial elder abuse—abuse and exploitation.
Financial elder abuse is the neglect of an elder’s financial responsibilities like paying rent or mortgage, medical expenses or insurance, utility bills, or property taxes.
Financial exploitation is the misuse of an elder’s property without their consent.
Common indicators of financial abuse
- Unpaid bills, eviction notices, or utility shut-off notices even with adequate funds
- Unauthorized or suspicious withdrawals, transfers, or changes in bank accounts
- Changes to legal documents, such as wills or power of attorney, that the elder didn’t initiate
- Excessive control over the elder’s finances
- Isolation
- Signs of fear, anxiety, or confusion about finances
- Sudden changes in beneficiaries
These signs should not be taken in isolation but viewed collectively as potential red flags.
How to recognize elder financial exploitation
Financial exploitation is the misuse of property, belongings, or assets of an elder. A family member or caregiver can force the elder to move assets or do it under pretenses.
Doctors, hospital staff, and healthcare workers can also commit healthcare fraud.
You can keep an eye out for elder abuse in case any of the following keep happening:
- Changes in accounts
- Duplicate billings
- Unpaid bills
- Missing belongings
- Eviction notices, or utility shut-off notices despite having enough funds.
- Unauthorized or suspicious withdrawals or transfers
- Changes in legal documents, such as wills or power of attorney, that the elder didn’t initiate.
- Unusual or excessive purchases
- Coerced changes to an elder’s financial assets or property ownership.
- Lack of basic facilities despite having funds
- Isolation from people who may help with finances.
If you see any of this happening around you, report it to the authorities.
How to prevent financial elder abuse
Preventing financial abuse is crucial to protect older individuals from exploitation. Here are some steps to help prevent financial abuse:
- Educate older adults with financial literacy and the resources to understand their rights.
- Foster trusting relationships with family members, friends, or professionals who can assist in financial matters.
- Maintain regular communication and involvement in the financial affairs of older adults, especially if they require assistance.
- Carefully consider granting powers of attorney or designating individuals to handle financial matters. Ensure that the designated person is capable of acting in the best interest of the elder.
- Monitor for scams and fraud.
- Assist older adults in setting up legal safeguards, such as a durable power of attorney, a living will, or a revocable trust. Consult with legal professionals to ensure this.
- If you suspect financial abuse, report it to the relevant authorities, such as Adult Protective Services, local law enforcement, or your state’s attorney general’s office.