Tackling the High Cost of Abuse: Working with Older Victims of Financial Exploitation

• Date: 01 July 2023

Bifocal July - August 2023 Vol. 44, No. 6

127

Tackling the High Cost

of Abuse: Working

with Older Victims of

Financial Exploitation

By Erica Costello, Senior Attorney, ABA

Commission on Law and Aging

In June of 2023, the AARP published a report

entitled, “The Scope of Elder Financial Exploitation:

What it Costs the Victim1,” which found that victims

over age 60 lose $28.3 billion annually through

nancial exploitation. These costs can include

signicant portions

of the older victim’s

life savings, as well as

their property or other

assets.

The report further

found that most of the

nancial exploitation

was committed

by individuals

known to the older

victims, including

family, friends, and

caregivers. Such

individuals were found to be responsible for stealing

$20.3 billion from older adults each year. However, it

is estimated that only 12.5% of nancial exploitation

cases involving perpetrators known to the older

victims are reported (compared to 67% of nancial

exploitation cases perpetrated by strangers).2

The report conrmed that the costs of nancial

exploitation can be quite substantial to older victims

of abuse. It is not uncommon for older victims to lose

most of their retirement savings or other resources,

including their homes or residential properties.

Because most cases of nancial exploitation involve

people known to the older victim, they may be

hesitant to report the exploitation due to shame or

embarrassment, or in some cases, because they rely

on the perpetrator for care and assistance. Older

victims may also experience a decline in their mental

or physical health, with some studies nding that

nancial exploitation among older adults can lead to a

premature death.3

Financial exploitation can also be very costly to

the caregivers of older victims. It is often family

caregivers who provide care after an older victim’s

resources have been lost due to nancial exploitation.

The loss of time and resources provided as a caregiver

can be signicant. One study found that caregivers of

older adults collectively sacriced $67 billion in lost

wages due to unpaid caregiving.4

Because of the signicant costs associated with

nancial exploitation, there are several things that

attorneys should consider

when working with older

adult clients:

1. Anyone can

be a victim of nancial

exploitation, regardless of

age. As such, it is important

for attorneys to recognize

the warning signs of

nancial exploitation,

which can include sudden

changes to bank accounts

or unexplained withdrawals

of funds, sudden changes

to a will, power of attorney, or nancial documents,

unpaid bills, or sudden transfers of property or assets

to a family member or someone outside of the family.5

If you suspect nancial exploitation involving an older

adult, you should discuss with your client possible

resources that are available in their communities,

including Adult Protective Services or law

enforcement. Some communities also have programs

through their local Area Agencies on Aging (AAA)

that give help and support to older victims of crime.

2. Family members do not have a “right to

an inheritance.” Financial exploitation may occur

when a family member feels like they are entitled to

the property or assets of an older adult because it is a

part of their “future inheritance.” However, an older