Elder Financial Abuse, A Growing Problem

If someone thinks that they or someone they love who is 65-years-old or older is immune to elder financial abuse, think again. Area financial advisor and branch manager of Raymond James Financial Services in Hamilton Paul Kink and local Montana Market Manager for Citizens Alliance Bank (CAB) Kenny Martin agree that elder financial abuse is reaching epidemic levels across the country and Montana is not immune. The only way they feel this can be prevented and stopped is through education about the issue, recognizing the red flags and reaching out for help.

In 2014, nearly 17 percent of the population of Montana was 65 years old or older (elderly). Based on the 2010 census data Missoula County is slightly lower than the state percentage with 13.6 percent of the population. However local communities including Seeley Lake, Condon and Ovando all rank above the state average. Those 65 and older in Seeley Lake are 19.8 percent, Condon has 27.7 percent and Ovando is the highest with 29.6 percent of the population considered to be a senior. Data for Potomac was not available.

In 2013, Montana’s Adult Protective Services investigated 6,291 cases of abuse, neglect and exploitation of our vulnerable adults, which included the elderly, disabled and intellectually disabled. This was an increase of five percent over the previous year.

“Statistically only one in five cases is reported, so that means during that period an estimated 31,000 of our most vulnerable Montana citizens were abused or exploited,” said Kink.

Kink has worked for nearly 50 years as a financial advisor. “I have seen far too many instances of older adults being exploited for their money,” said Kink. “What I am seeing now seems epidemic and it concerns me greatly.”

According to the National Center on Elder Abuse, 90 percent of the financial abuse nationwide is perpetrated by a relative, most often an adult child, spouse, partner or other caregivers.

“The elder feels emotionally responsible for their child or partner and it’s their natural inclination to want to help,” said Kink. “The danger is it can turn into outright adult abuse.”

Kink shared the story of one of his customers in Ravalli County who lost nearly $750,000 to their granddaughter who had power of attorney. Kink questioned his clients when she took the first $100,000 from them. After two investigations, the county attorney dismissed the case on the grounds that the local detective was not believable.

“Now they can either forget about the money they lost or spend more money trying to recover what they lost,” said Kink. “The perpetrator is scot-free and no one seems to care.”

Montana passed the Elder Abuse Prevention Act in 1992. Since its enactment only 65 convictions have resulted in the state. While the Montana Code Annotated (MCA) 52-3-825 Penalties section provides the legal framework to protect elders, Kink said the laws are not being followed.

Kinks said that the current process to prosecute an alleged financial abuse case is not effective. The case is turned over to Adult Protective Services (APS) to investigate. Because APS has no enforcement authority, their findings are turned over to the county attorney. The case is treated as a civil suit.

“This is not a civil issue, it is a crime,” said Kink. “If someone stole from the bank they would be after him or her. To solve the problem, we need a multidisciplinary team, not hand it over to the county attorney who is booked solid and likes to win.”

Kink also feels very strongly that the power of attorney is abused and gives someone the “power to steal.” Kink recommends legacy planning to his customers. This involves getting the whole family together and talking about assets and finances openly with each other. This allows the parents to know what the children want, allows everyone to know the parents’ wishes and helps prevent one family member from having all the power should they be assigned the power of attorney.

“Be very careful about who you give power of attorney,” said Kink. Kink said to be very open with the document with the family attorney, other family members and ensure the responsibilities assigned to the power of attorney (i.e. bills, other care requirements) are being taken care of. Abuse by the designated power of attorney is difficult to prosecute.

Martin said he sees family financial abuse on a regular basis in the Seeley Lake and Lincoln areas where he works. While CAB has policies in place to help protect their customers, it ultimately comes down to their customer’s decision.

“We want to be good stewards of our customers’ assets and help protect them,” said Martin. “We don’t want them to think we are being critical. When we questions things it’s for their protection. For people on a fixed income, every dollar counts.”

Martin added that giving out passwords, debit card numbers and pin numbers to family members and caregivers is a bad idea. While the initial reason may be legitimate, that person now has that information and there is nothing CAB can do to stop them from using the account or card again.

“In every situation, the victim totally trusted the person,” said Martin.

Not all cases are dealing with family members or friends. Kink highlighted that older people don’t like to hang up the phone on solicitors because it is rude.

“I tell my clients to tell whoever calls with a worthy cause, ‘I’m sure what you are telling me is a wonderful opportunity. I have a financial advisor named Paul Kink that you can talk with and then I will discuss with him if it is a good investment,’” said Kink. “I’ve never had a single call. If they were legitimate they would call.”

Martin said that the Internet is a huge source of non-family members preying on elders. This includes popular sites such as EBay, Craigslist and email solicitations.

“Older folks are new to the web and are too trusting,” said Martin. Martin said providing personal information, account information or giving cash back after receiving a check for too much money are all things to avoid.

Scammers also still use the mail. Martin shared a story of a local man who had gotten a letter from “Donald Trumps Gal” who needed money now but would return it later. Martin advised his customer to not help this person out but he did not want to hear it.

“He made his own choice and it turned out to not be legitimate. He lost a couple hundred bucks,” said Martin. The root of the problem Martin said is people are too trusting and he feels an ounce of prevention can go a long way.

Steps to avoid becoming a victim:

• Never provide personal information including birth date, social security numbers or passwords to anyone for any reason.

• Never give out an account or PIN number to anyone.

• Do not write a PIN number on the card.

• Check credit and bank accounts regularly for unusual charges

• If something is too good to be true, it probably is. If someone has question, Martin encourages them to bring it into CAB and they will do their best to advise the customer about whether they think it is fraudulent.

• If someone asks for a cash return, it’s not legitimate.

Red flags that someone may be a victim of financial abuse or exploitation:

• Unusual banking activity including large withdrawals, unusual payments, abnormal signatures, excessive gifts or big investments or loans.

• Property title changes.

• Abrupt changes in power of attorney.

• Long-lost relatives showing an interest or affection or new friends

• Duplicate bank statements or person being added to an account

• Bills not being paid

If you or someone you know falls victim to financial abuse:

• Contact your bank immediately. Stop payments on checks, if possible, and change account numbers if necessary.

• Contact Montana Adult Protective Services in Missoula: 406-329-1315

• File a police report.

• Place a fraud alert on your credit reports and monitor credit reports

• Call the Elder Helpline: 1-800-551-3191

• Call Missoula Aging Services: 406-728-7682

Kink is actively pushing for Montana to pass legislation that if a financial institution suspects financial abuse or exploitation, they could refuse to send the money out. “Once it is sent it is gone,” said Kink.

To learn more about these issues and services available visit Missoula Aging Services Senior Medicare Patrol website at https://missoulaagingservices.org/our-services/senior-medicare-patrol-smp/, the Department of Health and Human Services - Senior and Long Term Care at dphhs.mt.gov/SLTC/APS.aspx or the National Center on Elder Abuse at ncea.aoa.gov.

 

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