If you feel that you or someone you know may have been or is at risk of being a victim of financial abuse, please consult our list of helpful state resources and national resources to report the abuse and take the next steps toward recovery. |
In honor of World Elder Abuse Awareness Day on June 15, we took a closer look at the frightening epidemic of elder financial abuse. In this article, we’ll discuss the issues surrounding the financial abuse of older adults and provide a comprehensive list of resources you can use to help protect yourself and those around you.
Elder financial abuse or exploitation is defined in the Older Americans Act of 2006 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.”
In other words, this type of abuse involves taking advantage of an older person for financial gain.
Elder financial abuse is big business. It’s estimated that older adults lose more than $36 billion every year to scams, fraud and exploitation.¹ It’s even more alarming that almost half of that money is lost due to tactics that – while deceptive in nature – are technically legal. With large numbers of Baby Boomers aging into retirement, experts predict the problem is only going to get worse.
The number of seniors of seniors in the U.S. who have experienced some form of financial abuse is estimated to be as high as 37 percent.² In other words, if you have three living grandparents or two older parents, there’s a good chance at least one of them has been a victim of financial abuse, and they may not even know it.
The sheer number of financial abuse victims is frightening, but what may be even worse is that the abuse is often carried out by someone close to the victim. One survey found that two-thirds of financial crimes against the elderly are carried out by family, friends or other trusted individuals.³ The perpetrators of elder financial abuse can include:
There are dozens of ways in which elder financial abuse is carried out. Here are some of the more common ways this type of abuse is perpetrated.
It happened: An 82-year old Texas woman was scammed out of her life’s savings. Scammers informed her that she won a sweepstakes and that she needed to send money to cover taxes and fees tied to the winnings. After the woman made the initial payment, the scam progressed with additional demands and conditions. After losing hundreds of thousands of dollars, the woman sadly committed suicide with $69 left to her name.
It happened: The CEO of a financial services company in California was charged with conspiracy to commit wire fraud after conning 11 retirees out of more than $4 million. The man, who faces up to 20 years in prison if convicted, solicited the funds to be put into a retirement portfolio. He instead deposited the money into his own personal bank account and used it to buy jewelry, luxury cars and more.
It happened: In Massachusetts, the niece of a disabled Army veteran used her uncle’s government VA grant — intended for a handicapped-accessible van — to buy herself an SUV. The woman was caught and was charged with larceny.
The effects of financial abuse can be extremely negative for a senior. In addition to financial losses, victims may also experience:
Anyone can be a victim of financial abuse, but what makes seniors especially vulnerable? While an age-related decline in cognitive thinking could certainly make some older adults easier targets for abuse, there are other reasons for elder financial abuse.
Older Baby Boomers have a median net worth of more than $241,000, and the 50-and-over demographic is responsible for 49 percent of all Consumer Packaged Goods (CPG) sales in the United States.⁴ The concentration of wealth in this generation can make them more desirable targets for scammers and thieves.
MIT conducted a study in which people of various age groups were asked if most people can be trusted. Baby Boomers gave the highest percentage of “yes” answers out of all age groups surveyed.⁴ This trusting nature could be attributed to growing up in a more trusting era, and it can point to a reason why a senior might be more likely to fall for a scam.
The notion of seniors being more trusting was backed up by a second study, conducted at UCLA. Participants were shown pictures of different faces and asked if they felt the face was trustworthy or untrustworthy. Once again, seniors gave the highest number of “trustworthy” answers, even for faces that gathered a high response of “untrustworthy” by younger participants.⁵
Further, older participants in the study exhibited less activity in their anterior insula while viewing the faces deemed “untrustworthy” by younger participants. This part of the brain supports interoceptive awareness, or what we commonly refer to as a “gut feeling.” The study results suggest that seniors may not as readily identify a potential risk, such as an untrustworthy person.
Trust level isn’t the only thing that may contribute to an older adult’s vulnerability. There is also research that suggests older adults are significantly worse at making decisions related to their finances. One study conducted at Boston College suggested that a person’s financial literacy test scores decline by 1 percent every year over the age of 60.⁶
Another study found that although the capacity to make financial decisions may decline with age, an individual’s confidence to do so did not.⁷ This combination could lead many seniors to remain unaware of their financial vulnerability.
When combined, you have a demographic that on average has wealth, is more trusting of other people, has a less active “gut feeling” and is not as adept at making financial decisions as they once were but maintains confidence in their ability to do so. These factors can all lead to an increased vulnerability to financial abuse.
There are a number of ways in which seniors can better protect themselves from financial abuse.
