Trusted Individuals Steal $20.3 Billion Annually from Elderly Americans

Caregivers and loved ones are robbing elderly Americans of $20.3 billion annually.

Another $8 billion per year is stolen by strangers, according to a report by the American Association of Retired People (AARP). Elder financial exploitation (EFE) — “illegal or improper use of an older adult’s funds, property, or assets” — impacts the economy at large as well.

“Taxpayers bear an increased burden in the form of the public programs and other resources needed to assist those victims who are financially devastated,” the report stated.

Researchers believe financial losses for senior citizens above the age of 60 could be higher, but many cases go unreported because victims may feel embarrassment or shame. In cases where the crook is known to them, the victim might want to protect their loved one or “may rely on the perpetrator for needed care and not want to jeopardize that care.” Senior citizens reported financial fraud committed by a loved one 12.5 percent of the time, and by a stranger 33 percent of the time.

On average, thieves who are known to the elderly victim will steal $50,000, whereas the average stranger-perpetrated theft is $17,000. Report author Jilenne Gunther said this is due to caregivers and loved ones having greater access to the victim’s banking accounts.

Victims are often depleted of their retirement savings and forced to go back to work.

“Getting restitution is nearly impossible, and re-earning that money takes time, when time is not on an older victim’s side,” Gunther stated in the report. “Victims often lose not only key resources that can jeopardize their current and future financial security but also a degree of their own dignity.”

Financial exploitation also negatively impacts a senior citizen’s mental and physical health, for “evidence links EFE to cardiovascular problems and possibly even earlier death.”

Since the Chinese coronavirus pandemic, financial fraud committed against the elderly population has doubled. Researchers attribute this to the elderly population losing connections to their churches and community centers where peers might pick up on red flags of financial fraud.

Worldwide, trusted individuals exploiting senior citizens has increased two to three times since the start of the pandemic.