Four Things You Can Do to Protect Your Loved Ones from Elder Financial Exploitation
Everyday financial institutions nationwide are faced with ever-increasing reports and detection of the crime of elder and vulnerable adult financial exploitation. The National Council on Aging reports that statistics about the impact of Elder Financial Exploitation statistics range from $2.9 billion to $36.5 billion in exploitation annually. However, most experts agree that these numbers are entirely underreported. Many older adults are reluctant to report that they have been victims either through fear of reprisal or shame, and in some states, the reporting mechanism is confusing and filled with roadblocks. With more than 10,000 Americans turning 65 every day, the amount and impact of elder financial exploitation are only likely to increase.
As a compliance officer, I have reviewed and investigated dozens of financial exploitation and fraud cases. When it came to elder financial exploitation, I saw my family members' vulnerability in every case I investigated. I wanted to make sure and treat each potential victim with the same care and respect I would like someone to treat my family members.
Elder financial exploitation is a particularly unique type of fraud because it is sometimes subjective. I was often left to determine if I was dealing with a suspected case of financial exploitation or a conscious decision by an account holder. Sometimes decisions that an elderly family member makes to support another person do not make other family members happy; however, they also don't meet the definition of exploitation. They are legitimate transactions, albeit sometimes poor financial decisions. Fortunately, poor financial decision-making, while frustrating, is not illegal. If it was, I am sure I would have been found guilty of some of my own poor financial decisions over my lifetime.
Despite the continuing onslaught of scams and new ways to financially exploit elderly and vulnerable adults, there are solutions. Here are four (4) things you can do today to protect your loved ones:
Talk about it with your loved ones before it happens. We all think we could never be a victim; however, financial exploitation is no respecter of persons. With billions in losses each year, judges, lawyers, financial institution directors, and schoolteachers have been victims of financial exploitation.
Make sure you are plugged in regularly with your loved ones to be aware of changes in habits and patterns. Scam artists and those that exploit the elderly often use their loneliness and lack of connection with family and friends to take advantage of them. A scam artist working via text can make thousands of dollars on each victim by sending a daily text or message to tell them how special they are. Don't let a scam artist or someone you wouldn't trust become your loved one's best friend.
Learn what the trends are. For example, current trends in elder financial exploitation include targeting persons because of their names, asking victims to purchase gift cards and send pictures of them, and person-to-person transactions that are immediate and almost invisible. Ruth, Dorothy, William, and Charles are names scam artists may target on online sites because they are sometimes associated with older Americans.
Learn who to report it to if you need to. Start with your loved one’s financial institution. Every financial institution has a different protocol, but I always recommend getting to know someone at your institution. If you have concerns, you can ask a staff member to alert someone in management. Your concern might be the first alert they have. If you aren’t sure where to report to, start with Adult Protective Services in your area or contact your local law enforcement.