Elder Financial Abuse

According to a 2023 study from the AARP, adults 60 and older lose approximately $28.3 billion each year through financial exploitation. This specific type of exploitation has a name: elder financial abuse. 

Elder financial abuse can have significant financial and mental health effects. Stolen funds can cause your senior loved one to lose possessions, move out of their nursing home, or even live a shorter life. Moreover, the process is often taxing on family members, friends, and caregivers. 

Fortunately, you can learn to recognize the signs of elder financial abuse and make sure your senior loved one never has to experience it. Keep reading to learn about the red flags of elder financial abuse and prevent this exploitation.

 

Financial abuse is a complex, sometimes nebulous topic. Generally, it involves illegal, unauthorized, or predatory usage of an older person's money. 

Sometimes, the abuser is a trusted relative. Anyone can cause elder financial abuse – even a caretaker. For example, financial elder abuse could be a family member with power of attorney using their grandfather's funds to pay their own rent and go shopping.

As a potential witness to elder financial abuse, identifying the signs can help you protect your senior loved one. Recognizing abuse requires some vigilance, and you'll need to pay attention to certain details. The following list includes signs you might encounter, according to the U.S. Department of Justice:

 

• Sudden changes in bank activity (like a large withdrawal)
• New names on a bank account or card
• Forged signatures on documents
• Uninvolved relatives appearing and staking their claim to possessions or financial assets
• Odd charges on credit card statements
• Unpaid bills despite sufficient funds
• An older adult reporting financial abuse
• Sudden changes to last will and testament
• Missing possessions

Seniors are not alone in preventing and correcting elder financial abuse. The following section details several steps you can take once you notice the abuse.

Always maintain a record of any potential financial elder abuse. If you notice any signs from the previous section, write down a time, place, and any details you remember of the incident. If other witnesses can confirm what you saw, record their names, as well. 

If there's a paper trail of emails, phone records, or financial statements, do your best to collect those, too.

Although specific names may vary, every state offers some form of Adult Protective Services (APS). These social services assist older adults and people with disabilities, helping to prevent them from abuse. You can find your state's APS through the National Adult Protective Services Association.

Perhaps the most important step in resolving financial elder abuse is to hire an elder law attorney. These professionals specialize in issues that affect older adults, including Medicaid, estate planning, adult guardianship, and financial elder abuse. Your attorney can help you pursue legal action, recoup stolen funds, and receive compensation for what you've experienced.

In some states, staff at nursing homes and assisted living facilities are legally required to report financial elder abuse. The statute of limitations on reporting elder financial abuse is four years, so you should report as soon as you have evidence or significant suspicion. Make sure to consult the warning signs listed above.

There are a few places where you can report financial elder abuse when you witness it. You can file a report with each of the following agencies/people:

 

• Law enforcement
• Your state's APS
• Long-term care ombudsman (an advocate for residents of long-term care facilities)

Elder financial abuse can lead to seniors being kicked out of their nursing homes and assisted living communities. Stolen funds can prevent them from covering nursing home costs. 

Navigating financial elder abuse in senior living can often be tricky, as abuse in this setting adversely affects seniors, their families, and the community as a whole. Beyond financial harm and loss of property, financial elder abuse in nursing homes can cause depression, loneliness, and shorter life spans, as older adults forced to move out will lose a connection to the community they've built. 

For these reasons, staff in nursing homes and assisted living facilities are mandatory reporters of elder financial abuse.

While a lot of the information on this page is scary, know that you can protect your senior loved one from elder financial abuse, internet scams, and other senior scams. The following list offers some concrete actions to prevent your loved ones from falling prey to financial elder abuse.

 

• Stay in touch. If you remain involved in your senior loved one's life, you're more likely to recognize the signs of elder financial abuse (odd credit card charges, missing possessions, etc.).
• Build a relationship with your senior loved one's nursing home or assisted living facility. These connections can help you quickly solve problems as they arise, and you can encourage staff to shield your loved one from predatory people. 
• Build awareness among your senior loved one's family and community. Joining resident and family councils and spreading the word about elder financial abuse can help prevent it.

Elder financial abuse involves illegal, unauthorized, or otherwise predatory usage of an older adult's money. Whether your senior loved one resides in independent living or a memory care facility, elder financial abuse can be a concern. 

Both friends and family and nursing home and assisted living staff can play a major role in preventing elder financial abuse. By recognizing red flags like odd credit card charges and missing possessions, you can help protect your senior loved one from financial elder abuse.

• Costello, Erica. (2023). Tacking the high cost of abuse: working with older victims of financial exploitation. American Bar Association
• Gordon, Susan Kang. (2024). How long does an elder abuse investigation take? Susan Kang Gordon
• Preventing elder financial abuse: guide for family and friends of people living in nursing homes and assisted living communities. (2021). Consumer Financial Protection Bureau
• Preventing elder financial abuse: guide for nursing homes and assisted living communities. (2021). Consumer Financial Protection Bureau
• Red flags of elder abuse. (2023). U.S. Department of Justice 
• Reporting elder financial abuse. (n.d.). Stone & Sallus Law
• Stiegel, Lori A. (2014). Legal issues related to elder abuse: a pocket guide for law enforcement. American Bar Association Commission on Law and Aging
• Why do I need an elder law attorney? (n.d.). King Law