Financial Stressors and Resources Associated With Financial Exploitation

Abstract

Background and Objectives The prevalence of older adult financial exploitation (FE) is increasing. Population-based survey estimates of FE in the older adult population range from 5% to 11%. Given the growing prevalence of FE victimization in older adult populations, understanding the population’s vulnerability to FE has increased in importance. This study investigates a conceptual framework in an attempt to understand how financial stressors and resources are associated with substantiated FE in a sample consisting largely of Black older adults. Research Design and Methods The study uses a cross-sectional design to investigate group differences among a total sample of 142 community-dwelling older adult participants, 62 of whom sought services to address FE and 80 with no history of FE. Results The group of older adults who sought services to address FE was more likely to be unmarried and had fewer years of education. Measures of financial literacy and perceived financial vulnerability had protective and risk effects, respectively. Discussion and Implications The present study found that sociodemographic and financial stress and resource measures have significant relationships with FE. These findings support the conceptual framework describing their relationship. This new conceptual framework provides a guiding factor in better understanding vulnerability to FE in older adults. The study also adds to the paucity of research completed on FE with Black older adults.

Psychological, social, and health-related factors predict risk for financial exploitation

“…Previous studies examining the direct effects of SES have been inconsistent (e.g., Hall et al, 2022;Sur et al ). In our research, the main effect of socioeconomic status was also inconsistent across studies.…”

“…However, socioeconomic status (SES) (e.g. Hall et al, 2022;Sur et al, 2021) , trust in others (Nguyen et al, 2021;Shao et al, 2019 (a)) , emotion regulation ( Shao et al, 2019(b) ) , and social support (Liu et al, 2017;Nguyen et al, 2021) have been contradictory. Results from research on age (e.g.…”

Subjective Age Moderates the Relationship Between Global Cognition and Susceptibility to Scams

“…Consequently, they may be more likely to engage in specific protective behaviors and more likely to utilize self-protective strategies (e.g., distancing oneself from older age groups) that may counteract the negative effects of cognition on scam susceptibility. Specific to financial risk, these behaviors and strategies may include maintaining independence with regard to financial management, financial self-efficacy, and confidence in financial decisions, factors shown to be associated with lower financial exploitation risk (Hall et al, 2022;Lichtenberg et al, 2016;Peterson et al, 2014). Conversely, individuals with older subjective ages may become more dependent on others for financial matters (Rippon & Steptoe, 2018), especially if they themselves experience cognitive changes that confirm prevalent aging stereotypes regarding cognitive decline (Barber, 2017).…”