Elder financial abuse is a significant issue affecting older adults nationwide. It involves the exploitation or misuse of a senior’s finances or assets for personal gain. Often, the perpetrator is someone who occupies a position of trust with respect to the senior, such as a close family member or paid caregiver.

Types of Elder Financial Abuse

Sadly, there are seemingly limitless fraudulent financial schemes that target older Americans, and the impact of they have is enormous. One 2023 AARP report found that adults over age 60 lose more than $28 billion a year through all types of elder financial abuse.

Some types of financial abuse include:

• Customer support scams. These are the most frequently reported types of elder abuse. They commonly involve calls or internet browser pop-ups that allege that there is a problem with the senior’s account or device. The perpetrator will ask for information, such as passwords or personally identifying information, in order to restore the account or fix a problem with the device. They then steal the senior’s information and use it to gain access to the senior’s assets.
• Confidence fraud. In confidence fraud, someone befriends a senior and gains the senior’s confidence. They then use their relationship with the senior to gain access to the senior’s money and assets.
• Romance scams. These scams involve someone pretending to be romantically interested in a senior with the end of goal of accessing the senior’s finances, sometimes through inheritance. These schemes can be conducted in person or through the use of technology. When they involve the use of technology, these schemes are also sometimes referred to as catfishing.
• Government impersonation. These scams involve communications from someone pretending to be part of a governmental entity. Scare tactics are used in order to get the senior to give up valuable information, without which the scammer claims there will be some legal consequence, such as the suspension of a driver’s license or passport.
• Sweepstakes and lottery scams. These scams involve notifications that a senior has won some sort of sweepstakes or lottery. In order to pay out the prize to the senior, the scammer will insist they need certain information, like a credit card number, to verify the senior’s identity. They will then use stolen information to gain access to the senior’s assets.

First Steps Against Elder Financial Abuse

If you suspect a senior has been the victim of financial abuse, you should report it immediately to the appropriate authorities. You can begin by contacting law enforcement to file a report. In some cases, it may also be appropriate to contact your local Adult Protective Services agency (APS). The sooner you make a report, the sooner an investigation into the situation can occur. Of utmost importance is taking actions to protect the victim and prevent further abuse. With assistance from these services, you can assess the scope of the financial abuse and identify the extent of financial losses.

Secondly, establish a support network for the victim. Surround the older individual with supportive family members, friends, and professionals who can provide emotional support. The victim will need other types of guidance throughout recovery. This network of professionals may include attorneys, financial advisors, therapists, and social workers.

In many cases, the perpetrator of the abuse is a trusted family member or professional caretaker. Remove them immediately from contact with the victim. They also should no longer have access to any accounts that would allow them to further financially abuse the victim. This is where the services of an elder law and estate planning attorney can be most helpful.

How Your Elder Law and Estate Planning Attorney Can Help

Your elder law and estate planning attorney can be crucial in helping prevent elder financial abuse and ensure that its impact is minimized if it occurs. Professionals in this field understand the laws and regulations surrounding elder abuse and financial exploitation. They can provide personalized advice related to your specific circumstances, and they can explain your legal rights and options available to rectify the situation.

However, arguably the biggest benefit of speaking to your elder law and estate planning attorney about elder financial abuse is that they can develop comprehensive estate plans that include lifetime planning documents, such as durable powers of attorney and living trusts. These documents can help protect the older person’s assets during their lifetime. Elder law and estate planning attorneys can also provide for the senior’s future needs through various legal tools so the senior can both safeguard their finances and ensure their loved ones honor their wishes in the future.

When seniors are no longer able to manage their financial affairs on their own, if they did not previously consult with an elder law and estate planning attorney to get a durable power of attorney in place, the elder law and estate planning attorney can help a loved one establish legal guardianship over the vulnerable adult through the courts. In a guardianship, a trusted individual or institution manages the senior’s finances and is authorized to make decisions on their behalf.

If you would like to speak with an experienced elder law attorney regarding your situation or have questions about something you have read, please do not hesitate to contact our office at 1 (800) 680-1717. We look forward to the opportunity to work with you.