Older adults vulnerable to scams
[Editor’s Note: This is the second part of a three-part series on elder care. The third installment will appear in the June 12 issue of The Forum.]
For a person to lose everything they have financially is a grim and worrisome prospect, but for an elderly person who may be at the latter part of his or her financially productive years, it can be particularly devastating.
The National Center on Elder Abuse defines financial elder abuse as “the illegal or improper use of an elder’s funds, property or assets.”
This can include forging an older person’s signature; misusing or stealing their money or possessions; forcing them to sign a will, contract or other document by coercion or deception; and the improper use of power of attorney, guardianship or conservatorship.
A 2010 study by MetLife found that $2.9 billion was lost by victims of financial elder abuse, affecting an estimated 20 percent of older adults in the United States – 7.3 million Americans.
Joseph Gilsoul is an elder law attorney and a member of the Special Needs Alliance, a group of leading disability and public benefits lawyers working to enhance the quality of life for people with disabilities through special needs planning and trusts.
“Younger people are scammed often enough simply because of inexperience, but the elderly are much more vulnerable because of cognitive decline and the fact that they have more money,” Gilsoul said.
“Often, social skills can be maintained for a good while after judgment has begun to decline, and the elder’s loved ones may not notice the loss of judgment until severe damage has been done.
“In fact, many times, a financial loss to a predator is the first clear sign of mental decline.”
The NCEA lists these signs of financial elder abuse:
• Sudden changes in bank account or banking habits, especially unexplained withdrawals,
• The inclusion of additional names on an elder’s bank signature card,
• Unauthorized withdrawal of the elder’s funds using the elder’s ATM card,
• Sudden changes in a will or other financial documents,
• Unexplained disappearance of funds or valuable possessions,
• Substandard care being provided or bills unpaid despite adequate resources,
• Discovery of an elder’s signature being forged for financial transactions or for the titles to property,
• Sudden appearance of previously uninvolved relatives claiming rights to an elder’s property,
• Unexplained sudden transfer of assets to a family member or other person,
• The provision of services that are not necessary, and • An elder’s report of financial exploitation.
Gilsoul warns that even without obvious warning signs, “Anyone whose judgment has become impaired is a potential victim and should be monitored carefully. [Scams] I have seen from time to time involve phony sweepstakes where entry fees or taxes must be paid before a prize can be claimed, Internet scams and persons posing as bankers and getting account and Social Security numbers.
“However, the most prevalent scams involve other family members or friends taking advantage of an elder. Caretakers may steal from the elder.
New friends may show up, pretending to be concerned and loyal in order to gain trust and steal from the elder.”
Other scams include excessive charges for goods and services, selling bogus items, offering false prizes and unsolicited home repair work.
“The single most important thing a person can do to protect against financial abuse is to act ahead of time.
Vigilance is essential by the family and friends of the elder, but, more importantly, each of us must realize that we need to protect ourselves from ourselves when we begin to notice signs of decline,” Gilsoul said.
“The person you are today may very well not be the person you are tomorrow. As soon as a person senses signs of mental decline, it is time to take steps for self-protection.”
When people begin to recognize or suspect deterioration of their judgment and mental facilities, Gilsoul recommends they set up appropriate legal boundaries to protect themselves.
One he finds particularly useful is what he calls a “gatekeeper trust.”
“This is a trust into which the client will transfer most of his or her assets, such as the home, bank and brokerage accounts, investment real estate and so forth,” he said.
“One or more children or other trusted relatives are named as trustee(s).
“The client retains the right to amend or even revoke the trust, but this can be done only with the consent of the trustee and one or more persons specified as gatekeepers.”
If you have evidence or strong suspicions that elder abuse is occurring, Gilsoul said there is help out there.
“For physical abuse and glaring cases of financial abuse, call the police.
For most cases of financial abuse or suspected causing of duress or coercion, contact family members or file a report with Elderly Protective Services at 1-800-259-4990.”
– Michael Stone
