Financial Abuse and Fraud Among the Elderly

June 27, 2022Filed Under: Elder Law

According to the National Council on Aging (NCOA), Americans lose between 2.6 and 36.5 billion dollars in assets and money each year to elder financial fraud and abuse. And although self-reported financial exploitation occurs at higher rates than all other types of elder abuse, the NCOA believes instances of elder financial fraud and abuse are likely under-reported.

Even as the coronavirus pandemic wanes, many older adults remain socially isolated and vulnerable to financial victimization. Robocalls, emails scams, and catfishing on social media platforms, con artists bombard the elderly routinely seeking financial gain. However, the National Adult Protective Services Association (NAPSA) reports that most financial exploitation cases the organization receives are from individuals known to the victims, such as relatives, caregivers, friends, and neighbors.

If you have an elderly loved one, there are signs and circumstances to watch for that can help prevent financial abuse. Typically abusers will misappropriate cash, jewelry, and other assets, often suggesting to the elder adult they must not remember where they left them. Some abusers will forge financial documents or steal a Social Security benefits check outright.

Signs of Financial Abuse

Look for instances of unusual financial activity, such as large withdrawals of cash, questionable credit card charges, and unpaid bills. Identify any recurring transactions and bank transfers your loved one does not remember approving. If they can’t recall any request, authorization, or adequately explain the circumstances, investigate the situation fully. A periodic review of an aging loved one’s credit or debit card, and bank statements will help you guard against elderly fraud.

Always be on the lookout for new helpers and indispensable “friends.” The elderly are often lonely and particularly susceptible to abusers that want to ingratiate themselves into their lives under the guise of companionship. These individuals like to work when no one else is around, making it easier to hide their exploitive behavior.

Isolating a loved one is often the first sign of financial abuse. This newfound friend may cut off regular family communications with bogus explanations, saying they are unavailable, feeling unwell, or napping with promises of a return phone call that never materializes. These exploiters will initially be very helpful, making themselves indispensable to the victim and then begin to steal from them.

But there are things that every family member can do to help protect their loved ones.

Simplifying Banking Transactions

Physical disabilities and other issues preventing an older person from driving or otherwise getting around can create vulnerabilities. For example, frailty and mobility issues can end in-person banking independence with a trusted employee. The older individual may not be adept with computers, understand how to do remote banking, or have visual impairment making financial transactions difficult on a small smartphone screen or tablet.

Automatic bill pay can help combat these problems as financial institutions and corporate entities like banks or utilities will not exploit auto bill pay. Payment can be on time without the hassle of receiving paper bills, writing checks, and sending them off, relieving enormous strain on the older person.

Watching Out for Cognitive Decline

Dementias such as Alzheimer’s, which is prevalent, can create many financial problems as cognitive decline leads to a loss of financial acumen. Many elderly adults live with undiagnosed mental issues increasing the opportunity for exploitation. Unscrupulous friends, neighbors, and even family members often try to exert undue influence over cognitively impaired loved ones.

Sensitive private information like Social Security numbers, account numbers, and passwords must be closely guarded by one trusted individual to help with money management tasks. Limiting access to this crucial information is a best practice to protect an elder adult.

Vetting Delivery Services

The pandemic may have families relying on services when they used to provide the help themselves. House cleaning, meal preparation, errands, and even picking up prescription medications are all available services, and some ask for cash payments. Cash for services rendered to the elderly gives nefarious individuals the opportunity to exploit financially.

Estate Planning and Elder Care Attorneys

The most direct way to protect against elder financial abuse is to meet with their estate planning attorney to have a trusted individual named a durable financial power of attorney. This individual can then oversee their loved one’s finances with full access to facilitate, transact, and protect assets. Naming a financial power of attorney generally can help an elder adult feel a great sense of relief. Still, any cash in the hands of an aging loved one needs to be monitored and their home closely guarded to prevent theft.

