Financial Abuse of Seniors and Elders is Increasing

Baby boomers are getting older and more fragile. When it comes to handling everyday matters more caution must be put into place. The reason, they are more prone to become victims of scams, identity theft, and predatory lenders.

Families must educate themselves regarding the livelihood of the elder members of their families. Financial abuse of elders may happen innocently but most of the time it is done deliberately. The sources of senior and elder financial abuse could manifest itself through television infomercials, door to door sales, junk mail, family members, children of elders, and even through business transactions.

Those people that intentionally abuse elders depend on elders' inability to quickly recognize a scam. Abusers talk with elders at a level above normal understanding or they twist the truth around so as to confuse the elderly person. If the abuser realizes the elder person is not 100 percent cognizant of his/her actions, the abuser will present scenerios in which the elder person can not say no. Out of frustration or fear, the elder person signs a contract of which they have no understanding. Unfortunately, the elder is still legally obligated to carry out the contract.

Do you recognize any of these actions or know of an elder who found themselves in a compromising financial situation? Okay, lets read about Mr. Johnson, an elderly man who went out to purchase a car. Read his story below.

Mr. Johnson walked into a dealership to purchase a used vehicle. By his appearance he most likely has a nest egg some place. The sales person confirms Mr. Johnson's financial situation by checking his credit rating. The elderly man used the dealership financing to pay for the vehicle. The terms of the loan and interest rate were not what a person in full understanding would agree to. But Mr. Johnson signs the car loan contract and drives off the dealership lot.

Mr. Johnson is sold a vehicle that appears to be in good working condition. He drives the car home. Within a month, Mr. Johnson  experiences trouble with the car. The dealership refuses to work with him because the car has too many miles on it. The Mr. Johnson is now stuck with a car that does not work and a large monthly payment to make on the car.

By the time his family learns the details of the vehicle purchase and the problems associated with the vehicle, the dealership is not legally obligated to work with the family nor Mr. Johnson. What are they to do? The situation Mr. Johnson found himself in is called predatory lending practices. It is also known as senior financial abuse.

By law senior financial abuse is gaining the consent of an elderly person to participate in a financial transaction that is improper or illegal. Mr. Johnson is the victim of an improper financial transaction.

The perpetrators in elder financial abuse are cunning and are experts at what they do. That is to separate the elderly person from their money. And to take possession of their money through deceitful means.

The illegal monetary transactions that happen between seniors and unethical people is on the rise. The baby boomers are getting older and they are more likely to be targeted by financial bandits. Boomers represent the wealthest segment of seniors the country has ever known. At the same time, they are at a greater risk of becoming victims of fraudulent financial transactions.

In a nutshell, illegally taking possession of seniors' money, property or other belongings is defined as financial abuse.

Anyone can be an abuser of elders. The abuser could be someone they know, a friend, a trusted family member, a mate or a child. The abuser could also be a business associate or someone the elder does not know at all. And an abuser could be someone who has never met the elderly person. But somehow the person found personal and financial information that may used to steal the identity of the senior citizen.

Senior financial abuse comes in many forms. Some of the types of financial abuse include...

• Scams - an elderly person is convinced to spend money for something that does not materialize or receives less than promised
• Financial - money is stolen from an individual to benefit an unauthorized person
• Identity theft - the name, good credit and financial resources of an elder person are taken and used by another person
• Insurance fraud - selling fake or now existent insurance coverage
• Reverse mortgage- takes the equity in an elder's home to benefit of the theft
• Predatory lending - unethical lending practices to provide elders with loans they do not need. Or the loan is not what the elder expected
  

There are many ways a theft may steal from an elderly person. Listed below are a few of them...

• important papers belonging to the elderly person goes missing
• bills go unpaid for lack of money that should be in the bank
• a caregiver's name is added to a bank account
• increased check writing for things not normally purchased by elderly person
• caregiver is not paying the elderly person's bills but the account is depleted or lacking funds
• signatures on checks written do not match the elderly person's hand writing
• power of attorney is given when the elderly person is incapable of making decisions
• belongings go missing
• someone other than elderly person is selling valuable assets...
  

Just as there are signs of elder abuse, there are ways to protect elders from financial abuse...

• contact senior watch programs for advice to detect financial abuse
• plan for funeral arrangements and other important events while the elderly person is still mentally alert
• have seniors put their financial wishes in writing and put them in a safe place family may find their wishes
• create a safe and dependable circle of people you the elderly person can trust
• become aware of the resources available that the elderly person  can turn to
• make arrangements with the bank to control access to the senior's money
• have a watch dog relationship with elder's bank to monitor for unusual transactions on  the bank account
• always get a receipt
• don't give away personal information
• if it is too good to be true, it is most likely a scam
• telemarketers are trained to separate people from their money. Its best not to talk with them
• door-to-door salesmen must show the proper credentials such as a solicitor's license

The senior citizen demands a certain amount of freedom.This is especially true when it comes to family members who are trying to protect the seniors. The thin line here is to know when to intervene and when to allow the senior to live an independent life.

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