Exploring the Issue of Financial Abuse in Nursing Homes

Tuesday, February 4, 2025

Exploring the Issue of Financial Abuse in Nursing Homes

Written by Malman Law, reviewed by Steve J. Malman.

Nursing home abuse comes in many different ways: neglect, malnutrition, and even physical abuse. Yet, there is one form of abuse that is often overlooked: financial exploitation. This silent threat can continue unchecked for months or even years. Recognizing the signs is the first step to action in reporting to the elder abuse hotline and taking the help of legal services. At Malman Law, families can get in touch regarding financial exploitation and are assured that through expert legal intervention, their loved one is protected, and the offenders are brought to justice.

Exploring the Issue of Financial Abuse in Nursing Homes 

Nursing home abuse is widespread in the United States. The types of abuse range from bedsores, to patients being malnourished, to outright physical battery. Most family members are now aware of the physical and emotional risks when picking nursing homes for their loved ones.

Exploring the Issue of Financial Abuse in Nursing Homes

However, there is one silent type of abuse that might go on for months or years. It does not leave a physical mark or even emotionally affect the victim, but eventually, it will deprive them of a quality life or the things they need to thrive. This type of abuse? Financial.

Understanding Financial Abuse in Chicago Nursing Homes

Financial abuse – also known as financial exploitation or material exploitation – is an abuse of a person’s assets, funds, or personal property. A patient inside a nursing home can become an ideal target for financial abuse.

A nursing home resident is vulnerable to the deception required to steal funds from them, and in most cases, these victims are unaware that they have been targeted.

Common Examples of Financial Abuse 

In nursing homes, financial exploitation and abuse take many forms, including:

  • Theft of resident’s cash, checks, or other personal property. 
  • Forgery: forging residents’ signatures on checks or other financial documents for access to the residents’ assets. 
  • Charging for services not provided, unnecessary care, or inflation of charges.
  • Exploiting the resident through misuse of guardianship, power of attorney, or conservatorship; promising care in return for money or property.
  • Identity theft by using a resident’s personal information.
  • Embezzlement of funds placed in the care of the facility.

Common Risk Factors for Financial Abuse in Nursing Homes 

Certain conditions make nursing home residents vulnerable to financial stress. Key factors include:

  • Cognitive Disabilities: As conditions such as dementia and Alzheimer’s disease progress, so does the eventual complete devastation of one’s ability to deal with personal finances, make sound judgments, or even recognize indications of possible financial exploitation. Besides residents afflicted with these types of illnesses experiencing problems in personal awareness of any suspicious transactions or fraudulent acts themselves, they are then extremely vulnerable to financial abuse.
  • Social Isolation: When the residents have sparse interaction with family, seldom receive any visitors, or where their loved ones are disengaged from their care, an important layer of oversight and advocacy is clearly lacking. All this isolation does is to create a prime setting where any exploitation either goes unnoticed or unreported; thus, they become much easier targets in financial misconduct.
  • Vulnerability to Carers: The very fact that residents depend on nursing home staff for their daily needs places them in a vulnerable position. Undue influence, inappropriate relationships, or outright theft by unscrupulous caregivers can result in significant financial harm.
  • Lack of Financial Oversight: Without someone trusted who would routinely go over financial statements, monitor transactions, and question irregularities, it’s much easier for fraudulent activities or unexplained charges to slide by unnoticed. Regular oversight is perhaps one of the major deterrents to financial abuses. 
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Malman Law’s founder Attorney Steven Malman has over 30 years of experience handling personal injury, nursing home, medical malpractice, premises liability, construction and workers’ compensation cases.

STEVE J. MALMAN
Founding Attorney

Warning Signs of Financial Exploitation in Nursing Homes

The earlier the warning signs of financial exploitation are identified, the less harm will be done to the loved one. Some family and friends should look for the following warning signs to help identify potential exploitation or abuse:

  • Unexplained Financial Changes: Question suspicious withdrawals, losses of money, or sudden changes in banking behavior.
  • Suspicious billing practices: Billing for services that were not provided, overbilling, and billing for unnecessary care.
  • Legal Documents Altered: Changes in the resident’s wills, trusts, or powers of attorney that are inexplicable to the resident himself are considered undue influence.
  • Missing Personal Belongings: Frequent loss of cash, jewelry, or other valuables may indicate theft.
  • New or Unknown Relationships: When caregivers or acquaintances suddenly gain access to financial accounts or powers of attorney, this is suspicious.

According to the Consumer Financial Protection Bureau, Bank account and financial instrument unauthorized use, like credit card fraud, is one of the most frequent kinds of financial exploitation and may carry significant financial consequences and emotional harm to its victims.

Please read: How Nursing Homes Might Try to Cover Up Abuse

Legal Options for Victims of Financial Abuse in Nursing Homes

There are legal avenues of justice and methods for recovering losses available to the victims of nursing home financial abuse. An elder law attorney experienced in guiding the families in the following areas can help the families: 

  • Civil Lawsuits: Families can file lawsuits against the abusers or facility for negligence, fraud, or other forms of violations of their duties.
  • Reporting to Authorities: Reporting to the Aging’s Adult Protective Services (APS) or the elder abuse hotline can initiate an investigation into the nursing home and its practices. 
  • Restitution Orders: The courts may also issue an order to the offenders to return the money stolen or pay as damages.
  • Applications for Guardianship: Application for guardianship would protect the financial estate of a vulnerable resident from further exploitation.
  • Criminal Prosecution: Where the abuse is serious, the authorities may prosecute the offenders, possibly resulting in punishment such as imprisonment.

Legal action against the individuals and the involved institution ensures that this form of exploitation does not continue.

Report elder abuse 

Reporting suspected elder abuse is an important protection for vulnerable residents in nursing homes. Those concerned about the welfare of a resident in Illinois may do the following:

Contact the Illinois Department on Aging

The Illinois department on aging investigates complaints of elder abuse, neglect, and financial exploitation. Their scope of practice includes thorough investigation, support to help the victims recover, and measures for ongoing safety and protection to prevent further harm. By doing this, they are strategically placed to protect vulnerable individuals from exploitation and to take appropriate actions regarding incidents of exploitation.

Call the Elder Abuse Hotline

The Elder Abuse Hotline provides immediate support to an individual concerned about elder abuse, referring callers to the most appropriate resource for their specific needs, including referrals to local agencies and/or services..

Notify Local Law Enforcement

Cases of human or material dangers, or other criminal activity, must be directly reported to the local police or another corresponding law enforcement authority. Prompt police notification can lead to a better legal case.

Consult with an Elder Law Attorney

An elder law attorney can be of immense help in the process of reporting. Lawyers guide families through collecting evidence, documenting financial or physical harm, and understanding legal options. One can also assist a victim and their family in pursuit of civil or criminal cases, which includes advocating for restitution. 

You do not have to tolerate financial or physical abuse in nursing homes. Instead, nursing homes should be held accountable by hiring an attorney from Malman Law. Our attorneys are here to fight for your right to compensation.

Schedule a consultation today at 888-625-6265 or request more information online.

Steve Malman

Malman Law’s founder Attorney Steven Malman has over 30 years of experience handling personal injury, nursing home, medical malpractice, truck accidents, car accidents, premises liability, construction, and workers’ compensation cases in Chicago, IL.

Years of experience: +30 years
Justia Profile: Steve Malman
Illinois Registration Status: Active and authorized to practice law—Last Registered Year: 2024

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This page has been written, edited, and reviewed by a team of legal writers following our comprehensive editorial guidelines. This page was approved by President and Founder, Steven J. Malman who has more than 20 years of legal experience as a personal injury attorney.

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