A few weeks ago, the world observed Elder Abuse Awareness Day, a moment to shine a light on a pressing issue that affects millions. While it may seem that every day is dedicated to a specific cause, this one holds particular importance as it addresses a pervasive and often hidden problem: the exploitation of older Americans. Elder abuse manifests in various forms—physical, emotional, and financial. Among these, financial abuse is a disturbingly common occurrence, often perpetrated by those closest to the victim. It’s a crime that involves the unauthorized and illegal use of an older person’s property, money, assets, or other resources. As alarming as this may be, we are not powerless. By remaining vigilant and taking proactive steps, we can become a crucial line of defense for the seniors in our lives.
Understanding the Warning Signs
The first step in prevention is recognition. Learning to spot the red flags of financial exploitation is essential. Look for uncharacteristic and sudden changes in a senior’s financial habits or documents. This can include:
- Sudden or unexplained changes: Be alert to unusual or large withdrawals, wire transfers, or spending patterns.
- Unusual account activity: Notice if checks are being written out to unfamiliar people or businesses, or if there’s a sudden surge in credit card use.
- Changes to legal documents: Be cautious of new, altered, or forged wills, trusts, and estate planning documents, especially if they are drafted under suspicious circumstances or without the senior’s full understanding.
- A new “best friend”: A senior may suddenly develop a close relationship with a new acquaintance who isolates them from family and friends and begins to show an unusual interest in their finances.
The most effective initial protection against these scams and predatory behaviors often comes from those who manage the senior’s money. Financial advisors and bankers are trained to recognize uncharacteristic account activity and can be a valuable asset in preventing fraud.
Proactive Measures to Protect a Loved One
Taking a proactive approach is key. If you are a trustee or executor of a loved one’s estate, make regular communication a priority. This is not about prying; it’s about staying informed and ensuring their well-being.
- Open Communication: Regularly discuss their assets and other financial matters with the senior. This not only keeps you informed but also helps them stay engaged and aware of their own financial situation.
- Build a Team of Trusted Contacts: Work with the senior and their financial institutions to establish a “trusted contact” on their accounts. This simple yet powerful document gives the professionals closest to their money—such as a financial advisor or bank manager—the ability to reach out to a designated person if they observe suspicious activity. This can provide a critical early warning system.
- Secure Personal Information: Help the senior secure their personal and financial information. This includes shredding sensitive documents, using strong passwords, and being wary of unsolicited calls, emails, or mail. Remind them never to share account numbers, Social Security numbers, or other personal details with an unknown party.
What to Do If You Suspect Elder Financial Abuse
If you notice suspicious activity, do not hesitate to act. Start by gently discussing your concerns with the account owner. Their response may provide clarity, but if your suspicions are confirmed or if they seem afraid or unwilling to discuss it, it’s time to take action.
- Clarify and Document: Gather any relevant information, such as account statements, check copies, or other documentation that shows the suspicious activity.
- Contact the Professionals: Reach out to the financial institution and a trusted contact (if one is on file). They can freeze or review the account and provide guidance on next steps.
- Involve Authorities: Depending on the severity of the situation, contact your local Adult Protective Services (APS) and law enforcement. They have the resources and legal authority to investigate and intervene. You can also consult with an elder law attorney.
Protecting our elders from financial abuse is a shared responsibility. By staying informed, communicating openly, and taking decisive action, we can help ensure that the seniors in our lives are secure, respected, and able to enjoy the financial freedom they have worked so hard to achieve. Let’s make every day a day of elder abuse awareness and prevention.