Financial Fraud and Abuse Against the Elderly

Financial Fraud and Abuse Against the Elderly

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Each year, the National Council on Aging (NCOA) reports loss of assets and money from financial fraud and abuse against the elderly up to 36.5 billion dollars. 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.

This article offers a summary of aspects of estate planning and elder law. It is not legal advice and does not create an attorney-client relationship. For legal advice, contact our Ruston, LA office by calling us at (318) 255-1760.

Elder Abuse Prevention

Elder Abuse Prevention

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In a perfect world we could believe that our elderly loved ones aren’t being intentionally harmed. However, the truth is that senior citizens are one of the most vulnerable populations when it comes to abuse. The National Council on Aging reports that one in ten American seniors (60+) have fallen victim to elder abuse. It is also estimated that only one of every twenty-four abuse cases is reported. This suggests that as many as five million elders are abused every year.

Elder Abuse Defined

The Centers for Disease Control defines elder abuse as “an intentional act or failure to act that causes or creates risk or harm to an older adult. An older adult is someone age 60 or older.” While abuse can vary greatly, there are five different types of abuse:

  1. Physical abuse is the intentional injury to or harm to another. It can result from kicking, hitting, grabbing, pushing, biting, pinching, or any forceful action.
  2. Neglect occurs when the basic needs of a person are not being met. This includes personal care, medical, nutritional, hygiene, and housing. It can be classified as unintentional or intentional abuse.
  3. Psychological or emotional abuse can be characterized by verbal or nonverbal behavior that caused distress, fear, psychological suffering, or mental anguish. This type of abuse can include manipulation, threatening behavior, humiliation, intimidation, harassment, shaming, criticism, isolation, exploitation, or power dynamics.
  4. Sexual abuse is the act of any forced, non-consensual, or unwanted sexual contact, interaction attention, or exploitation. This abuse can take many forms. For example, it may include non-consensual touching, exposing the elder, intercourse, exposing oneself to the elder, verbal obscenities, and sexual advances.
  5. Financial abuse takes place when someone, usually a caregiver or trusted individual, illegally or improperly takes advantage of a senior’s money, benefits, belongings, property, or assets for the benefit of someone other than the elder. This type of abuse can include identification theft, stealing money from bank accounts, fraud, incorrect billing of services, and selling off assets.

The Elder Abuse Prevention and Prosecution Act

To fight the growing elder abuse epidemic, the Elder Abuse and Prosecution Act was signed into law on October 18, 2017, by President Donald Trump. This act enhances the government’s focus on elder abuse prevention by utilizing a multi-faceted approach to protecting elders by punishing perpetrators.

The goals of the Elder Abuse and Prosecution Act (EAPPA) are as follows.

  • Improve local, state, and federal data collection on elder abuse.
  • Support and improve the prosecution of elder abuse.
  • Improve elder abuse technical assistance and training for law enforcement.
  • Improve provided victim assistance programs and resources.
  • Increase penalties for perpetrators of email and telemarketing scams targeting elders.

Elder Abuse Prevention Components

EAPPA proposes five main changes to protect the elderly from this abuse include:

  1. The Department of Justice is required to designate Elder Justice coordinators. These coordinators are responsible for serving as legal counsel, assisting with the prosecution, and increasing public awareness.
  2. The Attorney General and FBI coordinate elder abuse crime training programs for current and upcoming FBI agents.
  3. It is the Attorney General’s responsibility to coordinate with all law enforcement divisions to establish the best data collection practices. They are also responsible for establishing a group that shares all relevant information for prosecuting and uncovering elder abuse cases.
  4. The Director of the Office for Victims of Crime is required to utilize the data to present an annual report to Congress with an analysis of elder abuse. This will include recommendations on how to improve current services for elder abuse victims.
  5. The federal criminal code expanded to include fraudulent attempts to induce participation in a business opportunity, commitment to a loan, or investment for profit through email or telemarketing.

The elder abuse epidemic is a significant issue in America, and our country was long overdue for help from Congress. However, seeing laws like EAPAA pass over the last few years provides hope that our country will eventually see an end to this epidemic that affects our beloved elders. For more information on elder abuse laws, please contact our Ruston, LA office by calling us at (318) 255-1760.

Elder Abuse: Why It Occurs and How To Prevent It

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According to the American Psychological Society, elder abuse is the infliction of physical, emotional/psychological, sexual or financial harm on an older adult. Additionally, elder abuse can manifest as intentional or unintentional neglect of an older adult by the caregiver. Elder abuse has a variety of causes. It is important that family members and caregivers of senior adults be aware of the causes of elder abuse in order to prevent abuse and keep senior loved ones safe and secure.

