What is Financial Abuse?
How does financial abuse of the elderly occur?
Links and Contacts
The Problem
Financial abuse of elders and dependent adults is on the rise. In 1999, 225,000 cases of vulnerable adult abuse were reported in California, of which approximately 25% were reported as financial abuse. In 2002, at least 250,000 cases were reported, with approximately 40% identified as financial abuse. Financial abuse is one of the most under reported crimes due to the victim’s embarrassment, fear of loss of independence, intimidation by the perpetrator, and widespread lack of awareness that it is a crime. Victims of elder abuse, neglect and financial exploitation are 3.1 times more likely to die at an earlier age than those not victimized. Victims rarely recover financially and losses often lead to depression, increased physical problems, reliance on public benefits and even death. Increased funding and partnership is urgently needed to fight this growing problem.
What is Financial Abuse?
It is a crime. According to California State Welfare and Institutions Code, Section 15610.30, financial abuse is “a situation in which a person, including but not limited to, one who has care or custody of or who stands in a position of trust, of an elder or dependent adult, takes, secretes, or appropriates their money or property, to any wrongful use, or with the intent to defraud.” Financial abuse also includes the illegal or improper use of an elder or dependent adult’s financial resources. Financial abuse one of the most destructive forms of abuse because elders are generally unable to recoup their losses and may lose their ability to live independently or even die from resulting depression.
How does financial abuse of the elderly occur?
Financial abuse of the elderly can happen in many ways - here are some typical crimes:
- Stolen ATM, Debit, and credit cards by care givers or family members
- Deceiving an elderly person to sign loan papers or withdrawal slips
- Elders who are deceived by relatives
- Elders who are deceived by contractors
- Abuse of Power of Attorney authorization
This is the one of the fastest growing crimes in America
- Telemarketing & sweepstakes scams
- Investment fraud
- Predatory lending
- Identity theft
To report suspected elder abuse or financial exploitation, call the California State Attorney General’s toll-free hotline at:
1(888) 436-3600
You will be connected to your county’s Adult Protective Services agency. If you believe that an elder is in danger or a crime has been committed, call 911 or your local police department.
Federal regulatory agencies agree that reporting suspected elder financial abuse is NOT in violation of the the privacy provisions of the GLBA.
Links and Contacts
NASAA (North American Securities Administrators Association)
Senior Investor Resource Center
Department of Corporations: Investment and Finance Authority
Seniors Against Investment Fraud - “SAIF”
Department of Corporations: Investment and Finance Authority
Elder Abuse Prevention Council
Federal Trade Commission - Consumer Protection
Marin County District Attorney
California State Sheriffs’ Association
Phone Busters
San Bernardino County District Attorney
National Committee for the Prevention of Elder Abuse
Los Angeles County District Attorney
Guarding Your Gold - A Consumers Guide
The Institute on Aging
National Crime Prevention Council
SeniorNet
American Association of Retired Persons
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