For well over twenty-five years, researchers have analyzed the concept of financial exploitation of older and vulnerable adults. The crime of financial exploitation, an offense reserved exclusively for vulnerable adult (or, in some states, dependent or older adult) victims, has been described as one of the most difficult crimes to detect and has plagued researchers attempting to document accurate and appropriate warning signs of wrongdoing. Not only is financial exploitation difficult to detect, but determining the point at which exploitation first occurs is a formidable task. Indeed, for every case of financial exploitation reported to either adult protective services (APS) or law enforcement, four to five cases remain unreported and, potentially, undetected. However, recent research indicates that reporting of financial exploitation cases to law enforcement and APS has increased, partly due to the reauthorization of the Federal Older Americans Act in 2000.
One potential explanation for the increased reporting of financial exploitation may relate to the steady increase of elder adults aged sixty-five and older in the United States. Between 2000 and 2010, the elder population (i.e., those individuals sixty-five and older) has increased by 5.4 million people. The elder population also has the most wealth compared to other age demographics. For instance, in 2011, a married couple aged sixty-five and older had a median net worth of $284,170 in assets; in contrast, the median net worth for a married couple, age thirty-five to fifty-four, was approximately $116,170.
Interestingly, financial exploitation crimes against vulnerable adults continue to increase while other, more violent crimes against the same population decrease. Contributing to the problem of remediating these crimes is the lack of a single, consistent definition of financial exploitation. For example, the National Center on Elder Abuse defines financial exploitation as “the illegal or improper use of an older adult’s funds, property, or assets.” Meanwhile, Lachs and Pillemer define it as “misappropriation of [an elder’s] money or property.” Dessin conceptualized financial exploitation in four distinct categories: theft, fraud, intentional breach of duty by a fiduciary or caregiver, and negligence.
This particular form of maltreatment has been estimated to cost its victims up to $2.6 billion annually. The typical financial exploitation victim is a female who is between seventy and eighty- nine years old, white, and has some form of incapacity. The follow-up survey to the 2009 MetLife Mature Market Survey indicated that women were twice as likely as men to be victims of financial exploitation, with most living alone and needing assistance with activities of daily living. As early as 1993, research indicated that elders who are dependent on caregivers, those with diminished capacity, and those who are widowed and previously did not handle financial matters were the primary targets of perpetrators. Kemp and Mosqueda noted that financial exploitation accounted for approximately twenty percent of all the cases of substantiated maltreatment from state APS agencies. In addition, financial exploitation is expected to grow due to four main factors: (1) there is a continually expanding older adult population; (2) the majority of the wealth in the United States is held by the older adult population; (3) increasing age often equates to increased vulnerability to perpetrators; and (4) the variety of scams and methods of exploitation continues to grow.
Despite its prevalence, financial exploitation is particularly challenging to address, as it is infrequently reported yet relatively common. Elder maltreatment, for many years, was viewed as a civil matter rather than a criminal act. However, while law enforcement agencies and government prosecutors are pursuing more cases of financial exploitation, civil actions initiated by the vulnerable adult may be challenging. As a result of potential diminished capacity, the alleged maltreatment may become a battle of testimonies rather than based on evidence. The vulnerable adult may not be able to afford the court costs or the services of an attorney, and the vulnerable adult’s funds may be depleted even if the case is proven in court.
The research conducted to date has primarily analyzed the risk factors and warning signs of financial exploitation in light of the relationship of the perpetrators who commit such crimes, the capacity (or lack thereof) of the vulnerable adult victim, and the amount of time taken to exploit a vulnerable adult.