Seniors Victimized in Financial Elder Abuse Scams

Sacramento, CAAs the number of people in their senior years increases, so, too, does the number of people willing to take advantage of seniors, making them victims of financial elder abuse. And, while some financial elder abuse is committed by the victim's family members, there is no shortage of so-called professionals who will portray themselves as experts in a certain field so they can con the senior out of his or her hard-earned money.

Some seniors are catching on to the game and are refusing to allow the abuse to go on. Case in point: an elderly couple in California was approached earlier this year by a man who claimed to be a contractor. The man offered to repair the couple's roof, worked for 2 hours and demanded $1,900.00 for the work he did. According to Rocklin Today, a local newspaper, the couple felt intimidated by the man and paid him the money, although they did not want to. Afterwards, the couple phoned the police to file a complaint. An investigation showed that the repairs the "contractor" claimed to have done were either not necessary or were not done at all. In fact, the man and his crew actually vandalized the seniors' roof.

The contractor was arrested on suspicion of financial elder abuse, burglary, theft and vandalism.

Unfortunately, this situation occurs far too often. A senior is approached by someone offering to help but is then taken advantage of by that person. Sometimes it is a roofing contractor, or a window washer or a landscaper, but the results are generally the same—the senior's money is taken and the work is not completed or is sub-standard.

There are other ways that seniors are taken advantage of, too. They may be sold lifetime memberships that they have no hope of using or their advisors may convince them to make investments that are completely unsuitable for them. Or, the advisors may simply make the investments without telling them. Wondering what an unsuitable investment is? Well, investments that are highly risky are generally unsuitable for people living on a retirement income. Other unsuitable investments are those that mature many years after the initial investment, when the person doing the investing is in her 70s or older.

In some cases, the person victimizing the elder is a trusted friend or caregiver. The caregiver may convince the elderly person to give her expensive items from the home in exchange for care or may even convince the senior to sign over power of attorney. By the time the senior discovers anything is wrong, a lot of money may already be missing and the senior may have been isolated from friends and family, left with nowhere to turn for help.

A major problem with identifying financial elder abuse is that the elder's decisions often seem rational to him or her. "My roof needs fixing, this man is willing to fix it right now and then I don't have to worry about it any more. So what if the price is a bit higher than I'd like it to be?" or "I need a caregiver to help me out, this woman already knows me and I like her. Why not pay a few thousand dollars extra, if it means I have her to help me when I need it?"

However, in these situations, the senior has been taken advantage of, and even though the decision seems rational, it is still financial elder abuse. The abuser has recognized the senior's vulnerable state and used it for personal gain, to the senior's detriment.

Financial elder abuse is a growing problem, one that will likely become even bigger with the recent economic downturns. After all, when times are tough some people look to the easiest means possible of making money, even if those means are illegal. That puts seniors at risk of being targeted for their money and other personal property.