Elder Fraud by Relatives or Caregivers

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FDIC Consumer News – Fall 2005 – Elder Fraud by Relatives or Caregivers


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A Special Guide for Seniors and Families

Inside Jobs: Elder Fraud by Relatives or Caregivers


Frauds and thefts against the elderly by people they know and trust are surprisingly common. Examples cited by the Justice Department and other sources include stealing money; cashing checks without permission; transferring the ownership of property (see Fake Documents Used to "Steal" Homes); committing identity theft; "borrowing" funds without intending to repay; and denying services to the elderly person – even medical care – to pocket the money.


Friends and relatives also have convinced senior citizens to add their name onto bank accounts, living trusts or wills (perhaps as the sole beneficiary) or grant a power of attorney (giving total control over the person's financial affairs). "One problem identifying certain frauds as frauds is that, on the surface, the actions involved can be for legitimate purposes," said Michael Benardo, manager of the FDIC's Financial Crimes Section. "What makes the matter worse is when the elderly person can't or won't report a fraud, perhaps because they're ashamed to admit that they've allowed themselves to be taken advantage of by someone they loved or trusted."


Seniors and their loved ones should be very suspicious if they notice any of the following: A relative or caregiver becomes extremely interested in the elderly person's financial affairs. A caregiver is reluctant to spend money on necessary medical treatment. Someone prevents the elderly person from talking on the phone or doesn't pass along phone messages. There are unauthorized withdrawals from checking or savings accounts. The caregiver claims that some money is "missing." Or, there are new or recently changed legal documents, such as wills or "powers of attorney" that give this other person rights to conduct transactions.


What should you do in these circumstances? "Talk to another family member, a lawyer who could intervene on your behalf, or someone else you know you can trust," advised Susan van den Toorn, an FDIC attorney.


Fall 2005 | Fake Documents Used to "Steal" Homes | Elder Fraud by Relatives or Caregivers |
How to Protect Against Financial Fraud | Identity Thieves Target the Deceased | If a Crime Has Been Committed


FDIC Consumer News is published by the Federal Deposit Insurance Corporation


FDIC Consumer News is produced quarterly by the FDIC Office of Public Affairs in cooperation with other Divisions and Offices. It is intended to present information in a nontechnical way and is not intended to be a legal interpretation of FDIC or other government regulations and policies. Mention of a product, service or company does not constitute an endorsement.


Find current and past issues of FDIC Consumer News at http://www.fdic.gov/consumernews. Refer to this same index to locate the issues that are specially formatted for being reprinted in any quantity.


To receive an e-mail notice about each new issue of FDIC Consumer News posted on the FDIC Web site, with links to stories, follow instructions posted at www.fdic.gov/about/subscriptions/index.html.


Last updated on 11/14/2005

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