What Are the Most Common Types of Elder Financial Fraud

Among the most common types of elder financial fraud include abuse of power of attorney and unauthorized account use. If you believe one or both of your parents is the victim of financial abuse, seek legal help. Partner with an investment fraud lawyer who can help you take legal action. 

A broker misconduct lawyer can build an argument that shows a person chose to put your parent’s finances in danger. Your attorney will share legal resources and prepare your case.

Along the way, they will address your elder financial fraud risk factor concerns and questions and help you make informed legal decisions. 

What Is Elder Financial Fraud?

Elder financial fraud impacts older adults. Criminals can target these individuals and offer goods, services, or financial benefits in exchange for money. Once an elderly person gives someone the money they request, they may never see a return on their investment. 

Criminals may promise things without ever actually planning to deliver after an elderly person invests. Alternatively, they may misrepresent information in the hopes that an older individual will give them money or access to their bank accounts or credit card information.

An attorney can explain what elder financial abuse is and provide insights into its short- and long-term ramifications. If you believe your parent is the victim of such abuse, ask a lawyer for help.

That way, you and your lawyer can work together to protect your parent and others against further harm and hold a liable party accountable for their actions.

5 of the Most Common Types of Elder Financial Fraud

The most common forms of elder fraud can cause serious problems for older adults nationwide. Your parent may be the victim of financial abuse without realizing it, and a lawyer can help you get to the root of this issue. Here are common types of elder financial abuse and how they could impact you and your family. 

1. Abusing Power of Attorney

With power of attorney, a third party has the right to make legal decisions on behalf of someone else. Unfortunately, an older adult can provide this right to someone who decides to use it for their personal gain.

A lawyer can provide details about what power of attorney is and how someone could potentially exploit it. 

2. Telemarketing Scams

Your parents could receive phone calls from individuals who ask for their personal information. If they believe what a caller is saying is true, they may be inclined to share their contact and bank account details.

A lawyer can discuss how to stop telemarketing calls before they can lead to financial abuse.  

3. Fraudulent Investment Seminars

Let your parents know to be cautious if they receive investment seminar letters, as these can be used for financial exploitation. Criminals may invite older adults to seminars and promise them free lunches and other perks if they attend.

If successful, criminals can convince these adults to attend seminars and sell them on investments that do not actually exist.

4. Affinity Fraud

This form of financial exploitation occurs when an elderly adult meets someone through a church, hobby, or club and builds a relationship with them.

As this bond grows, the older adult trusts the other person. They may be ready to give them money for investments, and the other party may use it for themselves. 

5. Social Media Scams

Criminals can use Facebook, X, and other social media platforms to connect with older adults. They can publish content that makes these adults believe they are offering lucrative investment opportunities. Yet, after an elderly individual invests, they may never reap the benefits of their decision to do so. 

If you are worried about either of your parents becoming victims of financial abuse, request legal help. A lawyer can teach you about the signs of elder investment fraud. They can help your parents, friends, and others defend against this and comparable issues. 

How to Deal With Elder Financial Abuse

Do not wait to share your financial exploitation concerns with your parents. There are many investment scam risks for Baby Boomers and members of the Silent Generation.

You should explain these to your parents and discuss your concerns in detail. Here are things you can do to identify elder financial abuse, prevent it from happening, or mitigate the issue. 

Track Financial Statements

Examine your parents’ bank account and credit card statements. If you notice any questionable charges, ask your parents about them. From here, you can identify suspicious activities and report them to a bank or credit card company. 

Monitor Credit Reports

Teach your parents how they can learn about their credit report and how to get a copy of it. Your parents are eligible to receive a free copy of their credit report from each of the three credit reporting agencies (Equifax, Experian, and TransUnion) annually.

Take advantage of this benefit, as credit reports can help you detect unusual activity and other signs of financial abuse.

Notify the Authorities

Err on the side of caution relative to elder financial exploitation. Get in touch with your local police department for assistance with reporting this issue. Police officers can help you share relevant information with the FBI, Federal Trade Commission (FTC), and other national agencies. 

Remain diligent in your efforts to combat elder financial exploitation. The risk that your parents will suffer financial exploitation is persistent.

Continue to keep an eye out for possible investment scams and similar crimes, and you could help your parents protect their financial well-being.

How the Authorities Deal With the Financial Exploitation of Older Adults

Elder abuse should not be tolerated under any circumstances. The authorities understand this, and they will give elder financial exploitation claims their undivided attention. They will ofteninvestigate individuals who may have committed crimes against an elderly person and, if warranted, arrest them.

A lawyer who has experience in cases involving financial exploitation and elder abuse may be able to help you recover compensation from any liable parties. Your attorney will examine the facts of your case. They can help you build an argument that shows your parents are victims of exploitation. 

Your attorney can provide resources to assist you with your legal proceedings. They will focus on helping you achieve your desired case results. If you have an abundance of proof, you may be well-equipped to secure a favorable outcome. 

How to Prove Elder Financial Exploitation

It is your responsibility to make it clear that one or both of your parents is the victim of financial exploitation. As part of a lawyer’s wide range of legal services, they can help you gather evidence to strengthen your case against a liable party. Proof you could use with your elder fraud complaint includes:

Financial Records

Collect bank account and credit card statements and other financial records. These can show if large withdrawals or transfers were completed without proper authorization, giving you crucial documentation. 

Legal Documents

Find out if there are power of attorney or other legal documents relating to your parents’ finances. If there were recent changes to any of these documents, this may indicate that your parents were subject to financial exploitation.

Your attorney can use your legal documentation to argue that elder abuse occurred and that the perpetrator behind it should be held responsible.

Witness Statements

If friends or others saw things happen that point to financial exploitation, ask them to submit statements for your case. These statements can relate to the care and support your parents received from people who had legal authority or held positions of power. They can help prove that your parents may have been dealing with undue influence.

When in doubt about evidence for your case, get legal assistance. A lawyer can provide legal services and resources that serve you and your family well. They will ensure your legal needs are met throughout your litigation. 

Trust an Investment Fraud Attorney to Help You Address Elder Financial Abuse

Common scams can put your parents in a financial bind. You cannot change that your parents may have been financially exploited. However, as soon as you see the warning signs of financial abuse, you can work with an attorney who can learn about your case and teach you about your legal options. 

The Meyer Wilson team has more than 75 years of combined legal experience. We offer legal services and resources to those dealing with elder financial exploitation. Schedule a consultation with our team if your parent has suffered more than $100,000 of losses.