As my father entered his 90s, the number of donation appeals he received in his mailbox grew significantly. Despite his frugal nature, he often found himself sending out small checks to various causes. However, he couldn’t help but suspect that his information was being sold, leading to an influx of requests for money. This raised an important issue that is often overlooked in society – financial exploitation of older adults.
Financial exploitation can take many forms, from excessive pressure in fundraising requests to predatory actions by trusted individuals such as accountants or even family members and friends. In addition, there are strangers who devise scams to prey on aging Americans, pretending to be charities, relatives, or even potential romantic partners.
Having worked as a civil-fraud prosecutor and launching an initiative to protect older people at the Department of Justice, I became aware of the invisible harms faced by older adults targeted for their money. The full scale of the problem is unknown, but it is clear that victims of financial exploitation are disproportionately over the age of 60. People in their 70s report higher median losses than younger individuals, and those over 80 report the highest median losses of all. Estimates for the annual amount of money lost to elder financial exploitation vary, but it is believed to be in the hundreds of millions to tens of billions of dollars.
The problem is compounded by the fact that people over 60 are less likely to report fraud. This is concerning, considering that the population of individuals aged 85 and older is expected to double by 2040. Our society is ill-prepared to protect this growing demographic from financial exploitation.
The harm inflicted on older adults due to financial exploitation is severe and often underestimated. Some victims lose their homes or precious belongings, while others can no longer afford the care they need. The financial loss can also lead to declines in physical and mental health, pushing individuals from independence to dependence. Studies have shown that elder mistreatment, including financial exploitation, triples rates of premature mortality and quadruples nursing-home admissions among victims.
The impact goes beyond the victims themselves. Adult children may lose their family homes, see their inheritance dwindle, or be burdened with caregiving responsibilities. Trying to protect older adults from exploitation can cause distress for concerned relatives and friends.
While anyone can fall victim to financial exploitation, cognitive impairment increases the risk. As individuals age, their memory and executive function decline, affecting their financial capacity. Some individuals experience a decline in financial capacity long before any dementia diagnosis. Isolation and loneliness, prevalent issues among older Americans, can further exacerbate the risk.
Con artists often rely on various schemes, using technology to make their scams more convincing. They may impersonate law enforcement, lawyers, or medical professionals to create fear and urgency. Scammers targeting older individuals often use religious dating sites to prey on those who trust people with shared faith. Even legitimate organizations and professionals may unknowingly pressure older individuals to donate without considering their financial capacity.
Furthermore, individuals who start out in legitimate roles can become predators. Trusted professionals, such as lawyers and brokers, can exploit their knowledge of an elder’s financial and cognitive situation. Exploitation within families is also prevalent, with estimates suggesting that family members steal on average two and a half times more than strangers in each instance. Conflicts over money within families can lead to exploitation, especially when entitlement and justifications come into play.
Financial exploitation of older adults is a serious issue that needs to be addressed. It not only affects the victims themselves but also has far-reaching consequences for their families and caregivers. Society must prioritize the protection of older adults and develop effective measures to prevent and address financial exploitation.
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