While there are a number of ways in which seniors can protect themselves, Congress is also doing its part. The bipartisan Senior Safe Act was passed by the Senate on May 22nd and is expected to become law.
Originally introduced to the House in 2017, the bill encourages financial advisors and their firms to report any exploitation of older clients.
The bill also protects those financial advisors from liability and from violations of privacy laws when they report cases of elder financial abuse.
Below is a list of national and state resources that can help seniors protect themselves and help them recover from financial abuse.
Consumer Financial Protection Bureau’s Office for Older Americans
The Consumer Financial Protection Bureau is a U.S. government agency that regulates the activity of banks, lenders and other financial institutions to ensure consumers remain free of unfair, deceptive or abusive practices.
Phone: 855-411-2372
Federal Trade Commission (Phone scams)
The Federal Trade Commission is a consumer protection agency that aims to prevent unfair, fraudulent and deceptive business practices, such as phone scams. Learn how to recognize a telephone scam and what to do when you are targeted.
Phone: 877-382-4357
Federal Trade Commission (Identity thefy)
The Federal Trade Commission works to protect consumers from identity theft by providing resources for anyone who fears their personal information has been breached or lost. They also provide tips for protecting your identity and help recovering from identity theft.
Phone: 877-382-4357
Federal Trade Commission (Scam alerts)
The Federal Trade Commission publishes information about ongoing scams in order to build awareness and to help consumers to remain a step ahead of thieves.
Phone: 877-382-4357
National Institute of Justice
The National Institute of Justice conducts research and provides information about the financial exploitation of the elderly with the goal of improving knowledge and understanding of the crime.
Phone: 202-307-2942
U.S. Securities and Exchange Commission
The Securities and Exchange Commission aims to protect investors through education, regulation and the enforcement of fair and orderly markets.
Phone: 202-551-6551
U.S. Postal Service Inspection Service
The Postal Inspection Service maintains public trust in the mail system by enforcing laws designed to protect the U.S. Postal Service and its users from dangerous or illegal activity and provides assistance to victims of mail fraud, identity theft and other crimes.
Phone: 877-876-2455
Financial Services Roundtable
The BITS Financial Services Roundtable published a fraud protection toolkit complete with information about types of financial abuse provides tips to help consumers stay aware of potential risks.
Phone: 202-289-4322
Investor Protection Trust
The Investor Protection Trust is a non-profit organization that provides tools and information to help investors recognize and avoid investment fraud and financial abuse.
Phone: 202-775-2113
AnnualCreditReport.com
This website provides free annual credit reports that can be used to check for instances of identity theft and fraud.
Elder Financial Protection Network
The Elder Financial Protection Network is an organization dedicated to helping seniors recognize and avoid financial abuse.
Phone: 707-981-8403
National Elder Law Foundation
The National Elder Law Foundation is certified by the American Bar Association and serves by helping consumers to connect with attorneys specializing in elder law and needs.
Phone: 520-881-1076
Senior Fraud Education Program
CaregiverStress.com provides information and resources concerning fraud for both caregivers and seniors.
Phone: 888-575-0946
National Adult Protective Services Association
The national non-profit organization has representation in all 50 states and works to increase awareness of elder abuse through education and advocacy.
Phone: 202-370-6292
U.S. Department of Justice
The Department of Justice fights financial crimes against older Americans through outreach efforts that include scam alerts, training and more.
Phone: 202-514-2000
National Center on Elder Abuse
The NCEA is a national resource center that provides elder abuse information, resources and training to the public and community-based organizations.
Phone: 855-500-3537
National Committee for the Prevention of Elder Abuse
A non-profit organization, the NCPEA is made up of researchers, practitioners, educators and advocates all dedicated to the prevention of abuse of senior adults.
Phone: 416-342-1655
American Bankers Association
The ABA provides tips and information designed to help older consumers remain safe from fraud.
Phone: 800-226-5377
Women's Institute for a Secure Retirement
WISER aims to improve the long-term financial security of women through education and advocacy and provides useful tools and information related to elder financial abuse.
Phone: 202-393-5452
Department of Health & Human Services
The U.S. Department of Health and Human Services builds awareness of elder fraud, allows for fraud to be reported and provides support for victims and their families.
Phone: 877-696-6775
Our resource guides provide helpful information and assistance for a range of topics such as prescription drug costs, alcohol abuse, fall prevention, senior hunger and more.
