The Older Americans Act of 2006 defines elder financial abuse, or financial exploitation, as “the fraudulent or otherwise illegal, unauthorized, or improper act or process of an individual, including a caregiver or fiduciary, that uses the resources of an older individual for monetary or personal benefit, profit, or gain, or that results in depriving an older individual of rightful access to, or use of, benefits, resources, belongings, or assets.”[1] Family members and informal or paid caregivers have special access to seniors and thus are often in a position to inflict financial abuse through deception, coercion, misrepresentation, undue influence, or theft.
Sometimes, family members take money or property from their elders because of gambling or other financial problems or substance abuse.
[2] Seniors are also often deliberately targeted by scams, fraud, and misleading marketing – often by otherwise legitimate businesses.
For example, the AARP found that lottery fraud victims were more likely to be women over 70 living alone, with lower education, lower income, and less financial literacy, while victims of investment fraud were more likely to be men between the ages of 55 and 62 who were married, with higher incomes and greater financial literacy.
The primary difficulties in estimating the size of the problem are: Other effects include damage to credit, missing work, depression, and loss of sleep.