Financial Abuse and Financial Exploitation
abuse is a social problem of increasing magnitude in the United States,
and recent research suggests that elder abuse affects 15-20% of
populations in parts of Europe, Asia, and the Middle East.
Millions of Americans aged 65 or older have been injured, exploited, or
otherwise mistreated by someone they depend on for care or
protection. Elder abuse costs more than $2.6 billion per year.
financial abuse, also known as financial
exploitation, is a common precursor to physical abuse,
elder homicides, neglect and abandonment, emotional abuse, and other
crimes. Financial abuse may occur through numerous methods,
including the misuse of powers of attorney and guardianships, illegal
transfers of property, misuse of a position of trust and
authority, consumer fraud, identity theft and outright theft.
Nobody knows the exact incidence or prevalence of elder financial
abuse, but it is estimated there may be five
million victims per year. Most cases
are not reported to authorities. As few as one out
of twenty-five cases of financial abuse, and only one out of fourteen
cases of all forms of abuse, are reported.
concerns arising in elder financial abuse involve issues regarding: 1)
the relationship between the elder and supposed perpetrator; and 2)
biological factors that may impair the victim’s ability to know and
understand what was happening. If a relationship was
manipulated in order to defraud or financially exploit the victim, it
is important to determine whether the elements of undue influence were present. If there was no
misuse of a relationship, then the financial abuse is usually
considered to be a form of theft or consumer fraud – identity theft,
Internet scams, embezzlement, etc.
illness, disability, and medication use is common within the elderly
population, it is often necessary to determine whether the
victim’s mental capacity or competency is (or was) impaired. Medical
expertise is not always required to make this determination.
For more information, read about the PARADISE-2 protocol. This protocol is currently taught and
used throughout much of the United States, Canada, and Europe.