Prevention of financial abuse, focus of new institute at Brookdale Center on Aging

Aging, Spring, 1996 by Debra Sacks

Information Gathering

Through a questionnaire, the Project conducted a survey of 200 case management agencies, health care facilities, senior centers and miscellaneous senior housing complexes to assess the range of money management services provided by them. Significantly, only 28% of the 43 agencies responding to the survey offer Daily Money Management services. Reasons given by respondents for not providing DMM services include fear of liability, lack of knowledge about how to provide DMM services and lack of funding for these services.

The survey also asked questions regarding the types of financial abuse of elderly clients encountered by the agencies. Responses indicated that 83% of the agencies had encountered cases of financial abuse. The six most common types of abuse, in order of prevalence, were inability to handle finances due to self-neglect, financial abuse by a substance abusing "roommate" or boarder, someone else living off the income of a frail or confused older person, abuse by a home care worker, misappropriation of cash, and abuse of powers of attorney.

To estimate the incidence of financial abuse of elderly bank account holders, a separate survey questionnaire was distributed to banking institutions in the New York City area. Completed survey instruments in this small survey were received from three major banking institutions: a New York City commercial bank; a New York City savings bank; and a Long Island commercial bank. In all, nine survey instruments were returned and compiled.

The types of abuse most often encountered by banks were forgery -- 89%; misappropriation of funds -- 78%; abuse of joint accounts -- 67%; and abuse of powers of attorney -- 44%. Most abusers were immediate family members or other relatives. Bank respondents felt the following methods would be most helpful in curbing abuse of powers of attorney: revision of criminal statutes to impose harsh penalties on abusers of powers of attorney; appointment of third parties to monitor actions of agents under powers of attorney; and requiring annual reports. When banks were asked whether they made referrals to Adult Protective Services (APS) units in cases of suspected or actual abuse, 43% always referred to APS and 43% never referred to APS units. Banks also indicated that they are eager for training on senior citizen issues. (See article, "Teaching Banks How To Protect Their Older Customers")

Training Program

During the first Project year, staff conducted numerous trainings on financial abuse of the elderly for groups such as the Manhattan District Attorney's Office, the Association of the Bar of the City of New York, the New York City Department for the Aging, and the New York State Judicial Conference.

In addition, a half-day conference on "Liability Concerns and Risk Management Techniques for Providers of Community-based Services," attended by approximately 40 case managers from 26 major agencies, was held. Liability and risk management issues include concerns that a relative may sue the agency that has arranged money management services, that a confused older person receiving money management services might accuse agency staff of stealing money, or that personnel in an agency might commit a crime and take money from an elder. The workshops explain laws on liability and negligence in these cases and help agencies to develop procedures to make sure everything is done correctly by staff.