Fraud is bad enough, but when you have family members or caregivers who are financially abusing their elderly relatives or patients, that's downright despicable.
And yet, in most of the cases of elder financial abuse, the perpetrators are not strangers. Family, friends, neighbors and caregivers are the culprits in 55 percent of the cases, according to a report, "Broken Trust: Elders, Family, and Finances," released by the MetLife Mature Market Institute. The report was produced in conjunction with the National Committee for the Prevention of Elder Abuse and Virginia Tech University.
Law enforcement and securities officials say the recession is pushing more people to steal from well-off seniors.
"Elder financial abuse is becoming the crime of the 21st century as the growing senior population is increasingly targeted," says Steven Peck an elder law attorney with Premier Legal headquartered in Van Nuys, California.
The annual financial loss by victims of elder financial abuse is estimated to be at least $2.6 billion, according to the report. The average victim of elder abuse is a woman older than 75 who lives alone.
It's not surprising that the more health issues seniors have, the more likely they will be victimized.
A nursing assistant from the state of Washington was charged with stealing more than $770,000 from the elderly woman she was caring for.
In a Florida case, a man called authorities to report his 80-year-old mother's hairdresser had stolen her checks. The stylist was accused of taking $25,000 from the woman's checking account. But get this: During the investigation, police charged the victim's 52-year-old son -- who first alerted police -- with fraudulently cashing $6,900 in checks from his mentally incompetent mother.
Following are some red-flag warnings that the North American Securities Administrators Association (NASAA) will be providing to adult protective services workers to help them spot and stop potential elder financial abuse:
Is the senior receiving information about or being asked to invest in unregistered securities or startup companies?
Is the investment high-risk or possibly speculative, such as oil and gas exploration, new or untested technologies, or rare metals, or does it involve currency trading?
Has the senior been asked to sign blank paperwork or give discretionary authority over her accounts to an adviser?
Is the senior saying his investment adviser won't give him his account statements or documentation?
Has the senior made out a check directly to the adviser or broker for the purchase of an investment?
There's information on NASAA's Web site that will assist you in helping seniors avoid these problems. Go to www.nasaa.org and search for "Senior Investor Resource Center." To report elder abuse, you can contact Steven Peck's Premier Legal toll free at 1-866-999-9085 or on the world wide web at www.premierlegal.org to talk to an experienced elder law and abuse attorney.
