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Elder Financial Abuse: Awareness and Prevention

After the death of her husband, Mrs. Jones thought she was doing the right thing when she signed the paperwork to give her son legal responsibility for her financial affairs. Only when she discovered that one of her savings accounts was depleted did she realize that something was terribly wrong. Mrs. Jones was a victim of elder financial abuse. Unfortunately, she is not alone. Older consumers lose millions of dollars each year because of financial exploitation. Sometimes the exploitation is the result of a con artist's scam, but often, the victim's own family and friends take advantage of or steal their financial resources. Other typical abusers include caretakers (paid or volunteer) and professionals.

Financial abuse can be defined as the improper or illegal use of the resources of an older person, without his/her consent, for someone else's benefit. The following are examples of elder financial abuse:

• A son persuades his mother to give him her power of attorney then uses it to empty her bank account
• A next door neighbor short changes an 80 year old man each time she picks up groceries for him
• A telemarketer convinces an unsuspecting caller to purchase a risky investment after promising great returns on their money
• An accountant fails to advise an elderly widow of her future tax liability after completing her deceased spouse's last tax return
• A caregiver gains a senior's trust and is given his/her ATM card and PIN to obtain weekly spending money, but the caregiver takes extra cash for herself as well
• A con-artist solicits a donation for a fake charity from a senior

As the number and percentage of individuals 65 and over has increased in this country, so has the incidence of financial abuse. By 2030, there will be about 70 million older persons, more than twice their number in 2000. According to 2000 Census information, there are 374,019 Arkansans age 65 years or older. Thousands will fall prey to financial abuse.

What can be done to protect a vulnerable population from financial exploitation? Through education and awareness, elders must recognize signs of abuse and report suspected perpetrators. It's estimated that only 1 of 6 cases of elder financial abuse are ever reported. Seniors are afraid to report or are too embarrassed to admit they have experienced financial abuse. Lack of reporting makes abuse easier for those prone to take advantage of an aging population. Family members, friends and neighbors can also watch for and report financial abuse. Some red flags include:

• Elder's use of an ATM when they are physically unable to leave the home
• Numerous cash withdrawals from a checking account in a short period of time, inconsistent with the elder's spending habits
• Increased activity on credit cards
• Change in account beneficiaries
• New authorized signers on accounts
• Change in property titles, deeds, or other ownership documents
• A refinanced mortgage
• Change in Power of Attorney
• Abrupt changes in a will or trust
• Bank or credit card statements sent to an address other than the elder's home address
• Living situation not reflective of elder's expenditures (bills unpaid, lack of new personal items)
• Valuable personal items such as jewelry, art, and furs are missing

There are specific things seniors can do to protect themselves. Seniors should:

• Use direct deposit for checks
• Never give another person a signed blank check
• Never sign anything they don't understand
• Never give their ATM card and/or PIN to anyone
• Never leave money or valuables in plain view
• Use joint checking accounts knowledgeably
• Review bank and credit card statements carefully for unauthorized withdrawals or charges
• Report suspected or known financial abuse to family, friends, and appropriate agencies
• Hang up on telemarketers
• Select personal advisors with care
• Protect their social security number and other private information
• Research and understand all investments before purchasing
• Give to charities only after knowing how much of their contribution will actually go to the cause.

Many educational, governmental and private agencies include information about financial abuse on their web site. Some popular and helpful links include:

Federal Consumer Information Center - Hundreds of fact sheets for consumers on topics ranging from insurance to telemarketing fraud. Home of the Consumer Information Handbook, a 160 page resource, that provides advice on car repair, purchase and leasing, shopping from home, avoiding consumer and investment fraud; home improvement and financing and much more.

National Aging Information Center - This service of the U.S. Administration on Aging offers searchable databases on AoA supported materials and reports, publications, a calendar of events, statistical resources on the aging, GAO reports related to aging issues, and web links. The site also contains a link to the MedLine Database of the National Library of Medicine.

National Citizens' Coalition for Nursing Home Reform - Site includes a list of all state long-term care ombudsmen and their contact information.

U.S. Administration on Aging - An extensive resource on all aging topics, including elder abuse. The website is aimed at older persons and their families, practitioners and other professionals, the aging network, and researchers and students. Includes funding alerts, fact sheets, statistics, advice on website development, extensive weblinks, and much, much more.

AARP - Formerly the American Association of Retired Persons, AARP provides resources and educational programs designed to help Americans make their own choices, reach their goals and dreams and make the most of their lives after 50.

National Center on Elder Abuse - This is a federal grant-funded partnership of leading organizations involved with preventing elder abuse. On its Web site, you will find comprehensive information about elder abuse: its causes and victims, elder abuse laws by state, hotline reporting numbers, fact sheets, and research reports, with extensive annotated Web links to state, national, and international sites.

Family Caregiver Alliance - This national organization provides resources to help those who care for disabled or frail elders. Includes information on managing Alzheimer's disease, tax issues, work and eldercare, an online support group, and much more. Has significant content on elder abuse and its prevention.

National Center for Victims of Crime (NCVC) - A useful resource for all types of victims of crime. Includes domestic violence and other websites for every state; elder abuse posters that can be ordered from NCVC; a discussion forum for both victims and professionals; overview of elder abuse laws and policies; and regularly-updated news stories from across the country. Some references and links are not, however, up to date. Immediate advice for domestic violence victims.

ID Theft - The U. S. Government's central web site on identity theft.

Arkansas Department of Human Services - Division of Aging and Adult Services, Adult Protective Services - Describes role of the Adult Protective Services and provides useful links to other sites with helpful information on elder financial abuse.

North American Securities Administrators Association, Inc. - Organized in 1919, the North American Securities Administrators Association (NASAA)  is the oldest international organization devoted to investor protection. Any individual that wishes to protect themselves from securities fraud will find the information on this site useful.

National Association of Triads, Inc. - Home page of the National Association of Triads, a tax-exempt affiliate corporation of the National Sheriffs' Association that acts as an umbrella organization providing advice, support, technical assistance and training to local Triads throughout the U.S. Triads include representatives from AARP, the International Association of Chiefs of Police and the National Sheriffs' Association. These groups have agreed to work together to help ensure senior safety.

Arkansas Attorney General's Office - Home page of the Arkansas Attorney General's Office

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