Elder abuse can occur for a variety of reasons and complex issues. Family stressors are one of the reasons elder abuse occurs. Family members who are charged with caring for a senior family member can often become stressed and run-down dealing with the demands of caring for their loved one. In addition, these family members often feel isolated and do not take time to recharge. These factors can lead to elder abuse. A violent family past can also continue to hold on to family members and this can lead to elder abuse. Financial burdens of a multigenerational household can also lead to financial elder abuse.

Caregiver stress can lead to elder abuse. Caregiving can create stress for the caregiver and the care recipient. This stress can lead to potentially harmful situations for the senior adult. If the caregiver is caring for a person who is sick or physically or mentally impaired, this can lead to stress that would cause a caregiver to abuse the care recipient. The caregiver can feel alone or helpless. Caregiving can lead to emotional and physical stress and exhaustion. These feelings can be overwhelming and may lead to elder abuse.

Certain societal issues can lead to elder abuse. Often senior adults are viewed as insignificant or unimportant. This has in many cases lead to the devaluing of this population, making them easy targets from abuse. This can make the senior more vulnerable to elder abuse. This is evidenced by the fact that scams and financial abuse among the elderly population continues to be a major problem.

How can elder abuse be prevented? Education is one way that elder abuse can be prevented. It is important that caregivers and family members be educated about the risk factors and signs of elder abuse in order to prevent it from occurring. It is also important that families and seniors be aware of financial scams that target the elderly in order to prevent seniors from being taken advantage of financially.

Respite care is also an effective way to prevent elder abuse. There are adult day cares and respite care agencies available to provide care for a few hours a week to take stress off of family members or caregivers. Respite care is especially important for those caring for patients who suffer from Alzheimer’s disease or dementia or are severely disabled. This gives the caregivers time to rest physically, mentally, and emotionally. Along with respite care, it is important for caregivers to maintain social contact and support. Often caregivers are thrust into difficult situations for which they are ill prepared. They often neglect social interactions. It is important not to neglect these interactions, and even to seek support from groups or people who are in a similar caregiving situation. This can help to deal with stresses in caregiving.

Counseling is another option for preventing elder abuse. Caregivers and families alike can benefit from counseling. Counseling can help families deal with past issues, as well as dealing with the emerging stress of caregiving.

Knowing the causes of elder abuse and methods of prevention can help keep elders safe. Family members and caregivers should know and be aware of these. Elder abuse is a major problem and solutions must be found to protect our seniors.

If you have any questions about something you have read or would like additional information, please contact our Ruston, LA office by calling us at (318) 255-1760 or schedule an appointment to discuss how we can help.

An Increase in Elder Abuse During COVID-19

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In both long-term care facilities and at home, the elderly population in America are facing increasing incidents of mistreatment and abuse as social isolation during the pandemic which creates more vulnerabilities. Stay-at-home guidelines isolate seniors from the systems that can protect them like medical providers, congregations, extended family, and senior centers. The high rate of coronavirus deaths for those Americans 70 and older increases fear and their dependency on those who might seek to take advantage of them. Sadly, most of these abusers are family members, such as an adult child or spouse, followed by caregivers or staff in a long-term care facility.

Four Common Types of Elder Abuse

The Center for Disease Control and Prevention (CDC) lists four common types of elder abuse: physical, sexual, emotional, psychological, and neglect and financial abuse. Many incidents of elder abuse, neglect, and exploitation are underreported, especially during social isolation. According to a PBS report, Paul Caccamise, the vice president for program at Lifespan, Rochester, NY, says that the stream of calls reporting abuse is lower than usual. Yet, elder abuse has not gone away during the pandemic. Many referrals of abuse to Lifespan come from home care agencies, physicians, or hospitals, reporting suspected signs of abuse. Now that many older Americans are avoiding interactions with doctors and hospitals, the monitoring function is no longer available. Similarly, for those elderly in long-term care facilities, family members are no longer allowed direct access to check on the welfare of their loved ones.

Elder Abuse Issues During Coronavirus

This situation is not exclusive to New York. Across the country, the number of reports of elder abuse is decreasing during the coronavirus pandemic. The Minnesota Elder Justice Center’s executive director Amanda Vickstrom understands that although the quantity of cases is down, the amount of help our elder Americans need is up. About the disparity in case reports versus senior needs, Vickstrom states, “It doesn’t tell me that suddenly we’ve reduced elder abuse. It tells me that people are unable to reach out for help.”

