Quantifying Risk of Financial Incapacity and Financial Exploitation in Community-dwelling Older Adults: Utility of a Scoring System for the Lichtenberg Financial Decision-making Rating Scale

Lichtenberg, Peter A.; Gross, Evan; Ficker, Lisa J.

doi:10.1080/07317115.2018.1485812

Cited by 21 publications

(7 citation statements)

References 29 publications

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“…The scale contains 56 items across four subscales: (1) FSA, (2) PV, (3) intellectual factors, and (4) susceptibility to undue influence and FE. Interrater reliability and factor analysis that confirm the conceptual model have been documented in previous samples (see Lichtenberg et al, 2015 , 2017 ), as have concurrent validity with cognition ( Lichtenberg et al, 2017 ) and with FE ( Lichtenberg et al, 2020 ). Higher scores reflect more vulnerability across the different factors (i.e., contextual and intellectual) in financial decision-making.…”

Section: Methodssupporting

confidence: 77%

The WALLET Study: Examining Early Memory Loss and Personal Finance

Lichtenberg

Tarraf

Rorai

et al. 2022

Innovation in Aging

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Background and Objectives This feasibility study tests a new approach for assessing personal finance in older persons with early memory loss. The project examines two primary outcomes that gauge the financial viability and well-being of older adults: wealth loss and financial exploitation. The overall objective is to determine the association of financial literacy and management, financial decision-making, and cognition with wealth loss and financial exploitation. Research Design and Methods This cross-sectional study recruited 46 participants who were 60 years of age or older. Participants were classified as having Mild Cognitive Impairment, Perceived Cognitive Impairment, or No Cognitive Impairment. The study coordinator arranged with each participant to obtain copies of their main checking account statements for 12 consecutive months within the previous 2 years and, if appropriate, credit card statements. All statements were de-identified and assigned a random ID number. Participants then completed two telephone interviews. Results The average participant age was 72 years (SD=7.7); 84% were female, 39% White, and 35% currently married. Average education was 16.2 years (SD=2.4); mean yearly household income was almost $42,000 (SD=25,752); and monthly Social Security payments averaged $1,446 (SD=1,244). Our results indicate that the methods used to analyze checking account statements, followed by telephone interviews to verify identified trends, were useful in developing a financial behavior index to measure wealth loss. Discussion and Implications We demonstrate an alternative method for assessing personal finance using person-centered principles, which we believe are critical in the presence of diminished or impaired cognition. Our findings offer an innovative method for assessing risk for wealth loss and financial exploitation.

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Section: Methodssupporting

confidence: 77%

The WALLET Study: Examining Early Memory Loss and Personal Finance

Lichtenberg

Tarraf

Rorai

et al. 2022

Innovation in Aging

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“…Cognitive changes in older adulthood have been associated with financial exploitation risk. This has been demonstrated both in the context of age-related cognitive impairments (25,26) as well as in normative aging (3,22,27). Among the most robust patterns of age-related cognitive decline is a reduction in cognitive control, or 'fluid' cognitive abilities.…”

Section: Determinants Of Financial Riskmentioning

confidence: 96%

“…Other self-report instruments measure basic skills such as financial literacy, numericity, and planning (80,81). More recently, multi-dimensional assessments of financial capacity such as the Lichtenberg Financial Decision Making Rating Scale have been developed (22,27). These assess both the contextual (previous history of exploitation, psychological well-being) and intellectual (decision-making capacity) factors that contribute to exploitation risk.…”

Section: Cogniandve Capacity Social Capacitymentioning

confidence: 99%

Aging and Financial Exploitation Risk

et al. 2021

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Financial exploitation among older adults is an increasing public health concern. Whether in-person or online, financial risks are becoming omnipresent in our increasingly connected and wired world. Understanding why some older adults are more vulnerable to financial exploitation than others, and the specific contexts in which this vulnerability is most likely to emerge, is necessary to design more target surveillance and intervention tools. In this review, we identify the cognitive, socioemotional, and brain changes in aging that increase financial exploitation risks in later life. Next, we build on this review to propose a new social cognitive neuroscience model of financial exploitation risk. In the final section we review emerging work to develop profiles for older adults, towards novel intervention techniques to reduce the burden of financial exploitation in later life.

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“…The first article describes the development and validation of a shorter 34-item scale to assist clinicians in determining risk for financial exploitation (Lichtenberg, Gross, & Campbell, 2018). The second article describes the development of a risk-scoring system for financial exploitation (Lichtenberg, Gross, & Ficker, 2018). Together these articles provide highly practical and important tools for addressing this rapidly growing crime often targeting older adults.…”

Section: Advancing Assessment In Clinical Gerontologymentioning

confidence: 99%