In honor of Financial Literacy Month (April), I felt obligated to bring up this topic so that the local elderly population would be aware of the signs of financial exploitation. According to the Nursing Home Abuse Center, instances of financial exploitation cost seniors $2.6 billion annually. And since many instances go unreported, the actual number may be much higher. Only 1 in 44 cases of elder money abuse or exploitation, according to the National Audit Protective Services Association, are documented.
There are many different ways that elders can be financially abused. It might entail things like identity theft, fraudulent use of debit or credit cards, lottery fraud, telemarketing, online scams, and violation of the attorney-client privilege.
What are the telltale signs of elder financial exploitation to watch out for? Isolation, meeting new people, changing financial or legal documents, making new acquaintances, using new phone numbers or email addresses, and unusual behavior are all red flags.
Isolation: When a senior is physically or socially confined, their thinking alters. As a result, they might let their guard down and develop trusting connections with total strangers.
Newcomers in their Lives: Are suddenly appearing new people giving advice on legal or financial matters? Are the newcomers covering their costs or offering transportation to the bank, lawyer, or financial adviser’s office? It might be a neighbor, cousin, nephew, or other related. Even though the offer of assistance might at first seem sincere, a sudden interest where none had been anticipated could be cause for alarm.
Changing financial or legal documents: Retirement funds, insurance policies, and estate records are just a few examples of the kinds of records that can suddenly change or vanish. Making frequent, unannounced trips to attorneys or financial advisors is cause for concern. Alternatively, switching advisors without consent because someone said we should switch” is a red flag.
Meeting a new friend: If a new “friend,” “helpful” neighbor, or long-lost relative enters the picture and restricts access to an elderly relative or won’t allow you to speak to the family member without them being present, that should raise a red signal.
New Phone Numbers or Email Addresses: Red flags include abruptly changing or deactivating mobile phone numbers or email addresses, having a different person answer the phone, and replying to texts or emails with enigmatic wording. This could imply that someone else is in charge of managing communications and has access to them.
Unusual Behavior: Money transfers, odd spending patterns, checks made for cash, and the mysterious disappearance of money or property are all warning signs that something isn’t right. Exploiters frequently sow the seeds of mistrust by “telling stories” to elderly people about how well-meaning relatives are trying to “steal” their money.
As the first move in preventing them from becoming a victim of financial exploitation, keep in frequent contact with elderly family members or friends. Knowing what is going on in their lives and who is involved can help you prevent involving bad players.
If something doesn’t feel or sound right, challenge new “friends” or relations firmly and ask questions. Investigate the circumstance with assistance if your intuition keeps telling you that something isn’t right.