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Financial Abuse of the Elderly: Look for These Signs
In today's busy world family members are often unable to be as involved as they should be in the daily lives of elderly parents and other relatives. One result is that this can leave the elders vulnerable to predators bent on financial exploitation – a growing problem that can only be stopped through vigilance and active intervention.
According to the National Center on Elder Abuse, elder financial abuse plagues over two million Americans each year, and it is the number one crime committed against persons age 65 and older. Unchecked, this problem will grow exponentially as the baby boomer generation ages.
According to Linda Eagle, Ph.D., President of The Edcomm Group, "Just as doctors are often the first to spot the signs of physical abuse, front line bank personnel have the best perspective from which to spot elder financial abuse." In response to this growing problem, many states have enacted legislation requiring employees at financial institutions to report all suspected cases of elder financial abuse. Massachusetts law does not require banks to report suspected abuse of the elderly, but the state instituted a voluntary program to train banks and bank employees to report suspected financial abuse to elderly protective service agencies or the police
According to Dr. Eagle, the following are the top ten signs of which financial institutions should be aware to detect possible elder financial abuse. Seniors, their families, and caregivers should also be on the lookout for these signs:
1. Sudden changes in a senior's bank account or banking practices.
2. Uncharacteristic and unexplained withdrawals of large sums of money by a senior or someone acting under a senior's power of attorney. This includes sale of property or other valuable commodities.
3. Large credit card transactions or checks written to unusual recipients, like salespersons, telemarketers or "cash."
4. Abrupt changes in a senior's will or other financial or estate planning documents; the transfer of a senior's assets to a family member or acquaintance without a reasonable explanation.
5. Complaints of stolen or misplaced credit cards, valuables, checkbooks, or checks from the Social Security Administration, pensions or annuities.
6. Seniors who appear nervous when accompanied by another individual, or who give far-fetched explanations of why they need money.
7. Sudden increases in debt or inexplicable credit card transactions.
8. A person accompanying a senior who pressures the senior into making a withdrawal, or who does not allow the senior to speak for him/herself.
9. New signatories added to a senior's account or newly formed joint accounts between a senior and another individual.
10. Possible forged signatures on financial transactions, documents for transfer of assets, or new applications for items like credit cards.
Financial abuse of an elder is a crime that is punishable by the criminal justice system. Fraud, undue duress and intimidation can be punishable in a court of law and an elder may pursue legal action against a perpetrator in civil court as well for recovery of their losses.
If you suspect that any senior, whether a family member or not, is being taken advantage of financially, speak up. Contact local police with your suspicions. A word of caution now could save a world of trouble down the road. You may also contact the statewide Elder Abuse Hotline (1-800-922-2275), which operates on a seven days a week, 24 hours a day basis. Our firm works with families in regards to the civil actions that may be taken in order to prevent further abuse and to recover losses.