October 22, 2003
Money scams target seniors
Program profiles typical victims and abuse perpetrators
By Carol South
Herald contributing writer
Profile: woman over 65, living alone, lonely, possibly in physical or mental decline.
Prognosis: target for financial exploitation.
Members of area financial institutions, law enforcement agencies and organizations serving the elderly gathered for a luncheon seminar Thursday entitled Issues of Financial Exploitation for Seniors. As more seniors are victimized financially by either strangers or family, local agencies and care providers are looking at ways to education the community and themselves about this growing problem.
Catholic Human Services organized the seminar, which drew 35 attendees. Speakers included the Grand Traverse and Leelanau County prosecuting attorneys, a member of Adult Protective Services for Grand Traverse and Leelanau counties and a special agent of the United States Secret Service.
Sara Brubaker, prosecuting attorney for Leelanau Country, outlined some cases and the typical profile of both the victim and the perpetrator. From her years working as a trust officer in a bank, she told of how one extremely frugal elderly woman suddenly began dressing, acting and spending differently. Writing large checks and making large withdrawals, this woman was accompanied on her bank visits by a new 'friend' who hovered solicitously - and in a controlling manner.
"One of the advantages you all have as bankers is that you know your customers and can notice odd behavior," Brubaker said. "You can spot someone who may be preying on your victim, someone who may be identifying a vulnerable person and trying to take advantage."
"You have to look for and train you staff to look for what is weird and when something doesn't make sense," she added.
Brubaker outlined a typical exploiter profile: a friend of the victim, usually a younger male, who is financially dependent on the victim. She also noted that his person generally has serious medical or substance abuse problems.
Brubaker also outlined the legal obstacles to reporting and stopping such financial exploitation. She outlined steps financial institutions in other communities have taken jointly to provide themselves with legal protection if they report suspected abuse.
The victim may also be an obstacle to stopping the exploitation. Often, this person is reluctant to believe anything is wrong. They may be so lonely that having a friend - even one who makes financial demands and threatens to leave if they are not met - is worth it at any cost.
Adult children may also prey on their well-off parents, insinuating themselves into their lives and draining away savings. Sometimes a home that has been paid off for years will be mortgaged again so these children can have the cash. These children want to get back in their parents' good graces to either get money immediately or convince their parents not to spend so they can inherit it.
The first step is to add names to bank accounts, then adult children open other bank accounts and finally get a general and durable power of attorney.
"This is what I call a blank check," Brubaker said.
While the region has numerous retirees, many of whom are well off financially and potentially vulnerable, exploitation from family members or new 'friends' can strike even poor seniors.
"Don't just assume it's your wealthiest customers, even people living on $800 Social Security checks are vulnerable," noted Rachel Richards, an adult protective services worker with the Grand Traverse County and Leelanau County Family Independence Agency.
Grand Traverse County Prosecutor Dennis LaBelle added that people who are exploited financially are often very embarrassed and reluctant to come forward. He also noted that family squabbles among children or one child providing most of the care for an adult parent may also prompt false charges of financial exploitation.
"These family situations, you have to be very careful because there is a lot of misinformation out there," he noted.
Strangers who have access to an elderly person and their home, such as house cleaners or other part-time caregivers, could also steal from them. As a person ages, LaBelle noted, their physical and mental processes become less reliable and make them more vulnerable to this sort of exploitation.
The problem of financial exploitation will most likely get worse as the large generation of Baby Boomers age.
"Thieves don't rob banks anymore, they just find an old person they can go shake down for their money," LaBelle said. "They're thieves in a different clothing."