Recognizing and preventing elder financial abuse
A growing problem
Each year, at least 250,000 elders and dependent adults experience abuse in the United States—and 40% of these cases (affecting 100,000 elders) fall into the elder financial abuse category. The California State Welfare and Institutions Code defines elder financial abuse as “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.”
In California, the Welfare and Institutions Code defines an elder as a person over age 65 (definitions vary by state) who lives in the state of California. Because Baby Boomers, the largest population segment in the United States, are beginning to enter this age range, the potential for elder financial fraud will only increase over time.
Types of financial abuse
Sadly, most elder abuse is caused by care givers or family members, who have easy access to elders’ financial records and accounts. But the elderly may also fall prey to other types of fraudulent offers and tricks by other criminals as well. Typically, elder financial abuse manifests in the following ways:
- Stolen ATM cards, CheckCards, or credit cards
- Deceiving elders into signing
- withdrawal/transaction slips or loan documents or giving other people access to their accounts, titles, or deeds
- Convincing the elderly to sign up for services they don’t need, such as home repair or other unnecessary work
- Abuse of Power of Attorney authorization
- Telemarketing and sweepstakes scams
- Investment fraud
- Predatory lending
- Forcing the elderly to change a personal will or trust
Working to prevent it
Tech CU is committed to protect and preserve our members’ financial security, and that includes our senior members. The entire Tech CU workforce is trained to ask questions, identify at-risk situations, and report any type of suspected transactions. If the situation warrants action, Tech CU will report any suspicious activities to the proper authorities.
Effective January 1, 2007, all financial institutions are required to report suspected elder financial abuse. Tech CU has been on the forefront of protecting its members’ accounts since its inception in 1960.
How to report it
If you suspect elder financial abuse or exploitation, you can report it on your own by calling the California State Attorney General’s toll-free hotline to be connected to your local Adult Protective Services Agency: (888) 436-3600.