Perpetrator Risk Factors
As individuals charged with investigating, it’s our duty to identify financial exploitation. One way we can do this is by understanding the perpetrator’s risk factors for abuse. In brief, these are factors in a potential perpetrator’s life that may make an individual more likely to commit financial exploitation. Next, we’ll explore the most common perpetrator risk factors and how we can use them to promote financial well-being for older adults.
Financial Need
First, one of the most significant risk factors for perpetrating financial exploitation is financial need. Individuals experiencing financial stress or hardship may resort to unethical or illegal financial practices to alleviate their burden. Forensic accountants can be on the lookout for any suspicious financial activity from individuals experiencing financial hardship.
Substance Abuse
Second, substance abuse, including alcohol and drug addiction, can also lead individuals to make poor financial decisions and engage in fraudulent activities to fund their addiction. Investigators should be aware of any patterns of financial behavior that may indicate substance abuse.
Mental Health Issues
Next, individuals with mental health issues, such as depression, anxiety, and personality disorders, may be more susceptible to financial exploitation. So, investigators should be aware of any financial behavior that may indicate mental health issues, and ensure that vulnerable individuals receive the necessary support.
Isolation
Furthermore, isolation is another significant risk factor for perpetrating financial exploitation. Individuals who are socially isolated may lack the support network and resources to detect and prevent fraudulent activities. Therefore, forensic accountants should look out for any instances where an individual may be more vulnerable to exploitation due to social isolation.
Lack of Financial Literacy
A lack of financial literacy is a significant risk factor for financial exploitation. Individuals who lack financial knowledge may be more likely to fall victim to financial exploitation. Forensic accountants can help by educating individuals on financial literacy and identifying any suspicious financial activity from those lacking financial knowledge.
Access to Financial Resources
Next, access to financial resources, such as those with power of attorney or controlling an individual’s finances, creates an opportunity to engage in financial exploitation. Consequently, forensic accountants should monitor any suspicious activity from those with access to financial resources.
A History of Fraud
Lastly, individuals with a history of fraud or other financial crimes are more likely to perpetrate financial exploitation in the future. Forensic accountants should be aware of any previous financial crimes and closely monitor any suspicious financial activity. But beware, victims of facial exploitation are unlikely to press charges against their perpetrator because of the close relationship, so prior fraudulent conduct may not appear on a formal background check.
In conclusion, by understanding these risk factors, forensic accountants can better detect and prevent financial exploitation. Ultimately, this will protect vulnerable individuals and organizations from financial harm. By identifying and addressing these risk factors, we can promote financial well-being and prevent financial exploitation for older adults.
