How the bad economy is contributing to cases of elder abuse

An unfortunate side effect of the poor economy is the increase in financial abuse of elderly people by the very individuals charged with their care.  Many elderly people are too physically frail or mentally unable to understand what is being done with their finances without their approval.

In cases where the elderly person is aware of the financial abuse, they may not speak up because they fear that their care will be compromised.  Financial abuse – like any other kind of abuse – creates a power shift that puts the abuser in control.

While many kinds of financial exploitation of the elderly is done surreptitiously, in some cases family or friends have borrowed money with the intention of paying it back.  However, with the economy still depressed borrowers now find themselves unable to make good on their word.

According to MetLife Mature Market Institute, more than half of all financial elder abuse cases are perpetrated by family members or caregivers.  One way for seniors to keep a lookout for their finances is to have a trusted third party regularly review all of their financial statements.

Another tip for seniors is to put any loans in writing, including payback terms.  You can read about the signs of financial abuse in our article, “Signs of Nursing Home Abuse and Neglect”.