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A closer look at elder financial abuse and how you can empower and protect yourself from the abuse.
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GROWING TRENDS: ELDER FINANCIAL ABUSE
John Reddan, Eldercare Channel
A Closer Look at Elder Financial Fraud and How You Can Empower and Protect
Yourself Against the Abuse
Growing Trends: Elder Financial Abuse The Eldercare Channel 2
Sadly, financial fraud is skyrocketing and
the focus is on the elderly. While there
are state laws that put steep
punishments into place, there is also a
new federal watchdog group that was
founded in 2010, courtesy of the 2009
CARD Act. The Consumer Financial
Protection Bureau is making great strides
in both identifying and empowering both
our nation’s elderly and law enforcement
so that better strides can be made in
eliminating elder financial abuse.
DEFINING FINANCIAL EXPLOITATION
The Older Americans Act defines financial exploitation as:
the fraudulent or otherwise illegal, unauthorized, or improper actions by a
caregiver, fiduciary, or other individual in which the resources of an older
person are used by another for personal profit or gain; or actions that
result in depriving an older person of the benefits, resources, belongings,
or assets to which they are entitled.
According to CFPB:
50 million Americans are aged 62 or older
The elderly population lost nearly $3 billion due to financial
exploitation
there are at least 5 million cases of elder financial abuse in the
United States each year
law enforcement learns of only 1 in 25 cases
3 out of 5 American households have heads of household older than
65 and with no retirement savings at all, which leaves them that
much more vulnerable
Growing Trends: Elder Financial Abuse The Eldercare Channel 3
We’re living longer, which means holding on to our money is crucial -
women are now living 21 more years than the previous generation and
their male counterparts are living 17 more years.
The elderly are often targeted for a number of reasons. The primary
reason is because so many have lost cognitive skills. But they’re also likely
to be lonely or isolated, as well as vulnerable because of the death of a
spouse, close friend or even a pet. They’re polite and trusting and passive.
These criminals know that they are often reluctant to report these crimes
to law enforcement, partly because they’re fearful of what might happen if
they do – especially if the crime was committed by someone in their family.
FIDUCIARY ABUSE
Unfortunately, the person who’s been appointed as the fiduciary (one who
manages another’s money or other assets) is sometimes the one
committing the crime. Their purpose is to properly manage the money and
property for the elderly person, but too many times, that purpose is
abused.
Further complicating matters is the fact that often, it’s a loved one. We’re
supposed to be able to trust
our family members – sadly,
that isn’t always the case.
There are laws that protect
us from unethical and illegal
behaviors of the fiduciary.
They can be removed at any
time if there are concerns
their objectives are
questionable. They may also
be reported to law
enforcement or the victim’s
Growing Trends: Elder Financial Abuse The Eldercare Channel 4
local Adult Protective Services. If a fiduciary is found to be stealing assets,
he may face jail time and be ordered to pay restitution.
POWER OF ATTORNEY
A power of attorney allows for another degree of protection. It’s an
inexpensive way of covering the bases and provides invaluable peace of
mind. That said, it’s important for older Americans to put those dynamics in
place while there’s no question about his mental capacities. Avoid those
“do it yourself” options and instead, meet with an experienced elder care
lawyer. Also, remember that
the goal is to provide a sense
of security; however, it’s a
leap of faith. The chosen
person could take advantage
of that massive trust that’s
been placed in him. He
effectively has control over the
financial decisions, which may
or may not include the best
decisions for whom the money belongs.
Elder law attorneys report that criminals will attempt to exploit the elderly
with the power of attorney. Whether or not they’re successful in that effort
determines how much they’re able to steal. If they are unable to secure a
power of attorney, the scammers will steal whatever else they can. They
may promise big returns on small investments of a few thousand dollars or
if they can make their way into the home, they will steal cash or other
valuables (regardless of whether they have power of attorney or not).
Growing Trends: Elder Financial Abuse The Eldercare Channel 5
OUTSIDE THREATS
But there are plenty of opportunities for those who have never stepped
foot inside their home, too. Those include telemarketing efforts, reverse
mortgage fraud scams (which are growing), lottery or sweepstakes scams
and of course, deceptive investment opportunities, including fraudulent
financial services.
PROTECTING YOURSELF
Elder and estate planning attorneys encourage clients to remain vigilant in
the motives of those around them. It’s important to remain empowered
and they offer these tips:
It’s your money. Don’t be afraid to ask as many questions you feel is
necessary.
Don’t allow yourself to become intimidated. If you think that might be
a concern, ensure there’s someone else present.
Choose your estate planning attorney carefully. Be sure you feel
comfortable with the lawyer and again, ask questions. Any reputable
elder law attorney will happily provide transparent answers to
questions.
Never give out any kind of information – and certainly not your social
security number, address, credit card numbers, banking information
or other bits of data that can help a crook steal what you’ve worked
your entire life for.
Be careful of reverse mortgages. There are many scams making the
rounds these days surrounding these types of financial products. It’s
crucial you understand your rights.
Growing Trends: Elder Financial Abuse The Eldercare Channel 6
Finally, if something doesn’t feel right, avoid it – at least until you can
complete a bit of due diligence to confirm your suspicions or put
them to rest.
Many often don’t know where to turn once they realize they’ve been
victimized. A call to the estate planning attorney can provide a solid
starting place as it will allow the lawyer to investigate from his end. The
CFPB also encourages loved ones or the victim to visit eldercare.gov.
Eldercare.gov is a public service that’s offered by the U.S. Administration
on Aging. Conversely, they may call 1-800-677-1116. Contacting law
enforcement, notifying the bank and if it’s cash or other monetary assets
that have been stolen, contacting the Federal Trade Commission should be
a priority as well.
The bottom line is the majority of us work hard throughout the course of
our lives so that we can enjoy our later years. We sacrifice vacations, we
budget our money and we fund our retirement accounts. The last thing we
should have to worry about as we age is the fear that a criminal will swoop
in and take it all. It shouldn’t be that way. The more empowered we feel
and the better prepared we are, the less the odds of our becoming victims.
Growing Trends: Elder Financial Abuse The Eldercare Channel 7
ABOUT THE ELDERCARE CHANNEL
Launched in 2009, The Eldercare Channel is an extensive online directory of local
senior care services. By providing reliable, up-to-date information, we can offer seniors
and their families guidance through the world of senior care and help visitors to select
services that may best meet their care needs.
Our goal for The Eldercare Channel is to create the finest area resource for making
senior care transparent and easy-to-understand for seniors and adult children trying to
make the best possible senior care decisions.
Our advice articles are written by experts in the field of eldercare and focus on issues
involving in-home nursing, advances in senior medicine, estate planning, paying for
care, Alzheimer’s care communities and other fundamental areas of the senior care
world.
The Eldercare Channel features a senior care expert as video host for each local area.
Our video hosts know the eldercare service providers, recognize the solutions to senior
care problems, and understand the need for accurate and timely information. Most
importantly, they are available to our visitors to answer questions and concerns.
Local senior care companies, agencies, and organizations are invited to have their own
interactive display with room for up to six pages, each with the ability to feature
unlimited videos, photos, and text, not to mention direct links to their websites. For more
information about listings, please contact editor@eldercarechannel.com with your
company’s name, location, and specialty
.
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