Kiplinger Article Stresses the Importance of Taking Action Whenever You Spot Telltale Signs of Elder Fraud and Financial Abuse - AgingOptions

When we read tales of people taking financial advantage of seniors, it really makes our blood boil, doesnt it? Few crimes seem more insidious and downright evil than the crime of defrauding a vulnerable elder.Yet sometimes, because we value an older persons privacy, we may suspect something is amiss and yet fail to step in and speak up, even when the victim is someone very close to us, like an aging parent.In those cases, experts say, all of us need to be more diligent and willing to confront potential financial abuse, because a lot more than money may be at stake.

Your loved ones health and even their life may be at risk.Elder Fraud is Vicious, Yet Financial Abuse is Usually UnreportedThats the important take-away we gleaned from this recent article on the Kiplinger financial website, an extensive expose of elder fraud and financial abuse written by associate editor Miriam Cross.Financial exploitation is one of the most vicious kinds of abuse inflicted on seniors, she writes.It can range from petty financial crimes, such as stealing cash or forging checks, to more-elaborate deceptions in which the perpetrator manipulates an older adult into handing over money or control.

Law enforcement officials claim that only a tiny percentage of cases some estimates say well below 5 percent are ever reported.Victims are hesitant to speak up because they are embarrassed, fear losing their independence or are reluctant to sever ties if the perpetrator is a loved one, says Kiplinger.The financial toll on seniors from people who rip them off is tragic.In a report from early 2019, the AARP said that the average loss suffered by victims of senior fraud topped $34,000, according to the Consumer Financial Protection Bureau.

Elder fraud has many faces.It could involve a son who fritters away his mothers money at liquor stores and casinos when he has power of attorney to manage her assets for her benefit, says the AARP article.Or a caregiver who cuts large checks drawn on the account of a charge.

Or the fiance of an older man who is asking that a large wire transfer be sent outside of the United States, ostensibly so she can visit him for the first time.The largest losses were the result of criminal behavior by fiduciaries and other trusted professionals.If a fiduciary was behind the loss, the amount of money involved was steeper than in any other category, for an average of $83,600 per victim, says AARP.If a nonfamily caregiver was the culprit, the average loss was $57,800; if it was a family member, the average loss was $42,700; and if it was a stranger, the average loss was $17,000.Elder Fraud Steals Far More than MoneyBut the Kiplinger report emphasizes that its not just about the money.

Financial abuse and elder fraud can do more than devastate an adults savings, credit or ability to pay for long-term care, Crosss article says.Many victims suffer medical and psychological harm, and they experience higher mortality rates than seniors who are not abused.Kiplinger cites the story of one active 86-year-old Los Angeles woman whose changes in behavior finally began to worry her family.

There were warning signs: A constantly ringing phone.Bank accounts in disarray after an apparent hack.Messages from her family that went unreturned for days because she was extremely busy.

A new man in her life, with whom she talked over the phone but never in person.It turned out that this intelligent, independent woman was being exploited by an international fraudster.Yet it took several months of suspicion before friends and family finally stepped in.By then, says the article, she was in such a deep state of depression that she ended up in the hospital, where the couple found out that she was also experiencing cognitive decline.

Somehow, she had fallen under the spell of a seductive caller, who manipulated her into opening credit cards and lines of credit, as well as buying and sending expensive, untraceable gifts.During her recovery, she told family members that she had tried to resist the callers demands, but the pressure and the threats became too much to bear.One red flag: in spite of her good health and independence, she was lonely, which put her at higher risk of exploitation.Elder Fraud: Important Tips for Friends and Loved OnesWe lack the space here to summarize the entire Kiplinger article, so we encourage you to read it for yourself to help protect your loved ones.

But here are a few of the key points.Telltale Signs: Watch out for the unusual.Warning signs can include uncharacteristic financial behavior, stacks of gift cards, mail from unfamiliar sources, or a demeanor that seems secretive or giddy.If things seem odd or suspicious, start asking questions.The Power of Education: Look for ways to drop the topic of fraud into conversation with a loved one.

Share fraud-fighting resources from reliable sources: Kiplinger provides links to scam-alert websites set up by AARP and the Federal Trade Commission among others.Take Precautions: Make sure your loved ones phone number is registered on the National Do Not Call Registry.Consider installing call-screening on their phone (Kiplinger mentions several) and suggest they get in the habit of using voice mail to screen calls before answering.Make sure they learn not to trust caller i.d.

displays.Put a freeze on their credit accounts with Experian, TransUnion and Equifax.Get Outside Help: Especially if youre dealing with a parent, talk to their bank or brokerage and find out how you can help protect mom or dads assets from fraud.According to Kiplinger, The Senior Safe Act allows certain employees at financial institutions to report suspected cases of elder financial abuse to federal and state authorities without fear of being sued.

New regulations in the financial industry let broker-dealers put a temporary hold on certain suspicious activities and require them to request a trusted contact when clients open new accounts or update existing ones, a request the client can refuse.In 23 states, broker-dealers and registered investment advisers must report suspected cases of senior financial exploitation, the article says.Protect Yourself with a Solid Retirement PlanElder fraud and abuse is a huge, complex topic, but this discussion brings up a question: how are you doing in the area of planning for your own future as you age? Rajiv Nagaich of AgingOptions invites you to join him at a free event called a LifePlanning Seminar where hell explain how to protect your retirement security with a comprehensive plan that includes all the key elements: financial, legal, family, housing and health.Bring y0ur folks or your adult children and discover the pathway to true peace of mind in retirement.

Youll find a calendar of seminar dates and locations here on our Live Events page.Let us help you and those you love protect yourselves, today and tomorrow.Well look forward to meeting you soon.Age on!(originally reported at www.kiplinger.com)