As the baby boomer population quickly becomes the largest senior demographic in American history, there is a growing concern about keeping their hard-earned investments safe. According to a recent report, the U.S. senior community loses an astonishing $53 billion annually to both fraudulent and deceptive practices. This type of preying on the elderly is known as “elder financial abuse,” and financial institutions are in the perfect position to help. First, let’s look at the three types of financial elder abuse:
- Financial Exploitation
This type of exploitation is legal but highly unethical, and consists of deceiving or convincing seniors to make poor financial decisions or give their money away.
- Criminal Fraud
This type of activity is clearly illegal, and includes identity theft and mail fraud.
- Caregiver Abuse
This refers to financial theft or deception by someone trusted—whether it be a family member, healthcare worker, or even a financial manager.