Elder financial abuse—sometimes called elder financial exploitation—is a form of elder abuse.
Alma’s story
Imagine that Alma’s grandchild offers to run errands for Alma. The grandchild takes Alma’s debit card and promises to pick up her favorite shampoo. Instead, the grandchild makes several purchases using Alma’s debit card, including buying himself a new TV. This is an example of financial abuse.
Neighbors, caregivers, professionals, and even family or friends may try to take advantage of people as they age. They may take money without permission, fail to repay money they owe, charge too much for services, or not do what they were paid to do. These are examples of elder financial abuse.
Anyone of any age can experience financial abuse. However, some people may be at greater risk of becoming the target of financial crimes than others. As people age, they may become bigger targets for financial abuse because they have built up their savings and property during their lives.
People may also experience changes in their thinking processes that can make it harder for them to make financial decisions or to recognize scams. The percentage of people living in assisted living communities and nursing homes who have trouble with memory and thinking skills is much higher than in the general population. Although people experiencing these challenges are often more vulnerable to financial abuse, it is important not to assume all older adults experience these challenges.
As a family member, friend, or caregiver, you are in a unique position to help protect your loved one from financial abuse. This guide can help you prevent abuse or prepare you to step in if necessary.
Elder abuse, sometimes called “abuse, neglect and exploitation,” includes many types of mistreatment of older adults. The National Center on Elder Abuse describes seven types of elder abuse at ncea.acl.gov:
- Physical Abuse
- Sexual Abuse
- Emotional or Psychological Abuse
- Financial Abuse or Exploitation
- Neglect
- Abandonment
- Self-neglect
Under Texas law:
- People who commit crimes against vulnerable members of society, including those aged 65 or older, may face enhanced penalties, including jail time, fines, and the loss of a license to work as a caretaker.
- Anyone that suspects elder abuse must report it to an appropriate agency, normally local law enforcement. Such reports may be made anonymously. Once an incident is reported, law enforcement must conduct an investigation and notify Adult Protective Services.
- Banks and credit unions have specific obligations to investigate and report suspected financial abuse that is identified by an employee. More detail about those obligations can be found at: https://statutes.capitol.texas.gov/Docs/FI/htm/FI.281.htm.
Texas also has specific civil statutes around elder abuse, which generally focus on abuse by persons in a position of trust, which usually means they have a close relationship, or they are professionals with a legal or financial duty to the elderly person. Some examples of people who might be “in a position of trust” include a family member, romantic partner, caregiver, lawyer, or financial planner. A summary of Texas elder abuse law can be found at: https://www2.texasattorneygeneral.gov/seniors/elder-abuse.