Elder fraud is on the rise, with total losses increasing by $300 million from 2023 to 2024. Financial exploitation is a form of elder abuse, targeting an older adult's assets rather than their physical or emotional health.
The Lento Law Firm Team understands the impact that financial exploitation can have on seniors and their families. If you're experiencing elder financial abuse, we can help. Give us a call at 888-535-3686 or fill out our contact form.
What Is Elder Financial Exploitation?
The U.S. Department of Justice defines elder financial exploitation as illegal or improper use of an elderly person's funds or property for personal benefit or gain. Some examples include:
- Unauthorized access to a senior's bank accounts or credit cards
- Fraudulently obtaining an older adult's signature on legal documents like wills or powers of attorney
- Duping older adults into fraudulent investments or scams
- Outright theft of a senior's property or money
- Mismanagement of funds from a trusted advisor, such as a legal guardian or power of attorney
Elder financial exploitation is a form of elder abuse. It falls under the larger category of elder abuse and has laws in place to protect older consumers.
How Elder Financial Abuse Differs from General Elder Abuse
The term “elder abuse” covers physical and emotional harm perpetrated on seniors. Elder financial abuse, on the other hand, refers specifically to the assets held by older adults. While physical and emotional abuse can be more personally devastating, financial abuse can rob someone's assets, whether it's drained bank accounts or valuables, they can never get back.
From a legal perspective, though, financial exploitation comes with another distinction. Court intervention is often required to remove a scammer from an older adult's life. In some cases, a restraining order (RO) is necessary to prevent additional harm by forcing the person to separate from the older adult.
Why Is Elder Financial Exploitation Increasing?
While elder financial exploitation is nothing new, the COVID-19 pandemic exacerbated the issue. Older adults were isolated from loved ones and forced to rely on online tools for their financial transactions. This created an opening for scammers, who found new and inventive ways to exploit victims.
At the same time, we've seen an increase in scams in general, and scammers are more sophisticated than ever. Artificial intelligence is making it tougher to spot a scam while also allowing scammers to launch a scheme quickly with little effort.
Identifying Elder Financial Abuse
For older adults and their families, early detection of financial abuse is key to minimizing damage. Here are some signs that you or a loved one has been financially exploited:
- Unauthorized bank transactions, including unexplained withdrawals or transfers
- Sudden financial hardship
- Missing property
- New caregivers who appear to be trying to influence the older adult
- Unpaid bills or calls from debt collection agencies despite having the resources to cover them
- Unexplained alterations to legal documents
Steps to Take After Elder Financial Abuse
If you or someone close to you has been a victim of elder financial abuse, here are some steps to take:
- Secure the person's safety: If the senior is in immediate danger, contact the authorities.
- Gather evidence: Collect as much documentation as you can and take careful notes of any communications you have as you work to remedy the situation.
- Seek legal counsel: The Lento Law Firm Team can help you stop further abuse and work toward retribution for any financial losses the senior has already suffered.
- File for a restraining order: A restraining order can separate the older adult from abusers.
- Reach out to the older adult's financial institution(s) and credit card companies to let them know about the abuse. You may need to cancel credit cards if they've been compromised.
- Report to authorities: If a crime has been committed, you'll need to file reports with Adult Protective Services or law enforcement.
- Continue to monitor accounts: Moving forward, a trusted family member should keep an eye on the senior's accounts to make sure no further fraud is committed.
Restraining Orders and Elder Financial Exploitation
Restraining orders can be valuable tools in protecting an older adult who's been targeted by scammers. This is especially important if someone has formed an ongoing relationship with the senior and used that relationship to commit fraud.
The first step is to get a temporary RO, which is sometimes referred to as a protective order. This document can be issued fairly quickly to provide immediate protection. A hearing will typically follow at a later date, and during that hearing, the court will determine whether the order should become permanent.
An RO will ensure the following:
- Prohibit any contact: The RO will instruct the abuser to avoid contacting the elder or accessing any accounts.
- Stop ongoing financial abuse: The RO can immediately freeze any transactions that are already in progress.
- Require a minimum distance: As with other types of ROs, a financial exploitation RO will require that the respondent stay away from the elder's home, workplace, adult day program, or long-term care facility.
Why a Restraining Order Is Critical in Protecting Elders
Financial abuse doesn't just strip older adults from their assets. A scammer often targets a victim and uses manipulation to gain access to those assets. This emotional component can make it tough for loved ones to convince the elder that the scammer has nefarious intentions.
A restraining order sets a clear legal boundary for abusers. The recipient will be legally required to maintain a physical distance from the elder, and the order will also prohibit the person from making contact with the complainant or from accessing any of that person's financial accounts.
Restraining Orders in New Jersey
In New Jersey, restraining orders are designed to protect victims of domestic violence. That means the domestic violence order will need to be placed against someone who:
- Lives with the complainant
- Is dating the complainant
- Has a child with the complainant
Victims of sexual abuse can also file a sexual assault restraining order, but this is the only RO option for New Jersey residents who don't live with or have a romantic relationship with the abuser. If a family member is involved in financial exploitation but you don't qualify for a restraining order, you may be able to get assistance from the Family Division Office in your area.
How to Get a Restraining Order in New Jersey
Filing a restraining order in New Jersey starts with showing up at the Superior Courthouse (family division). New Jersey doesn't require you to stick with the county where the financial abuse occurred. You can file:
- In the county where you live
- In the county where you're temporarily staying
- In the county where the abuser lives
- In the county where the abuse occurred
If the courthouse is closed and you don't want to wait until it opens, you can visit the police department closest to where you or the abuser lives or the county where the abuse happened. However, if you want to file a criminal complaint while also applying for an RO, you'll need to go straight to the police department since they can handle both.
To be issued a temporary restraining order, you'll need to go in front of a judge and explain the situation. The judge will decide whether to grant a temporary restraining order. If you go through the police department, the officer will contact the judge, who will then make the decision on whether to issue an RO.
Once the temporary RO is issued, a copy will be provided to you and sent to the person named in the order. The judge will also set a hearing date, and that date will fall within 10 days of the temporary RO being issued.
At the hearing, the judge will decide whether to issue a permanent restraining order. This order is truly permanent. It will not be revoked unless the court decides to do so.
The Lento Law Firm and Elder Financial Exploitation
If you or someone close to you has fallen victim to elder financial exploitation, our attorneys can help. Here are some ways the Lento Law Firm Team can seek resolution for financial scams:
- Stopping further abuse: Our first step is typically to look into whether an RO is applicable to your situation. If so, we'll help you file for a temporary RO.
- Protect financial accounts: If someone's accounts have been compromised, it's important to notify those institutions as soon as possible so that they can prevent further access.
- Recovering stolen assets: When possible, we take legal action to force scammers to return any stolen funds or belongings.
- Preparing for hearings: You'll need to make statements when applying for an RO, and we can help you prepare those statements. You may find yourself facing off against the abuser and/or the abuser's attorney in front of a judge, so it's important to get your points across effectively.
The Lento Law Firm Team knows the stress that can come from financial exploitation, particularly when that exploitation is directed at an older adult. If you or someone close to you has suffered elder financial abuse, we can help. Give us a call at 888-535-3686 or complete this confidential online form.
