What Is Elder Financial Abuse?

Money SmartsJune 13, 2024

Elder financial abuse refers to intentional or unintentional neglectful acts by caregivers, family members, friends, or other individuals that cause financial harm to senior citizens. Elder financial abuse and fraud costs senior citizens between $2.6 billion and $36.5 billion annually. While elder financial abuse happens frequently, it’s not always recognized or reported. Knowing the signs of abuse can help detect and prevent harm to senior citizens.

Warning Signs of Elder Financial Abuse

Changes in seniors’ banking activity or transactional patterns are some of the most common red flags for elder financial abuse. Some warning signs to look out for include:

• Accounts that are frequently overdrawn that weren’t before
 
• Requesting or using a new debit card when the senior hadn’t used one in the past
 
• Closing of share certificates without regard for penalties
 
• A third-party being added to an elderly person’s account as a joint signer or power of attorney
 
• New or more frequent internet banking use
 
• Individuals who show an excessive interest in an elderly person’s finances who are either not on the account or have been added recently

Common Elder Financial Abuse Tactics

One of the most common tactics for elder financial fraud and abuse are romance scams. Oftentimes, seniors may lose someone close to them and experience loneliness. As a result, they turn to online dating websites or other channels to meet others. Romance scammers on these channels will then build a relationship with a senior to take advantage of them. This process can take months as the scammer works to build trust with the elderly person.

Eventually, the scammer will ask the senior to send them large amounts of money – sometimes under the guise of a family emergency or home repair. Once the funds are sent to the scammer, it’s very unlikely they can be recovered. This can have a devastating effect on an elderly person, especially if retirement funds are lost.

According to the Consumer Financial Protection Bureau, some other common scams and tactics include:

• Tech support scams, where a senior receives a call, text, or email from someone claiming to work for a tech company in order to steal personal information and/or money under the guise of fixing a technical problem or lapsed subscription
 
• Lottery, contest, or sweepstakes scams, where an elderly person receives notice that they’ve won money, and that they need to pay fees or taxes to get their prize
 
• Calls or texts that impersonate the government, a financial institution, or other organization requesting personal information like account numbers or a Social Security number

How to Prevent Elder Financial Abuse

Keeping lines of communication open is key to recognizing and preventing elder financial abuse. Help educate elders about common financial scams and talk with them on a regular basis to understand what their typical day to day looks like. That way, if there’s a change in behavior, you can address it right away.

It can be difficult to have a conversation with a senior about financial abuse. This is a contributing factor to it often going unreported. Seniors may stay silent about abuse to avoid embarrassment. As a friend, caregiver, family member, or neighbor of an elderly person, letting them know you’re looking out for them can make the topic easier to discuss.

Raising Awareness and Reporting Elder Financial Abuse

Elder financial abuse is a growing issue. Talking about it with the seniors in your life can help prevent it, even if it’s embarrassing or difficult to talk about. If you suspect that a senior is a victim of financial abuse, you can report it to your local Adult Protective Services office. You can locate one near you through the National Adult Protective Services Association.

This blog was written to commemorate World Elder Abuse Awareness Day on June 15, 2024. Visit the UN website to learn more.

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