Financial Abuse Costs Elders More Than $2.6 Billion Annually, According to MetLife Mature Market Institute Study, Though Four in Five Cases Are Not Reported
March 17, 2009
WESTPORT, Conn., Mar 17, 2009 (BUSINESS WIRE)
Elder financial abuse costs older Americans more than $2.6 billion per year and is most often perpetrated by family members and caregivers, according to a new report released by the MetLife Mature Market Institute (MMI) entitled, Broken Trust: Elders, Family and Finances, which is accompanied by tip sheets for older adults and families on how to prevent such issues.
The report, produced in conjunction with the National Committee for the Prevention of Elder Abuse (NCPEA) and Virginia Polytechnic Institute and State University, states up to one million older Americans may be targeted yearly and that related costs like health care, social services, investigations, legal fees, prosecution, lost income and assets reach tens of millions of dollars annually. The study indicates that for each case of abuse reported, there are an estimated four or more that go unreported. The economic downturn may increase vulnerability. Family members and caregivers are the culprits in 55% of cases, although financial losses are higher with investment fraud scams.
The National Adult Protective Services Association (NAPSA) suggests that the "typical" victim of elder financial abuse is between the ages of 70 and 89, white, female, frail and cognitively impaired. She is trusting of others and may be lonely or isolated, although reports show that there is a very diverse population of victims.
"Elder financial abuse has been called the 'crime of the 21st century,'" said Sandra Timmermann, Ed.D., director of the MetLife Mature Market Institute. "With the present state of the economy, older Americans are at a greater risk than ever of having their financial security threatened. And, for every dollar lost to theft and abuse, there are still more related costs associated with stress and health care and the intervention of social service, investigative and legal entities.
Additional facts:
-- Reports vary as to whether women or men are more vulnerable to financial abuse, but loneliness and isolation clearly leave one more exposed to theft. The average victim of elder abuse is a woman over the age of 75 who lives alone (48% of women over the age of 75, according to the Administration on Aging). Men are reported to be particularly vulnerable to the "sweetheart scam."
-- 60% of substantiated Adult Protective Services (APS) cases of elder abuse involve an adult child; sons are 2.5 times more likely than other family members to take advantage of parents.
-- In addition to the obvious financial loss, long-term effects include credit problems, health issues, depression and the loss of independence.
-- Signs of abuse include indications of intimidation by or fear of a caregiver, isolation from family and friends, disheveled appearance, anxiety about finances, new "best friends" and missing belongings.
-- Elder financial abuse can be prevented by the following:
1) education about one's rights and about the various types of consumer fraud and scams;
2) Financial conservatorship and/or power of attorney for those who are vulnerable;
3) Assignment of responsibility to a trusted outside person, if children are a concern;
4) Additional media attention for this issue;
5) Training financial professionals to properly assist older customers;
6) Assistance from social services, medical/nursing personnel, government agencies;
7) Reporting suspected cases of financial abuse to local authorities.
No comments:
Post a Comment