How To Prevent Financial Elder Abuse

Financial elder abuse is one the biggest growing social problems in the United States, characterized by some as the “crime of the 21st century.” Experts consider this problem under-reported and under-prosecuted. With only one in 44 cases reported each year, financial elder abuse costs American residents $2.9 billion each year.

At this time, the nation’s elderly controls 70 percent of the country’s wealth, and due to their vulnerable state, become easy targets for financial exploitation. As people age, they may develop cognitive disabilities, such as Alzheimer’s disease, or other mentally incapacitating diseases. Seniors often suffer from loneliness after the loss of a friend or spouse, and are eager to forge new relationships, opening another window of opportunity for abusers.

Studies have found that 30 percent of financial abuse crimes are committed by people previously unknown by the elder. Financial advisors are typically the perpetrators in 15 percent of the reported cases. However, 50 to 70 percent of financial elder abuse cases are committed by family members, friends, neighbors or caregivers. Experts find that potential abusers may be affected by unemployment, alcoholism, drugs, gambling and self-entitlement.

This trend is distributing to experts because of the severe consequences financial crimes can have for the victim. Normally when elders take financial hits at this level, they are left without much of anything to rely on for healthcare and other necessities.

Tips on Financial Elder Abuse Prevention

It is important for seniors and their families to take initiative to prevent financial abuse and exploitation. The various strategies that have been successful in preventing financial elder abuse include:

• Have advance planning tools in place for the elder’s financial assets including a will, trust, advance directives, and limited powers of attorney for finances and health care.
• Hire a licensed fiduciary agent who will be responsible for managing assets and paying bills.
• Check credit reports.
• Select a credit card with a low credit limit.
• Have a trusted person review monthly statements.
• Create a ledger with names and contact information for accountants, lawyers, financial institutions and other professionals.
• Set up automatic bill pay and deposits.
• Make lists of online accounts and passwords.
• Keep a yearly financial schedule that includes registration fees, insurance policies and taxes.
• Watch for signs of abuse including unpaid bills, unusual withdrawals from bank accounts, new acquaintances who become close very fast, missing valuables, and lack of documentation about financial transactions.
• Order background checks on caregivers, or only hire caregivers from reputable in-home service agencies.
• Register for the “Do Not Call” and “National Do Not Mail” lists.

File an Elder Abuse Lawsuit Today

If you or a loved one have been victim of elder abuse, you have legal options. Please visit the Elder Abuse Identification & Nursing Home Neglect Class Action Lawsuit Investigation. There, you can submit your claim for a free legal review and if it qualifies for legal action, a seasoned elder abuse lawyer will contact you for a free, no-obligation consultation. You will be guided through the litigation process at no out-of-pocket expenses or hidden fees. The elder abuse attorneys working this investigation do not get paid until you do.