Experts estimate that more than 369,000 incidents of financial abuse targeting older adults are reported to authorities in the U.S. each year, causing an estimated $4.8 billion in losses. And those numbers probably understate the problem by a considerable amount. However, as World Elder Abuse Awareness Day approaches on June 15th, it’s good to remember that there are things we can do to help prevent elder financial exploitation.
What to Look For
Elder financial exploitation comes in many forms, including embezzlement, falsifying records, coerced property transfers and denying the victim access to their own assets. Here are signs that may indicate foul play:
- A caregiver or relative seeking access to your loved one’s accounts or possessions.
- Changes in their financial practices, such as new credit cards or unopened bank statements.
- A financial agent who isn’t following your loved one’s wishes.
- Sudden mood changes in your loved one.
How to Protect Your Loved One
Experts recommend taking these steps to help protect a loved one from financial exploitation.
- Encourage your loved one to designate someone they trust to help them with financial decisions. The federal government’s Eldercare Locator can help you find free or low-cost legal assistance.
- Suggest they add a trusted contact for their financial institutions if they are unreachable or if questionable activity is detected. A trusted contact is not able to make transactions, but the financial institution can disclose some account information to them. Social isolation is one of the greatest risk factors for elder financial exploitation. Maintain close contact with older loved ones through regular visits, phone and video calls, emails and texts. Encourage them to stay involved with others through a shared-interest community, volunteer activities or other social groups.
- Watch out for someone—even someone you thought you or your loved one could trust—who discourages contact with family and friends, exerts pressure on financial decisions or asks for large sums of money.
What to Do When You Suspect Fraud
Like other forms of financial fraud, elder financial exploitation is vastly underreported. Here are resources in case you suspect your loved one is a victim of abuse:
- Contact Adult Protective Services, an important line of defense for vulnerable adults. The National Adult Protective Services Association has a state-by-state directory.
- Financial exploitation is a crime and should be reported to your local police or sheriff or even to 911.
- You may want the services of a lawyer or legal aid programs in your area.
Do you think you have been targeted or have fallen victim to a scam? Contact the AARP Fraud Watch Network Helpline at 877-908-3360.
Kathy Stokes
AARP Fraud Watch Network
Published June 1, 2023
Suspect elder abuse? Visit Ombudsman – MAC Inc.
