CLEVELAND, Ohio--Despite the hit their savings and investments took during the Great Recession, Americans between 70 and 90 are still the wealthiest age group in the United States. Not surprisingly, they are also prime targets for financial exploitation and abuse.
“It’s all their assets – a mortgage-free home, steady income from Social Security or a pension, investments – that make them a target,” said attorney Page Ulrey, a senior deputy prosecuting attorney for the King County Prosecutor’s Office in Washington.
According to experts, prime targets are:
• Women, most often between ages 80 and 89;
• Men who have recently lost a spouse or partner;
• Living alone and may require some help with either health care or home maintenance;
• Lonely and vulnerable;
• Especially at risk during the holidays.
In addition, financial exploiters target those with diminished mental capacity and decision-making ability, stressed Lori Stevic-Rust, director of Senior Services at Lake Health System, in northeast Ohio.
Stevic-Rust, author of four books and a nationally recognized psychologist, is often called in to evaluate the mental capacity and competency of at-risk seniors.
“They target them,” Stevic-Rust added, “because their ability to pay attention, process information, analyze situations or figure out what the long-term consequences will be for a given action is significantly impaired.”
She went on, “Even when they know the day and year and can perform simple activities in the home – prepare a meal for instance – they aren’t able to make important decisions or judgments or carry out complicated activities that involve many steps.”
Spotting the Signs
The majority of exploiters and abusers are strangers: telemarketing scammers going after credit card or Social Security numbers, paid caregivers or “sweethearts” -- con artists, who prey on lonely elders.
Signs of Financial Abuse
According to a recent report from the MetLife Mature Market Institute, The Essentials: Preventing Elder Abuse, the following are flags that mean it could occur, or is occurring:
• Lack of care when the person has sufficient funds available
• Changes in banking or spending habits
• Excessive use of the ATM or credit cards, especially for non-care-related items
• Abrupt changes in a will, power of attorney, or financial documents
• Unpaid bills and utilities
• Lack of knowledge of financial status
• New “best friends”
• Unexplained disappearance of valuables or money – or both
• Unexplained transfer of money or assets to a family member or someone outside of the family – such as a new “best friend”
• Discovery of the person’s signature forged on checks, financial transaction documents, or documents or titles related to his or her possessions
• Unusual degree of fear of or submissiveness to a caregiver
• Bruises, trips to the ER, broken bones – where there is financial abuse there is often physical abuse
• Isolation – by aide or new “best friends” – from family, friends, community, or other stable relationships
• Signs of intimidation and/or anxiety when questioned about new “best friend”
• Missed appointments or uncharacteristic nonpayment of bills
• Anxiety about personal finances
Among other blazing red flags are: changes in long-standing living arrangements (especially those involving the new “friend”); changes in long-standing inheritance plans; and creation of a durable power of attorney – a powerful legal document giving a suspected abuser the means to control both the elder’s person and assets.
After that, it’s friends, neighbors or family members – most often a son or son-in-law. Then it’s unscrupulous professionals – accountants, financial planners, bankers, lawyers, physicians, contractors, etc. Many have histories of drug or alcohol abuse and/or have gambling or other financial problems.
Studies have also shown that ethnic elders are especially vulnerable to financial abuse.
Those fighting financial exploitation and abuse say it’s all about MOM: Motive (money, jewelry, property--sometimes even sibling rivalry); Opportunity (unrestricted – and unobserved – access to a victim); and Means (the ability to use their trusting or family relationship to charm, cajole, coerce or outright steal from their victim).
Financial abuse of older adults has become so rampant that when the U.S. government created the Consumer Financial Protection Bureau (CFPB), it designated a special Office of Older Americans to deal with the issue.
The CFPB office’s goals: Track down and expose scams; ensure laws currently on the books are enforced; and educate seniors, and those who care about them, to identify, avoid and report financial scams. (See the sidebar to this article, “Spotting the Signs of Financial Abuse.”)
Prevention: Always the Best Remedy
Financial abuse is a crime, so it’s surprising that while more cases are being reported few abusers stand trial and go to jail.
According to Page Ulrey, of Seattle’s King County Prosecutor’s Office, “Those who are being abused are often dependent on their abuser for their care and don’t want to [take them to court] because of the repercussions it would cause. Or they fear they will be sent to a nursing home. Or they fear – or love – the offender.”
Frequently, too, she said, “Or they are ashamed to admit that they have been taken advantage of.”
Ulrey stressed that it is often difficult to prosecute exploiters. That’s not only because of the reasons mentioned above, but also because the victim has died or is so cognitively impaired he or she cannot testify. To keep a vulnerable relative or loved one out of harms way concerned friends or family members must be proactive. The earlier deterrents and roadblocks are set in place, the better, she said.
One time-tested strategy for keeping financial abusers at bay, Ulrey said, is for an elder’s friends and family members to stay connected. “Financial abuse and exploitation occurs in the shadows, where people are isolated from those who could spot the signs that something isn’t right,” she said.
Psychologist Lori Stevic-Rust emphasized that it’s important to become hyper-vigilant in observing a vulnerable senior’s physical health and cognitive state. “Declines in both can make them vulnerable to manipulation and exploitation,” she explained.
Those assisting the at-risk person should help him or her get information about exploitative situations, schemes or scams they may encounter and to become better educated about their finances.
It would also be valuable to help the senior consult with legal or financial professionals who can draw up such documents as trusts, limited powers of attorney, or conservatorships. “These can – and for the most part do, deter financial exploiters,” Ulrey said.
If you suspect someone is being financially abused, it is important to report your concerns to local authorities. The National Adult Protective Services Association’s website (www.napsa-now.org) lists adult protective services departments in every state. “This site doesn’t just have the telephone numbers for reporting financial abuse, they take anonymous tips too,” said the Association’s executive director, Kathleen Quinn.
If all else fails, you may be able to file for a protection order. “This will limit the contact the abuser has with their victim--and perhaps protect assets, too,” Ulrey said.
Sources and Resources
Consumer Financial Protection Bureau
Elder Financial Protection Network (Note: While this is a California-based site, the information applies to everyone.)
Family Caregiver Alliance
National Adult Protective Services Association
National Committee for the Prevention of Elder Abuse
“Preventing Elder Financial Abuse for Older Adults”
“The Essentials: Preventing Elder Abuse”
Eileen Beal, a Cleveland-based writer on issues in aging, wrote this article for Today’s Caregiver Magazine with the support of a MetLife Foundation Journalists in Aging Fellows program, a program of New America Media and the Gerontological Society of America.
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