If you or someone you know is suspicious of financial exploitation, immediately report the situation to a trusted individual or Adult Protective Services in your state. You can also notify your local police department or phone the US Justice Department’s National Elder Fraud Hotline at 833–FRAUD–11 or 833–372–8311. We hope you found this article helpful. If you’d like to discuss your particular situation, please don’t hesitate to reach out. Please contact our Cincinnati office by calling us at 513-771-2444 with any questions.

Identifying Elderly Who Are Being Exploited

April 18, 2022Filed Under: Elder Law, Senior Living

People who believe they are making a charitable donation to help less fortunate people are scammed by scammers who take advantage of their good intentions. Auto call lists that easily identify older victims and the ubiquitous online world of emails, fake mirror websites, disingenuous GoFundMe pages, even postal mail scams can overwhelm an older adult trying to figure out what is real.

While these scams may seem obvious to many people, fraud perpetrators know how to target vulnerable people who are less likely to pick up on the signs of a scam, often becoming victimized. We often warn our elders of financial fraud via unknown callers and the internet reminding them never to give out personal information, and that is important. Sadly, however, most financial exploitations happen through caregivers, family members, friends, or trusted individuals. To best protect an older loved one, it is vital to keep a watchful eye on the signs of financial exploitation, in whatever form.

How to Identify Elderly Most At Risk

The first step is to identify who is most at risk. The National Council on Aging (NCOA) defines elder financial exploitation as “the misuse or withholding of an older adult’s resources by another” and is a form of elder abuse. Those older individuals who are lonely or isolated tend to be more at risk of financial exploitation. Increased risks are also associated with those who have mental or physical disabilities. And for those families with members who have financial or substance abuse issues, there is an increased risk of financial exploitation of their elders. Couple any of the above situations with an older individual who lacks control or familiarity with their finances, and the consequences may be disastrous.

There are warning signs of financial exploitation to be mindful of, including:

Money management changes – This can be a change in the individuals tasked with financial oversight (professional or personal), new routine bank account withdrawals, or significant changes in account balances. Look for unexpected opening or closing accounts, changes in spending habits, disconnected utilities, or missed bill payments.
Changes in individual associations – Any new “friend” that may try to isolate your loved one is a likely sign of undue influence, control, or manipulation. Any recent individual (professional or personal) who tries to withhold income or assets is very suspect. Additionally, be wary of those who pressure a loved one to give gifts such as cash, property, or making personal loans without documentation or belief that the person will repay the loan under the terms and conditions.
Changes in legal documents – Newly drafted legal documents that seem unusual or have forged signatures are apparent signs of problems. Also, look for alterations in existing documents, pre-signed withdrawal slips or checks, and transfers made without the knowledge or understanding of the older person.
Changes in the older individual’s behavior – If your loved one exhibits fear, shame, humiliation, confusion about their finances, or an unwillingness to discuss money or get counsel, these are indications they need help now. These feelings and introversion may be due to deteriorating or untreated health or medical conditions, making them vulnerable to exploitation. It may also be a sign of ongoing financial exploitation. Any indicators of other abuse, such as physical or emotional neglect or abuse, even missing property, are warning signs that financial exploitation is occurring.

What can you do if you suspect or know that your elder loved one is experiencing financial exploitation or abuse?

Immediately report your suspicions or findings to law enforcement, adult protective services, their and your attorney, other responsible fiduciaries who are involved, and local elder agencies. It is helpful beyond measure to report to as many agencies and responsible, involved parties as possible. Quick action and reporting increase the chance to recover assets. Also, protect your elder loved one from the abuser. Create space between the parties. Do not permit contact to ensure the victim’s safety.

Many older individuals shy from reporting financial exploitation due to fear of retaliation, losing independence, or the embarrassment suffered for being duped. Other victims may be mentally or physically unable to recognize the abuse or take too long to recognize what was happening to stop it. And sometimes, seemingly radical changes in financial accounts are for legitimate reasons such as estate planning or preparing to enter a nursing home, so be sure of your suspicions.

