Elder financial abuse is a type of elder abuse in which misappropriation of financial resources or abusive use of financial control, in the context of a relationship where there is an expectation of trust, causes harm to an older person.
Contents
- By family or caregivers
- Scams and fraud targeting seniors
- Hybrid financial exploitation
- Estimates of size and scope
- Nonfinancial effects
- References
The Older Americans Act of 2006 defines elder financial abuse, or financial exploitation, as “the fraudulent or otherwise illegal, unauthorized, or improper act or process of an individual, including a caregiver or fiduciary, that uses the resources of an older individual for monetary or personal benefit, profit, or gain, or that results in depriving an older individual of rightful access to, or use of, benefits, resources, belongings, or assets.”
By family or caregivers
Family members and informal or paid caregivers have special access to seniors and thus are often in a position inflict financial abuse through deception, coercion, misrepresentation, undue influence, or theft. Common abusive practices include:
Family members engaged in financial abuse of the elderly may include spouses, children, or grandchildren. They may engage in the activity because they feel justified, for instance, they are taking what they might later inherit or have a sense of "entitlement" due to a negative personal relationship with the older person, or that it is somehow the price of a promise of lifelong care. Or they may take money or property to prevent other family members from getting the money or for fear that their inheritance may be lost due to cost of treating illnesses. Sometimes, family members take money or property from their elders because of gambling or other financial problems or substance abuse.
Scams and fraud targeting seniors
Seniors are also often deliberately targeted by scams, fraud, and misleading marketing – often by otherwise legitimate businesses. This may include:
A 1996 study by AARP found that while individuals over 50 comprised 35% of the American population, they accounted for 57% of all fraud victims (AARP, 1996). Seniors' level of vulnerability to this type of exploitation varies by the type of scam. For example, the AARP found that lottery fraud victims were more likely to be women over 70 living alone, with lower education, lower income, and less financial literacy, while victims of investment fraud were more likely to be men between the ages of 55 and 62 who were married, with higher incomes and greater financial literacy.
Hybrid financial exploitation
Hybrid Financial Exploitation (HFE) is financial exploitation that co-occurs with physical abuse and/or neglect. HFE victims are more likely to be co-habiting with abusive individual, to have fair/poor health, to fear the abusive individual, to perceive abusive individual as caretaker, and to have a longer duration of abuse.
Estimates of size and scope
Various attempts have been made to estimate the size and scope of the problem. The primary difficulties in estimating the size of the problem are:
Nonfinancial effects
The True Link study found that:
Of the seniors who experienced fraud, 1.8% lost their home or other major assets as a result. 6.7% skipped medical care, and 4.2% reduced their nutritional intake for budgetary reasons. We estimate that 954,000 seniors are currently skipping meals as a result of financial abuse. Many suffered depression, anxiety, or loss of independence. Overall, 41.2% reported that financial abuse had nonfinancial costs as well.Other effects include damage to credit, missing work, depression, and loss of sleep.