Certified Elder Law Attorney, by the National Elder Law Foundation; Accredited by the American Bar Association
It has been estimated that people age 50 and above hold approximately 70% of the nation’s wealth.10Given the country’s aging population, financial exploitation of the elderly is quickly becoming “one of the greatest law enforcement challenges and concerns of our time.”11 In the year 2000, cases of financial exploitation accounted for 10.5% of the total number of reports investigated and substantiated by Adult Protective Services.12 Such exploitation is particularly devastating to older individuals, who are generally on fixed incomes and unable to recoup their lost life savings.13
The perpetrator of the financial abuse is most often the victim’s adult child(ren), accounting for more than 60% of the perpetrators.14 The victim’s “other relatives” account for 9.7% of the abuse; grandchild(ren) account for 9.2% of the abuse; “friends” and neighbors account for 8.7% of the abuse.15
Financial exploitation is generally defined as the misuse of another person’s funds or property.16Examples are plentiful and include:
Elder victims of financial abuse frequently are unwilling or unable to report that they have been or are being exploited. This may be so for a variety of reasons:
A disability may preclude the victim from even being aware that the exploitation has occurred;
Females are reportedly more vulnerable than males to financial exploitation.19 In many cases, victims of financial exploitation are also victims of physical abuse or neglect.20
The likelihood of becoming a victim of financial abuse increases with age. According to one study, nearly half of the victims are age 80 or older; nearly 30% are between the age of 75 and 79.21
Interestingly, the likelihood of becoming a victim of financial abuse does not increase with income level. An estimated 46% of victims studied had incomes between $5,000 and $9,999; nearly 30% had incomes between 10,000 and $14,999; and 22% had incomes of $15,000 or more.22
Any person over the age of 75 is considered to be “at risk” of financial exploitation. However, the likelihood of becoming a victim of financial exploitation increases if the elder is:
The following examples may be indicators that financial exploitation is occurring or has occurred:
If you suspect that an elder may be the victim of abuse, there are a number of places you can report your concerns, including the following:
1 American Psychological Association website 2003, Aging Issues: Elder Abuse and Neglect: In Search of Solutions.
2 Gillin, E., Financial Abuse of the Elderly, TheStreet.com 5/22/02.
3 The Newark Star Ledger, May 14, 2002.
4 Second World Assembly on Ageing, April 8-12, 2002, Press Kit.
5 The Newark Star Ledger, June 21, 1990.
6 Senator Announces Legislative Proposal to Combat Elder Abuse, National Long Term Care Ombudsman Resource Center 2002.
7 Id.
8 Stiegel, Lori, Financial Abuse of the Aging: Risk Factors, Screening Techniques, and Remedies, American Bar Association Commission on Law and Aging.
9 Stiegel, Lori, Financial Abuse of the Aging: Risk Factors, Screening Techniques, and Remedies, American Bar Association Commission on Law and Aging.
10 National Committee for the Prevention of Elder Abuse 2002, Schemers, Scammers and Sweetheart Deals: Financial Predators and the Elderly, Chairman’s Opening Statement.
11 Wolf, Rosalie, Elder Abuse and Neglect: Prosecution and Prevention, American Society on Aging.
12 Stiegel, Lori, Financial Abuse of the Aging: Risk Factors, Screening Techniques, and Remedies, American Bar Association Commission on Law and Aging.
13 Id.
14 Stiegel, Lori, Financial Abuse of the Aging: Risk Factors, Screening Techniques, and Remedies, American Bar Association Commission on Law and Aging.
15 Stiegel, Lori, Financial Abuse of the Aging: Risk Factors, Screening Techniques, and Remedies, American Bar Association Commission on Law and Aging.
16 Financial Exploitation: Family Self-Help Guide, AARP Legal Services Network, New Jersey Edition.
17 Stiegel, Lori, Financial Abuse of the Aging: Risk Factors, Screening Techniques, and Remedies, American Bar Association Commission on Law and Aging; Financial Abuse, National Committee for the Prevention of Elder Abuse.
18 Stiegel, Lori, Financial Abuse of the Aging: Risk Factors, Screening Techniques, and Remedies, American Bar Association Commission on Law and Aging; Fraud & Abuse: Senate Hearing on Financial Exploitation of Elders, ElderWeb.com Newsletter, March 29, 2000; Cohen, R., Violence Against the Elderly Found On the Increase Across America Congressional Committee Reports Abuse, Thefts Plaguing Seniors, Newark Star-Ledger May 1, 1990. 19 Stiegel, Lori, Financial Abuse of the Aging: Risk Factors, Screening Techniques, and Remedies, American Bar Association Commission on Law and Aging.
20 Stiegel, Lori, Financial Abuse of the Aging: Risk Factors, Screening Techniques, and Remedies, American Bar Association Commission on Law and Aging.
21 Stiegel, Lori, Financial Abuse of the Aging: Risk Factors, Screening Techniques, and Remedies, American Bar Association Commission on Law and Aging.
22 Stiegel, Lori, Financial Abuse of the Aging: Risk Factors, Screening Techniques, and Remedies, American Bar Association Commission on Law and Aging.
23 In addition to the elder being more vulnerable as a result of his bereavement, exploiters may read obituaries to target widows. Undue Influence and Financial Exploitation, Matrix AdvoCare Network, Vol. 14, No. 2.
24 Financial Exploitation: Family Self-Help Guide, AARP Legal Services Network, New Jersey Edition; Undue Influence and Financial Exploitation, Matrix AdvoCare Network, Vol. 14, No. 2.
25 The Basics: What is Elder Abuse?, National Center for Elder Abuse, elderabusecenter.org.; Financial Abuse, National Committee for the Prevention of Elder Abuse; AARP Family Self-Help Guide (Colorado): Financial Exploitation, http.//www.povertylaw.org/legalresearch/hotline/co/exploitation co.htm, and National Center on Elder Abuse, reprinted in Special Report: Combating & Prosecuting Financial Exploitation, National Center on Elder Abuse Newsletter, Vol. 5, No. 7, March 2003; Undue Influence and Financial Exploitation, Matrix AdvoCare Network, Vol. 14, No. 2; Stiegel, Lori, Financial Abuse of the Aging: Risk Factors, Screening Techniques, and Remedies, ABA Commission on Law and Aging; Wolf, Rosalie, Elder Abuse and Neglect: Prosecution and Prevention, American Society on Aging.
26 Financial Exploitation: Family Self-Help Guide, AARP Legal Services Network, New Jersey Edition; The Basics: What is Elder Abuse?, National Center for Elder Abuse, elderabusecenter.org.
For additional information regarding Elder Abuse, Neglect and Exploitation, call us at 908-232-7400or click here to contact us online.