Reporting Elderly Financial Abuse: Recognize the Signs and Take Action

Financial abuse of elderly individuals is, unfortunately, a growing issue. It can be difficult to detect, as it often involves someone the elder trusts, making the impact both financially and emotionally damaging. At Lion’s Share Credit Union, we’re committed to helping our members protect themselves and their loved ones from financial abuse. This article covers the warning signs of elder financial abuse, ways to take action if you suspect abuse, and resources for reporting it.

Understanding Elder Financial Abuse

Elder financial abuse is when someone illegally or improperly uses an elderly person’s funds, assets, or property. Abusers are often family members, caregivers, or even trusted advisors who take advantage of the elder’s diminished ability to manage their finances.

Warning Signs of Elder Financial Abuse

Elder financial abuse can take many forms, from unauthorized spending and misuse of power of attorney to outright theft. Here are some key warning signs to watch for with an elderly loved one:

1. Unusual Financial Activity: Unexplained withdrawals, sudden large transfers, or unexpected ATM withdrawals can all be red flags. Also, be on the lookout for changes in spending patterns, such as purchases that seem out of character for the elder.
2. Unpaid Bills or Services: If bills are left unpaid despite the elder having sufficient funds, it may be a sign that someone else is misappropriating their money. Essential utilities or services going unpaid can indicate that funds are being diverted elsewhere.
3. Changes in Legal or Financial Documents: Abrupt changes in wills, power of attorney, property titles, or other legal documents are cause for concern, especially if the elder doesn’t remember making these changes or lacks the cognitive ability to understand them.
4. Missing Belongings or Financial Statements: If personal items or financial documents are disappearing, it might be a sign that someone is trying to hide evidence of financial abuse.
5. Emotional or Behavioral Changes: Victims of financial abuse often exhibit signs of distress, anxiety, depression, or fear, especially when the abuser is mentioned. They might also become secretive or withdrawn about financial matters.
6. Isolation from Family and Friends: Abusers may try to isolate the elderly person from family and friends to keep the abuse hidden. If someone discourages visits or phone calls, it could be a warning sign of undue influence.

What to Do If You Suspect Elder Financial Abuse

If you recognize any of these signs, here are steps you can take to address and report the situation:

1. Document Your Observations: Keep a detailed record of any unusual financial activities, behavioral changes, or concerning interactions you’ve witnessed. Documentation can be vital if an investigation is initiated.
2. Speak with the Elder: If possible, have a gentle, non-judgmental conversation with the elderly individual. Ask open-ended questions about their financial well-being, recent transactions, and any concerns they might have. Assure them that they’re not in trouble and that your only concern is their safety.
3. Contact Trusted Family Members or Friends: If the elder seems hesitant or unable to discuss their situation, reaching out to other trusted family members can provide additional insights and support. Working together can also help to prevent further financial exploitation.
4. Notify Their Financial Institution: Alert Lion’s Share Credit Union or their primary bank if you suspect suspicious activity. Financial institutions are often able to put protective measures in place, monitor accounts for unusual activity, and provide guidance on next steps.
5. Report the Abuse to Authorities:
   • Adult Protective Services (APS): APS is a state agency dedicated to protecting vulnerable adults from abuse, neglect, and exploitation. You can contact APS through your state’s website or by phone, and they will investigate the situation.
   • Local Law Enforcement: If you believe the elder is in immediate danger, call the police. Financial abuse can be considered a criminal offense, and law enforcement can intervene, especially in cases involving fraud, theft, or threats of violence.
   • National Elder Fraud Hotline: The U.S. Department of Justice operates a hotline (833-FRAUD-11) for reporting elder financial fraud. This service provides guidance on how to report abuse and connects victims with resources.
6. Encourage the Elder to Seek Legal Help: In some cases, obtaining legal assistance can help reverse unauthorized changes in financial or legal documents and recover stolen assets. Local legal aid organizations often offer free or low-cost services for elderly individuals.

How to Prevent Elder Financial Abuse

Proactively protecting an elder’s finances is one of the best ways to prevent abuse. Here are a few steps that can help:

• Set Up Account Alerts: Many financial institutions, including Lion’s Share Credit Union, offer alerts for unusual transactions. These notifications can help elders and family members keep an eye on account activity.
• Encourage Open Communication: Maintaining a transparent and supportive environment for discussing finances can make it harder for abusers to operate in secrecy.
• Regularly Review Financial Statements: Encourage the elder or a trusted individual to review financial statements regularly. Consistent oversight can help catch suspicious activity early on.
• Consider a Power of Attorney Carefully: If an elder wants to designate a power of attorney, ensure it’s someone who is trustworthy and capable of handling finances responsibly. Regular check-ins and reviews can help keep this power in check.

We’re Here to Help

Lion’s Share Credit Union is dedicated to safeguarding your financial health. If you suspect financial abuse, our team is here to support you with resources and advice to protect your loved ones. Financial abuse of elders is a serious crime.  By recognizing the warning signs and taking action, we can work together to prevent exploitation and secure the financial well-being of those we care about.
Remember, help is always available, and reporting suspected abuse can make a significant difference in someone’s life.