The most common forms of financial abuse of the elderly include:
Theft - usually by a trusted individual or an unknown or online thief using checks, account information, credit cards to access the vulnerable adult’s financial assets. This act frequently takes the form of identity theft and wipes out an elder’s entire estate, including real estate, which they sell from under the elder.
Fraud - fraudsters use various scams against the elderly. Grandparent scams play on the natural love of a grandparent. The fraudster poses as a grandchild needing immediate financial assistance such as paying bail. The lottery scam promises to pay the elder but needs bank account information. Telemarketing scams get money for bogus charities, non-existent stocks, or unknown churches. Internet scams ask the vulnerable adult to participate in a business opportunity or to help get Nigerian money into the United States, with some upfront funding by the older person. Service frauds pay for poor or incomplete work. All of these can result in significant financial losses to the older individual.
Misuse of Authority or Breach of Fiduciary - occurs when a formally trusted party like an investment advisor misuses the authority the vulnerable adult gives them. It usually occurs in financial accounts.
Legal Document Abuse - occurs when someone tricks a vulnerable adult into signing documents, such as a power of attorney or sales agreement, which the fraudster then uses to steal the older individual’s assets
Extortion - happens when an older individual is intimidated into giving assets or property to the threatening individual
These may form the basis for criminal and civil causes of action.