If you find actual financial exploitation or abuse, contacting proper authorities is the key to the best outcomes. Professional service people follow processes to protect the victim’s person and then seek to recover missing assets. Elder financial abuse can create heartbreaking situations, leaving the victims destitute. Learn about elder financial abuse to protect your loved ones from the scams at large and the family or other close individuals who might seek to take advantage of them. We hope you found this article helpful. If you have questions or would like to discuss your personal situation, please don’t hesitate to contact us at 513-771-2444.

Feelings of Neglect due to Isolation Increasing in Elder Americans

December 14, 2020Filed Under: Elder Law, Long Term Care, Senior Health and Wellness

Our elder population is experiencing isolation from their family and extended community interaction, because of the coronavirus, increasing the likelihood of neglect. With the flu season fast on approach this isolation and the possibility of a resurgence of COVID-19, older Americans will likely continue living 2020 in mostly solitary circumstances. Rising instances of loneliness can give way to clinical depression and foster feelings of hopelessness.

Common Signs of Self-Neglect

Some of the common signs that an older adult is self-neglecting include changes in how they communicate and a lack of interest in family or community events. A loved one who always presented themselves in a put-together manner may suddenly stop bothering to dress for the day, or perhaps they have gained or lost a startling amount of weight. A once tidy home may now be piled high with unopened mail and heaps of garbage. They may stop or have difficulty managing their medications. Their demeanor and mood may change, and often there is the incidence of a fall.

ASA

Neglect is often a person depriving themselves of necessary care, whether it be adequate nutrition and hydration, medical care, hygiene, and a suitable living environment. In some instances, neglect may be an extension of diminished capacity of physical or mental ability to provide self-care. In some cases, negligence can be the precursor to abuse by an active or passive negligent caregiver. As reported by the American Society on Aging (ASA) outside of financial abuse, the National Association of Professional Geriatric Care Managers identifies self-neglect as the more commonly encountered situation than physical or sexual abuse or neglect by others.

Each state has a mandatory reporting law requiring certain people to provide information about suspected abuse to the proper authorities. Typically, these people are nurses and doctors, as well as wellness check programs through CMS services. Some states require any person who suspects elder abuse to report the situation. Know your state law for reporting and be mindful that your elder loved one is isolated from medical professional groups who report signs of neglect.

What to Do if you Are Suspecting Elderly Abuse

If you have not already implemented virtual strategies to combat loneliness for your older adult, do so immediately. There are many communication, safety, health, and entertainment apps designed specifically with seniors in mind. If your loved one cannot manage a smartphone, use a larger tablet device. If that is unachievable, get a smart speaker where voice communication can provide the sorts of contact options, safety, and activity your senior needs.

Contact your loved one routinely. Implement fall detectors and set up video surveillance to identify any problems. Be sure not to create an overly invasive system allowing your senior some degree of privacy to protect their dignity. Always use firewalls, passwords, and other security options to address privacy concerns.

Take advantage of community programs such as Meals on Wheels or identify programs that check-in on independent living older adults or high-risk households. If they are so inclined, set up the technology for your family member to participate in the many religious services currently being conducted live on Facebook. Connect with their neighbors or local friends to request they occasionally check in on your family member.

AARP recommends whatever the legal obligation in your state to report any sign of elder neglect or abuse. If you believe the person may be in imminent danger, call 911 immediately. If not, address the concern with the person directly or with their caregiver or family member. Remember, you may be misinterpreting the situation. After you have raised your concerns, listen carefully to the other person’s point of view. There may be a quick fix for a small problem, or it could be something more profound. Act deliberately but with compassion. If you meet with resistance to change but still believe help is needed, learn how you can report your concern. Your local police department may have an Elder Affairs unit. Nationally, you can contact support through a public service of the US Administration on Aging called the Eldercare Locator (800-677-1116), connecting you with local protective service agencies.

If you believe your loved one can no longer manage their health, safety, and wellness needs, we can help by providing advice on legal options to protect your loved one. We would be honored to talk with you.

If you’d like to discuss your particular situation, please don’t hesitate to reach out. Please contact our Cincinnati office by calling us at 513-771-2444 with any questions.