Investing in the future: protecting the elderly from financial abuse

FBI Law Enforcement Bulletin,The, Dec, 1997 by Johnny Coker, Bobby Little

Over the years, a shift in law enforcement priorities, as well as an increase in general awareness, has made most officers familiar with the concepts of spousal abuse and child abuse. Still, the term elder abuse raises questions among even the most seasoned law enforcement officers. From physical, emotional, or sexual abuse to financial exploitation, approximately 818,000 elderly individuals are victimized annually. Furthermore, experts estimate that only 1 in 10 cases of elder abuse gets reported.(1)

Many elderly citizens must contend with a variety of health problems that limit their physical or mental functioning. Some become bedridden and cut off from normal contact with the rest of the world. At the same time, mental limitations leave many older citizens highly vulnerable to various forms of abuse.

In Tennessee, caseworkers with the Tennessee Department of Human Services receive approximately 400 new reports of adult abuse each month. The agency pursues about 3,200 cases per month. Thirty-five percent of the cases involve victims over the age of 80.(2)

These statistics relate to elder abuse in general. The precise number of elder abuse cases involving financial exploitation is unknown because cases often are not reported to either social service or law enforcement agencies. Victims seem more likely to report physical abuse than financial abuse, which may be due to the perception that bodily assaults are more threatening than property losses, as well as the embarrassment that individuals feel when they fall victim to fraud, or finally, because they simply are unaware that something is amiss. Furthermore, no national reporting center or database exists to compile and analyze reported cases. Consequently, no one can accurately estimate the number of cases of financial forms of elder abuse, even if they do get reported.

However, academic research confirms the existence of significant amounts of financial elder abuse. For example, a relatively recent study of various forms of elder abuse that occurred in Forsyth County, North Carolina, found financial abuse to be the most prevalent form, accounting for 46 percent of the total abuse cases.(3)

Unlike the bruises that often accompany physical abuse, the signs of financial abuse may not be so obvious. Nonetheless, financial victimization can create serious problems for the aged. Elder citizens who can no longer work may not be able to recoup their economic losses. Many victims become dependent upon family members, creating additional stress within families already economically strained. Families often are overcome by the financial and other burdens associated with providing care for a needy elderly relative. Consequently, many destitute elderly citizens depend on social welfare agencies for survival, and their quality of life suffers tremendously.

Unfortunately, because financial abuse is the type of exploitation least likely to be recognized or understood by police officers, financial abusers are least likely to be detected and apprehended. By understanding the nature of financial abuse, law enforcement officers can give seniors the security they deserve.

Definitional Issues

A lack of federal statutes regulating elder abuse has placed the responsibility on states to define this type of crime, and the states' definitions for elder abuse, financial abuse, and even the elderly vary. Most states define the elderly as anyone over age 65; 6 states apply the term to individuals over 60, one state, 55.(4) Some states do not differentiate between elderly and adult crime victims; anyone over age 18 (or the state's age of majority) is simply an adult victim. However, if adult victims meet such specific state criteria as "adults in need of protective services," then certain elder abuse statutes may apply.

The definitions of financial elder abuse vary, as well. Some definitions include the use of force, misrepresentation, or other illegal means to take advantage of a person's partial or complete incompetence;(5) the illegal use of an elder's resources or property;(6) the misuse or theft of money and property; the use of funds without the owner's permission; the persuasion of the eider to relinquish control of resources; or the distribution of resources without the elder's consent.(7) Many states define financial elder abuse within general elder abuse or financial abuse statutes.(8) In short, the various ways elder abuse is defined often causes confusion and a lack of understanding of the forms it can take.

Forms of Financial Abuse

Ironically, the elderly often are financially abused by their own legally appointed conservators or guardians. Conservatorship, a court-appointed position, involves involuntary removal of the elders' civil rights, including the legal ability to handle their own finances. Conservatorship usually is limited to financial decisions, as opposed to guardianship, which gives the guardian control of every aspect of the elder's personal life.(9) Conservators and guardians may abuse their victims by converting the victim's financial assets to personal use.