Elder Financial Exploitation a Growing Concern as Losses Reported to Have Grown 84% Over 2021
Elder abuse is an issue that poses a significant and detrimental threat to the well-being of older individuals. It’s a pervasive problem according to the Department of Justice, with at least 10% of adults aged 65 and older experiencing some form of abuse within a given year. Elder abuse entails the deliberate action or neglect by a caregiver or other person in a relationship involving an expectation of trust that results in harm or potential harm to an older adult. It can take various forms, including physical, emotional, sexual, financial, as well as neglect or isolation. Elder financial exploitation in particular is a growing concern, as the FBI’s Internet Crime Complaint Center’s (IC3) recently reported an 84% increase in total losses to seniors between 2021 and 2022.
What is financial elder exploitation? ¶
Financial exploitation, one of the most prevalent forms of elder abuse, refers to the illicit or improper exploitation of an older person’s financial resources or assets. This may involve unlawful or inappropriate financial decisions, coercing or deceiving the individual into parting with their money or property, or taking advantage of their vulnerability or diminished capacity.
Scammers call unsuspecting seniors pretending to work for government agencies threatening action if they don’t pay immediately and/or provide personal information. Fraudsters can even spoof contact information of a government agency or zip code to con you into believing legitimacy.
Sweepstakes and Lottery Scams¶
Losses from sweepstakes and lottery scams grew approximately 50% in 2022. Scammers contact seniors and tell them they won a prize, but to claim their prize, they must send money, sometimes totaling thousands of dollars, to cover taxes and other fees. These scammers even impersonate well-known sweepstakes organizations.
Tech Support Scams¶
These scams typically start with a pop-up message that tells the elderly individual that their device is damaged and requires repairs. When the senior contacts them for assistance, scammers often request remote access to their device. Per the latest statistics from 2022, seniors account for 58% of these reports and 68% of total losses, with an average loss of $17,117. In other scenarios, scammers request that the senior sends them money. Fraudsters sometimes impersonate customer support representatives from well-known companies.
Confidence Fraud and Romance Scams¶
As your online presence grows, so does your risk of loss from “Romance” or other confidence scams. In fact, losses from these scams increased by nearly 85% over the last two years, with an average loss of $56,422. These begin when fraudsters create elaborate, fake profiles, often on social media. The fraudster may “groom” their victims for several months before asking for money. A common story is that they are stuck overseas and request money to finance visas, emergency medical expenses, or travel costs to visit the senior. In other situations, the criminal may call the elderly individual and ask them for money, impersonating a younger relative, also known as the “grandparent scam”.
You can visit the FBI’s website for additional information on the most common scams at: https://www.fbi.gov/how-we-can-help-you/safety-resources/scams-and-safety/common-scams-and-crimes/elder-fraud.
The statistics are staggering¶
Recent reports estimate that older Americans lose an estimated $3 billion annually due to financial exploitation; however, the rate of underreporting is estimated at 1:44 cases so actual losses are significantly higher. Underreporting can be caused by a number of factors, including fear of retaliation, shame or embarrassment, dependency on the assailant, being unaware of what abuse and neglect are, and being unable to come forward due to physical or cognitive impairments.
According to IC3’s 2022 Elder Fraud Report, more than 88,000 victims over the age of 60 reported losses of $3.1 billion. Tech support fraud ranked second for victim loss behind investment fraud. Third on the list was Email Compromise —where criminals send an email message that appears to come from a known source making a legitimate request. The average loss per older adult was $35,100 in 2022.
Who is most at risk? ¶
The main targets of financial elder abuse are adults over the age of 65, and those living with cognitive impairments may be at an even higher risk. Individuals with disabilities like dementia or Alzheimer’s are particularly susceptible to financial abuse, as their impairments can be exploited by perpetrators seeking to gain control of their finances or use them to their own advantage.
Other risk factors for financial elder abuse are social isolation, lack of support system, or living alone. Limited social connections can allow perpetrators to more easily manipulate or control an older person and their finances. Seniors who have feelings of loneliness or isolation may be seeking connection and companionship, which perpetrators will take advantage of. Financial elder abuse can affect older adults from all socioeconomic backgrounds, those with higher levels of wealth and/or assets are typically more attractive to perpetrators.
