How to Shield Our Seniors from Elder Financial Abuse

Elder abuse is a growing concern in our society. It's not just about physical harm or neglect; it also involves financial exploitation. In fact, as many as 1 in 10 older Americans face some form of abuse or neglect each year, yet only 1 in 14 cases are reported to authorities. This article aims to highlight the issue of elder financial abuse, sharing insights into what it is, how to recognize the signs, and offering practical tips to help protect the finances of our beloved elderly family members.

Basics of Elder Financial Abuse

Also called “elder financial exploitation,” elder financial abuse takes place when an older person's financial resources, assets, or property are unlawfully or improperly used. This abuse can deplete the life savings of seniors, earned through years of dedication and hard work. Financial abuse can take various forms, including stealing valuables, misusing power of attorney, or improperly using an elderly person's cash or credit cards. Tragically, this is the fastest-growing type of elder abuse, taking away seniors' financial stability and independence.

Who are the Victims and Predators of Elder Financial Abuse?

You or someone you know could become a target of financial elder abuse. Let's explore some common characteristics of the victims and predators.

Possible Victims

While any older adult can fall victim to financial exploitation, certain individuals are at greater risk:

• Isolated Seniors: Those without a strong support system are more susceptible to abuse, as there may be no one to recognize the exploitation.
• Individuals with Cognitive Impairments: Conditions such as Alzheimer's or dementia hinder decision-making skills, allowing these individuals to become prime targets for financial abuse.
• Lonely Elders: Scammers often exploit lonely seniors by faking friendship to gain access to their finances.

Possible Predators

Predators of elder financial abuse can be anyone, often including those whom the elderly have learned to trust. These fraudsters exploit the limited tech skills and trusting nature of older adults, with common culprits including:

• Family and Friends: It's surprising that many cases of financial abuse are perpetrated by those nearest to the victim, such as adult children, spouses, or friends.
• Professionals: Individuals like lawyers, financial advisors, and nursing home staff may misuse their trusted positions to exploit older adults financially.
• Strangers: Seniors often fall victim to scams via phone calls, emails, and other methods, as scammers take advantage of their trusting nature.

How to Spot Signs of Elder Financial Abuse

Generally speaking, signs of elder abuse could include physical injuries, weight loss, poor hygiene, emotional distress, unexplained transactions, and social isolation. But let’s focus on the indicators of financial elder abuse.

Identifying Financial Elder Abuse in Seniors

Financial abuse can be more difficult to identify than other forms of elder abuse because it doesn't always leave physical signs. In fact, elder financial abuse can go unnoticed for years before it is eventually discovered. Here are some red flags to watch for:

• The senior’s confusion about their financial situation
• Unexplained withdrawals and ATM transactions
• Noticeable mood shifts, such as increased anxiety or depression
• Recent modifications to the elder's will or power of attorney
• Checks or bank statements sent to the suspected predator
• Suspicious signatures on legal documents or checks
• Large withdrawals or wire transfers between accounts
• Unpaid bills, eviction notices, or utilities being shut off due lack of payment
• Missing possessions or property
• Checks labeled as “loans” or “gifts”
• Switching from a basic account to a more complex one (that the senior doesn’t fully understand or need)
• A caretaker, relative, or friend is suddenly overseeing the elder’s financial transactions without proper documentation

Identifying the Predators of Financial Elder Abuse

Here are some signs that might indicate someone is financially abusing an elder:

• Exploiting trusted relationships to gain the elderly person's trust
• The elder refers to them as a “new best friend”
• Overcharging for products or services
• Are facing their own financial difficulties
• Pressuring the senior to change their will or bank accounts
• Making numerous financial decisions on behalf of the senior
• Providing odd explanations about the elder’s finances
• Showing excessive interest in the elder's spending habits
• Using the senior’s credit cards without permission
• Taking the belongings or property of the senior without consent

Ways to Protect Against Elder Financial Abuse

Let’s walk through some simple steps that seniors and their family members can take to prevent financial abuse.

Tips for Seniors to Safeguard Their Finances

• Designate a Trusted Contact: Appoint a reliable person as your financial power of attorney to help manage your finances.
• Get to Know Your Bankers: When you build a relationship your bankers, they can easily recognize what’s normal for your account and quickly spot any suspicious activity.
• Stay Informed: Regularly review your bank statements, investments, and credit cards for any unusual activity.
• Secure Sensitive Information: Lock up checkbooks, account statements, and other financial documents.

Tips for Caregivers and Family Members

• Stay Connected: Keep in touch with older loved ones. Having regular chats can help you stay updated on their finances.
• Know the Caregivers: Get to know the people caring for your loved ones. Building a relationship with them fosters trust and security, helping to prevent exploitation.
• Monitor Changes: Be alert for any sudden shifts in their financial habits, like new "best friends" or unexpected financial choices. Staying aware can really help!

Reporting Elder Financial Abuse

If you suspect that a loved one may be experiencing elder financial abuse, it’s important for us to take swift action together. Reporting these concerns right away allows us to provide the necessary support and intervention for those who need it most.

Here are a few ways we can report this issue and stand up for our community:

• Adult Protective Services (APS): This organization is dedicated to safeguarding vulnerable adults from abuse. They investigate financial exploitation and offer the assistance needed to protect those we care about.
• Financial Institutions: Banks and credit unions play a crucial role in spotting financial problems and can assist with investigations. It's important to report elder abuse to these institutions because they have the tools and know-how to identify suspicious activities and protect vulnerable individuals from financial exploitation.
• Law Enforcement: Reaching out to local police is essential in holding abusers accountable, as financial exploitation is a crime with serious consequences.
• Ombudsmen: In long-term care facilities, ombudsmen are available to help investigate suspicions of financial exploitation and advocate for the rights of residents, ensuring their voices are heard.

Armed Forces Bank Prioritizes the Safety and Well-Being of Seniors

At Armed Forces Bank, we are committed to protecting the financial security and well-being of our senior clients, who are an important part of our community. By building strong relationships with our clients, we can quickly spot and address any suspicious activity. Our team is trained to recognize signs of fraud and exploitation, so our seniors can feel confident in their financial choices.

We also offer a variety of services to support financial well-being, including:

• Personalized financial planning to help you meet your goals
• Regular account reviews to manage your funds effectively
• Educational resources to help you stay informed and protect yourself from financial abuse

Together, we can ensure a secure and supportive environment for our senior clients!

To learn more about fraud prevention, check out these helpful resources:
Education: Banking Safely and Securely
Understanding Pig-Butchering Scams
Identifying Phishing Emails
Recognizing Text Scams
Avoiding Phone Scams
Cybersecurity and Tax Returns

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