An Introduction to Elder Abuse for Professionals ...Abuse for Professionals: Financial Exploitation...
Transcript of An Introduction to Elder Abuse for Professionals ...Abuse for Professionals: Financial Exploitation...
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An Introduction to Elder Abuse for Professionals:
Financial Exploitation
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Learning Objectives At the end of this presentation, you will be
able to: Define and describe financial exploitation Identify indicators of financial
exploitation Identify strategies to respond to possible
financial exploitation situations
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Case Example
Fred convinced Mildred (his 85-year-old mother) to create a trust and name him as co-trustee
Fred used over $1.5 million from the trust to pay his expenses, credit card bills, and to purchase insurance policies
None of these transactions were authorized by Mildred.
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Case Example (Cont.) Bessie received a telephone call from “Al” who said he
was a good friend of her grandson. He said he had bad news and that her grandson had been arrested while traveling through a distant state.
Al said the grandson needed $10,000 immediately so he could post bail.
Bessie sent $10,000 via Western Union to Al She later learned that her grandson had not been
arrested.
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Case Example At a local restaurant, Jennifer befriended Oliver, an
elderly man with mild dementia. Within a few weeks, he agreed to pay her mother’s
medical bills and they were married. Within months, Jennifer had depleted Oliver’s life
savings of $300,000 and had disappeared. Even though, Jennifer had a boyfriend and children,
she befriended several elderly men, married them and then quickly depleted their assets. NCEA Financial Exploitation 6
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Financial Exploitation The illegal or improper use of a vulnerable adult's funds, property, or assets. (National Center on Elder Abuse)
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Consider adding state, tribal, or territorial statutes relating to physical abuse here. These may be found in criminal law, protective services, or
other, statutes.
Consider inserting elder abuse reporting laws in the Response section.
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Financial Exploitation ( Cont.) May occur by itself, or May occur in conjunction with:
Physical abuse Neglect Psychological/emotional abuse
Self-neglect may be an outcome of financial loss Co-occurring forms may make it easier to commit
financial exploitation
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Two Kinds of Financial Exploitation Research shows that there are two distinct forms of elder financial exploitation: 1) Pure financial (financial exploitation only)
Perpetrators are non-relatives, not financially dependent on the victim and physically healthy
Shorter duration than hybrid form; primarily fraud
Lower financial loss per case
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Hybrid Financial Abuse 2) Hybrid (co-occurs with physical abuse or neglect)
Relatives financially dependent on the elderly victim Victim typically financially independent but
physically dependent on the perpetrator Longer duration than pure form; primarily theft Greater loss per case (Jackson and Hafemeister, 2011)
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Perpetrators
Persons the Older Adults Knows and Trusts Intimate partners, family members, and friends Caregivers Persons who befriend an older person (e.g.,
sweetheart scams) People with unique trust relationships
Strangers
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Forms of Financial Exploitation (GAO, 2012) Forms of Elder Financial
Exploitation by Type of Perpetrator
Family members, friends, in-home caregivers, legal guardians, representative payees, etc.
Financial services providers (brokers, financial advisors, insurance agents, or others in the financial services industry)
Strangers
Examples of Conduct Theft of cash or other valuables Withdrawals from bank accounts or use of
credit cards Transfer of deeds Misuse of an older adult’s power of
attorney Misappropriation of an incapacitated
older adult’s income or assets Identity theft Sale of fraudulent investments (Ponzi or
pyramid schemes) Sale of financial products or services
unsuitable for an older adult’s circumstances, such as long-term annuities
Lottery, mail, telephone, or Internet scams Door-to-door home repair scams Identity theft
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Abuse of Legal Authority
Powers of Attorney (POA) A written document created by a person with capacity
(principal) authorizing another (agent) to make decisions for the principal
Agent’s authority is limited to what is stated in POA Guardianship/conservatorship
A person appointed by the court to manage the personal or financial affairs of an incapacitated person unable to handle his or her own affairs
Supervised by the court
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Legal Authority and Financial Exploitation
Guardianships/conservatorships and powers of attorney and are not licenses to steal!
