by Liz Seegert
We all have read the stories: elderly adults scammed out of their life savings by unscrupulous contractors, telemarketers, caregivers, bankers, or even family members. Not only is this ethically horrific, but there are often serious health consequences for the victim.
The National Community Reinvestment Coalition estimates that one in five older adults are victims of financial abuse and fraud, costing billions of dollars annually. An analysis in the American Journal of Public Health found that “elder financial exploitation victimization is associated with mortality, hospitalization, and poor physical and mental health” and that “without effective primary prevention strategies, the absolute scope of this problem will escalate with the growing population of older adults.”
Victimization has real-world health consequences. Many older adults lose trust in others, even family members. It can lead to depression, feelings of shame, guilt, anger, fear, inability to provide for long-term care needs, and loss of their primary residence. Scams and financial abuse can leave older adults financially destitute and forced to rely on government safety net programs. This excellent article in The Guardian points out that it is not just older adults in the United States who fall victim to financial abuse; the health consequences are serious no matter where it occurs.
Financial exploitation is the most common form of elder exploitation, followed by neglect, emotional, physical and sexual mistreatment, according to the National Center on Elder Abuse. One study found that self-reported financial exploitation happens at a rate of 41 per every 1,000 older adults surveyed. That number may be higher since many older adults are reluctant to admit they were scammed.
Financial exploitation commonly involves those that vulnerable adults may trust the most, like family members, friends, neighbors or even a clergy member or medical professionals, according to the National Adult Protective Services Association. The National Council on Aging says that over 90 percent of all reported elder abuse, including financial abuse, is committed by an older person’s family members, most often their adult children, followed by grandchildren, nieces and nephews, and others.
The most common scams range from phony lottery winnings to identity theft. This heartbreaking story of a WWII veteran, defrauded and left destitute by his own son, even prompted bipartisan legislation in Congress.
The Elder Justice Act was signed into law by President Obama in 2010 “provides federal resources to “prevent, detect, treat, understand, intervene in and, where appropriate, prosecute elder abuse, neglect and exploitation.” (It was reintroduced in the House for authorization in May 2017.)
Why are older adults at greater risk?
The National Committee for the Prevention of Elder Abuse says certain factors increase an older person’s risk of being victimized:
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Isolation.
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Loneliness.
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Recent losses.
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Physical or mental disabilities,
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Lack of familiarity with financial matters.
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Having family members who are unemployed, have substance abuse problems or both problem.
Age-associated financial vulnerability (AAFV) is a pattern of imprudent financial decision-making that begins at a late age and puts older adults at risk for material losses that decimate their quality of life, according to Mark Lachs, M.D. professor of medicine and co-chief of the Division of Geriatrics and Gerontology at Weill Medical College in New York City. He wants AAFV classified as a clinical syndrome, calling it “a public health crisis. Lachs has called for greater physician training and screening mechanisms to assess financial exploitation of older patients.
The FBI, which investigates financial crimes, points out that:
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Senior citizens are most likely to have a “nest egg,” to own their home, and have excellent credit — all of which make them attractive to con artists.
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People who grew up in the 1930s, 1940s and 1950s were raised to be polite and trusting. Con artists exploit these traits, knowing that it is difficult or impossible for these individuals to say “no” or just hang up the telephone.
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Older Americans are less likely to report a fraud because they don’t know whom to report it to, are too ashamed at having been scammed, or don’t know they have been scammed. Elderly victims may not report crimes, for example, because they are concerned that relatives may think the victims no longer have the mental capacity to take care of their financial affairs.
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When an elderly victim does report the crime, they often make poor witnesses. Con artists know the effects of age on memory, and they are counting on elderly victims not being able to supply enough detailed information to investigators. Also, the victims’ realization that they have been swindled may take weeks—or more likely, months—after contact with the fraudster. This extended time frame makes it even harder to remember details from the events.
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Senior citizens are more interested in and susceptible to products promising increased cognitive function, virility, physical conditioning, anti-cancer properties, and so on. In a country where new cures and vaccinations for old diseases have given every American hope for a long and fruitful life, it is not so unbelievable that the con artists’ products can do what they claim.
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Those age 60 or older—especially older women living alone—often become special targets of those selling bogus products and services by phone. Cruises, free prizes, low-cost vitamins and healthcare products are among the most common scams.
Another common scam involves health, funeral, and life insurance. Many seniors are concerned about having the funds to pay for needed medical care or a proper burial or to bequeath to loved ones upon death, according to Kelly Dedel, a criminal justice consultant based in Portland, Ore. Unscrupulous salespeople take advantage of these concerns by selling the elderly policies that duplicate existing coverage, do not provide the coverage promised, or are altogether bogus.
This Reuters story highlights how some watchdog groups are helping protect those most at risk, including those with cognitive decline and spouses who may be new to managing money at later ages.
Story ideas:
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What are some of the common financial scams targeting seniors in your community?
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Does your community, senior center, or other group offer counseling and education for older adults on avoiding financial scams? Does the local hospital offer any continuing education or other programs for physicians or nurses on screening for this issue?
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Are there any programs available for concerned family members or other caregivers?
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Reach out to the district attorney’s office about recent prosecutions and victim services programs.
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Talk to geriatric mental health professionals about the prevalence of the issue and advice on how older adults can reach out for help with feelings of shame, guilt or depression.
Resources:
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This AARP article on how to spot warning signs of financial abuse.
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Fleeced: Speaking Out Against Senior Financial Abuse is a documentary from the National Community Reinvestment Coalition (NCRC) and the Atlantic Philanthropies.
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This TrueLink Financial report estimates that in 2015, the cost of elder financial abuse totaled $36.48 billion. That is much higher than previous estimates of $3 billion annually.
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U.S. Department of Justice’s webpage on elder financial abuse features a roadmap to help older adults or caregivers find the right agency for their situation.
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This National Conference of State Legislators report provides an overview of financial crimes against the elderly legislation.
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Sen. Susan Collins (R-Maine) chairs the Senate Select Committee on Aging, which is investigating issues of elder abuse such as financial exploitation. Sen. Bob Casey (D-Penn.) is the ranking member. Other committee members are listed here.
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2015 White House Conference on Aging policy brief on elder justice.
Experts:
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Kathleen Quinn, executive director, National Adult Protective Services Association (NAPSA); (217) 523-4431; kathleen.quinn@apsnetwork.org.
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Sara Aravanis, director, National Center on Elder Abuse National Association of State Units on Aging; (202) 898-2586; NCEA@nasua.org
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Bob Blancato, national coordinator, Elder Justice Coalition; bob@elderjusticecoalition.com.
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Mark Lachs, M.D., co-chief of the Division of Geriatrics and Gerontology at Weill Medical College; 212 746 7000.
Anne Barrett, professor of sociology and director of the Pepper Institute on Aging and Public Policy, Florida State University:abarrett@fsu.edu.
