Elder Financial Fraud Explained

Long Island Elder Financial Fraud Attorney - Lamkin Elder LawAccording to the National Center on Elder Abuse (NCEA), major financial exploitation is self-reported by seniors and elderly adults at a rate of 41 per 1,000 surveyed. This figure is significantly higher than the rates for self-reported emotional, physical, sexual, or other types of abuse and neglect. What makes this statistic so frightening is knowing elder financial fraud is not limited to any one particular area – anyone can fall victim. Elder financial fraud is a very real concern, nationwide. Out of all the elderly adults surveyed by the NCEA, only one in ten abuse cases did not include some form of financial abuse.  

What Is Elder Financial Fraud?

Elder financial fraud is a type of elder abuse involving taking or swindling an elderly adult of out their assets by fraudulent means and for personal financial gain. Examples of elder financial fraud include:

  • Forging a person’s signature.
  • Coercing an elderly adult to “donate” money for a non-existent or fraudulent charity.
  • Using false pretenses to convince a person to give you money.
  • Using deceptive methods to rob an elderly adult of his or her savings.
  • Telemarketing scams.
  • Credit card scams.
  • Identity theft.
  • Promising goods or services in exchange for money, and then not delivering.
  • Confidence crimes (i.e. gaining someone’s confidence for fraudulent financial gain).
  • Physical or mental harm for extortion purposes.
  • Embezzlement.

Who Is Most Likely to Perpetrate Elder Financial Fraud?

Elder financial fraud can be perpetrated by anyone from a loved one to a trusting friend, a relative to a long-time confidante, a caregiver or healthcare provider, and even a dishonest telemarketer or thief who targets the elderly.

Most people, particularly older adults, are extremely trusting. They want to believe people are good and have faith in humanity. While that is not necessarily bad, it can leave them open to financial scams and make them easy targets for financial fraud.

If a “friend” calls claiming he or she has fallen on bad times and is in desperate need of assistance, an elderly adult may not think twice about lending money. Unfortunately, this is one of the ways our loved ones fall victim. Even an unsuspecting call from a company informing your loved one about a computer virus and offering to remedy the problem for a price is often a scam.

Sadly enough, some of the worst cases of elder financial fraud involve loved ones facing substance abuse or financial problems, or those simply wanting to gain access to money they believe is rightfully theirs.

What You Can Do to Prevent Elder Financial Fraud

Although you can’t keep a watchful eye on your elderly loved ones at all times, you can take certain actions to help minimize or prevent elder financial fraud:

  • Check bank statements and accounts regularly; be watchful of suspect charges.
  • Talk to your loved ones about potential scams to which they could fall victim.
  • Restrict access to your loved one’s checking and savings accounts.
  • Agree to discuss all financial transactions before money changes hands.
  • Be watchful of property or belongings going missing.
  • Assign a financial power of attorney so your loved one will no longer be burdened with making financial decisions.

If you suspect your loved one has become the victim of elder financial abuse, or you are worried about his or her financial well-being, speak with an elder law attorney at once. An attorney from our firm can assist with estate planning and other asset protections, as well as advise you of how to best manage these issues. Call the Law Office of Andrew M. Lamkin P.C. to schedule a free consultation.

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