Alabama Department of Human Resources
Phone: 334-242-1350
Alabama Department of Senior Services Elder Justice and Advocacy Program
Phone: 334-242-5743
Alabama Senior Medicare Patrol
Phone: 800-243-5463
Department of Administration Office of Public Advocacy
Phone: 907-334-5989
Alaska Department of Health and Social Services
Phone: 907-269-3666
Consumer Protection Unit
Phone: 907-269-5200
Arizona Adult Protective Services
Phone: 602-542-4791
Arizona Division of Aging and Adult Services
Phone: 602-542-4791
Arizona Long-Term Care Ombudsmen
Phone: 602-364-2860
California Department of Social Services
Phone: 916-651-8848
California Long Term Care Ombudsmen Program
Phone: 800-231-4024
California Courts - Elder and Dependent Adult Abuse
California Attorney General’s Medi-Cal Fraud and Elder Abuse Bureau
Phone: 916-210-6276
California Department of Business Oversight - Seniors Against Investment Fraud
Phone: 916-327-7585
California Department of Aging (CDA)
Phone: 916-419-7500
Colorado Adult Protective Services
Colorado Department of Human Services
Phone: 303-866-5700
Long Term Care Ombudsmen
Phone: 303-866-5700
Colorado Area Agency on Aging
Phone: 303-455-1000
Colorado Department of Regulatory Agencies (Division of Financial Services)
Phone: 303-894-7855
Stop Fraud Colorado
Phone: 800-222-4444
AARP Foundation ElderWatch Colorado
Phone: 800-222-4444
Colorado Coalition for Elder Right and Abuse Prevention
Department of Rehabilitation Services State Unit on Aging
Phone: 860-424-5274
Long Term Care Ombudsmen
Phone: 866-388-1888
Connecticut State Department of Social Services
Phone: 855-626-6632
Delaware Adult Protective Services
Phone: 302-255-9040
Delaware Department of Justice Fraud & Consumer Protection Division
Phone: 302-577-8600
Long Term Care Ombudsmen
Phone: 800-223-9074
Delaware Money Management Program
Phone: 302-857-5006
DC Adult Protective Services
Phone: 202-541-3950
DC Office on Aging
Phone: 202-724-5626
Office of the Attorney General - Consumer Protection
Phone: 202-727-3400
Office of the Inspector General - Fraud and Abuse
Phone: 202-727-2540
Adult Protective Services
Phone: 800-962-2873
Long Term Care Ombudsmen
Phone: 888-831-0404
Office of the Attorney General - Consumer Protection
Phone: 850-414-3300
Adult Protective Services - Elder Abuse
Phone: 866-552-4464
Georgia Council on Aging
Phone: 404-657-5343
Georgia Council of Community Ombudsmen
Phone: 404-627-1057
Department of Human Services - Division of Aging Services
Phone: 404-657-5258
Office of Attorney General - Consumer Protection Guide for Older Adults
Phone: 404-651-8600
Long Term Care Ombudsmen
Phone: 866-552-4464
Adult Protective Services
Phone: 808-832-5115
Department of the Attorney General - ID theft
Phone: 808-586-1500
Hawaii Executive Office on Aging
Phone: 808-586-0100
Senior Medicare Patrol Hawaii
Phone: 800-296-9422
Long Term Care Ombudsmen
Phone: 808-587-0770
Hawaii County Office of Aging
Phone: 808-643-2372
Idaho Commission on Aging - Elder Abuse Prevention
Phone: 208-334-3833
Idaho Commission on Aging - Medicare Fraud
Phone: 208-334-3833
Long Term Care Ombudsmen
Phone: 208-577-2855
Office of Attorney General - Medicaid Fraud
Phone: 208-334-4100
Office of Attorney General - Consumer Protection
Phone: 208-334-2424
Adult Protective Services for Seniors
Phone: 866-800-1409
Illinois Department on Aging
Phone: 800-252-8966
Long Term Care Ombudsmen
Phone: 800-339-3200
Office of the Attorney General
Phone: 800-243-5377
Adult Protective Services
Phone: 800-457-8283
Medicaid/Public Assistance Fraud
Phone: 800-403-0864
Long Term Care Ombudsmen
Phone: 800-622-4484
Office of Attorney General - Senior Fraud
Phone: 317-232-6330
Indiana MoneyWise
Phone: 317-232-6531
Iowa Department of Human Services - Dependent Adult Abuse
Phone: 800-362-2178
Elder Justice & Adult Protective Services
Phone: 800-532-3213
Iowa Department of Inspections & Appeals - Fraud reporting
Phone: 800-831-1394
