Elder Financial Abuse
What is Elder Financial Abuse?
At First National Bank of St. Ignace, we’re committed to protecting our senior customers and their financial wellbeing.
More than 73,000 older adults in Michigan are victims of elder abuse. They experience abuse, neglect and exploitation.
The symptoms and treatment of elder abuse are complex and demand a concerted effort to tackle this often unrecognized and unreported social problem.
Elder financial abuse, also known as financial exploitation, occurs when someone illegally or improperly uses an elder's funds, property, or resources for their own benefit. This can include scams, manipulation by trusted individuals like family members, and predatory practices marketed to the elderly.
Key aspects of elder financial abuse:
- Illegal or improper use: The abuse involves using an elder's money, property, or assets in a way that is not legally or ethically justified.
- Victim: The older adult or "elder" is the target of the abuse.
- Perpetrator: The abuser can be anyone, including family members, caregivers, financial advisors, home repair contractors, or scammers.
- Forms of abuse: Abuse can take many forms, including theft, fraud, forgery, and undue influence.
- Impact: Financial abuse can lead to significant financial hardship, isolation, and even health problems for the victim.
- Reporting: It's crucial to report suspected elder financial abuse to the authorities, as it is a serious crime.
Common Types of Elder Financial Exploitation:
Elder financial abuse can take many forms and involve perpetrators who are either strangers or individuals in positions of trust. Examples of financial exploitation scams include:
● Theft: Stealing cash, checks, or valuable possessions from an elderly person.
● Investment and Securities Schemes: Deceptive schemes aimed at defrauding seniors of their investments.
● Lottery and Sweepstakes Scams: Fraudulent offers of winnings in exchange for payments.
● Identity Theft: Unauthorized use of a senior’s personal information.
● Improper Use of Conservatorship, Guardianship, or Power of Attorney: Abusing legal authority for financial gain.
● Coercion: Forcing a senior to sign documents such as a power of attorney or will.
● Telemarketing Fraud: Scams conducted over the phone.
● Internet Phishing Schemes: Online fraud targeting seniors.
● Home Repair Scams: Deceptive practices related to home repairs, such as overcharging or theft of property.
● The "Grandparent Scam": Impersonating a grandchild to urgently solicit money.
Recognizing Red Flags:
There are several warning signs that could indicate potential elder financial abuse. By recognizing and understanding them, you can be alert to fraud before it happens. Red flags include:
1. Changes in Spending or Transaction Patterns: Keep an eye on fishy spending or transaction patterns. Warnings might include out-of-sequence check numbers and unexpected overdraft fees. Large withdrawals and rapid-fire ATM withdrawals can raise concerns as well, while red flags like multiple small-dollar checks can indicate a possible telemarketing or charity scam.
2. Changes to Accounts: Be on the lookout for dubious account changes, such as the addition of new authorized signers, address changes for statements, and sudden changes to financial documents like Power of Attorney or account beneficiaries.
3. Changes in Attitude: Keep a close eye not only on your elderly relative’s accounts, but also on their behavior. If, for example, they have a new companion or caregiver who exerts excessive control over the elderly account holder's communication, this could indicate financial abuse in the making. Noticeable changes to the customer's physical or mental appearance, excitement about “winning” a sweepstakes or lottery, or supporting a new friend financially can also indicate areas for concern.
Elder Abuse Task Force:
The Elder Abuse Task Force is powered by more than 100 individuals who make up nine committees, each tackling a key part of elder abuse prevention. These teams bring together experts from government, law enforcement, healthcare, and community groups to protect older adults.
Want to learn more? Elder Abuse Task Force brochure offers expert insights, tips and contact information.
For further information on Elder Abuse, please visit Michigan Department of Attorney General.
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