financial exploitation of older adults · 2018. 3. 19. · imposter scams: grandchild in trouble,...

FINANCIAL EXPLOITATION OF OLDER ADULTS

P R E S E N T E D B Y :

N i c o l e Z i m m e r , E l d e r R i g h t s P r o j e c t D i r e c t o r , n m z @ l e g a l a c t i o n . o r g

PRESENTATION OBJECTIVES

1. Recognize the many forms of Elder Financial Exploitation

2. Reduce the risk of Elder Financial Exploitation for yourself, your clients, and your loved ones

3. Refer victims of elder financial exploitation to the Elder Rights Project and other resources

Elde r Ab use : Hidde n Epide mic

• 10% of people 60 or older are affected

• 50% of people with dementia are affected

• As few as 1 in 23 cases are reported, fewer are prosecuted

• Financial exploitation is the most common form of elder abuse

Elde r Ab use :Dire Co nse q ue nc e s

• Premature death and increased hospitalizations

• 5.3 billion in heath care costs

• Loss of wealth to

• Individuals/Families

• Businesses

• Medicare/Medicaid

Why Ta rg e t Olde r Adults?Regular income

Accumulated assets

Trusting, polite

Lonely, isolated, dependent on others

Vulnerable due to grief

Lack of experience with financial matters

Cognitive decline

Traits may be real or perceived.

Wha t is Fina nc ia l Explo ita tio n?

Ta king a n o lde r a dult’ s mo ne y, pro pe rty, o r b e lo ng ing s b y:

Manufacturing consent

Abuse of financial authority

Stealing personal information

Forging signatures or documents

What is elder financial exploitation:

Manufacturing ConsentObtaining, or receiving for less than fair market value, an older adult’s money, property, or belongings by:

◦ Deception (lies, misrepresentation)

◦ Enticement (false promises)

◦ Coercion (threats, relentless persistence)

◦ Compulsion (no other choice)

◦ Force (violence of threats of violence)

Absence of informed consent

Presence of undue influence

Example s: manufac turing c onse nt

Mother gives house to daughter after daughter promises to care for mother for the rest of her life. Once deed is signed, daughter kicks Mom out and mortgages the house.

Much younger woman starts “dating” an elderly, cognitively disabled man and gets him to pay her rent, utilities, cell phone, etc.

Step-father allows his daughter to move in temporarily. She brings several other people into the home, refuses to leave, and does not pay rent or expenses as promised.

Example s: manufac turing c onse nt

Imposter scams: grandchild in trouble, lottery winner, true love stuck in Nigeria…

What is elder financial exploitation

Abuse of Financial Authority

Substantial failure or neglect of a fiscal agent to fulfill his or her responsibilities.

Fiscal agents include:◦ Power of attorney for property/finances

◦ Representative payees

◦ Conservators

◦ Guardians of the estate

◦ Informal agreement to “pay bills”?

Example s: abuse of financ ial authority

Granddaughter uses her authority under a POA-F to transfer two deeds into her name and take $30,000.00 from Grandma’s savings.

Nephew uses his authority under a POA-F to cash in his aunt’s stock and purchase a summer home up north.

Neighbor obtains POA-F over a grieving widower and immediately starts taking money from the elder’s account and using it to pay his own bills and buy things for himself.

What is elder financial exploitation

Identity Theft

Unauthorized use of someone’s personal information or documents (SSN, PIN, credit card, etc.) to obtain something of value.

Use of existing credit/debit cards

Opening new credit cards

Opening utility accounts

Taking out a payday or other installment loan

Note: Equifax situation is a “data breach” until someone uses the stolen information to obtain something of value.

Example s: Ide ntity The ft

Son takes Mom’s credit card from her purse and uses it without her permission to buy things for himself.

Son who lives with Mom takes the credit card application from the mailbox and opens a new account in Mom’s name without her permission and buys things for himself.

Grandson uses grandpa’s personal information to electronically co-sign his student loan.

What is elder financial exploitation

Forgery

Falsely making or altering any writing with intent to defraud

Examples:

Elderly woman gives her roommate her purse for safekeeping when she goes into the hospital. He writes several checks to himself while she is gone and forges her signature.

Niece forges her aunt’s signature on a quit claim deed transferring ownership of the property to herself.

Re duc ing the Risk o f Elde r Fina nc ia l Explo ita tio n

Wa rning Sig ns o f Fina nc ia l Ab useBasic needs being unmet

Poor physical condition (dehydration, malnourishment)

Unusual banking activity – especially large, even numbered withdrawals

Inability to explain the nature/consequences of the transaction

Disappearance of financial/legal docs or checkbooks

Strained or tense relationships with family (AODA, mental illness)

Withdrawn/Isolated/Submissive

Tip # 1: Put yo ur trust in the rig ht pe o p leDon’t appoint someone with money problems or vices as your fiscal agent

Beware new “friends” who offer to assistance

Require your fiscal agent to provide a regular accounting to you or someone you trust

Tip # 2:Re vie w fina nc ia l sta te me nts a nd c re d it re po rts re g ula rly 60 days to dispute fraudulent credit card charges, as little as 7 days

to dispute fraudulent debit card charges

Free report from each agency once per year

Free report if you are the victim of fraud or identity theft

www.annualcreditreport.com

1-877-322-8228

Tip # 3:Ke e p pe rso na l info rma tio n priva te SSN, birthdate, bank account numbers, credit card

numbers, PINs, and passwords (liable for MISUSE of these things)

Shred, shred, shred

Beware phone calls or e mails from the IRS, Social Security, Medicare, your bank, etc.

Tip # 4:Do n’ t wire mo ne y

Preferred method of payment by scammers Same as giving someone cash No protections, unlike credit cards, debit cards

or checks Report scammer to the FTC and the wiring

agency

A RESOURCE FOR FINANCIAL EXPLOITATION VICTIMS

Sta te wide Co lla b o ra tio n

•1968

•39 southern counties

•Free civil legal aid to low-income and elderly people

JUDICARE

•1966

•33 northern counties

•11 American Indian tribes

•Free civil legal aid to (mostly) low-income people

LEGAL ACTION OF WISCONSIN

Vic tims o f Crime Ac t (1984)

Goals for Victims◦ Response to physical,

emotional needs

◦ Stabilize lives

◦ Understanding of, participation in, criminal justice system

◦ Safety

Funding

•Fees and fines of convicted federal offenders

Elig ib ility

• Wisconsin resident

• 60+

• Victim of crime (elder abuse)

• Civil legal need related to victimization

• No income or asset limits

• No criminal charges, convictions or police report required

Se rvic e s

Protection Orders◦ Domestic abuse/Harassment

◦ Individual at Risk

Landlord/Tenant Matters◦ Defending evictions related to abuse

◦ Evicting abusers

Review/Revoke abusive POAs

Recover money and property

Foreclosure defense

Identity Theft

Ho w to re a c h us

Option 1:

Referral from a social service agency

Option 2:

Call the toll free intake line at 1-844-614-5468 open Monday through Friday from 8:30am to 4:00pm

Note: we need to speak with the potential client directly.

844-614-5468Que stio ns?