Long Term Care Ombudsmen
Phone: 800-532-3213
Office of the Attorney General - Older Iowans
Phone: 515-281-5926
Iowa Department on Aging
Phone: 800-532-3213
Kansas Department for Aging and Disability Services
Phone: 785-296-4986
Senior Medicare Patrol
Phone: 800-432-3535
Adult Protective Services
Phone: 888-369-4777
Attorney General's Office - Consumer Protection Division
Phone: 785-296-2215
Long Term Care Ombudsmen
Phone: 785-296-3017
Medicaid Fraud & Abuse
Phone: 785-296-2215
Office of Medicaid Fraud and Abuse
Phone: 502-696-5405
Scam Alerts
Phone: 502-696-5389
Consumer Protection
Phone: 502-696-5389
Division of Audits and Investigations
Phone: 800-372-2973
Long Term Care Ombudsmen
Phone: 800-372-2973
Aging and Adult Services
Phone: 800-898-4910
Governor's Office of Elderly Affairs
Phone: 225-342-7100
Long Term Care Ombudsmen
Phone: 225-342-7100
Elder Fraud Prevention
Phone: 800-351-4889
Adult Protective Services
Phone: 800-898-4910
Long Term Care Ombudsmen
Phone: 800-499-0229
Office of the Maine Attorney General
Phone: 207-626-8800
Office of Elder Services
Phone: 207-287-3707
Adult Protective Services
Phone: 800-332-6347
Department of Aging
Phone: 410-767-1100
Long Term Care Ombudsmen
Phone: 410-767-1100
Office of the Attorney General
Phone: 410-576-6300
Adult Protective Services
Phone: 800-922-2275
Assisted Living/Community Ombudsman
Phone: 617-727-7750
Long Term Care Ombudsman
Phone: 800-243-4636
Executive Office of Elder Affairs
Phone: 617-727-7750
Office of Attorney General
Phone: 617-727-2200
Adult Protective Services
Phone: 855-444-3911
Department of Health & Human Services - Abuse and Neglect
Phone: 855-444-3911
Long Term Care Ombudsman
Phone: 866-485-9393
Office of the Attorney General
Phone: 517-373-1110
Aging & Adult Services Agency
Phone: 517-373-8230
Minnesota Board on Aging
Phone: 651-431-2500
Department of Human Services - Fraud Report
Phone: 844-880-1574
Long Term Care Ombudsman
Phone: 651-431-2500
Office of the Attorney General - Senior Citizens
Phone: 651-296-3353
Department of Human Services - Vulnerable Adult Protection and Elder Abuse
Phone: 844-880-1574
Office of the Inspector General
Phone: 651-431-2000
Office of the Attorney General - Vulnerable Adult Unit
Phone: 601-359-4158
Adult Protective Services
Phone: 800-227-7308
Long Term Care Ombudsman
Phone: 601-359-4927
Adult Protective Services - Abuse, Neglect, and Exploitation of the Elderly and Disabled
Phone: 800-392-0210
Department of Health and Senior Services
Phone: 800-392-0210
Office of the Attorney General - Protecting Missouri Seniors
Phone: 573-751-3321
Ombudsman Program
Phone: 573-526-0727
Nursing Home Inspections
Phone: 573-526-8524
Missourians Stopping Adult Financial Exploitation
Phone: 800-392-0210
Adult Protective Services - Senior & Long Term Care
Phone: 844-277-9300
Department of Justice - Consumer Protection
Phone: 800-481-6896
Senior and Long Term Care Division
Phone: 844-277-9300
Long Term Care Ombudsman
Phone: 800-332-2272
Area Agencies on Aging
Phone: 800-551-3191
Senior Medicare Patrol
Phone: 406-728-7682
Adult Protective Services
Phone: 800-652-1999
State Unit on Aging
Phone: 402-471-2307
Long Term Care Ombudsman
Phone: 402-471-2307
Office of the Attorney General - Consumer Protection
Phone: 800-727-6432
Aging and Disability Services
Phone: 775-687-4210
Long Term Care Ombudsman
Phone: 775-687-4210
Office of the Attorney General - Senior Protection
Phone: 702-486-3132
Adult Protection Program
Phone: 603-271-7014
Bureau of Elderly and Adult Services
Phone: 603-271-9203
Long Term Care Ombudsman
Phone: 603-271-4375
Department of Justice - Elder Abuse & Financial Exploitation
Phone: 603-271-3658
Adult Protective Services
Phone: 877-222-3737
Division of Aging Services
Phone: 877-222-3737
Long Term Care Ombudsman
Phone: 877-582-6995
Adult Protective Services
Phone: 866-654-3219
Aging & Long Term Services Department
Phone: 800-432-2080
Long Term Care Ombudsman
