Anuoluwapo Ojomo is a business risk, anti-fraud and compliance expert in financial services industry in the United States of America. She explains to ROTIMI IGE, why elderly people are at an increased risk of financial exploitation, among other topical issues.
What are some signs that an older adult might be a victim of financial exploitation?
Signs of elder financial exploitation may include sudden changes in financial habits, such as unusual withdrawals from bank accounts, unpaid bills despite sufficient funds, changes in power of attorney or will, missing property, and the elder expressing fear or anxiety around certain individuals. Unexplained financial activity or a new ‘best friend’ managing the elder’s finances can also be red flags.
Your work in the field of business risk, anti-fraud, and compliance is well known. Can you explain why Elder Financial Exploitation (EFE) is such a pressing issue today?
Elder Financial Exploitation (EFE) is indeed a critical issue, and it is, unfortunately, on the rise globally. As the population of older adults increases, so does their vulnerability to various forms of abuse, with financial exploitation being one of the most severe. This type of exploitation involves the unauthorised use or theft of an elder’s financial resources, and it’s particularly insidious because it often goes undetected for long periods. The perpetrators can be anyone; from family members and caregivers to financial advisors and scam artists.
What factors put elderly individuals at higher risk for financial exploitation?
The factors that increase the risk of elder financial exploitation include cognitive decline, isolation, dependency on others for care, lack of financial literacy, and accumulated wealth. Elders who are lonely or have recently lost a spouse may be more vulnerable to manipulation. Additionally, those with disabilities or mental health issues may be at greater risk.
It’s troubling to hear how widespread this issue is. How prevalent is elder financial exploitation globally, and how does Nigeria compare?
Globally, the statistics are alarming. According to a World Health Organisation review, 15.7 per cent of people aged 60 and older were victims of some form of abuse in the previous year. Financial exploitation, in particular, affects five to 10 per cent of older people worldwide. In Nigeria, the issue is just as concerning, though it is likely underreported. Cultural factors, such as the stigma associated with abuse and the lack of robust reporting mechanisms, contribute to this underreporting. Additionally, in some cases, financial exploitation in Nigeria can involve severe accusations like witchcraft, which are used to justify the illegal seizure of property and assets from the elderly.
What steps can be taken to prevent elder financial exploitation?
Prevention strategies include educating elders and their families about common scams and the importance of safeguarding financial information. Establishing strong legal protections, such as durable powers of attorney with trusted individuals, regular financial monitoring by a family member or professional, and staying connected to a trusted social network, can also help. Financial institutions can play a role by training staff to recognise suspicious activities.
What should be done if elder financial exploitation is suspected?
If exploitation is suspected, it is crucial to act quickly. The first step is to report the situation to adult protective services or local law enforcement. It is also important to involve a trusted attorney or financial advisor to review the elder’s financial situation. In some cases, legal action may be needed to recover assets or prevent further loss. Support from social services may also be necessary to ensure the elder’s safety and well-being.
How can financial institutions help prevent and detect elder financial exploitation?
Financial institutions can play a critical role by implementing training programmes for employees to recognise the signs of exploitation and by establishing protocols for reporting suspicious activities. They can also offer account monitoring services, place holds on questionable transactions, and provide resources for seniors to manage their finances securely. Collaboration with law enforcement and community organizations can further enhance their efforts to protect elders.
This seems like a crucial step forward. What are your hopes for the future in terms of addressing elder financial exploitation?
I hope that we see a significant reduction in cases of elder financial exploitation as awareness grows and preventive measures are implemented. We must create an environment where older adults feel protected and valued, and where their financial resources are safeguarded. This will require collaboration across sectors—from financial institutions and law enforcement to families and community organisations. Ultimately, I believe that with the right tools and strategies, we can make a real impact in protecting our elders from this form of abuse.
Can you share an example of a case of elder financial exploitation that you’ve encountered and how it was resolved?
A case involved an elderly woman who was being financially exploited by a distant relative. She had been coerced into giving away large sums of money and changing her will. Upon investigation, we were able to freeze her accounts, involve law enforcement, and ultimately recover a portion of her assets. Legal action was taken against the perpetrator, and the elder was connected with social services to ensure her ongoing safety and support.
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