Protect Your Loved Ones from Financial Abuse

June is Elder Abuse Awareness Month! Unfortunately, one of the most rampant forms of elder abuse is financial. Voice cloning through artificial intelligence, misappropriating funds, and forgery are among the common culprits, along with extortion. Read on to learn how and why extortion is weaponized against elderly individuals and what you can do to protect your loved ones from falling victim to it.

What is Extortion?

Put simply, extortion is the act of obtaining something (especially money) through threats, intimidation, and/or coercion. LegalClarity.org summarizes and discusses the crime as:

“…Getting someone to hand over property ‘with his consent’ induced by threatened force, fear, or abuse of official power. That phrase “with his consent” is counterintuitive, but legally important — it’s what separates extortion from robbery. A robber takes property by force; an extortionist pressures the victim into giving it up, making the victim a reluctant but technically consenting participant. The crime is complete as soon as the threat is made with the intent to obtain something of value, even if the victim never actually pays.”

How is Extortion Used in Elder Financial Abuse?

The elderly population is, generally speaking, more vulnerable than others: these individuals often require assistance with errands such as grocery shopping or doctor appointments. This vulnerability makes them a target for extortion. A caregiver may threaten to withhold vital resources, transportation, or care if the victim fails to hand over funds or other property. The victim is left feeling that they have no choice but to comply with the offender’s demands for the sake of their access to said resources, transportation, and/or care.

How Can I Protect Loved Ones from Extortion?

You may be thinking that as long as your loved one is in the hands of a trusted caregiver or family member, there’s nothing to worry about. Unfortunately, this is untrue –– extortion is most commonly perpetrated by people closest to the victim: caregivers, relatives, adult children, etc. Protecting your elderly loved ones from this form of financial abuse requires early recognition of signs, strong safeguards, and prompt action. Be alert for unexplained changes in savings and spending habits, such as large withdrawals, new accounts, and unpaid bills. You can track this by utilizing tech tools such as EverSafe or LifeLock, which will alert you to any suspicious financial activity. Social isolation is one of the greatest risk factors for elder financial exploitation –– maintaining consistent, regular contact with your elderly loved ones can make all the difference. If your loved one has a caregiver, make it your mission to get to know them. Stay alert for someone (even a person you believed to be trustworthy) who discourages contact with family and friends, as this is often the first step to obtaining financial control. Ensure that your loved one’s power of attorney is a close, highly trusted contact or family member who has their best interest in mind.

At Grand Savings Bank, your security and peace of mind is our priority. Connect with us today to learn more about how our product offerings can safeguard your loved ones’ financial interests.