Phone: 800-432-2080
Office of the Attorney General
Phone: 844-255-9210
Adult Protective Services
Phone: 844-697-3505
Office for the Aging
Phone: 844-697-6321
Office of the Attorney General - Bureau of Consumer Frauds & Protection
Phone: 800-771-7755
Long Term Care Ombudsman
Phone: 855-582-6769
Aging and Adult Services
Phone: 919-855-3400
Area Agencies on Aging
Phone: 919-855-4800
Department of Justice - Elder Abuse Victims
Phone: 800-662-7030
Long Term Care Ombudsman
Phone: 919-855-4800
Adult Protective Services
Phone: 919-855-4800
Adult Protective Services
Phone: 701-328-2538
Adults and Aging Services
Phone: 855-462-5465
Long Term Care Ombudsman
Phone: 855-462-5465
Office of the Attorney General - Consumer Resources
Phone: 701-328-2210
Department of Aging
Phone: 800-266-4346
Long Term Care Ombudsman
Phone: 800-365-3112
Office of the Attorney General
Phone: 800-282-0515
Adult Protective Services
Phone: 877-751-2972
Long Term Care Ombudsman
Phone: 405-521-6734
Senior Legal Services
Phone: 405-521-2281
Adult Abuse Prevention and Investigations
Phone: 503-945-5600
Seniors & People with Physical Disabilities Offices
Phone: 541-967-8630
Long Term Care Ombudsman
Phone: 800-522-2602
Oregon Department of Justice
Phone: 503-378-4400
Department of Aging
Phone: 717-783-1550
Office of the Attorney General - Protecting Seniors
Phone: 717-787-3391
Ombudsman Program
Phone: 717-783-1550
Area Agencies on Aging
Phone: 717-783-1550
Adult Protective Services
Phone: 401-462-3000
Office of the Attorney General - Consumer Protection Unit
Phone: 401-274-4400
Long Term Care Ombudsman
Phone: 401-785-3340
Division of Elderly Affairs
Phone: 401-462-3000
Adult Protective Services
Phone: 803-898-7601
Office on Aging
Phone: 803-734-9900
Office of the Attorney General
Phone: 803-734-3970
Long Term Care Ombudsman
Phone: 800-868-9095
Adult Protective Services
Phone: 605-773-5990
Long Term Care Ombudsman
Phone: 866-854-5465
Office of the Attorney General - Consumer Information
Phone: 605-773-4400
Adult Protective Services
Phone: 888-277-8366
Commission on Aging and Disability
Phone: 615-741-2056
Long Term Care Ombudsman
Phone: 615-837-5112
Office of the Attorney General - Consumer Protection
Phone: 615-741-1671
Department of Aging
Phone: 855-937-2372
Long Term Care Ombudsman
Phone: 877-323-6466
Office of the Attorney General - Consumer Protection
Phone: 800-621-0508
Adult Abuse, Neglect, and Exploitation
Phone: 800-252-5400
Adult Protective Services
Phone: 801-538-3910
Aging & Adult Services
Phone: 800-371-7897
Long Term Care Ombudsman
Phone: 801-538-4171
Office of the Attorney General - Financial Fraud
Phone: 800-244-4636
Adult Protective Services
Phone: 800-564-1612
Department of Disabilities, Aging and Independent Living
Phone: 802-241-2401
Office of the Attorney General - Consumer Information
Phone: 800-649-2424
Adult Protective Services
Phone: 888-832-3858
Department for Aging and Rehabilitative Services
Phone: 800-552-5019
Long Term Care Ombudsman
Phone: 804-565-1600
Office of the Attorney General - Elder Abuse
Phone: 804-786-4718
Adult Abuse and Prevention
Phone: 866-363-4276
Aging and Long Term Support Administration
Phone: 360-725-2300
Long Term Care Ombudsman
Phone: 800-562-6028
Office of the Attorney General - Consumer Issues
Phone: 800-551-4636
Adult Protective Services
Phone: 304-558-0628
Bureau of Senior Services
Phone: 304-558-3317
Long Term Care Ombudsman
Phone: 304-558-3317
Office of the Attorney General - Senior Protection
Phone: 304-558-1155
Adult Protective Services
Phone: 608-266-1865
Area Agencies on Aging
Phone: 608-266-1865
Long Term Care Ombudsman
Phone: 800-815-0015
Adult Protective Services
Phone: 800-457-3659
Department of Health - Aging Division
Phone: 307-777-7995
Office of the Attorney General - Division of Victim Services
Phone: 307-777-7200
Long Term Care Ombudsman
Phone: 307-777-2885
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