Financial Abuse Among the Elderly
Unauthorized Control of a Senior's Finances is a Crime
Jun 30, 2009
Financial abuse and economic crime are equal forms of financial exploitation and can have significant and serious consequences for seniors. Sometimes financial abuse originates from a sense of entitlement; the abuser feels they have the right to spend the senior's money as they see fit. There are also some family members who sincerely believe they are helping the senior member in the family, but in reality the senior has lost their ability to manage their own affairs.
Financial abuse and economic crime are equal forms of financial exploitation and can have significant and serious consequences for seniors. Sometimes financial abuse originates from a sense of entitlement; the abuser feels they have the right to spend the senior's money as they see fit. There are also some family members who sincerely believe they are helping the senior member in the family, but in reality the senior has lost their ability to manage their own affairs.
In some cases, dysfunction may be seen as the family 'norm' and the pattern of negative behaviors may continue later in life. Financial abuse may be viewed by the abuser as a method to have power and control over the senior in their life.
Statistics
An eleven year old survey conducted in British Columbia, (as reported in the National Clearinghouse on Family Violence 1998), found that 8% of older adults had been financially abused with each person losing an average of $20,000. Other Canadian studies undertaken between 1985 and 1993 indicate that the most commonly reported form of abuse experienced by seniors is financial abuse.
There are so few studies conducted in this area due to the enormity of the circumstances that surround elder financial abuse, therefore, it's impossible to know exactly how many seniors experience financial abuse. Some of the circumstances may include that the senior is not truly aware that the abuse is happening.
Financial abuse perpetrated against a senior may include:
- Misusing or stealing assets, property or money.
- Cashing cheques without their authorization, forging a signature for any reason.
- Misusing a power of attorney.
- Pressuring a senior into making changes to their will.
- Pressuring a senior into signing legal documents when they do not understand what it is.
- Sharing a home with the senior without paying expenses when requested.
Possible Signs of Abuse
- Sudden changes in bank account or banking practices, including unauthorized withdrawals at an ATM.
- Unauthorized attempts to include a name on a senior's bank card.
- Sudden interest in the senior's financial affairs, especially if it is without their knowledge.
- Sudden changes to a will or other financial documents including life insurance policies.
- Sudden drop in cash flow.
Why are Seniors more Vulnerable?
It is a myth that financial abuse happens to seniors who are mentally incompetent. Although declining physical and mental ability increases a person's vulnerability, the fact is that most seniors who experience financial abuse are mentally competent and able to make sound decisions.
The reason seniors are more vulnerable is generally because they either trust their family member who has offered to help or old negative patterns of behavior tie in with psychological abuse, intimidation and manipulation. The senior person may be dependent on the abuser for emotional support, assistance with daily living, mobility and financial affairs. If abuse happens, the senior may be reluctant to report the abuse in fear that the alternative (possibly nursing home living) may be worse. Also, there is always the fear of retaliation.
Where to Go for Help
If financial abuse is suspected, be an advocate and try to offer assistance. Different places to seek help are community legal aid clinics, legal aid services, police stations, local public health services or the public trustee's office.
Financial abuse is a crime punishable by law. To report this crime or suspicion of financial abuse call the local police services.
Financial Abuse of Seniors by the National Clearinghouse on Family Violence provides in-depth information about this crime for not only those in a position to help, but for seniors.
Seeking help is important if there is any suspicion that a senior is being abused. Broken Spirits Network is a comprehensive Canadian listing by area of hotlines to call. In the U.S., 1-800-799-7233 is a toll free number for the National Domestic Violence Hotline.
Further Reading:
Financial Abuse is a Form of Fraud
