My grandmother gave her neighbor $6,000 to buy a car. There was no car. How can I protect her from further exploitation?

MW My grandmother gave her neighbor $6,000 to buy a car. There was no car. How can I protect her from further exploitation?

By Quentin Fottrell

'The neighbor is living it up and - lo and behold! - there is no vehicle'

Dear Quentin,

If an elderly person is preyed upon by a neighbor is there any recourse? My grandmother loaned her next-door neighbor $6,000 to help her to "afford a car." My grandma didn't want me to know about it, but the gardener talked.

There were no repayments of any kind. The neighbor is living it up and - lo and behold! - and there is no vehicle! My grandma may or may not be in her full faculties, but insists on living alone. Is there any way to protect her from this neighbor or other predators?

Turns out, she's been stuffing the house with cash for many years. What prevents someone from visiting to make withdrawals? Any advice on how to best shore up the leak?

Granddaughter

Related: I inherited $200,000. One of my daughters is married with kids, but the other has debts. Do I split my windfall 50/50?

Dear Granddaughter,

Garden fences sometimes need to be higher - much higher.

There's a lot you can do. Call your grandmother's bank and alert them to any unusual transactions, carry out a deep clean of her house so you can excavate the cash piles and apply to be a guardian/conservator and/or power of attorney over her medical and financial affairs.

After you have the legal authority, freeze her credit at Experian (EXPGY), TransUnion $(TRU.UK)$ and Equifax $(EFX)$, so this neighbor from hell cannot set up an account or take out a credit card in her name. Put your grandmother's documents, including her Social Security number, in a safe place.

The National Careline offers, among other organizations, advice on next steps, including contacting the local council and reporting the issue to her local Adult Protective Services, District Attorney's office, and/or to the police or Sheriff's office. Find your local APS here.

"If your loved one has a social worker, elder patient advocate, or someone in a similar role, consider asking that person for help," per this advice from the Consumer Financial Protection Bureau. There may also be a family council in your grandmother's community.

Some states have laws to help survivors of financial abuse to file cases in civil court to recover lost funds, the CFPB says. You may also be able to put a temporary freeze on your mother's bank accounts. You could also seek a "restraining order" or "order of protection" in civil court.

Bravo to the gardener for snitching on this neighbor who sees your grandmother as an ATM to fund her lifestyle. Community is so important in these kinds of cases: gardeners, housekeepers, friends, hairdressers - anyone who could notice something untoward.

Who are the predators?

It may seem unthinkable, but neighbors, friends, family members and even caretakers are among the most common perpetrators of elder financial abuse. Such crimes cost the elderly up to $28 billion annually, researchers say, although official estimates may not reflect the true cost.

"Isolation is a red flag and many studies of elder abuse say a lack of a good support system and physical and psychological isolation are hallmarks of the problem," according to the National Adult Protective Services Association. But as you discovered, it can also happen in plain sight.

Typically, if you suspect someone of elder abuse - emotional, physical, psychological or financial - you should report them to adult protective services, or call 911 and report them to local law-enforcement authorities or your district attorney's office.

The National Center on Elder Abuse, a government agency affiliated with the U.S. Administration on Aging, says that one in 10 people over the age of 60 in the U.S. experienced some form of abuse in the prior year. Research still lags all the new forms of financial abuse.

There are red flags to watch out for, however. Financial signs of elder abuse include fraudulent signatures on documents, overdue bills and "unusual or sudden changes in spending patterns, will or other financial documents," according to the nonprofit National Council on Aging.

You can IdentityTheft.gov to report identity theft and get a recovery plan. It is managed by the Federal Trade Commission. You can also call 1-877-IDTHEFT (1-877-438-4338); Telecommunications device for the deaf: 1-866-653-4261.

The Moneyist regrets he cannot reply to questions individually.

Previous columns by Quentin Fottrell:

'He was recently taken to the hospital': My elderly neighbor gave me power of attorney. Can his estranged daughter object?

'Punishing myself would not help': My credit card was stolen - the thief revealed lots of nasty surprises about my finances

'We've had our ups and downs': My late in-laws left their estate to me, my husband and our son. Do we need to hire an attorney?

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-Quentin Fottrell

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November 12, 2024 18:10 ET (23:10 GMT)

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