According to the California Department of Aging, the population aged 60 years and over is expected to grow more than three times as fast as the total population and this growth will vary by region. Santa Barbara County is home to a substantial number of older adults and retirees, and the elderly population aged 60 and over is expected to increase by 119% by the year 2060. In the San Luis Obispo County, the projected increase by 2060 is 89%. Given the demographics, the Central Coast of California may be more vulnerable to financial elder abuse. Residents should be particularly vigilant and aware of the signs that may indicate that an older person is experiencing abuse.
June 15, 2023 is World Elder Abuse Awareness Day (WEAAD)¶
In light of World Elder Abuse Awareness Day (WEAAD), it’s important to discuss the availability of resources aimed at preventing elder abuse. Elder abuse, especially financial exploitation, can have devastating effects on the lives of older individuals, including premature mortality, depression, cognitive decline, financial devastation and the inability to pay for necessary care, placement in nursing homes, and even suicide. The best defense against financial elder abuse is to be proactive and to keep an eye out for signs such as isolation from friends and/or family, withdrawal from normal activities, being secretive, unpaid bills, sudden change in spending habits, unusual activity in bank accounts, withdrawals or transfers that elder cannot explain, or sudden new “friendships”. Fortunately, if you or your loved one suspects that financial abuse is occurring, there are many resources available to provide assistance and support.
Where can I go to report a scam?¶
Anyone can be a victim of a scam. If you or someone you know has been a victim of elder fraud, or you want to learn more about common scams and warning signs, help is standing by at the National Elder Fraud Hotline. This is a hotline sponsored by the US Department of Justice, with staff trained to help victims ages 60 and older to file reports with agencies such as the Internet Crime Complaint Center and the Federal Trade Commission.
To report suspected abuse locally, consider contacting one of these local community resources:
- Santa Barbara County District Attorney Elder Abuse Unit/Fraud Hotline:
- English: (805) 568-2442
- Español: (805) 346-7457
- San Luis Obispo County District Attorney Elder Abuse Unit (805) 781-5800Long-Term Care Ombudsman (to report suspected abuse at care facilities):
- Santa Barbara County (805) 922-1236
- San Luis Obispo County (805) 785-0132
- Adult Protective Services
- Santa Barbara Adult Protective Services: (805) 681-4550
- Santa Maria Adult Protective Services: (805) 346-8303
- Lompoc Adult Protective Services: (805) 737-6020
- San Luis Obispo Adult Protective Services: (805) 781-1790 during regular business hours, or after business hours call (844) 729-8011
Are there resources to help recover assets?¶
If you or a loved one has been a victim of elder abuse, many resources exist in Santa Barbara County to help protect seniors and provide support in these situations:
- Santa Barbara Center for Successful Aging: (805) 898-8080
- San Luis Obispo Senior Peer Counseling: (805) 547-7025
- Senior Connection: (805) 928-2552
- Central Coast Commission for Senior Citizens: (805) 925-9554
- VA Caregiver Support Line: (855) 260-3274
- California Friendship Line: (888) 670-1360
There are also a number of resources available to help recover funds, such as local resources that provide legal assistance:
- Legal Aid Foundation of Santa Barbara County
Santa Maria: (805) 922-9909
Lompoc: (805) 963-6754
Santa Barbara: (805) 963-6754
- San Luis Obispo Legal Assistance Foundation (free legal services for seniors aged 60 and older in SLO County) (805) 543-5140 OR SLOAF.ORG
In addition to these local resources, the American Bar Association maintains an Elder Abuse Resource Page to locate attorneys specializing in elder abuse at: https://www.americanbar.org/gr...
American Riviera Bank is dedicated to taking action to prevent the exploitation of older adults, and goes above and beyond to ensure that the public is informed about financial elder abuse. Through blogs, podcasts and webinars, the Bank strives to provide information on how to recognize the signs of elder financial abuse and take preventative measures. The American Riviera Bank website features a comprehensive list of local and national resources that provide support, assistance, counseling, and legal aid for victims of financial elder abuse. By fostering a culture of knowledge and providing many helpful resources, American Riviera Bank demonstrates its commitment to protecting the well-being of older individuals within the community.
