EFE - Elder Financial Exploiation is a Global Crisis

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An estimated 1 in 5 older adults worldwide experience some form of abuse annually. In the United States alone, seniors lose a jaw-dropping $36.5 billion each year due to financial exploitation. Even more alarming, for every reported case of elder financial abuse, experts estimate there are 23.5 cases that go unreported, revealing the true magnitude of this hidden epidemic.  65% of the abusers are family members.

•  65% of the abusers are family members.  

•  A significant challenge in addressing elder financial abuse is underreporting:
• Only 1 in 44 cases of financial abuse is reported, according to the National Adult Protective Services Association.
• 87.5% of adults aged 60 and older who are victimized by someone they know never report these incidents to authorities.
• Certain factors increase an elder's vulnerability to financial abuse: Cognitive decline (e.g., dementia), Social isolation. Living alone

• Financial exploitation of the elderly can take various forms:
• Unauthorized use of assets (e.g., stealing money, using credit cards without permission)
• Fraud and scams (e.g., lottery scams, telemarketing fraud)
• Misuse of authority (e.g., abuse of power of attorney)
• Misuse of laws (e.g. overbilling and siezure of funds in estate litigation)
• Identity theft

 The law provides more detailed examples of what constitutes financial exploitation:

1. Deception or Undue Influence: Using deception or undue influence by someone in a position of trust to obtain or use the vulnerable adult's assets.
2. Breach of Fiduciary Duty: Misusing a power of attorney, trust, or guardianship appointment that results in unauthorized use of the vulnerable adult's assets.
3. Unauthorized Use: Obtaining or using a vulnerable adult's assets without lawful authority, when the person knows or should know that the vulnerable adult lacks the capacity to consent.

(7) "Financial exploitation" means the illegal or improper use, control over, or withholding of the property, income, resources, or trust funds of the vulnerable adult by any person or entity for any person's or entity's profit or advantage other than for the vulnerable adult's profit or advantage. "Financial exploitation" includes, but is not limited to:

(a) The use of deception, intimidation, or undue influence by a person or entity in a position of trust and confidence with a vulnerable adult to obtain or use the property, income, resources, or trust funds of the vulnerable adult for the benefit of a person or entity other than the vulnerable adult;

(b) The breach of a fiduciary duty, including, but not limited to, the misuse of a power of attorney, trust, or a guardianship appointment, that results in the unauthorized appropriation, sale, or transfer of the property, income, resources, or trust funds of the vulnerable adult for the benefit of a person or entity other than the vulnerable adult; or

(c) Obtaining or using a vulnerable adult's property, income, resources, or trust funds without lawful authority, by a person or entity who knows or clearly should know that the vulnerable adult lacks the capacity to consent to the release or use of his or her property, income, resources, or trust funds 

  Washington state law requires certain individuals to report suspected financial exploitation. Additionally, under RCW 74.34.180, a vulnerable adult who has been subjected to financial exploitation can seek damages for loss of property. By using the term "financial exploitation" and providing a comprehensive definition, Washington state law aims to address various forms of financial abuse against elderly and other vulnerable adults. 

• The consequences of financial elder abuse extend beyond monetary losses:
• Victims lose an average of $34,200-$35,100.
• Elderly victims are 3 times more likely to die prematurely and 4 times more likely to enter a nursing home.
• Many suffer from depression, anxiety, and loss of independence.

• Addressing financial elder abuse requires a multi-faceted approach:
• Education: Raising awareness among elders, families, and professionals about the signs and risks of financial abuse.
• Monitoring: Regular review of financial statements and transactions by trusted third parties.
• Reporting: Encouraging the reporting of suspected abuse to Adult Protective Services or law enforcement.
• Legal Protection: Implementing and enforcing laws to protect elders from financial exploitation. 
• Financial elder abuse is a serious and growing concern that demands attention from individuals, families, and society at large. By understanding the issue, recognizing warning signs, and taking proactive steps to protect vulnerable elders, we can work towards reducing the prevalence and impact of this form of exploitation. 

FinCEN analysis on elder financial exploitation patterns and trends

https://www.fincen.gov/news/news-releases/fincen-issues-analysis-elder-financial-exploitation 

CFPB report on suspicious activity reports related to elder financial exploitation

https://www.consumerfinance.gov/data-research/research-reports/suspicious-activity-reports-elder-financial-exploitation-issues-and-trends/ 

CFPB resources for protecting older adults from fraud and financial exploitation

https://www.consumerfinance.gov/consumer-tools/educator-tools/resources-for-older-adults/protecting-against-fraud/ 

American Bankers Association resources on elder financial exploitation

https://www.aba.com/banking-topics/risk-management/elder-financial-exploitation 

Office for Victims of Crime report on elder abuse and financial exploitation

https://ovc.ojp.gov/2023-report-to-the-nation/elder-abuse-financial-exploitation 

National Adult Protective Services Association resources on financial exploitation

https://www.napsa-now.org/additional-resources-for-financial-exploitation/