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Elder Financial Exploitation



Financial exploitation of the elderly is a huge problem which is becoming worse. In 2022, the FBI reported $3.1 billion in losses from elderly victims. However, the losses are likely much higher, because studies show that only about 1 in 44 cases of elder financial abuse are ever reported.


Elder financial exploitation is committed in many ways. International criminal organizations can reach into any community, from large cities to small towns, and defraud individuals of their life savings in a matter of days or even hours, often by convincing elderly individuals to hand large amounts of cash to “money mules” based throughout the United States. Some perpetrators abuse their professional or family relationships to steal from their victims. Other perpetrators are strangers who initiate contact with the victim, for example by door-to-door sales, online forums, or by joining community groups and targeting the elderly members.



Even though scammers’ tactics are effective against any age group, there are reasons they disproportionately target the elderly:


  • There can be a larger potential payoff. After spending decades saving from each paycheck and making each mortgage payment, many elderly individuals have accumulated enough wealth to sustain them through retirement. Scammers target those hard-earned savings.


  • The elderly are more likely to live alone. Living with others provides an extra layer of protection from financial exploitation because family or roommates are around to notice that something unusual is occurring. Also, those who live alone may be more susceptible to “confidence” or “romance” scams.


  • The elderly are less likely to report abuse. Some reasons elderly individuals hesitate to report financial abuse are: they blame themselves for the exploitation; they fear that if they report, government officials or family members will seek to have them declared incompetent; they are dependent on the perpetrator who is also a caretaker; or the perpetrator has threatened them with violence.


  • Perpetrators perceive them as vulnerable. Even though most people live their entire lives, including throughout old age, without any significant memory problems, a substantial minority of those aged 65 or older experience mild memory loss or dementia. Perpetrators target this group because they believe they have greater odds of finding potential victims with cognitive impairment who will be easier to scam.



When law enforcement officers receive a report of possible elder financial exploitation, a rapid response is vital:


  • Once a victim is identified, criminal organizations act fast to convince the victim to repeatedly hand over as much money as possible before someone intervenes or the victim becomes suspicious. Also, many criminal organizations maintain “sucker lists” which they sell to other criminals, causing a victim of one scam to suddenly be bombarded with many more scams.


  • Law enforcement officers who immediately investigate have a greater chance of recovering lost money and apprehending criminals before they flee outside their jurisdictions.


  • When the person exploiting the elderly victim is in a position of trust, often the thefts begin with small amounts that quickly increase until the perpetrator has appropriated everything the elderly person owned. Also, when caretakers engage in financial abuse, it is likely that other forms of elder abuse are present. Officers’ timely intervention can prevent years of escalating elder financial, physical, and emotional abuse.




Interested in learning more?


PLS offers police online self-study legal training on a wide variety of practical issues to help police officers make good decisions in challenging situations.


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