Financial Exploitation of the Elderly: Review of the Epidemic—Its Victims, National Impact, and Legislative Solutions

Abstract

Elder financial exploitation is the illegal or improper use of an older adult’s funds, property, or assets, and frequently occurs with other forms of abuse. This form of exploitation has emerged as one of the leading forms of elder abuse, having been described by some experts in the field as the epidemic of the twenty-first century. The societal repercussions are profound, affecting as many as seven million elderly Americans, with monies exploited estimated as $2.9 billion annually. The many variables that contribute to financial exploitation of older persons in the United States include a cohort effect of unprecedented wealth, trust, and generosity in an unparalleled number of elderly aging into physically frailty and cognitive impairment, creating a concerning environment of vulnerability to abuse and financial exploitation. There are additional concerns that financial exploitation is on the rise, with an expanding list of perpetrators that include more than just family or caregivers. Scams and confidence schemes that involve total strangers and defrauded funds from Medicare and Medicaid have become emerging trends. Advances in research have better defined the victim, perpetrator, and risk factors for financial exploitation. Despite such advances, coordination in education, prevention at the local level, and support by state and federal governments continue to evolve.