Improper use of POAs and guardianships/conservatorship may be a crime.
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Consent • Mental capacity
• Person giving consent must have decision making capacity
• Knowledge of true nature of act ▪ Any fraud, deceit, misleading statements
• Acted freely and voluntarily
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Undue Influence Similar to brainwashing, an exploiter uses manipulation
to convince another person to make decisions contrary to his/her own best interest
Commonly involves deception to take over victim’s free will
“Process not an event” – pattern of behaviors Victim may lack capacity – but not always Victims may be vulnerable due to grief or isolation
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Indicators: Potential Victim • Changes in the older adult’s appearance, health status,
personal habits • Changes in long time banking or spending patterns • A confused older person signs something without
understanding consequences
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Indicators: Potential Exploiter
Another person: • Cashing an older adult’s check or using credit/debit
card without authorization or permission • Forging the older adult’s signature • Coercing or deceiving the older adult into
signing any document
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Other Indicators
Unexplained changes in wills or title documents Increased telephone solicitations for funds Missing personal property Funds wired out of country for mysterious
reasons Missing or redirected mail Missing personal property Names added to older adult’s bank accounts
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Impact and Cost
A 2010 MetLife Study based on newspaper articles estimates financial exploitation costs the U.S. $2.9 billion a year
Gunther (2011) suggests that financial exploitation costs Utah seniors, the Medicaid program and financial institutions $1 million a week
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Financial Exploitation
Impact on Victims Physical health effects Financial effects Mental health and social effects
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Victim Safety All responses and
interventions must consider and prioritize victim safety.
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What You Can Do Recognize the Signs of Financial
Exploitation
Ask
Report or Refer
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If the older adult can answer questions,
consider asking: Who makes decisions about your finances? Who handles your finances? How were your
finances handled a year ago? Two years ago? Do you know how much money is/are in
your bank account(s)?
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If the older adult can answer questions,
consider asking: Have your spending patterns changed? Have you created or changed an existing power of
attorney? Trust? Other accounts? Has anyone asked you to sign something you did
not understand? Did not want to sign? Do you have any concerns about your finances?
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Report - Refer
REPORT 911 or law enforcement
(life threatening or possible crime)
Adult protective services Medicaid Fraud Control
Unit (in State Offices of the Attorney General)
REFER
Area Agency on Aging (AAA)
Aging network agency Ombudsman (if abuse is
in a facility)
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Consider Inserting Slides Describing the Local Jurisdiction’s Elder Abuse/ Vulnerable Adult Reporting Law
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Consider adding local resources and programs. (See “A Guide to Planning Your Elder Abuse Presentation” at ***** for more information.)
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Additional Resources State Medicaid Fraud Control Unit (usually in the State Office of the
Attorney General) See https://oig.hhs.gov/fraud/medicaid-fraud-control-units-mfcu/index.asp
Federal Trade Commission, Bureau of Consumer Protection, see http://www.ftc.gov/bcp/index.shtml
Consumer Financial Protection Bureau, see http://www.consumerfinance.gov/
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Additional Resources ( Cont.) American Bar Association, Commission on Law and Aging,
http://www.americanbar.org/groups/law_aging/publications.html AARP Scams and Fraud Page , see http://www.aarp.org/money/scams-
fraud/ Elder Financial Protection Network, see
http://www.bewiseonline.org// National Association of Area Agencies on Aging, see
http://www.n4a.org/
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For more information, visit us! ncea.aoa.gov Also on Facebook, Twitter, YouTube
centeronelderabuse.org Also on Facebook, YouTube
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For additional resources, visit www.ncea.aoa.gov
This slide set was created for the National Clearinghouse on Abuse in Later Life for the National Center on Elder Abuse and is supported in part by a grant (No. 90AB0002/01) from the Administration on Aging, U.S. Department of Health and Human Services (DHHS). Grantees carrying out projects under government sponsorship are encouraged to express freely their findings and conclusions. Therefore, points of view or opinions do not necessarily represent official Administration on Aging or DHHS policy.”
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