People with dementia are at high risk because judgement and memory are affected. Warning signs include unusual withdrawals, a new friend managing money, unpaid bills despite sufficient funds, and sudden changes to a will or deed.
Adult Protective Services in each state investigates, and banks have reporting duties.
Why it matters
It is common, it is usually a family member, and catching it early is the only real remedy.
Questions people ask
What is elder financial abuse?
Elder financial abuse is the misuse or withholding of an older person's money or property for someone else's benefit. The Justice Department groups it under financial exploitation, which covers two kinds of crime: financial abuse by someone the person knows, and financial fraud by a stranger. Both cause serious financial, physical and emotional harm, and the department stresses that victims are never to blame.
What are examples of elder financial abuse?
The Justice Department gives examples such as an agent under a power of attorney taking the person's money or changing the deed to their house, someone using their debit or credit card for themselves, forging their signature on checks or loan papers, threatening them, a bill payer spending nursing home money on themselves, and a new acquaintance who gradually takes control and starts asking for money.
What are the signs of elder financial abuse by family members?
Watch for sudden changes in the person's finances, which the Alzheimer's Association says may be the result of exploitation. The Justice Department describes other warning signs, such as unpaid assisted living or nursing home bills, a relative who talks for the person at the bank or pushes them to sign papers, unexplained card use, and threats to stop caring for them or move them to a nursing home.
How do you report elder financial abuse?
Call 911 if someone is in immediate danger. Otherwise, the Justice Department says to report to your local Adult Protective Services agency, which you can find through the Eldercare Locator at 1-800-677-1116, or call the National Elder Fraud Hotline at 1-833-372-8311, Monday to Friday. The Alzheimer's Association notes you do not need to prove abuse is happening; professionals investigate.
Why are people with dementia at risk of financial abuse?
Dementia can stop a person from recognizing abuse or reporting it, which the Alzheimer's Association says makes people with dementia especially vulnerable, including to strangers who take advantage of their cognitive impairment. The Justice Department notes that people who commit these crimes use charm, persuasion, lies and threats. It also publishes guides explaining the duties of anyone managing someone else's money.
Sources
Where to check this, and where to read more. All external and all authoritative.
- National Center on Elder Abuse
- Consumer Financial Protection Bureau
- US Department of Justice, Elder Justice Initiative: Financial exploitation
- Alzheimer's Association: Abuse