Whether you’re reaching your golden years yourself or are caring for an elderly loved one, there are those that may attempt to prey on your perceived financial vulnerability. Being a victim of elder financial abuse has become more egregious as more banking transactions take place online. And, many times, financial abuse of the elderly isn’t discovered until it’s too late and thousands of dollars have already disappeared. So, it’s important for the elderly and their care takers to be aware of some of the signs that misconduct might be taking place. Here are the top three.
1. Trouble Paying Bills & Creditor Problems:
When a senior is having trouble staying current with bills or is being pursued by creditors, this is an indication that there may be financial abuse involved. The situation typically arises when the elderly person’s account, which is usually used to pay bills, has been depleted due to the misconduct of another person. However, there may also be negligence involved, such as when another person has access to the account but fails to pay necessary bills.
Other details to consider include:
- The senior entrusts his or her care to another in exchange for access to bank accounts;
- The person’s financial situation changes over a short period; or,
- A credit report reveals negative history that seems questionable.
2. Unusual Banking or Estate Planning Activity:
Certain expenditures are also a reason for concern that financial abuse of the elderly is occurring. This is especially true considering the online accessibility of accounts and ability to make purchases on the internet – activities that an elderly person may not understand or know how to complete. There may also be changes to the person’s estate plan to benefit individuals that weren’t previously in the will.
Therefore, you should keep an eye out for such financial transactions as:
- Unusually large or nonsensical purchases (i.e., sky diving lessons, a gym membership);
- Assigning an acquaintance or non-family member as a power of attorney over property; or,
- Changing title or beneficiaries to assets.
3. Isolation from Loved Ones:
Often, an elderly person who is being abused will withdraw from relationships with loved ones – whether out of fear, retribution or other threats issued by the person involved in misconduct. If the person isn’t willing to discuss finances, seems angry at questioning or won’t speak about certain matters in the presence of loved ones, there may be financial abuse of the elderly taking place. Take immediate action if you sense general isolation and alienation so that the abuse can’t continue and proper authorities can be notified.
There are other signs that elder financial abuse may be occurring, but it’s essential to know these red flags. Early detection and action can prevent others from exploiting the elderly, though these schemes can sometimes be quite complex. You may consider hiring an elder financial fraud consulting service to review accounts and identify suspect transactions.
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Veriti Consulting LLC provides elder financial abuse support to individuals and legal teams across the United States. To learn more call Veriti Consulting at (877) 520-1280 today!