Elder Financial Abuse and Identity Theft / Scams

Author: Mark A. Denlinger

Originally published in October 2018

Copyright © 2018 Knox McLaughlin Gornall & Sennett, P.C.

Types of Elder Financial Abuse

• Caretakers – stealing or inappropriate (or unauthorized) use of assets, etc. by family members or third-parties
• Financial Investments & Reverse Mortgages
• Insurance – Annuities. Long Term Care, etc.
• Identity Theft & Scams: credit card, bank fraud, and telephone and/or internet scams and “phishing”

Types Of and Concerns With Elder Identity Theft and Scams

Identity Theft

ID Theft is a crime of exploitation where one assumes another person’s identity, typically in order to:

• Access resources or obtain credit and other benefits in the victim’s name/identity;
• Fraudulently obtain goods or services in the victim’s name/identity; or
• Conceal his or her true identity from legal authorities, background checks, etc.

Three common perpetrators with the elderly include scammers, caregivers and relatives.

Identity Theft can result in:

• Denial of credit and/or harm to credit rating
• Tax problems
• Harassment by debt collectors and/or legal action
• Loss or denial of employment or public benefits, or garnishment of wages
• Denial of medical care
• Emotional/Mental Toll on the Victim, including shame or sadness, helplessness, anger/rage/betrayal, and isolation.

Typical Scams that Target the Elderly

• Financial seminars aimed at selling insurance products
• Announcements of a “prize” or sweepstakes that the elderly person has won but mist pay money to claim
• Phony charities
• Investment fraud

Examples of Elder Financial Abuse by Various Caretakers

By Family Members:

• Borrowing with no intent to repay
• Denying cate or services to conserve funds
• Selling or gifting elder’s possessions
• Signing or cashing Social Security checks
• Misusing ATM or credit cards
• Compelling elder to sign over property
• Misuse of Power of Attorney for personal gain/benefit

By Strangers/Third-Parties:

• Health remedies and “special” medical treatments
• Insurance packages – health, funeral, life
• Investments
• Home repairs or services
• Charitable contributions
• Prizes and sweepstakes
• Loans and mortgages (especially reverse mortgages)

Protections and Prevention of Elder Financial Abuse

Watch for Warning Signs

• Living conditions well below their resources
• Unusual or inappropriate bank activity
• Checks written to “cash”
• Bills unpaid or overdue
• Transfers of title to property or assets
• Reluctance to discuss finances
• Personal belongings missing
• Isolation

Prevention Tips to Consider

• Reduce Elderly Person’s Isolation from Others
• Limit/restrict powers of attorney or agency
• Request/conduct periodic accountings
• Direct deposit of income/payments (but watch for joint accounts)
• Auto-pay bills wherever possible
• Utilize geriatric care managers and/or similar professionals
• Keep financial records neat and up-to-date

Author: Mark A. Denlinger

Originally published in October 2018

Copyright © 2018 Knox McLaughlin Gornall & Sennett, P.C.