Financial crimes against the elderly are widespread - and apparently increasing. These crimes are considered to be difficult to detect because enforcement is spotty and the victims often are in no position to protect themselves, or even to report the crime.
The website My Retirement Paycheck is recommended for help with spotting and protecting yourself against investment fraud.
David Lerner Associates is in hot water with regulators - and elderly investors have been caught up in the turmoil. So, here are some tips for older investors, or someone in your family who might be a target for an elder-scamming investment fraud.
Attorney John D. Jordan discovered theft from one of his senior clients by another lawyer.
A video from the Pa. Securities Commission, The Elderly and Investment Fraud, gives some of the indicators of possible fraud, but also explains why the elderly become more vulnerable to it. Watch it here.
Comprehensive study on Elder Abuse
A 2009 study conducted by the New York City Department for the Aging, the Weill Cornell Medical Center of Cornell University, and others found that the statewide rate of abuse was nearly 24 times greater than the number of cases reported to social service and legal authorities.
The abuse was categorized as neglect, financial exploitation, verbal and emotional abuse, and physical abuse.
Psychological abuse was the most common form reported by agencies; financial exploitation topped the list of self-reported incidents.
Applying the incidence rate found in the study, the authors suggest that 260,000 older adults had been subjected to abuse in the state in a 12-month period spanning 2008 and 2009.
Dozens of social service and law enforcement agencies in the Philadelphia region focus on financial crimes or exploitation involving the elderly.
Each of Philadelphia's suburban counties has an office on aging that can respond to allegations of exploitation or theft as well as other forms of abuse, in many instances by referring the matter to the district attorney. The PennsylvaniaState Department of Aging runs a 24-hour hotline where instances of abuse and neglect can be reported: 800-490-8505.
In Philadelphia, the Philadelphia Corporation for Aging investigates allegations of abuse. Investigators at PCA's protective services unit can be reached 24 hours a day at 215-765-9040.
Following are other agencies or institutions that assist exploited or abused seniors:
The SeniorLaw Center: A nongovernmental agency in Center City, the center focuses on providing seniors with legal representation on issues ranging from housing to concerns about financial exploitation and fraudulent business practices. Contact 877-727-7529.
The Senior Law Center, which is assists the rights of Pennsylvania's seniors, advises that seniors take an active role in their financial affairs, monitoring statements and asking questions. Four areas that are ripe for financial exploitation:
1. Power of attorney. This can stem from lack of supervision or lack of attention in choosing the person.
2. Joint bank accounts. Problems can be detected if you review bank statements carefully.
3. Deed transfers. Once you sign over the deed, you no longer own the property.
4. Credit card fraud. Always know where your card is.