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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.