Financial exploitation is a fast-growing form of abuse of elders and adults with disabilities. Situations of financial exploitation commonly involve trusted persons in the life of the vulnerable adult, such as caretakers, family members, neighbors, friends and acquaintances, attorneys, bank employees, clergy, doctors or nurses.
Financial exploitation occurs when a person misuses, takes or conceals the funds, property or assets of a vulnerable adult for their own personal benefit. This frequently occurs without the explicit knowledge or consent of the elder or disabled adult, depriving them of vital financial resources for their personal needs. Assets are commonly taken via forms of deception, false pretenses, coercion, harassment, duress and threats.
Other commonly reported forms of financial exploitation include the unauthorized trading of life insurance policies or sale of inappropriate products, such as a 30-year annuity for an elder person; investments made without knowledge or consent, such as high-fee funds (front or back-loaded) or excessive trading activity to generate commissions for financial advisors; building contractors who receive payment for building repairs but fail to initiate or complete project; unauthorized or invalid changes to estate documents, unauthorized sales, transfers or changes to property title(s).
Elder financial abuse and exploitation is a growing problem, particularly for racial, ethnic minority and LGBTQ elders. Worries about economic stability increase significantly when an elder is a victim of financial exploitation.
Contact your local Adult Protective Services agency any time you observe or suspect the following:
- Termination of utilities such as telephone, water, electricity / gas, or garbage
- Unpaid bills and liabilities despite adequate income
- Oversight of finances surrendered to others without explanation or consent
- Transferring assets to new “friends” assisting with finances
- Checks written to “Cash”
- Does not understand their current finances, offers improbable explanations
- Unexplained disappearance of cash, valuable objects, financial statements
- Unexplained or unauthorized changes to wills or other estate documents
- Giving-away money or spending recklessly
- Appearance of property liens or foreclosure notices