Recognizing and Responding to Financial Exploitation

Financial exploitation is defined by the Older Americans Act as fraudulent, illegal, unauthorized, or improper actions by a caregiver, fiduciary, or other individual, where an older person’s resources are used for another’s personal profit or gain, or actions that deprive an older individual of entitled benefits, resources, belongings, or assets.

While anyone can be a victim, studies indicate that women, individuals 80 years or older, and those living alone are most commonly affected. Factors increasing vulnerability include decreased physical health and mobility, confusion or decline in mental acuity, social isolation, increased dependency on caregivers, and being cared for by someone with a mental illness.

Warning signs can manifest in several areas:

• At home: Unpaid bills leading to collection notices or utilities being turned off, lack of food, physical neglect, missing valuables, or absence of bank statements.
• In the person’s behavior: New worry or confusion about finances, inability to recall transactions, offering implausible explanations for money use, or fear of eviction/institutionalization unless money is given. They might also be afraid to answer questions in another person’s presence.
• In financial transactions: More frequent ATM withdrawals, large bank withdrawals, suspicious signatures, varying pen use on documents, bank staff concern about coercion, or new loans/debts.
• In relationships: New friends or relatives overly interested in finances, increasing isolation and dependency on a single caregiver, a caregiver speaking for the person in a silencing way, the person appearing nervous or afraid of a caregiver, or someone inexplicably gaining control over their finances.

Victims may not ask for help due to denial, loyalty to the exploiter, self-blame, shame, dependency on the exploiter for basic care, fear of retaliation, or inability to detect/report due to diminished mental functioning or physical incapacitation.

If financial exploitation is suspected, prompt action is required to prevent further exploitation and ensure safety. Key steps include:

1. Checking agency policies and procedures.
2. Deciding with a supervisor how to proceed; alerting local law enforcement if criminal activity is suspected; and making a referral to Adult Protective Services unless the agency can assist.
3. Addressing emergency situations immediately, such as avoiding eviction, foreclosure, or utility disconnection.
4. Gathering as much information as possible about the suspected abuse, potentially interviewing the presumed victim and others in their support network.

Information to gather includes details on housing, utilities, meals, income, financial assets, social network, primary caregiver details (including their qualifications), history of violence/mental illness/substance abuse by close individuals, and household residents’ income and contribution to expenses.

When conducting an interview, preparation is crucial, including familiarity with gathered information and having supporting documents. Choose a convenient, comfortable, and private location, ensuring no potential abusers are present. Prioritize client safety above all else; if an interview might endanger the client, do not proceed. Build rapport, be honest about the reason for the interview, and start with open-ended questions. Be patient, as it is an interview, not an interrogation. When interviewing a possible exploiter, maintain comfort, privacy, rapport, honesty, and begin with open-ended questions, setting aside judgment.

The handbook also provides resources such as elder abuse hotlines, contact information for police departments, district attorneys, the Attorney General, and local banking institutions.

Timestamped Episode Transcript

• [0:00-0:01] Introduction to the Handbook and its Purpose: The handbook was created by The Learning & Development Projects at the Silberman School of Social Work to assist those who serve adult clients in recognizing signs of financial exploitation, gathering information, and formulating a plan.
• [0:02-0:03] What is Financial Exploitation and Who is at Risk?: Financial exploitation is defined as fraudulent or improper actions using an older person’s resources for personal gain or depriving them of entitled benefits. Anyone can be a victim, but women, people 80 years or older, and those living alone are most common victims. Vulnerability increases with decreased physical health, mental decline, social isolation, increased dependency on caregivers, or a caregiver with a mental illness.
• [0:03-0:05] Recognizing Financial Exploitation – Warning Signs: Signs can be found in the home (e.g., collection notices, missing valuables, no bank statements), the person’s behavior (e.g., new worry about finances, inability to remember transactions, fear of eviction), and questionable financial transactions (e.g., frequent ATM withdrawals, suspicious signatures, new loans).
• [0:05-0:08] Recognizing Financial Exploitation – Suspicious Relationships and Why Victims Don’t Ask for Help: Suspicious relationships involve new friends or relatives overly interested in finances, increasing isolation, a caregiver speaking for the person, the person being nervous around a caregiver, or inexplicable control over finances. Victims often don’t ask for help due to denial, loyalty, self-blame, shame, dependency, fear of retaliation, or inability.
• [0:08-0:10] What to Do if Financial Exploitation is Suspected and Information to Gather: If suspected, prompt action is needed. This includes checking agency policies, alerting law enforcement if criminal activity is suspected, making a referral to Adult Protective Services, and addressing emergency situations like eviction or utility disconnection. It is crucial to gather information on housing, utilities, meals, income, financial assets, social network, primary caregiver details, and any history of violence or mental illness in the household.
• [0:10-0:14] Tips for Conducting a Successful Interview: Before interviewing, discuss plans and safety with a supervisor. Prepare by reviewing information and having documents ready. Choose a convenient, comfortable, and safe location, noting exits. Client safety is the first priority; do not proceed if the interview might endanger them. Ensure privacy by interviewing the person alone, away from potential abusers. Build rapport, be honest about the interview’s purpose, and begin with open-ended questions, avoiding leading questions. Be patient.
• [0:14-0:15] Interviewing a Possible Exploiter and Resources: When interviewing a possible exploiter, ensure comfort, privacy, rapport, and honesty, starting with open-ended questions while putting aside judgments. Resources available include elder abuse hotlines, police departments, county sheriffs, state troopers, district attorneys, the Attorney General, and local banking institutions.