The Wolf Was at the Door: The Hidden, Growing Threat of Elder Financial Abuse

As difficult as it is to imagine, at least one in ten American adults over the age of 60 has experienced some form of abuse. This can take many forms, including emotional, psychological, or physical abuse, but the vast majority of the crime that makes victims of our elders is financial exploitation. When a bad actor gains the trust of a vulnerable senior, it can be frighteningly easy to manipulate their finances. Worse, the perpetrator is usually someone close to the victim, such as a family member or caregiver. This is called elder financial abuse. It is more common than you might think, and the effects can be financially and emotionally devastating.

As difficult as it is to imagine, at least one in ten American adults over the age of 60 has experienced some form of abuse. This can take many forms, including emotional, psychological, or physical abuse.

Elder financial abuse is the misappropriation of financial resources or assets of a person aged 65 or older in the context of a relationship where there exists an expectation of trust, according to the National Adult Protective Services Association (NAPSA). But as Michael Hackard, founder of California’s Hackard Law Firm, has put it, elder financial abuse is the crime of the 21st century ― an underreported, insidious issue that remains hidden from most people. Hackard has focused on this growing threat. Besides his 40+ years of experience as a litigator and advocate for abused elders and their beneficiaries, Hackard literally wrote the book on the subject: The Wolf at the Door: Undue Influence and Elder Financial Abuse, published in 2017 to rave reviews.

Data from the National Institute on Aging tells us that at least 5 million cases of elder financial abuse are reported in the U.S. each year, though experts agree that in all likelihood the number of incidents is much higher. A recent study by NAPSA estimates that only around one in 44 cases are ever reported to law enforcement. And in 2021, an investigation by CNBC revealed that elder financial abuse and fraud costs at least $36.5 billion annually, another estimate that is likely nowhere near the true total; exact figures are difficult to determine since so many incidents go unreported. And while most victims are affluent, middle-income seniors are just as vulnerable.

Why prey on the elderly? There are several factors that make elders vulnerable, particularly to their caretakers and even their own family. The first involves deterioration in cognitive and physical health. In our twilight years, there is an attendant reliance on others to help accomplish our activities of daily living (ADLs). A bad actor may see an opportunity to exploit mental impairments like dementia or Alzheimer’s to gain control of an elder’s finances or assets. And even when their cognitive health remains strong, elders may become targets for those closest to them — members of their own families. Often, a family member or caregiver gains access to a victim’s finances while assisting with the elder’s ADLs or just by gaining their trust in general. Another important factor is related to financial trends. Seniors control about 75% of the wealth in the United States, and the shift from defined benefit to defined contribution plans means that elders are increasingly managing their own retirement savings during a period in their lives when it may become more difficult to do so. Finally, the growing elderly population in the U.S. entails an attendant growth in their financial exploitation.

Despite the growing threat, financial abuse can be difficult to detect, especially since nearly 60% of cases involve an elder being taken advantage of by a family member or friend. Fortunately, there are steps you can take to identify elder financial abuse and to fight back on behalf of your loved ones. First, there are a few telltale signs that someone you care about may be a victim of abuse or exploitation. These include, but are not limited to:

• Sudden changes to their will or trust
• Money or property being used without their knowledge or permission
• Forged signatures
• Changes in spending habits
• Someone borrowing money without repaying it
• The fraudulent obtaining of a power of attorney or guardianship
• Fraudulent insurance or investment schemes
• Social security, lottery, or telemarketing scams
• Identity theft

Next, if you suspect a senior family member is being exploited, it is imperative to act quickly. With the passage of time, it only grows more difficult to recover stolen assets. You will need an experienced estate litigator you can trust, one who is compassionate and sensitive in how they handle your case. This is especially true when the suspected abuser is a family member, and potentially explosive family dynamics are at play. Some resources that can be reached for help include:

• Elder Abuse/Dependent Adult Resources in Sacramento County
• Sacramento District Attorney’s Office – Elder Abuse
• Adult Protective Services
• Sacramento County California Elder Abuse, Neglect, Financial Abuse
• Community Resources, City of Sacramento

When it comes to elder abuse, Hackard’s passion is fueled by personal experience. His mother’s aunt was the victim of financial abuse, exploited by her caregiver near the end of her life. Hackard was a young attorney then, not yet experienced in estate and trust litigation. He describes feeling powerless at the time, unable to protect his family. “[Everything] was going along fine until they got a caregiver that would not let anyone in the house, who cut off all telephone contact with family members. … When the aunt died, we found out the same day that the caregiver claimed that she had inherited a very expensive house in San Francisco.” Hackard got his mother a lawyer and describes the experience as having a profound impact on his life and career. “Estate and trust litigation can get complex,” says Hackard. “Now you’re facing an uphill battle, and how do you fight back?” The first step is knowing who to reach out to first. You may want to start by reviewing this educational video before reaching out to the resources noted above.

he targeting of vulnerable elders is of course alarming and unconscionable, but the truth is that elder abuse touches all of us. Our parents age and start to show signs of diminished capacity. Our relatives and neighbors become increasingly dependent on others to accomplish daily tasks. And all of us can become at risk as we grow older. “People oftentimes don’t realize the danger,” says Hackard. “The wolf is that close.” You and your family deserve to be safe. Don’t let a bad actor get away with taking what belongs to you.

Michael Hackard’s The Wolf at the Door: Undue Influence and Elder Financial Abuse presents both an overview and in-depth analysis of elder financial crimes. The veteran California attorney and elder financial abuse writer Michael Hackard draws from forty years of legal experience to advise families, caregivers and professionals who work with seniors what elder financial abuse is, how to identify it and—most importantly—what to do if abuse is suspected. The book is written for a general audience, and it offers case studies, research and hard-won observations gleaned from a long career representing abuse victims and their loved ones.