Financial Abuse: The Crime of the 21st Century

AUSTIN, November 29, 2006 - Financial abuse is one of the most sinister forms of abuse against the elderly and adults with disabilities.  It is often called the crime of the 21st century.  It can be as simple as taking money from a wallet, removing valuable possessions from a home, or as complex as manipulating an adult into turning over property to an unscrupulous family member or caregiver.  Vulnerable adults can be financially stable and living independently one day and destitute and forced to live in a facility the next.

Although there are many ways to defraud, individuals that commit financial abuse fall under two general categories:

People you don’t know:
Strangers—men or women, young or old

People you do know:
Family, friends or caregivers.

Sadly, the majority of financial crimes against elders or adults with disabilities are committed by people they know:  family, friends or caregivers.  The National Elder Abuse Incidence Study, released in 1998, found that 60 percent of those financially abusing the elderly were adult children.  In home care providers were the second largest group.  Unlike strangers, family, friends or caregivers rely on the nature of their relationship and position of trust to commit financial abuse.  Abuse can be perpetrated by favorite grandsons, daughters or hired caregivers.   The thefts can be slow and systematic, or instantaneous.  Vulnerable adults may be unaware of, or deny the abuse for fear of being left alone or being placed into a nursing facility.

Abuse can range from the misuse of an ATM card, the taking of money, property of valuables without permission, signing or cashing social security checks or even coercing the individual into signing over property.  Often the abuse is not discovered until after the assets have been completely depleted.

Tactics that family, friends and caregivers may use to financially abuse a vulnerable adult include deceit, coercion, intimidation, emotional manipulation, psychological abuse or false promises of lifelong care.  Further, they usually try to isolate the victim from other family members or concerned parties.  Isolation prevents others from asking about the individual’s well being and may prevent the individual from consulting with others on important financial decisions.

Warning signs of possible financial exploitation may include the following:

• Family, friends or caregivers express an unusual interest in a senior’s financial affairs
• The sudden appearance of expensive purchases made by a relative or caregiver who has no visible means of financial support.
• Borrowing money, sometimes repeatedly, with no intent to repay.
• Cashing or keeping some portion of the individual’s monthly income checks without permission. 
• Transferring title on, or re-encumbering, real property of the vulnerable adult.  Financial exploitation using real property is particularly appealing to family members or caregivers who may feel they are “owed” something for their efforts, however meager those efforts may be in reality.  For many vulnerable adults, their most significant economic asset may be the equity they have built in their real property over decades of ownership.
• A relative or caregiver is reluctant to spend money for the medical needs, and/or general well being of the individual.
• Recent additions of authorized signatures on a bank signature card.
• Sudden change in bank account activity or banking practices, including unexplained withdrawals of large amounts of money without the consent of the senior.
• Unexplained disappearance of valuable possessions or funds.
• Appearance of a stranger who begins a new, close relationship and offers to handle the senior’s finances and assets.
• Charging excessive fees for goods or services, such as transportation, food or medicine. 
• Obtaining money or property by undue influence, misrepresentation or fraud.
• Abrupt changes in a will or financial document.

No one wants to believe that a loved one or friend is exploiting a close, personal relationship they may have with a senior to steal money or valuables.  It is important to be as knowledgeable as you can and have some protections in place to help assure safety and financial security.  Some of these protections include:

• If you need help with your finances or making financial decisions, decide who is the most responsible, trustworthy person in your life to help you.  Be selective!
• Tell everyone what your future plans are for your care.  This will make it harder for one individual to manipulate you or your assets.  The more people watching out for you the better.
• Be careful of giving someone power of attorney.  Make sure it contains clear instructions that reflect your wishes about your care and well being.  Get impartial, professional legal advice on all legal transactions.
• The best way to avoid identify theft is to be very careful about who has access to your personal information.  Be watchful about access to credit cards, ATM cards, and social security cards.  Check your credit ranking and bank account regularly to guard against theft.
• Be careful about putting anyone else’s name on your home.  If you do, make sure there are legal safeguards in place so it can’t be sold without your knowledge.
• Make it clear that while you are living, your well being and care comes first, even if that means there will be less assets remaining after you are gone.
• Screen caregivers and check references.  Don’t hesitate to request that a caregiver have proof of a criminal background check.

You may be the target, but you don’t have to be the victim. 

The Texas Department of Family and Protective Services, Adult Protective Services (APS) investigates financial exploitation of adults with disabilities and the elderly suspected of being financially abused by a caretaker, family member, or other individual who has an ongoing relationship with the elderly or disabled person. 

To make a report of known or suspected financial abuse of an elder or adult with a disability, call the Texas Abuse Hotline, 1-800-252-5400 or make a report online at https://www.txabusehotline.org.  If you believe it is a life-threatening emergency, dial 911. 

Anyone who suspects that abuse has occurred should report it.  Reports can be made confidentially and the reporting person is protected from civil and criminal liability.  A phone call can save the assets, health, safety, dignity or even the life of an elder or adult with a disability.

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