In terms of how elder financial abuse works, it can take different forms. The types of people typically targeted include seniors who are:
Ages 80 or olderIsolated from their communities, loved ones, or friendsRely on others for careExperiencing a cognitive declinePhysically disabled
The perpetrators of elder financial abuse can be strangers or people the victim knows. The type of abuse that takes place usually depends on who is exploiting an older person. For instance, there are a lot of scams that target aging seniors, including:
Home improvement scamsSweepstakes and lottery scamsCharity scamsHealth care and prescription-drug scamsPhone, text, or email phishing scams
With these types of financial elder abuse, the goal is usually to convince the victim to hand over their personal or financial information. For example, a senior might be told they’ve won a sweepstakes, but to claim their prize, they need to wire $500 to the sweepstakes company’s bank account first. “Trusted person” financial elder abuse involves exploitation by someone the victim knows. The trusted person may have access to the older person’s assets, or they may threaten or coerce the victim into giving them access to bank accounts or signing over their property. In some instances, the victim may also be abused physically. Financial elder abuse can be treated as a crime, depending on where you live. Each state defines elder financial abuse and exploitation differently.
Elder Financial Abuse Example
Here’s a closer look at how financial elder abuse can work. Say that your 80-year-old mother is showing early signs of dementia. She refuses to be placed in a nursing home, so you hire an in-home nurse to visit her daily and care for her basic needs. A few months later, you notice that checks have gone missing from your mother’s checkbook. Collection notices from credit card companies are piling up in the mail, and debt collectors are frequently calling. Your mother surprises you by letting you know that she’s changed her will to leave property to the caregiver. When you ask about the changes, your mother refuses to discuss them and appears embarrassed or even afraid. The caregiver acts defiant when questioned or attempts to cut off your contact with your mother. These are all classic signs of a situation in which someone exploits an older adult’s finances for their own gain. Want to read more content like this? Sign up for The Balance’s newsletter for daily insights, analysis, and financial tips, all delivered straight to your inbox every morning!
