More work needed to stop exploitation of elderly
It is often said that a society should be judged by how it treats its most vulnerable. If this is true, what will historians say about ours? In particular, what will they say about those who financially exploit our elders with increasing frequency?
Every year, abuse and exploitation rob older Americans of $3 billion. Because many elderly people have assets — like retirement savings accounts, Social Security earnings or own their homes — they become tempting targets for exploitation. Those who live in isolation become even bigger targets.
Half of older Americans have been financially exploited or know someone who has been. And these are only the reported amounts. When criminals take advantage of older persons by forging a signature or coercing them to sign a will, the impact goes far beyond the pocketbook and affects the physical and emotional health of the victim.
But here’s the saddest part: In the majority of cases, the exploitation comes at the hands of individuals well-known to the victims. While this may be surprising to many, it fits perfectly with the legal definition of financial exploitation under Texas law: “the illegal or improper act or process of a caretaker, family member, or other individual who has an ongoing relationship with the elderly or disabled person using the resources of an elderly or disabled person for monetary or personal benefit, profit, or gain without the informed consent of the elderly or disabled person.”
The Texas Legislature is currently exploring several ways to curb financial exploitation of the elderly; this is important work that should be applauded and bolstered. New laws, policies and practices to crack down on abuse and financial exploitation are needed — and strengthened protections for victims — so everyone can live with dignity and independence as they age.
We need to better support community coordination models. Victims are often confused on where to turn for help. Community coordination models, like the Elder Financial Safety Center (EFSC) in Dallas, are designed to fill the gap to better prevent, protect against and prosecute elder financial exploitation. The center is a partnership among The Senior Source, Dallas County probate courts and the Dallas County District Attorney’s office. Let’s work to encourage and nurture the formation of similar models throughout Texas.
We will also need to preserve and strengthen state Adult Protective Services. The agency currently investigates complaints about financial exploitation of elderly Texans by individuals who have an ongoing relationship with an alleged victim. The agency should also be able to investigate financial exploitation complaints against those without an ongoing relationship with the alleged victim.
Financial institutions are also on the front line of this fight. Customer-facing bank and financial personnel have a vital role to play in preventing elder abuse; with the right training, they can identify potential exploitation before it becomes a bigger problem. Once a suspicious transaction is identified, financial institutions may also need the ability to place a temporary hold, like credit card companies do. Done correctly, this could prevent financial losses by both the banks and the victims.
October is Elder Financial Exploitation Awareness Month. But more important, this is the right time to act. The number of Texans older than 65 will more than double from 2010 to 2030. Growth in this population will almost inevitably lead to an increase in elder financial exploitation and further strain the social service and criminal justice system that protects the elderly. It is time to start reversing this trend through awareness, collaboration and enforcement.
Morstad leads financial security work in Texas for AARP, a nonprofit, nonpartisan organization.