Elder financial abuse is on the rise, and most of the time it is caused by a trusted family member.
Who Takes Advantage of Elderly People?
There are several stereo types that fit a profile of those committing elder care financial abuse, including:
- Family members: Trusted family members that have fallen on bad habits or have made several poor choices may turn to stealing from their elder parents or relatives. In some cases, these family members may have substance abuse problems, financial hardships or gambling addictions. Other times those who feel “cheated about their share of inheritance, or believe they are entitled to more family assets will take advantage of their elders.
- Con Artists: These people earn a living by taking advantage of emotionally unstable senior citizens. Some con artists claim to fall in love with an older partner, only to swindle their finances and assets. Others look to seek employment as advisors or personal assistants, gaining access to private financial records.
- Unscrupulous Businesses: Unfortunately, elder financial abuse can be caused by unethical trustees, asset management companies, financial advisors, caregivers, or other professionals hired to monitor an elderly person’s finances or health. Elder financial abuse can occur in the form of inflated fees, misappropriation of assets including family heirlooms and jewelry, or embezzlement of cash.
What are Some Examples of Elder Care Financial Abuse Cases?
There are four main areas of elder care financial abuse cases:
- Asset Conversion: In this case, a portion of the senior’s assets are used to acquire personal property or to incur other expenditures not approved by the senior.
- Breach of Fiduciary Duty: This is collaboration between financial advisors and family members working together to steal or misappropriate assets from the estate of an incapacitated elder citizen.
- Abuse of Trust: An abuse of trust occurs when funds loaned to a family member or outside party are not returned due to alleged misrepresentation.
- Unauthorized Gifting: Unfortunately, assets belonging to an incapacitated senior are gifted to others without the senior’s authorization or knowledge. This can cause tax issues and other estate problems if not monitored.
What to do if you Notice Elder Financial Abuse is Happening
Regardless of the best advisors and internal controls, senior citizens will unnecessarily become victims of elder financial abuse. It’s even worse when they are taken advantage of by family members or trusted advisors. If elder financial abuse is suspected, contact Veriti Consulting. Veriti’s team of CPAs and Certified Fraud Examiners has worked on numerous cases involving the financial exploitation of the elderly. Veriti’s professionals are highly skilled in tracing funds between bank accounts and overseas, analyzing possible diversion or misappropriation of assets, embezzlement, and investigation of the perpetrators. Learn more about Veriti Consulting’s elder financial abuse services, contact us today at 855.232.4410.
