Fraud Committed Against the Elderly

Fraud committed against the elderly in North Carolina is rampant.

The Center’s research found…

  • Scams target all seniors, rich and poor, all races, both male and female.
  • Often the fraud is carried out by friend, family, or caregivers.
  • Many frauds use the Internet to target the elderly.

Click here for to read the Executive Summary of the full report

 Fraud Against the Elderly

Ethel and Fred.....
Ethel and Fred were Christians and without any children of their own, they chose to give all of their discretionary income to the local Methodist church, which they attended every Sunday, or to televangelist ministries, which they watched day and night. Ethel loved church on TV, singing along as she watched the choir, nodding her head as she affirmed the minister, and raising her hands as she reached towards heaven. Once Ethel and Fred were homebound, the television shows gave meaning to their lives. Somewhere along the way, Ethel and Fred saw an evangelist on television who wanted to spread Christianity in the Middle East. They started giving money to the minister who lived across the country, and over time they became acquainted, and he started visiting them at their home in western North Carolina.
 
Eventually, Fred needed more care than Ethel could provide at home, so he moved to a local nursing home. One day, the minister visited them in the nursing home. He brought legal documents that had been drafted by a local attorney, and the minister asked them to sign health care powers of attorney, general powers of attorney, wills, and a deed to their house, retaining only a life estate. All of the money was to go to his ministry. The owner of the nursing home called the sheriff. The documents were destroyed, and Medicare fraud charges were investigated. However, Fred passed away shortly thereafter, and Ethel was not able to testify because of her mental capacity. The charges were never filed. The minster returned weeks later, and Ethel signed the legal documents again. This time, there was no one there to protect her, no one to call the sheriff. How do we protect Gramps and Grandma?
 
 For Gramps and Grandma, the wolves are often those they least expect: a minister, a daughter, a next-door neighbor, a trusted caregiver. To prepare for its aging population, North Carolina needs to update its laws to protect vulnerable adults age 60 and over. The panel of experts convened by the National Institute on Aging, noted in their book, “The occurrence and severity of elder mistreatment are likely to increase markedly over the coming decades, as the population ages, caregiving responsibilities and relationships change, and increasing numbers of older persons require long-term care.” The Baby Boomers are a wealthy generation, and the more money Gramps and Grandma have and the longer they live, the more conniving the wolves will be.


The Center's Recommendations to Combat Fraud Committed Against The Elderly

The Center recommends that the N.C. General Assembly: 

  1. Clarify and strengthen N.C. General Statute Chapter 108A, the Protection of the Abused, Neglected, or Exploited Disabled Adult Act. 

  2. Require reporting on the statewide incidence and prevalence of mistreatment of the elderly, expanding North Carolina’s current data collection system.
  3. Establish a study commission to examine how the N.C. Commissioner of Banks, the financial management industry, and law enforcement agencies can partner to prevent fraud against the elderly. The study commission should assess whether training for bank employees can help them recognize, report, and reduce the incidence of fraud against the elderly. 
  4. Consider giving the N.C. Attorney General authority to initiate prosecutions for fraud against the elderly. Only five states do not give their Attorney General any authority to initiate local prosecutions—North Carolina, Arkansas, Connecticut, Texas, and West Virginia