From 2017 to 2021, the Department of Justice accounted for at least 92,371 victims of elderly financial abuse with a total loss of over $1.7 billion.1 But sadly, the number of victims aged 60 and older who experience elder fraud and financial abuse is actually much higher. Many stories of elder abuse each year aren’t reported. That has to end. If you’re over the age of 60, you could be the target of fraud and other financial abuse. Here’s what to look for, how to protect yourself, and where to find help if you or a loved one has been affected.
What Is Elderly Financial Abuse?
Elderly financial abuse is a common form of elder abuse to anyone 60 years old and older through scams, fraudulent behavior, and other means. The Department of Justice (DOJ) defines elderly financial abuse as “the illegal, unauthorized, or fraudulent use, or deprivation of use, of the property of a vulnerable adult with the intention of benefiting someone other than the vulnerable adult.”2
Financial exploitation of the elderly is penalized as a Class 1 misdemeanor in most states, but each state has its levels of protection for the elderly. The Elder Justice Act was also passed in 2010 at the federal level to provide social services to those who are affected.
Examples of Elderly Financial Abuse
As we mentioned earlier, there were at least 92,000 cases of elderly financial abuse tracked during five years—and those are only the ones that were reported. Men and women over the age of 60 years old lost an average of $18,246 each.3 This loss comes from financial exploitation that happens through fraud, scams, and even financial abuse within the family.
These are some common examples of elderly financial exploitation that will help you know what to look for:
1. Phishing Emails/Internet Fraud
These emails are sent to gain your personal information at the click of a link. Many times, these senders are impersonating businesses like UPS, The Geek Squad, or another company you may frequently utilize. Other times, they may look like an unpaid invoice, a credit card statement, or a request to update your software system. In the case of fraudulent emails, make sure to check the sender. While these emails or texts seem reputable, the sender’s email or number will often be unknown.
2. Government Impersonation Scams
Government scams are another common method of elder fraud. Scammers will reach out by phone call, text, or email pretending to be a government agency (like the IRS, Social Security Administration, or Medicare) asking for your personal information, letting you know your benefits are ending, or payment for something. Often, they’ll ask for payment through gift cards, cash, electronic wire transfers, or cryptocurrency. Remember, the government will never reach out through social media, email, or text for payments.
3. The Grandparent scam
This scam is a common attack on the elderly. In these scenarios, a scammer will ask, “Grandma(pa), do you know who this is?” Once the grandparent guesses, the scammer will pretend to be that grandchild asking for money.
Another way scammers pull this off is by pretending to be a police officer or another person in authority letting you know that your grandchild is in trouble and needs money. Do not give any money to anyone you don’t know. Before giving funds to anyone, triple-check with your family that your loved ones are okay.
4. Friends and Family
Sadly, elderly financial abuse also happens at the hands of friends and family. Friends or even caretakers of the elderly convince them that they should be added to their will in some capacity. If someone you love suddenly changes their will or Power of Attorney to someone they don’t know well or proves to be untrustworthy, this might be the case.
Where to Find Help and Support
If you think you’ve been the target of elder fraud or elderly financial abuse, don’t hesitate to get help. The Department of Justice created the National Elder Fraud hotline just for you. By filing a claim, you can help put a stop to those who are committing fraud while helping others who are experiencing elder abuse as well.
Your SageSpring financial advisor can be a great resource for you as well. We would be honored to walk with you as you navigate this tough situation. We’re with you—every step of the way.
