As we get older, we become susceptible to abuse. Many people take advantage of seniors since their physical and mental faculties decrease over time. A lot of elderly people suffer from disabilities and mobility issues. They may also experience mental issues such as dementia and Alzheimer’s disease.
Another thing to consider is that older people tend to get lonely. They may have outlived their friends and spouses. Their children have moved out, and they may not see them often.
All these factors can make a person more likely to be a victim of financial abuse. When you think of elder abuse, financial abuse is probably not the first one to come to mind. You may not think of it as a major event since nobody is getting hurt. But the harm that a person suffers as a result of financial abuse can be devastating. They may lose their life savings. They could lose their home or other assets. The financial damage is so extreme that a person could experience poverty.
While anyone can be a victim of financial abuse, the elderly are often targeted because they are weaker. They can be easily bullied. Other people can threaten them and force the elderly person to pay them unlawfully. It’s also easy for a person to steal their assets through wrongful access to their accounts or unauthorized use of their credit cards.
Financial abuse is a serious crime under California law. Under California Welfare & Institutions Code § 15610.30 & § 15610.23, financial abuse occurs when a person takes, appropriates, or obtains personal property of an elder or dependent adult for a wrongful use, intent to defraud, or both.
Common Forms of Financial Abuse
Some popular forms of financial abuse among the elderly include:
Unauthorized use of assets. Family members, caregivers, or others may misuse or steal funds, credit cards, or possessions.
Fraud and scams. Seniors are often targeted by phone, email, or mail scams, such as lottery fraud, fake charities, or phishing schemes.
Coercion. This involves manipulating or pressuring the elderly into signing financial documents, such as wills or contracts.
Power of attorney misuse. This refers to the misuse of legal authority to access or deplete the older adult's assets.
Neglect for financial gain. This means denying an older adult necessary care or access to resources to benefit financially.
Identity theft. This refers to the use of an older person’s personal information to commit fraud.
Signs of Financial Abuse
Financial abuse can happen in many ways and can be hard to detect. Here are key signs to watch for:
Control over finances. This includes forbidding access to bank accounts or financial information and limiting access to money, even for necessities. An abuser may force the victim to account for every penny spent.
Stealing or exploiting. This involves taking money or possessions without permission or using the victim’s credit cards without consent. The abuser may also force the victim to sign financial documents or give power of attorney.
Debt manipulation. This includes running up debts in the victim’s name or coercing the victim into taking loans or credit they cannot afford.
Exploitation of earnings. This involves controlling how the victim’s income is spent and taking their paychecks or financial aid.
Unexplained financial changes. Family members may notice sudden withdrawals, depletion of bank accounts, missing valuables, or unexplained sales of property.
Forgery or coercion. This may include forging signatures on checks or financial documents or pressuring someone to alter a will or financial arrangements.
Restricting access. A person may prevent someone from seeking financial advice or managing their own finances.
Misusing legal authority. This involves misusing a power of attorney to make unauthorized transactions.
Psychological signs. The victim expresses confusion about their finances or sudden financial troubles. They may also have fear or anxiety about discussing money or making financial decisions.
Reporting Financial Abuse
If you believe that your elderly loved one has been a victim of financial abuse, you need to report it right away to prevent others from becoming victims, as well as make the perpetrator responsible for their actions. Here’s how to report it:
Contact Adult Protective Services (APS), which are social services programs available in each state. They serve older adults and adults with disabilities who need help due to abuse, neglect, or exploitation.
Report financial abuse to your local district attorney’s office, and they can prosecute the person who took advantage of your loved one.
Contact your state’s long-term care ombudsman if the abuse happened in an adult care community such as a nursing home or assisted living community. Ombudsmen can advocate for your loved one.
If there is an urgent risk of harm, call 911 right away. Otherwise, you can call the non-emergency number for your local police or sheriff’s office to file a report. Some state laws define elder financial abuse as a specific type of crime.
When filing a report, you’ll want to Include as much information as possible. Even if you don’t have all of the details, you should still file a report and share what you have observed. At the very least, try to provide the following:
Time, date, and location of the incident
Names of anyone who was involved, as well as any possible witnesses
Description of the suspected financial abuse
Your loved one’s disabilities or health conditions
Whether you believe there is an urgent risk of danger
Contact Newman Law Group Today
Financial abuse is often overlooked since it is not a physical form of abuse. However, many elderly people are too trusting and susceptible to scams, stolen assets, bullying, and other forms of financial abuse.
At Newman Law Group, LLP, our financial abuse attorneys can help you and your loved one hold the person responsible for this type of abuse accountable. We genuinely care about the elderly and disabled and strive to do our best to protect them. Get started with a consultation. Fill out the online form or call (916) 352-3181 today.
