Financial abuse is a taboo subject that has been increasingly prevalent in the last several years. It robs the elderly of their sense of security, their sense of accomplishment, and even their life. Furthermore, when seniors are mistreated, they are more than 100 percent more likely to die.
The elderly financial abuse statistics are very alarming. Seniors are losing a significant amount of money as a result of this kind of abuse. What may be the underlying cause of this? And who are the culprits of this crime? Let’s take a look at some of the statistics that everyone should be aware of.
Editor Choice: Elderly Financial Abuse Statistics
- The elderly do lose 16.99 billion dollars in a year due to exploitation.
- Individuals who are 65 years and above have a 34% likelihood of losing cash due to fraud as opposed to those who are in their forties.
- American elders lose 9.85 billion dollars to con artists every year.
- In 2009, the seniors lost 2.9 billion dollars due to financial exploitation, a twelve percent rise from the previous year.
- Identity theft costs the elders 2.91 billion dollars annually.
- 53 percent of financial abuse is caused by family members.
1. The elders do lose 16.99 billion dollars in a year due to exploitation
According to reports from the United States Department of Justice, financial exploitation is one of the most often reported types of elder abuse in the country. Furthermore, it is projected that elder abuse costs more than two billion dollars each year to the elderly population. It is also expected to continue to rise in the future, as the number of elderly people continues to increase.
2. 53 percent of financial abuse is caused by family members
Financial exploitation is becoming more prevalent in the United States. It’s also possible that the culprits are closer than you think. Because of the money that has accumulated throughout a person’s lifetime, the elderly population is a significant target for criminals.
Furthermore, the abusers take advantage of the victim’s deteriorating mental capabilities. It is also difficult to get accurate information on financial abuse since many people are unlikely to disclose it. It’s possible that the elders’ lack of knowledge, shame, or denial is the cause.
3. Identity theft costs the elders 2.91 billion dollars annually
The elderly are the most frequent victims of identity theft, and there are a number of factors contributing to this phenomenon. Many of them are afflicted with diseases such as dementia. This makes it difficult for them to make sound financial choices.
Furthermore, they are not acquainted with the problems that come along with contemporary credit agreements. They are used to working in an atmosphere where transactions conducted via word of mouth are respected. Furthermore, the vast majority of them have amassed a substantial quantity of assets and money over an extended period of time.
4. One out of 44 cases of elderly financial abuse are always reported
Financial abuse is a problem that affects the elderly on a daily basis in society, although the number of cases recorded is very low. As a result, it is critical to reach out to financial institutions for assistance in training employees on how to recognize warning indications of financial abuse. Although these improvements are only feasible when the victims come forward and make their encounters known to the rest of society, they are still conceivable.
This is the point at which actions may be done to assist avoid such a terrible experience from occurring to anybody else.
5. American elders lose 9.85 billion dollars to con artists every year
It is really terrible that they have lost so much money as a result of the frauds. In order for these kind of operations to be successful, the fraudsters must first gain your confidence. They will guarantee that you feel safe and reliant on their financial guidance at the same time.
This will pique your interest in making a large financial commitment and will motivate you to recruit members of your family and friends. Once you make a financial investment, they will reduce contact, and it may ultimately come to an end. They may then exploit your financial dependence on them as a pretext to prevent you from taking any action at all.
Occasionally, the money they get is quickly moved to a separate account. They may also choose to withdraw the money and utilize it to purchase personal items such as automobiles, expensive vacations, or a home. Unfortunately, you only find out about this after everything has been destroyed.
6. Approximately one out of 20 old adults normally report being abused financially by a member of their family
This is much too low a percentage, and the reality is that almost 60% of instances involve elderly people who have been molested by close relatives or a friend. This indicates that the perpetrator has gained their confidence and has the ability to change their financial situation. Furthermore, when all of the facts are revealed, deciding whether or not to file charges or pursue any kind of legal action against a family member may be a difficult choice.
The abuser is always the one who has been provided with some kind of assistance or caring for many months or years. They have the potential to be very pleasant and sociable individuals. Furthermore, they make a compelling case that they are due remuneration as a result of the help that they provide.
However, in fact, they have taken advantage of the situation for their own benefit. Having said that, pursuing legal action against a close family who has committed a crime may be very painful.
7. Caregiver abuse results in the elderly losing 6.67 billion dollars
Financial exploitation of the elderly is often referred to as elder financial abuse. For example, taking over homes without permission or stealing money from the elderly are examples of elder abuse. Those who are sixty years of age or older. It’s also sad to hear stories of caretakers taking advantage of the elderly.
8. Abused elders are 3 times more likely to succumb and 4 times likely to visit a nursing home
Senior adults who are subjected to financial exploitation may experience long-term stress and financial hardship. It has the potential to take away or limit their financial resources and capacity to care for oneself. Furthermore, it has a negative impact on their health since it reduces the available money for a suitable place to live, medicine, and nutritious food.
You may, on the other hand, prevent neglect and abuse by setting up your accounts such that the bank pays your payments for you automatically. If you need to go to a care facility or hospital, or if your health changes, you will be charged. Furthermore, if you lend money, you may put down the date you lent it, the amount you lent it, and the name of the person who received it.
You may also hire a community advocate or a lawyer to assist you with other important choices about the property.
9. Complaints related to elderly financial exploitation amount to 7.9 percent
According to reports from the human rights commission, a large number of elderly people are reluctant to report abuse. The reason for this is because they do not want to be a part of the repercussions that their family member or caregiver will suffer as a result of their actions. Unfortunately, if the issue is not addressed, elder financial abuse will most likely persist and grow to the point of being disrespected or harmed.
As a result, if you are concerned about an elderly relative and believe they are being abused, you should contact authorities. Your involvement may allow you to restore dignity and health to an elderly person who is in need of it.
10. The seniors lost 2.9 billion dollars due to financial exploitation in the year 2009, a twelve percent rise from the previous year
The seniors suffer greatly as a result of the criminals’ efforts to get them to open a joint bank account. This is followed by the modification of the pin or password. Then take out all of the money without giving any notice.
The abusers may even demolish a property that might have been sold for cash if they had not been caught. Unfortunately, they may also give the victim an allowance to spend on things that they have agreed on. They may also be complicit in identity theft, taking out loans in the victim’s name as a result of this.
Still, they can force them to apply for loans. And unpaid debt can ruin the elder’s credit score and make it hard to even find a house.
11. Individuals who are 65 years and above have a 34% likelihood of losing money due to fraud as opposed to those who are in their forties
The elderly are targeted by scammers because they are more likely than those who are still young to be lonely, more trusting, and more ready to listen than those who are still young. A variety of fraud schemes targeting the elderly are carried out via advertising, telephone calls, and home visits, among other means. They are the primary targets of pyramid schemes, which are often connected to criminal activity.
Insurance, investments, home renovations, health goods, charitable organizations, and credit cards are just a few examples.
According to the data, elders lose a significant amount of money as a result of financial exploitation. As a result, careful consideration should be given to detailed preparation in order to prevent this terrible behavior. If at all possible, consult with a reputable legal and financial adviser to ensure that you stay on top of the situation with the elderly and their money.