Imagine you're retired, living on Social Security checks and retirement account withdrawals, and your spouse recently died. You're lonely and facing new challenges. Someone new moves into your apartment complex and befriends you. You can't remember the last time anyone made you smile so much, and you're grateful for the company. The relationship feels effortless, with your new friend putting in most of the effort.
After you've known your new friend for a few months, you notice several unfamiliar charges on your credit card. Once you see where the charges were made, you realize that your new "friend" helped themselves to your card. You confront them and they apologize profusely, say they'll repay you, and promise it will never happen again.
But it's often the case that they won't repay you, and unless you take action, it will happen again.
This is one form of what the U.S. Department of Justice deems financial abuse of an elder. Here are some others, as described by the Department of Justice.
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Power of attorney abuse
A financial power of attorney is a document in which you name someone else to make financial decisions for you. If the person you named (called the agent) abuses the power of attorney and takes your money or possessions, they're committing elder financial abuse. For example, an abuser may try to take money from your retirement account or change the name on the deed to your house.
Extortion
Imagine your grandchild has been kind enough to help care for you. After a while, they begin asking you to give them money, and when you tell them no, they threaten to hurt a pet you love or say they'll put you in a nursing home. In addition to a broken heart, you could be left with an empty retirement account if you give in to their demands.
Forgery
A longtime friend pretends to be you, signing your name to important documents such as a power of attorney, trust, deed, or loan papers.
Using money meant to cover care costs
Let's say you're in a senior living facility or nursing home. The person you trust to manage your income and pay your bills uses the money for themselves. You don't know about their crimes until you're about to be evicted.
Theft by someone working at a nursing home
If you live in a nursing home and someone connected with the facility steals your personal property or takes money from your account, it's financial elder abuse. That same person may try to convince you to sign a power of attorney or make them a joint owner of your bank account to get access to your money.
Other things to watch for
- You notice unexplained withdrawals from your checking or savings account.
- Your belongings disappear without explanation.
- Someone works to isolate you from friends and family, making it easier for them to control you.
- A person works hard to make you believe they're the only one who cares for you. Once they worm their way in, they take steps to steal as many of your assets as possible.
- You receive an inheritance, and someone you haven't seen in months or years suddenly shows up, showering you with affection.
A fast-growing crime
Elder financial exploitation is the "illegal, unauthorized, or improper use of an older person's funds, property, or assets." It's also the fastest-growing form of elder abuse, according to the American Bankers Association.
According to the association, people over 50 hold most of the nation's wealth, and fraudsters continually revise their tactics to exploit them.
How to protect yourself
- Shred receipts, bank statements, and unused credit card offers.
- Lock up your checkbook, account statements, and other personal information (including your Social Security number).
- If anyone asks you for personal information, like your Social Security number or bank account number, don't share it with them.
- Regularly order a free copy of your credit reports from the big three credit reporting agencies -- Equifax, Experian, and TransUnion. You can order all three from annualcreditreport.com. Regularly review your credit reports to ensure there's nothing new you don't recognize. Shred your report after reviewing it.
- Consult with an attorney or financial advisor before signing any document you don't understand.
- Never give personal information out over the phone.
- Check references and credentials before hiring. Don't allow anyone working in your home to access your financial information.
- Pay with credit cards instead of cash so there's a paper trail of your purchases.
- Trust your gut. Scammers are skilled at convincing people to give them what they want. If something feels off, it may be because something is off.
What to do if elder abuse occurs
If you're in immediate danger, dial 911 right away. Otherwise, you can call the non-emergency number for your local police or sheriff's office to file a report.
If you suspect someone is trying to take advantage of you (or someone you love), report it to the Adult Protective Services (APS) agency in your state. APS serves older adults and adults with disabilities who need help. You can find the contact information for your local APS here.
