Financial Abuse

Cases of physical abuse or emotional abuse are often at the forefront of many nursing home abuse reports. However, there is one type that not many people discuss but still brings significant consequences to those affected: financial abuse.

This type of abuse is a devastating type of crime. Usually, it involves the unauthorized, illegal, and improper use of the resident’s money, property, and assets. In many cases, it is not discovered until after the person’s death, leaving family members searching for answers.

While financial abuse does not leave physical scars, this type of abuse is the most destructive of all.

By using their role as a caregiver, fellow residents, or even family members, these perpetrators prey upon the most vulnerable and manipulate them for their own benefit.

Statistics on Financial Abuse

A recent World Health Organization survey found that 1 in 6 older adults have suffered some type of abuse. Every year, 5% of seniors become the victim of financial fraud or exploitation, according to the United States Justice Department.

To make matters worse, many of these instances have been perpetrated by caregivers. In 2022, around 64% of long-term care staff report committing some type of abuse against residents.

Unfortunately, many of these cases go unreported.

Defining Financial Abuse

This type of impropriety can occur in many ways. Often, the victims of this exploitation don’t know that someone has taken advantage of their assets or finances. Some of these crimes are simple acts of theft, while others look to exploit a person’s assets.

Here are some types of financial abuse that can happen to a nursing home resident:

• Theft involves taking money or property without the owner’s consent. Often, a caregiver, another resident, or a family member takes money from a resident’s wallet or steals valuable items from their room.
• Fraud involves deception for personal gain. These criminal actions can include forging checks, making unauthorized credit card charges, or deceiving an older adult into investing in a fraudulent scheme.
• Exploitation centers around misusing a resident’s funds, property, or assets. For example, someone could convince a resident to sell the property at a price below market value or manipulate them into changing their will or power of attorney.
• Deception and coercion are often used to perpetrate financial abuse. An abuser might make a resident believe that they owe them money or coerce them into signing financial documents that they don’t understand. Sometimes, this can include forging their signature or pressuring them into signing a deed, will, or power of attorney.
• Undue influence manipulates the resident’s decisions through persuasion. A caregiver becoming a trusted figure in a resident’s life could create a power imbalance. As a result, they could use that influence to pursue a resident to make financial decisions that benefit them.

Examples of Financial Abuse

Financial abuse of the elderly can take place in several ways. These crimes are often subtle and unnoticed until significant damage has been done. According to the National Adult Protective Services Association, some examples include:

Unusual Activity in Bank Accounts

One of the most common signs of financial abuse is unusual activity in a resident’s bank accounts. This could include:

• Frequent, unexplained withdrawals
• Large transfers to unfamiliar accounts
• Sudden changes in banking habits

These activities may indicate that a nursing home resident is being manipulated or coerced into making financial decisions that are not in their best interest.

ATM Withdrawals

Another sign of potential abuse is when an older person who has never used a debit or ATM card suddenly starts making ATM withdrawals. In these cases, someone else is using their card without their consent, or they are being forced to withdraw money against their will.

New Powers of Attorney

The creation of new powers of attorney that the older person does not understand can be a sign of financial abuse. This legal document gives someone else the authority to make decisions on behalf of the person who created it. If a resident is pressured into signing a power of attorney without understanding its implications, it could lead to financial losses.

These are just a few examples of how financial abuse can occur. Unfortunately, financial abuse can take many forms. Financial abuse is a crime, and it should be reported to the local enforcement authorities.

Perpetrators of Financial Abuse

When fraud, theft, and other money-related crimes like the ones described above occur in nursing homes, they’re often perpetrated by those who are closest to the elderly. While family members can exploit a resident, many of these crimes are committed by staff members and caregivers within the facility.

They may steal cash or belongings from the individual, or convince them to sign over valuable property.

These individuals use their relationships to take financial advantage of residents. What’s concerning is that those who are supposed to be caring for and protecting the elderly are often the ones exploiting them.

If you suspect financial abuse, you should report your suspicions to the appropriate authorities, such as:

• Report to the nursing home administrator: The first step is to report your suspicions to the administrator. They are responsible for the safety and well-being of the residents and should take your concerns seriously.
• Contact your local adult protective services (APS): APS is a local or statewide social services program that helps seniors and adults with disabilities who need assistance. They are typically the first agency to respond to reports of nursing home abuse.
• Reach out to local law enforcement: Financial abuse is a criminal offense. If you believe a crime has been committed, you should report it to your local law enforcement agency. This could be your local police department or sheriff’s office.
• Consult with a nursing home abuse attorney: If the financial abuse is severe or if the nursing home fails to address the issue, you may want to consult with a nursing home abuse attorney. They can guide your legal options and help protect the rights of the person involved.

Financial abuse in nursing homes is a serious and widespread problem. You will want to be aware of the signs that this costly crime is occurring.

Find out how you can take action if you suspect that a nursing home resident is being exploited.