Michigan Financial Exploitation Prevention
In Michigan, thousands of older and vulnerable adults fall prey to financial exploitation annually. The risk of financial exploitation—which can drain a vulnerable adult’s or family’s wealth—makes it critical for families to take proactive steps to reduce the chances of a loved one becoming a victim of financial exploitation.
What Is Financial Exploitation?
Financial exploitation involves the unlawful or unethical use of another person’s money or property. Older or vulnerable adults represent one of the largest groups of financial exploitation victims. A person may become a victim of financial exploitation through theft, fraud, or undue influence. Some of the ways that financial exploitation can happen include:
- Fraudsters may contact vulnerable adults to run various scams, such as lottery-winning or IRS scams
- Older adults may become victims of theft, including from individuals with access to the adult’s possession, like an in-home caregiver or nursing home staffer
- Scammers may seek to ingratiate themselves with vulnerable adults to exert undue influence to convince a victim to provide access to their finances willingly
Michigan Laws Addressing Financial Exploitation
In Michigan, the Financial Exploitation Prevention Act requires financial institutions to implement training and procedures to ensure employees recognize signs of financial exploitation and take proactive efforts to protect vulnerable adults who may become victims.
Abusers who engage in financial exploitation of vulnerable adults may face criminal prosecution for various offenses, such as theft, embezzlement, and wire fraud.
Warning Signs of Financial Exploitation
Some of the most frequent signs that an older or vulnerable adult has become the victim of financial exploitation include:
- Unpaid bills, including receiving foreclosure notices or having utilities shut off
- Missing valuables, including jewelry, heirlooms, and cash
- Unusual bank transactions, including unexplained ATM withdrawals or checks made to cash
- New, unidentified credit card transactions, especially recurring charges
- Sudden changes to the adult’s estate plan, including wills, property deeds, and beneficiary designations
- Purchases of high-value items that the adult would not use, such as vehicles or vacation properties
- References to new “friends” unknown to the adult’s family
Measures to Prevent Financial Exploitation
Families can take various steps to protect vulnerable loved ones from financial exploitation, such as:
- Monitor your loved one’s financial accounts, including credit cards, checking/savings accounts, and brokerage accounts.
- Ensure your loved one uses licensed or certified financial advisors.
- Educate your loved one about the potential of financial exploitation and encourage them to speak up if unknown individuals try to befriend them and ask them for money or access to their financial accounts.
- Perform regular inventories of your loved one’s valuables. Consider installing security cameras in their home to watch for potential theft.
- Set up a power of attorney or conservatorship/guardianship to ensure that only trusted family members can access your loved one’s finances.
Contact an Elder Law Attorney Today
If you’re concerned that your loved one may become vulnerable to financial exploitation, an experienced elder law attorney can help your family take steps to protect them and the rest of your family. Contact Bingham Legal Group today for an initial consultation with our attorneys to learn more about financial exploitation prevention in Michigan.