Each year, June 15th is used to bring awareness to elder abuse around the world. However, there is one form of elder abuse that might be harder to spot than others – elder financial abuse. While elder financial abuse might not cause any physical harm, it can be devastating both emotionally and monetarily. To keep our older loved ones safe, it’s important to understand what elder financial abuse is and what red flags you should look out for.  

What is Elder Financial Abuse  

Elder financial abuse can be defined as any instance in which a person exploits the monetary resources of an elder for personal gain. This type of elder abuse can take many forms, including identity theft, unauthorized use of the elder’s cash, debit, or credit cards, abuse of the power of attorney, or financial scams. Abusers will often target older adults who may be feeling isolated since they tend to lower their guard and be more likely to interact with strangers. Also, targets can include elderly people experiencing cognitive decline or other ailments that may require them to be dependent on others to take care of their finances.  

Warning Signs  

Four of the more common signs that a person is experiencing elder financial abuse include:  

  1. Unusual Account Activity
    Take note of any sudden changes in the elder’s account balance, unexplained withdrawals, suspicious signatures on checks, or changes to the account holder’s information. For example, if a new name is added to the account or the phone number, address, and email are redirected to a person who is not the elder, this could raise a red flag.  
  2. New “Friends” Appear in the Elder’s Life
    Not all friends are created equal, and some may have sinister intentions for your older loved ones. “Friends,” or even relatives, who have entered an elder’s life and appear possessive over the relationship and controlling over the elder’s finances should not be trusted as they could be financial abusers.  
  3. Strange Financial Behavior
    If an elder who has always been in good financial standing is suddenly late on rent payments, has unpaid bills, or is receiving inquiries from creditors, then another person may be abusing the elder’s finances. Similarly, if an elder is behaving unusually with his or her money, such as transferring assets to another person, suddenly changing spending habits, or sending wires or prepaid gift cards to an unknown person, this could also be a hint of elder financial abuse.
  4. Changes to Legal or Financial Documents
    Don’t hesitate to question any changes to the elder’s legal or financial documents, such as adding a new person to his or her will or appointing someone unknown with his or her power of attorney. Especially if this is a person who hasn’t been in the elder’s life for long, then you may want to investigate the situation so you can ensure that an abuser is not taking advantage of your loved one.  

What to Do 

It’s always good to keep in contact with your elderly loved ones to look out for signs of financial elder abuse and prevent them from becoming targets. However, if you notice that an older adult in your life may be the victim of elder financial abuse, there are several services you can call to help keep them safe. For instance, you can alert Adult Protective Services who will help investigate the situation. It is also beneficial to alert the elder’s financial institution so that they can also spot financial abuse and help resolve any issues with the elder’s account. In addition, elder financial abuse is a serious crime that can result in prison time for the perpetrator. As such, you should always alert law enforcement in these cases so that they can help apprehend the abuser and prevent them from exploiting your older loved one and others.