Financial Abuse in Nursing Homes

Financial abuse in nursing homes occurs when a resident's money or personal items are taken from them. Diverting valuables from their room, falsifying checks, taking their retirement income, or using their bank accounts or credit cards are just a few examples, according to the National Institute on Aging (NIA). Financial fraud can also include behaviors that have far-reaching effects, such as renaming bank accounts, wills, life insurance policies, or even the property title of an older person.

Who Is at Risk of Elder Financial Abuse?

Older adults are particularly vulnerable to financial abuse; some are at a higher risk than others. Those who are isolated or lack a good support network of family and friends may be more likely to suffer from elder financial abuse. Without regular check-ins from trusted loved ones, financial exploitation can go unnoticed for long periods. The coronavirus pandemic has made it even harder for older adults to stay connected with their support networks, further increasing the risks of financial abuse.

Elders may also be more susceptible to scams or other forms of financial exploitation due to their age and lack of knowledge about how to protect themselves. They may not recognize a potential scam or know where to turn if they have been financially advantaged.

The Different Kinds of Financial Abuse at Assisted Living Facilities

Financial abuse is a severe problem in assisted living facilities and can take many forms. Two of the most common types of financial abuse are when someone legally appointed to handle a resident’s finances misuses their funds or when someone steals from, commits fraud against, or otherwise takes advantage of a resident to access their money and other property.

The exploitation of older adults by people legally handling their finances

The exploitation of older adults by people legally handling their finances is a serious issue that needs to be addressed. Unfortunately, it is too common for those in positions of trust to take advantage of vulnerable seniors. In many cases, the people who residents in these facilities trust to handle their finances—and who have a legal duty to manage their finances—engage in financial abuse. Examples of people who may handle a resident's finances include legal guardians, trustees, agents under powers of attorney, and Social Security representative payees.

Theft and scams impacting assisted living residents

Theft and scams are a growing problem for assisted living residents, as they can be particularly vulnerable to financial abuse. In many cases, the perpetrators have no legal duty to manage or safeguard resident finances but instead try to gain their trust to take advantage of them. This can involve misleading, lying, or misrepresenting their intentions to convince the victim to sign over ownership of assets, give them cash, or otherwise provide access to their funds.

How Can a Nursing Home Abuse Lawyer Help?

A nursing home abuse lawyer is a specialist lawyer who helps victims, or their families and conservators, of elderly abuse by filing lawsuits against negligent nursing home care providers. These lawyers specialize in

• identifying
• documenting
• and legally representing

victims who have suffered

• physical
• emotional
• financial
• and sexual abuse

Nursing home abuse lawyers are well-versed in the laws that govern these types of cases and can ensure that elderly victims get full compensation for their suffering. They also work to raise awareness on the issue of nursing home abuse so that all citizens can take steps to protect themselves or their loved ones from such terrible treatment.

Who Is Most Likely To Exploit a Nursing Care Resident Financially?

More than 90% of those who abuse are family members or other trustworthy people, like primary caregivers. An older person's closest friends and family members frequently know about their financial situation and build trusting relationships to exploit them financially. In-home nurses supervising an older person's care can potentially mistreat the elderly. Most of the time, they spend time with the senior person to settle their bills; therefore, they might try to extort money from them.

Private businesses may make an effort to persuade senior citizens to pay for services they don't need and overcharge them. Selling home remodeling services or overpriced insurance are frequent business scams.

Signs Your Loved One Is Being Mistreated Financially in a Nursing Home

Financial abuse is a pervasive issue that can be challenging to identify. However, the American Association of Retired Persons notes several indicators that your loved one is being financially abused. If your loved one can't remember crucial financial details, especially if they were previously aware of these things regularly, that indicates that they are being financially abused.

Other indications of financial mistreatment in nursing homes include:

• Unusual shifts in spending patterns
• The elderly adult's inability to explain loans
• Fear and worry when money is involved
• Unaccounted-for assets, including cash, securities, and valuables
• Giving unwarranted financial authority to a new person

Preventing Financial Abuse in Nursing Homes

The AARP suggests a few actions to lessen the probability of financial abuse. One thing you can do is keep an eye on your loved one's bank accounts and credit cards all the time. This will enable you to promptly address the issue with them if there is an unexplainable change in their behavior.

Additional actions you could take are:

• Keep an eye on automatic bill payment systems and direct deposits for checks.
• Request that the banks keep an eye on the accounts for any abnormal activity.
• Pay frequent visits to build a solid relationship with your loved one and encourage them to be candid about financial abuse.
• Keep a watchful eye on their conduct to ensure that caretakers are not targeting them for financial exploitation by isolating them.

What Distinguishes Financial Abuse in Nursing Homes From Other Forms of Nursing Home Abuse?

A victim of financial abuse does not experience instant, glaring indications like a personality change or physical injuries like bruises and scars. Nursing home residents are frequently taken advantage of financially without their awareness. Others are too scared or ashamed to confess that they were victims. Thus, they are afraid to disclose situations of financial abuse.

What Are Some Potential Repercussions for Financial Abuse in Nursing Homes?

Cases of elder financial abuse are complicated. Financial abuse frequently happens in connections where a resident confides in another person. There may be particular difficulties relating to family history, sibling disputes, and expectations regarding estate management and succession when family members are the culprits.

Other forms of mistreatment, such as emotional abuse or neglect, may go hand in hand with financial abuse. Losses that a victim of financial abuse has to deal with go beyond money and material possessions.

Financial abuse can result in significant emotional suffering, anxiety or despair, poor physical health, loss of freedom, trouble making decisions, loneliness, and a shorter lifetime.

If You Suspect Financial Abuse in Nursing Homes: What to Do

You should first speak to the nursing home discreetly if you suspect they are financially exploiting your loved one. They could or might not be aware of the issue, but they could also provide you with logical justifications for changes in your spending habits. It's critical to acquire all the information before acting on your concerns.

The nursing home's administrators should then be contacted. They might already suspect something, and they might be able to point you in the right direction.