Other support groups for the elderly like the National Clearinghouse on Abuse in Later Life (NCALL) are seeing similar trends. NCALL founder Bonnie Brandl says, “Abusers are using the threat of the virus and the isolation to provide misinformation to people.” Isolated seniors can fall prey to threats of being visited by a caregiver who may have been exposed to the coronavirus or sent to a nursing home where COVID-19 death rates are disproportionately high.

Caregiver promises to keep a senior safe if they hand over checks or other assets during this pandemic is not uncommon as many Americans have lost their jobs or have reduced hours of income and are facing financially tough times. If the senior lives with an abuser, the situation can become desperate as abusers can threaten to hurt or manipulate the senior who, in isolation, has little confidence to seek outside help. The coronavirus pandemic, which already disproportionately impacts older people’s health, makes them more vulnerable to abandonment, neglect, financial, emotional, sexual, and physical abuse.

The increase of seniors’ dependency on their caretakers at home and staff in long-term care facilities can incentivize abusers to target these older adults. Many seniors are targeted as they have resources saved, consistent monthly incomes from investment sources, or Social Security benefits. Desperate for their health and safety, many seniors will turn over their money, hoping that it will be key to their survival. There are also thousands of reports of scam artists offering bogus or nonexistent free home test kits or fake cures, posing as counterfeit charities, or preying on other virus-related fears to gain personal information or money.

How to Help Elderly in Isolation

If you have a senior family member who is socially isolated due to COVID-19, it is crucial to stay engaged with them to prevent their mistreatment. There are programs available that help those who face isolation to stay connected. AARP has a program that provides weekly phone checks provided by vetted volunteers who can spot trouble signs. There are other nonprofits that check to see that seniors have proper resources during the pandemic such as food and medication. Volunteers will also address the emotional needs seniors have during isolation. For many seniors, it will be the only conversation they will have that day. Check with your community and see how you can best protect your senior during the social isolation and vulnerable times of the COVID-19 pandemic.

If you have questions or would like to discuss your particular situation with us, please don’t hesitate to reach out. Please contact our Ruston, LA office by calling us at (318) 255-1760 or schedule an appointment to discuss how we can help.

The Unfortunate Increase of Elder Abuse During the Pandemic

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Whether at home or in a long-term care facility, America’s elderly are facing increasing incidents of mistreatment and abuse as social isolation during the pandemic creates more vulnerabilities. Stay-at-home guidelines isolate seniors from the systems that can protect them like medical providers, congregations, extended family, and senior centers. The high rate of coronavirus deaths for those Americans 70 and older increases fear and their dependency on those who might seek to take advantage of them. Sadly, most of these abusers are family members, such as an adult child or spouse, followed by caregivers or staff in a long-term care facility.

The Center for Disease Control and Prevention (CDC) lists four common types of elder abuse: physical, sexual, emotional, psychological, and neglect and financial abuse. Many incidents of elder abuse, neglect, and exploitation are underreported, especially during social isolation. According to a PBS report, Paul Caccamise, the vice president for program at Lifespan, Rochester, NY, says that the stream of calls reporting abuse is lower than usual. Yet, elder abuse has not gone away during the pandemic. Many referrals of abuse to Lifespan come from home care agencies, physicians, or hospitals, reporting suspected signs of abuse. Now that many older Americans are avoiding interactions with doctors and hospitals, the monitoring function is no longer available. Similarly, for those elderly in long-term care facilities, family members are no longer allowed direct access to check on the welfare of their loved ones.

This situation is not exclusive to New York. Across the country, the number of reports of elder abuse is decreasing during the coronavirus pandemic. The Minnesota Elder Justice Center’s executive director Amanda Vickstrom understands that although the quantity of cases is down, the amount of help our elder Americans need is up. About the disparity in case reports versus senior needs, Vickstrom states, “It doesn’t tell me that suddenly we’ve reduced elder abuse. It tells me that people are unable to reach out for help.”

Other support groups for the elderly like the National Clearinghouse on Abuse in Later Life (NCALL) are seeing similar trends. NCALL founder Bonnie Brandl says, “Abusers are using the threat of the virus and the isolation to provide misinformation to people.” Isolated seniors can fall prey to threats of being visited by a caregiver who may have been exposed to the coronavirus or sent to a nursing home where COVID-19 death rates are disproportionately high.

Caregiver promises to keep a senior safe if they hand over checks or other assets during this pandemic is not uncommon as many Americans have lost their jobs or have reduced hours of income and are facing financially tough times. If the senior lives with an abuser, the situation can become desperate as abusers can threaten to hurt or manipulate the senior who, in isolation, has little confidence to seek outside help. The coronavirus pandemic, which already disproportionately impacts older people’s health, makes them more vulnerable to abandonment, neglect, financial, emotional, sexual, and physical abuse.

