Warning Signs of Elder Financial Abuse (2024)

FAQs

Warning Signs of Elder Financial Abuse? ›

Giving away money, transferring assets to people, unusual spending behavior, checks being written to cash or the unexplained disappearance of cash or property are warning signs that something isn't right.

Giving away money, transferring assets to people, unusual spending behavior, checks being written to cash or the unexplained disappearance of cash or property are warning signs that something isn't right.

Some state laws define elder financial abuse as a specific type of crime. Financial abuse may also involve other crimes such as theft, fraud, forgery, embezzlement, or money laundering.

Possible signs of elder financial abuse include:

Forgeries on legal documents or checks. Large bank withdrawals or transfers between accounts. Missing belongings or property. Mood changes (such as depression or anxiety)

According to the NCOA, elders are more likely to self-report financial exploitation than emotional abuse, physical abuse, sexual abuse, or neglect. Psychological abuse is the most common type of elder abuse, according to the NCEA.

Possible indicators of financial or material abuse

Missing personal possessions. Unexplained lack of money or inability to maintain lifestyle. Unexplained withdrawal of funds from accounts. Power of attorney or lasting power of attorney (LPA) being obtained after the person has ceased to have mental capacity.

Suspicious Financial Account Activity: If a senior has new authorized signers added to their account, large unexplained withdrawals, cashed-out certificates, non-sufficient funds fees, new credit or debt, or a number of fund transfers, these can all indicate that abuse may be taking place.

AARP states that financial exploitation is the most common form of elder abuse in the U.S., with the average victim losing $120,000. Older adults with cognitive challenges are the most vulnerable to exploitation and are estimated to have up to twice that amount stolen.

Which of these are the most likely indicators of financial abuse? ›

Financial abuse can be when someone:

adds their name to your account. pressures you to change your will in a way you're not comfortable with. has offered to buy shopping or pay bills with your money, but takes it, and doesn't use the money how you agreed. asks you prove what you've spent your money on.

Financial crimes against the elderly fall under two general categories: fraud committed by strangers, and financial exploitation by relatives and caregivers.

Frequent Cross-Border Money Transfers to Different Accounts. This red flag can include: Rapid transfers that are sent in large, round dollar, hundred dollar or thousand dollar amounts. Significant incoming funds transfers received on behalf of a foreign client with little or no explicit reason.

Med data [sounds like] for medical records also come in handy. Again, on physical evidence as an officer, you want to look for bruises, rashes, and bedsores on that subject. Bedsores can be absolutely indicative of abuse or neglect.

The Senior Safe Act protects “covered financial institutions”[3] – which include investment advisers, broker-dealers, and transfer agents – and their eligible employees, from liability in any civil or administrative proceeding in instances where those employees make a report about the potential exploitation of a senior ...

Unexplained loss/misplacement of financial documents. Sudden or unexpected changes in a will or other financial documents. Signatures that do not resemble the person's normal handwriting – or a signature when the person is too unwell to be able to write. The sudden and unexplained transfer of assets to someone else.

Preventing the victim from working or making money is a form of financial abuse. Limiting the victim's access to assets and concealing financial information from the victim are examples of financial abuse.

Final answer: Financial exploitation of elders is the improper use of an elderly person's funds or assets. Leaving a substantial amount of money in a will but refusing to speak to the elderly person is not an example of financial exploitation of elders.