Elder financial abuse is an increasingly prevalent issue as the senior population grows, making it essential to be aware of the signs and know how to respond if you suspect someone is being victimized. Financial exploitation can be devastating, both emotionally and financially, for elderly individuals. Because it can happen to anyone, the Indianapolis attorneys at Frank & Kraft discuss what you need to know about elder financial abuse.
What Is Elder Financial Abuse?
Elder financial abuse occurs when someone illegally or improperly uses an elderly person’s funds, property, or assets for their own benefit. This type of abuse is often perpetrated by a trusted individual, such as a caregiver, family member, or even a professional like a financial advisor, but can also be committed by strangers, particularly in scams that target older adults through deceptive phone calls, emails, or fraudulent schemes. According to the U.S. Department of Justice, financial abuse is the most common form of elder abuse and is vastly underreported with an estimated 44 instances of financial abuse going unreported for every one that is reported.
Common Signs of Elder Financial Abuse
Recognizing elder financial abuse can be challenging because it is not always immediately apparent, and victims frequently do not report the abuse because they are embarrassed or because they are dependent on the perpetrator. Consequently, it is crucial to watch for signs of elder financial abuse, such as:
- Unexplained Withdrawals or Transactions: A sudden, unexplained withdrawal of large amounts of money from a senior’s bank account or multiple small transactions that add up to significant sums can be a red flag.
- Changes in Financial Documents: If an elderly person’s Will, Power of Attorney, or other estate planning documents have been changed unexpectedly, it might indicate that someone is attempting to gain control over their finances.
- Missing Possessions or Assets: When valuable possessions, such as jewelry or other assets, go missing, or if a senior’s home or property is sold without their full understanding, it could point to financial abuse.
- Unpaid Bills or Lack of Basic Necessities: If you notice that bills are going unpaid despite knowing that an elder loved one has the financial means to pay them, or if they seem to lack basic necessities like food or medication, this could be a sign that their money is being misused.
- Isolation or Withdrawal: Abusers often try to isolate seniors from family and friends to maintain control over them and their finances. If a previously social individual suddenly becomes withdrawn or isolated, this could be a cause for concern.
- Unusual Bank Activity: Look for any unusual patterns in their bank accounts, such as large transfers to unfamiliar accounts, new loans, or the sudden use of credit cards in ways that do not align with the elder’s normal habits.
What Should I Do If I Suspect Elder Financial Abuse?
If you suspect that an elderly loved one or someone you know is a victim of financial abuse, it is crucial to take immediate action. If possible, approach your loved one and express your concerns in a non-confrontational manner. Keep in mind, however, that they may not realize they are being exploited, or they may be reluctant to discuss it out of fear, embarrassment, or dependence on the abuser. Other steps to consider taking include:
- Review Financial Statements: If you have access to financial records, review bank statements, credit card activity, and any other relevant financial documents looking for any transactions that seem out of place or unauthorized.
- Report the Abuse: If you believe elder financial abuse is taking place, report it to the Indiana Adult Protective Services (APS). APS can investigate the situation and take steps to protect your loved one from further harm.
- Contact Law Enforcement: If you believe that a crime has been committed, such as theft, fraud, and exploitation of an elder, contact local law enforcement.
- Consult with an Elder Law Attorney: Contact an experienced elder law attorney who can help review estate planning documents, change fiduciary arrangements, or take legal action to stop the abuse. You may also need to discuss petitioning for guardianship over your loved one to prevent future victimization.
Do You Suspect Elder Financial Abuse?
For more information, please join us for an upcoming FREE seminar. If you suspect that a loved one if the victim of elder financial abuse, contact the experienced Indianapolis elder law attorneys at Frank & Kraft by calling (317) 684-1100 to schedule an appointment.
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