I often get expressions of concern from some of my clients who own or manage housing for seniors regarding the well-being of their residents - especially in cases where there may be some type of abuse of the elderly by family members or other individuals. While our job is to provide housing, and not act as social workers or even advocates for our residents, it is important for managers of senior housing to at least be able to recognize the signs of potential elder abuse, which can take the form of physical abuse or financial abuse - or both. Once we are able to recognize the signs of abuse, it can be reported to the appropriate authorities.
In this article, I want to focus on the signs of financial exploitation, which is often harder to detect than physical abuse.
What is Elder Financial Exploitation?
Elder financial abuse, also known as financial exploitation, is the illegal or unauthorized use of an older adult’s funds or resources for the benefit of someone other than the older adult. This includes fraud, theft, and acts of deception to gain control over a senior’s money or property.
Signs of Financial Exploitation
Some of the indicators of financial exploitation listed below can be explained by other causes or factors and no single indicator can be taken as conclusive proof of abuse. Rather, one should look for patterns or clusters of indicators that suggest a problem.
- Unpaid bills, eviction notices, or notices to discontinue utilities;
- Withdrawals from bank accounts or transfers between accounts that the older person cannot explain;
- Bank statements and cancelled checks no longer come to the elder’s home;
- New "best friends;"
- Legal documents, such as powers of attorney, which the older person didn’t understand at the time he or she signed them;
- Unusual activity in the older person’s bank accounts including large, unexplained withdrawals, frequent transfers between accounts, or ATM withdrawals;
- The care of the elder is not commensurate with the size of his/her estate;
- A caregiver expresses excessive interest in the amount of money being spent on the older person;
- Belongings or property are missing;
- Suspicious signatures or checks or other documents;
- Absence of documentation about financial arrangements;
- Implausible explanations given about the elderly person’s finances by the elder or the caregiver; or
- The elder is unaware of, or does not understand, financial arrangements that have been made for him or her.
There are many types of senior financial abuse, but here are some of the more common:
- Telemarketing & Internet Fraud: Targeting victims through the mail, phone, or email - characterized by aggressive tactics along with the use of false promises of cash prizes, goods, or services in exchange for paying fees or making purchases.
- Identity Theft & Credit Card Fraud: Gaining access to a senior’s personal information to take money and property. This includes tax ID theft where a scammer uses a senior’s Social Security number to file a tax return and steal the refund, or impersonates the IRS and tells the senior that the IRS is owed money.
- Grandparent Scam: Pretending to be a grandchild in trouble in order to convince the senior to wire money or send prepaid debit cards.
- Sweepstakes & Lottery Scams: A widely practiced form of telemarketing fraud, scammers tell seniors that they have won a lottery or sweepstakes. The catch is, the senior must make a small payment or pay a fee to receive the alleged prize. Seniors may also receive a fake check back from the scammer, which will "bounce" after it gets deposited.
- Investment Schemes and Frauds: Unscrupulous professional investors try to sell inappropriate, unethical, or confusing investment products to seniors, or from con artists claiming to be "Nigerian prince" or some other wealth foreigner who asks for the seniors bank account number to transfer millions of dollars into their account.
- Healthcare Scams: Getting information about a senior’s medical accounts - like Medicare and Medicaid - in order to make fraudulent claims and take advantage of these taxpayer programs.
If managers or owners of senior housing properties become aware of suspicious activity involving a senior resident, it is recommended that you contact your local senior service agency or the police. These organizations will be able to advise you on the next step to take, or may open an investigation of their own.
Back to news