Epidemic of Financial Elder Abuse Across Country Means Seniors Lose $2.9 Billion Per Year

This past summer, the United States celebrated the 50th anniversary of Older Americans Month. The anniversary marks a dramatic shift in the demographics of the country – when former President John F. Kennedy introduced Older Americans Month, there were 17 million people over the age of 65, but in 2013, there were 40 million people over retirement age. And American seniors face some of the most difficult problems of their group, from physical abuse at nursing homes to financial elder abuse from caregivers or loved ones.

Financial elder abuse particularly harms seniors, many of whom have only retirement income or social security to support them through another 20 or 30 years of life. Senior citizens can fall victim to scams such as false sweepstakes and phone scams, identity theft leading to social security theft, and, unfortunately the most common, relatives and friends taking money directly out of their bank accounts for personal gain.

Reportedly, more than 60% of cases of elder abuse are specifically financial elder abuse. The 2011 MetLife Study of Elder Financial Abuse suggested that seniors lose $2.9 billion per year in the United States to financial abuse. That number is up 12% from 2008, when the estimate was $2.6 billion.

In April of this year, the Senate Special Committee on Aging began an investigation into the growing problem of financial elder abuse. The elderly become prime targets for scammers, not just because of their vulnerability through physical or mental deterioration, or their lack of experience with modern technology, but also because they tend to have excellent credit ratings and a steady income from either savings or social security. Since 2010, that committee has received over 1,000 complaints just about financial elder abuse in the form of stolen tax refunds.

“There is a lot of financial exploitation going on,” said Helen Davis, coordinator for the Colorado Coalition for Elder Rights and Prevention. “A grandson or nephew all of a sudden realizes their grandparents might have a lot of money and decide they want to tap into their inheritance a little early.”

“There’s a lot going on that people don’t know about,” she added. “Elder abuse is about where domestic violence was 20 years ago: We didn’t tell anyone. We swept it under the rug.”

Davis’s homestate of Colorado is taking action, passing a law that allows professional groups like clergy, health professionals, and social workers, to report suspected cases of abuse, from emotional to financial elder abuse.

While some cases of financial elder abuse, such as identity theft, are cut-and-dry, other cases are not so easy. A family member or trusted caregiver could steal money from a vulnerable adult. The family may not be willing to call out the abusive individual, or cases could devolve in court into a battle of “he said, she said,” with no clear solution.

However, as the aging population of the United States increases, awareness of potential problems, from nursing home abuse to financial elder abuse, is growing.

The Strom Law Firm Defends Senior Citizens against Financial Elder Abuse

If you or a loved one has been the victim of financial elder abuse or exploitation by your care facility, nursing home, caregiver, or a relative, contact us today. Come in for a free consultation with one of our nursing home abuse and neglect lawyers to discuss your situation and hear how we can help. 803.252.4800