Elder financial fraud a growing problem

Finn Torode
June 23, 2011

A recent MetLife study shows that financial abuse of elders is growing. They estimate the total cost at $2.9 billion, a 12% increase since 2008.

Financial abuse includes stealing credit cards, forging checks, transferring assets and otherwise stealing money. Women were twice as likely to be targeted as men, partly because they live longer and are often living alone. The impact on the elderly is magnified by the fact they there is little or no opportunity to recover the loss by going back to work or growing remaining assets.

Some symptoms of abuse are sudden withdrawals from bank accounts, additional unwarranted names added to accounts, substandard care even though funds are available, sudden changes to the will and unexplained transfer of assets

Cognitive impairment can make seniors vulnerable to financial fraud. Studies show that people in general tend to make poorer financial decisions as they age.

The Alliance for Investor Education has a list of 10 websites with resources to help the elderly recognize scams and fraud.

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