The fear of financial abuse is an unfortunate reality for many seniors. Not only is there a concern about external financial frauds and scams, but there is a very real added risk of being taken advantage of by family, friends, or caregivers.
For most seniors, these abuses are unimaginable. But even those with a strong support system can be at risk.
In order to prevent financial abuse, it is important to first understand what it is and what it may look like.
To help you or the seniors in your life navigate this difficult (but important!) subject, we’ve put together this short guide as well as a few tips for seniors in preventing financial abuse.
Understanding Financial Abuse
Financial abuse is the illegal or unauthorized use of someone else's money or property, including pressuring someone for money or property. It can be hard to define, making it a significantly under-reported crime.
Financial abuse is very common. It can happen to any one, at any age.
In fact, research suggests that financial abuse is found in 99% of domestic violence cases. And while there is no reporting mechanism for financial exploitation of seniors, research also suggests that the prevalence is between 3.5 % to 20 % of adults over 65 years of age depending on the demographics and methodologies used.
Common forms of financial abuse, include:
- Outright theft
- Fraud, including cashing pension or social security checks without permission
- Coercion, including:
- Forced signing of documents that you do not understand
- Lending or giving away money, property or possessions on your behalf
- Making or changing your will or power of attorney
- Selling or moving you from your home
- Providing food and shelter to others without being paid
Financial abusers typically have a close connection to the abused and use this connection to manipulate them emotionally into staying silent.
There is often a significant feeling of shame associated with this type of abuse, making it all the more important to be aware of the warning signs.
Recognizing the Signs of Financial Abuse
Recognizing the signs of financial abuse in your own life or in a friend or family member can be challenging. There are, however, a few common traits in financial exploitation.
Unexplained Withdrawals
When reviewing your bank statements and accounts, if you notice withdrawals and transactions that are unfamiliar or you did not authorize, it could mean someone is accessing your account without your permission.
If a senior friend or family member mentions banking abnormalities in conversation, it is worth following up with them to ensure they are aware and safe.
Changes in Financial Documents
If someone is suddenly pressuring you to make changes to your will or power of attorney, pay very close attention. Not all requests to update these documents are cause for concern. Maybe there have been changes in your circumstances or those of your family and a loved one is prompting you to make the update.
But if the request comes out of left field, or the request would give someone new powers, it could be an abusive request. Similarly, if someone in your life has suddenly updated their documents and the new designations do not make sense, pay close attention to the situation.
Isolation from Family and Friends
As with other forms of abuse, financial abusers work best without interference from caring friends and family.
If someone in your life is monopolizing your time or trying to turn you against your loved ones, they may be trying to isolate you in order to take advantage of you without questions or observation from the outside.
Senior loved ones that have stopped socializing as before, especially if they are doing so in favor of a single individual, it is possible that abuse and manipulation is the reason.
Tips for Seniors to Protect Against Financial Abuse
The following tips can be used to minimize your risks of financial abuse and keep yourself safe.
Stay Informed
One of the best things you can do to avoid becoming a target is to educate yourself on common scams and financial fraudulent behavior. As technologies like artificial intelligence advance, and seniors spend more time online, the methodologies of abusers and scammers become more complex.
The more you know, the safer you can be.
There are many trustworthy resources to help you stay informed and take steps to regain your financial security.
The AARP, for example, has advice on preventing elder financial abuse and can link you to affordable legal assistance. Senior advocacy groups or the local seniors center may also support you in finding the information and resources you need.
Monitor Financial Accounts
Make it a habit to regularly check and review your bank and credit card statements. This will not only give you a better general grasp of your financial situation, it can also help you spot any suspicious activity.
If you haven’t already, set up alerts for large transactions or unusual activities in your accounts. If you are unsure how to do this, call or visit your bank and they will be happy to help you.
Create a Secure Environment
Be cautious and limit who has access to your financial details. If you must share your information, be sure it is with someone you trust.
Always fully log out of your online banking profiles and credit card accounts, especially if you are using a shared computer. If possible, avoid logging into these platforms from a public computer like at the library or seniors drop-in center.
If you have people in and out of your home, like workers or support staff, consider going an extra step and putting your financial documents and social security card in a safe or locked cabinet.
When you no longer wish to keep financial records and documents, do not simply throw them away, be sure to shred them to avoid access to sensitive personal data.
Utilize Trusted Contacts
Designate a trustworthy person as your power of attorney for financial matters. This person can help safeguard your finances and prevent others from taking advantage of you.
While financial matters can be difficult to talk about, initiate and encourage regular check ins from your family members.
It is possible that they may have valuable information or advice that can further protect you from the risks of financial fraud or abuse. You don’t need to share your bank balance or your banking information, but discuss the steps you are taking to protect yourself and adjust your strategies when necessary.
Report Suspicious Activity
As difficult as it may be, report any suspicious activities to local authorities or the National Elder Fraud Hotline. This hotline is also open to family and friends that may notice suspicious activity with an elderly loved one.
Collect and keep all records of suspicious activities to use in the reporting process or to support any legal action that may follow.
Reporting elder financial abuse can be complicated, especially when the abuser is a family member. Always remember that the abuse is not your fault and any shame you may feel because of it is not yours to carry.
You Are Your Best Defence Against Elder Financial Abuse
Controlling someone else’s finances is a sure way to exert control over their entire life. If you or someone you love is being financially abused, you do have options.
The first step is to speak up and report the abuse. Call the authorities or start a conversation about what you are experiencing or seeing.
As someone who may be experiencing abuse, do not be afraid to talk to someone you trust, like your children, a long time caregiver, or your faith leader. If you feel like something isn’t right, it is worth exploring that instinct.
If you are observing suspicious activity and feeling concerned, talk to the person. Learn what you can about the situation and if your concern is founded, help the senior come forward. If they are unwilling but you fear they are in an unsafe situation, report your observations to the National Elder Fraud Hotline, they can help you navigate next steps.
Worst case scenario, there is no abuse and everything is fine but the risks associated with staying silent are not worth it.
If you are not able to advocate for yourself, there are many groups and supportive agencies, like Care Indeed, that will walk with you through the process and help you regain your financial freedom, confidence, and sense of self.
You do not have to go through any of this alone. Contact Care Indeed to learn how we support and advocate for seniors in our community.
