- Financial exploitation is the unauthorized use or taking of the money or property of a vulnerable adult for the benefit of another person.
- Undue influence is the exertion of influence, over a vulnerable adult, with the intent to override or change the choice or free will of the person, for the benefit of another person.
- Fraud is a theft involving an intentional lie or misstatement of the fact, with the intent that the person relies on it to the benefit of another person.
Both undue influence and fraud are tools used in financial exploitation – but exploitation can occur without undue influence or fraud. A lot of financial exploitation is simply outright theft. Lies or intentional misstatements may be used by an undue influencer – combining fraud and undue influence, but often the person exerting undue influence does not rely on lies or material misstatements. Undue influence can be exerted by telling the truth such as “If you don’t give me what I want, you will never see your grandchildren again,” – lacking the necessary elements of fraud. A fraud may also be described as a theft by deception. Fraud does not require a vulnerability on the part of the victim, both financial exploitation and undue influence do. Fraud and financial exploitation do not require the element of a person in a position of power or influence. Very capable persons are sometimes victims of fraud. These are complex and overlapping concepts. The law requires specific elements for each cause of action. Careful analysis before labeling an act enhances credibility.