The increase of seniors’ dependency on their caretakers at home and staff in long-term care facilities can incentivize abusers to target these older adults. Many seniors are targeted as they have resources saved, consistent monthly incomes from investment sources, or Social Security benefits. Desperate for their health and safety, many seniors will turn over their money, hoping that it will be key to their survival. There are also thousands of reports of scam artists offering bogus or nonexistent free home test kits or fake cures, posing as counterfeit charities, or preying on other virus-related fears to gain personal information or money.

If you have a senior family member who is socially isolated due to COVID-19, it is crucial to stay engaged with them to prevent their mistreatment. There are programs available that help those who face isolation to stay connected. AARP and the Tennessee Commission on Aging and Disability have programs that provide weekly phone checks provided by vetted volunteers who can spot trouble signs. There are other nonprofits such as FiftyForward, Senior Ride Nashville, Eras Senior Network of Wisconsin, and many others that check to see that seniors have proper resources during the pandemic such as food and medication. Volunteers will also address the emotional needs seniors have during isolation. For many seniors, it will be the only conversation they will have that day. Check with your community and see how you can best protect your senior during the social isolation and vulnerable times of the COVID-19 pandemic.

If you have questions or would like to discuss your particular situation with us, please don’t hesitate to reach out. Please contact our office by calling us at (318) 255-1760 and schedule an appointment to discuss how we can help you with your legal needs.

How to Prevent Financial Elder Abuse

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elder abuse

Elder financial abuse has been a growing problem in the past decade. The financial exploitation of older or vulnerable adults can take many different forms. This portion of the population can be exploited by strangers of professionals who deal with their assets and even trusted family members and friends. It is a problem to which a solution has been difficult to find because many exploited people are ashamed that they were able to be taken advantage of and therein do not report the crimes. Unfortunately, this type of abuse not only affects the finances of the victim but also their mental and physical well-being. Let’s take a look at the types of financial elder abuse and some measures that can be and are being taken to prevent this type of abuse.

Types of Financial Elder Abuse

The first type of financial elder abuse is committed by strangers. This often includes phone scams. The grandparent scam is one tactic that strangers use for financial exploitation of seniors. In this scam, the senior is called and told his or her grandson is in jail and needs money immediately. Many seniors fall prey to this scam because they want to help their grandchild.

Charity scams are another common phone scam. The scammer calls and asks for money for what seems to be a very good cause in order to get money from the senior. Disasters are often used in this type of scam.

Home repair con artists are another way vulnerable adults succumb to financial abuse. They promise to provide a service and ask for payment up front. Then they never return to provide the service.

Financial elder abuse can also be committed by “professionals”. These predators often use lending schemes to pressure elders into taking inappropriate loans or reverse mortgages that do not benefit the senior. Email scams concerning false bank accounts are used to siphon money from vulnerable adults. Investment schemes are also used to manipulate seniors into believing they will get unrealistic returns on certain investments. Identity theft is another way that these so-called professionals take advantage of senior adults. They use the identity of the senior to fraudulently open credit card accounts. Medicare scams are some of the costliest scams by professionals.

Finally, financial elder abuse is commonly committed by family members and close friends. These scams can take many forms. Some caretakers will begin small, keeping the change from running errands. Often the Power of Attorney will use the power given by the individual to control the finances as an opportunity to steal the elder’s money and use it for his or her own purposes. Family or close friends also commit financial elder abuse when they use ATM cards or steal checks to gain access to money from the vulnerable adult. There are many variations on these types of abuse.

Protecting Our Elders

One way to help stop financial elder abuse is to let our elderly loved ones know that there is no reason to be ashamed to report possible financial abuse. These thieves and scammers are smart and know how to play the game to take advantage of people. Another way is to stay on top of accounts and work with law enforcement and banking officials to keep track of accounts and to report anything that looks suspicious. It is important for family members and friends to have checks and balances when taking control of someone else’s money and assets. Have more than one person who looks at account information and possibly shares control. Recently the Senior Safe Act was signed into law. This is a step by the federal government to help protect elders from financial abuse. Under the Act, banks, credit unions, investment advisers, broker-dealers, insurance companies, and insurance agencies are protected from being sued for reporting suspected fraud, but their employees must be trained to understand the warning signs. It empowers financial service representatives to identify warning signs and help keep vulnerable adults from becoming victims of financial abuse. There is no easy answer, but it is hopeful that awareness will help financial elder abuse decline.

If you have a loved one you think have experienced financial elder abuse, or would like to create a plan to help protect them from future issues, please contact us and let’s start a conversation.