What is Elder Financial Abuse? Elder financial abuse is the illegal - - PDF document

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BROKEN TRUST: Elders, Families, and Finances

• Pamela. B. Teaster, Karen A. Roberto,

John N. Migliaccio, Robert Blancato, Susan Lawrence, & Brandy Renee McCann

Association for Gerontology in Higher Education March 2011

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What is Elder Financial Abuse?

Elder financial abuse is the illegal Elder financial abuse is the illegal taking, misuse, or concealment of funds, property, or assets of a vulnerable elder at risk for harm by another due to changes in physical f i i l f i i b h functioning, mental functioning, or both.

• --National Center on Elder Abuse

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Prevalence of Elder Financial Abuse

• Financial abuse is the 3rd most
• Financial abuse is the 3rd most

commonly substantiated type of elder abuse.

• For every known case of elder financial
• e e y
• case o e de

a c a abuse, it is estimated that 4 to 5 cases go unreported.

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Elder Financial Abuse

“Crime of the 21st Century”

• -J F Wasik Journalist

J.F. Wasik, Journalist

• 2008 estimated reported loss by victims of

financial elder abuse: $2,600,000,000

• Tens of billions in additional costs for health

care, social services, investigative and legal costs, and lost income and assets

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Growing Population, Social Change, Technology . . . Increasing Opportunity

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Why are Older Adults Tempting Targets of Financial Abuse? A l d l h

• Accumulated wealth
• Often home alone/socially

isolated

• Need for caregiving and

“helpers”

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Broken Trust: Elders, Family, and Finances

Comprehensive understanding about elder financial abuse

• Personal
• Institutional
• Institutional
• Societal

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How did we get our data?

• Searched 12 electronic databases for

journals with literature about elder abuse from 1998-2008.

• Reviewed all newsfeed articles gathered

by the National Center on Elder Abuse by the National Center on Elder Abuse from April 2008 through June 2008.

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Academic and Trade Literature

• 168 unduplicated articles from
• 168 unduplicated articles from

journals in the social science, medical, and legal disciplines.

• 110 unduplicated articles from
• rganizational and trade.

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Victims of Financial Abuse

APS Data: The “typical” victim is between yp the ages of 70 and 89, white, female, frail, and cognitively impaired. Others suggest that victims come from all walks of life regardless of age gender walks of life, regardless of age, gender, race/ethnicity, or socioeconomic status.

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Older Women are Vulnerable . . .

• Women live longer
• Greater numbers of
• lder women than
• lder men
• First time responsible

f h h ld for household finances

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Older Men are Vulnerable . . .

• First time responsible

First time responsible for household tasks

• Looking for

companionship

• More risk-taking than

g women – get rich quick schemes

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Racial/Ethnic Group Differences

• African-Americans and White Americans

t d t d t ki f ld tend to regard taking money from an elder “because she would want me to” or “because I am going to get it all anyway” as unacceptable In other c lt res s ch as that of Korean

• In other cultures, such as that of Korean-

Americans, taking money or items often is regarded as acceptable

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Perpetrators of Elder Financial

Perpetrators of elder financial abuse are Perpetrators of elder financial abuse are not always strangers, but people who have gained the trust of the older adult

• Business representatives
• Service professionals

Service professionals

• Family members

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Common Traits of Perpetrators

• Exhibit excellent persuasion skills

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• Good at cultivating relationships
• “Undue influence”

Undue influence

• Immediate decision

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Other Findings Suggest . . .

• Diminished cognitive abilities create

t l bilit t fi i l b greater vulnerability to financial abuse

• Changes in families alter responsibility

and oversight for providing care

• Artful and designing ways to exploit

Artful and designing ways to exploit elders are increasingly varied

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NCEA Newsfeeds

• Put a face on the information reported in

the literature

• Provided real-time information on elder

financial abuse

• Identified 357 articles on elder financial

abuse of a total of 1 007 articles cited abuse of a total of 1,007 articles cited. –Of these, 266 (75%) reported specific instances of elder financial abuse

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NCEA Newsfeeds Additional Info

• Types of articles other than actual abuse

– Warning of scams – Forum announcements – Meetings to educate public – Announcing World Elder Abuse Awareness Day – Legislation Changes

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State Breakdown of Articles

State Cases Warning/Forum Legislation California 44 13 1 Florida 37 5 2 Florida 37 5 2 New York 15 7 Illinois 13 2 North Carolina 11 2 Oregon 11 Minnesota 10 1 Texas 10 2 Missouri 7 1 1 Kansas 3 1 2 Michigan 8 4 2

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Elder Financial Abuse

An Equal Opportunity Crime

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Victim Profiles – Gender & Age

• 69 Men

25% aged 70 79* – 25% aged 70-79* – 39% aged 80-89*

• 130 Women

– 19% aged 70-79* – 30% aged 80-89*

95 N t t d

• 95 Not reported

* Age percentages are based on those reported: men 52; women 84

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Perpetrator Profiles – Gender Age

• 141 male

31% d 40 49* – 31% aged 40-49* – 28% aged 50-59*

• 116 Female

– 26% aged 30-39* – 31% aged 40-49*

* percentages are based on 108 males and 97 females

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Businesses & Institutions

• Trusted Others

– Bankers, attorneys, trustees – Insurance & annuity salesmen

• Medicare/Medicaid Fraud

ALF/SNF/P l C H

• ALF/SNF/Personal Care Homes

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Elder Financial Abuse - Businesses

• Overall amount lost $250 152 744

Overall amount lost $250,152,744

• Guise of trustworthiness of a business
• Examples

– Life and health insurance misrepresentation – Predatory lending – Internet scams – Identity theft

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Elder Financial Abuse - Acquaintances and Strangers

T l l $3 266 3

• Total amount lost  $3,266,377
• Extend “helping hands” – later defraud
• Examples:

– Neighbors, – Apartment managers – Apartment managers – Home health aides – Ministers – Those with power of attorney – Guardians

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Strangers

• Contractors

– Roofers – Local “handyman”

• Instances of “Traveller” services

– Especially after natural disasters

C i i l

• Criminal

– Robbery, Rape, Drugs etc.,

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Elder Financial Abuse - Family

Total amo nt lost $10 661 236

• Total amount lost  $10,661,236
• Most likely to exploit elder
• Examples:

Ad lt hild – Adult children – Grandchildren – Other relatives & fictive kin

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Implications of Broken Trust

• A new study.

Q tifi bl d th fi di h l d

• Quantifiable and newsworthy finding helped

by the fact that the estimated amount was in the billions.

• Cited in numerous bills and statements made

in conjunction with bills and hearings in a bipartisan fashion because it was new bipartisan fashion because it was new.

• Because it was involved in newscripts, the

media saw it as credible.

• Used as a resource that was readily available

to the public versus being made up.

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Use in the Media

• Though February 2011, Broken Trust has received

502,780,198 media impressions. p

• One of MetLife’s most widely cited publications.
• Top outlets:
• Wall Street Journal Online
• Washington Post Online
• Washington Post Online
• New York Times Online
• Boston Globe Online
• AARP Bulletin
• MSNBC.com

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The Elder Justice Act

• Passed in March of 2010 after years of

attempts for passage attempts for passage

• Authorized funding of approximately $195

million per year for four years

• Obama’s FY 2012 Budget Proposal requests

$21.5 million in funding for the EJA

• For APS: $16.5 million
• Long-Term Care Ombudsman Program: $5

million

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Questions

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