Elder Financial Abuse Tips and Resources

November is National Family Caregivers Month and as we gear up to spend the holidays with our elderly loved ones, it is important to reflect on an issue that is often overlooked and underreported…elder abuse, specifically financial abuse. The elderly are prime targets for all types of abuse (financial, physical, emotional, neglect, etc.) and though we may try our best, we can’t always be with them all the time. However, there are some steps we can take to protect the financial well-being of our elderly loved ones. The information below is taken from the Consumer Financial Protection Bureau’s updated Preventing Elder Financial Abuse: Guide for family and friends of people living in nursing homes and assisted living communities.

What Is Elder Financial Abuse?

Elder financial abuse comprises a variety of activities and situations in which an individual or group takes advantage of an elderly person for the purpose of financial exploitation. Perpetrators can range from close family, extended family, caregiving staff, or strangers. They may take money without permission, fail to repay money they owe, charge too much for services, or not do what they were paid to do. Additionally, scammers tend to target the elderly regarding technology issues, Social Security/Medicare/IRS errors that need immediate remediation, or faking financial needs of other family members. These can be especially difficult for the elderly to deal with because they may have unwavering trust in family members or caregivers or have compromised mental faculties due to cognitive illnesses, such as Alzheimer’s Disease.

How to Recognize Elder Financial Abuse

Recognizing elder financial abuse can be difficult so try to watch out for these red flags:

Things you hear or observe – Listen to what they are saying, such as reporting missing money, property, or important papers. This may be very difficult to identify if the person is suffering from dementia as they can easily get confused and accused others when nothing is actually wrong. Watch for changes in manners or habits, such as becoming more nervous around certain caregivers or becoming more secretive or protective.
Things you see in their living space – Take stock of the property and possessions of your loved one. Watch out for missing items, including medications, or replaced items that may be of lesser value. Be aware of financial documents laying out in the open, including blank withdrawal forms or checkbooks.
Problems with other family and friends – It might be easy to identify family or friends with problems, such as drugs, alcohol, or gambling, that might lend toward them committing elder financial abuse, but there are more subtle ways that indicate they might be taking advantage of your loved one. Pressure or threats to make certain financial decisions can be an indication of a larger problem as well as limiting access to your loved one, oftentimes to try and conceal their abuse.
Problems with paying bills or managing money – Monitor your loved one’s bills to make sure they are being paid on time, especially those that are related to nursing home care and related expenses. Look out for unnecessary purchases, especially related to medical care or services.
Problems with a financial caregiver – Watch out for individuals who assert themselves as the financial caregiver, but have no written proof of that decision, such as from a Power of Attorney. This can also manifest itself in new written documents in which you know your loved one is incapable of making those decisions. Also be aware of pressure to refuse or the outright refusal for medical care or treatment simply due to cost.
Checks, charges, and gifts – Forged signatures on checks, especially if you know your loved one cannot write, are an easy way to spot financial abuse, but there are other ways that we might not think of. Look for checks that are routinely made out to “Cash” or checks that are written out of order. Also, watch for gifts (either frequent or expensive) to care team members or volunteers as well as valuables sold to those same individuals.

Consequences of Elder Financial Abuse

There are a wide range of consequences of elder financial abuse that affect everyone involved, not just our loved one. They may be removed from their care facility for nonpayment or might even die due to not receiving necessary treatment. There might also be less noticeable consequences that can still have a tremendous impact on their quality of life, including emotional harm, depression/anxiety, poor physical health, trouble making decisions, loneliness, and shorter life expectancy. Family relationships can deteriorate and cause unnecessary tensions between spouses, siblings, or directly with our elderly loved one. This can ultimately lead your loved one to seek more comfort from their abuser without any knowledge the abuse is taking place.

How to Prevent Elder Financial Abuse

While we cannot prevent all elder financial abuse, we can take certain steps to drastically reduce the risk of it happening:

Stay connected, especially through technology – This is especially important if you do not live close to your loved one. Video chat, phone calls, text messaging and email gives you a chance to communicate with your loved one, especially if you are prevented from physically seeing them. By encouraging social interaction and communication, there is a greater chance for your loved one to communicate a problem or issue, which you can further investigate. Video calling is also a great way to ensure that your loved one is looking healthy, allowing you to monitor their body language and surroundings for anything that is suspicious.
Work with the assisted living community or nursing home – Learning the policies and procedures in an assisted living community or nursing home can take a lot of time and effort, but the effort is well worth it. Focus on getting information related to:
- Contact information for staff person to report a problem
- Policies and procedures for managing money from individuals or families, especially related to Personal Needs Allowance for those on Medicaid
- Policies about reporting and responding to theft and financial abuse
- How care team members help protect your loved one’s finances, such as ATM cards, bank accounts, and check books, as well as online accounts, such as bank accounts or retirement accounts
Build awareness to help others – Educate yourself, like you are doing now, on elder financial abuse. Share this information with others involved in your loved one’s life. You can join groups such as resident and family councils or work with nursing home or assisted living staff members to coordinate these activities and see if they are willing to host events. Banks, credit unions, and other financial professionals may offer free trainings on how to prevent fraud or manage money.

How to Report Elder Financial Abuse

There are many ways to report abuse to a variety of departments, agencies, and organizations. Here are some of the most popular:

Adult Protective Services – APS are social services programs in each state. They serve older adults and adults with disabilities who need help because of abuse, neglect, or exploitation. Adult protective services is a common term, but this may not be the name of the agency in your state. The National Adult Protective Services Association can help you find your local APS at http://napsa-now.org/get-help/help-in-your-area/.
Law Enforcement – Some states have laws that make elder financial abuse a specific crime. Financial abuse may also involve other crimes such as theft, fraud, forgery, embezzlement, and money laundering.
When you contact law enforcement, an officer will speak with you either by phone or in person. Depending on the situation, the officer may also want to speak with your loved one, any witnesses, and the suspected perpetrator. If there is documentation of the financial abuse, such as a bank statement or forged check, the officer will likely ask to see the documentation.
Long-Term Care Ombudsman – long-term care ombudsman helps people living in nursing homes, assisted living communities and similar adult care communities. An ombudsman can advocate for individuals to help solve problems. If you contact a long-term care ombudsman, they can speak with your loved one, find out how your loved one wants to resolve the problem, and help work towards that goal. Every state has an Office of the State Long-Term Care Ombudsman, and you can find yours at http://theconsumervoice.org/get_help.

When making a report, it may be helpful to share the following information, if you have it:

Time, date, and location of any incidents or when you started to notice changes
Names of anyone who was involved and anyone who observed the incident
Description of the suspected financial abuse and signs of any other type of abuse or neglect
Your loved one’s disabilities or health conditions, if you know, including any information about problems with decision-making or memory loss
Whether you believe there is an urgent risk of danger to your loved one or someone else