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I would talk to the folks at the local police and/or sheriff's station and explain the situation about Mother and give them your name and contact information, in case she does make calls.
As you probably now, persons with dementia eventually reach the point where they cannot safely live alone. Is it "eventually" yet for your mother?
Lots of causes for Delusions--seeing things that aren't there, but which are triggered by things in the environ.
I'll never forget one patient, who kept seeing a monkey on the wall. Other staff kept charting he was hallucinating, and, rarely questioned it, since he was on morphine. One day, I asked him where it was, and if it moved--he said, "..right there, by the TV, and no, it never moves far."
I looked--sure enough, there it was! It was the black metal plate and 3 large bolts holding it to the wall, supporting the TV! Once he know what it was, and knew I could see it too, his mind must have accommodated, or something--he said he didn't see it anymore after that....then he was weened off the morphine, and it was a non-issue.
It might be important to try to learn if it is a hallucination or a delusion.
If it's a delusion, something in the environ is triggering it, and might be adjusted, to remove the trigger for it--delusions can happen even in those who are not medicated, but maybe sick, or injured.
If it's hallucination, it could be related to meds, infections, fever, etc., that might need looked at.
These things can be frightening, so if there is a way to explain them so they aren't scary, all the better.
If it's harmless, like the elder feeding children, those are pretty safe, usually, to play into--can actually help calm some elders, as some sort of stress generally triggers them--playing into them, helps them work past it, to another calm zone..
Are you with your mom all the time? If you see her getting out the bowls and ice cream, maybe say let me get that for you and take 2 bowls, one for her and one for you. Tell her you would like some too and sit down with her while she eats and distract her. Some times all it takes is something else for them to focus on. And by all means, don't eat every time she does! You'll end up like me, 20 lbs heavier!!!
So, just go with the flow and try to distract her onto something else. Don't try to tell her no one is there, because to her they are real. Jeanne's example is a good one and I have used it on Mom many times.
Or...
They went to a friend's house for dinner.
It's a Scout night. Use any child organization there were a part of.
They went to a school baseball/football game.
They took the dog for a walk.
They had chores to finish.
School project.
School play.
Too much homework.
They had a date.
Went to the movies or arcades with friends.
I guess you can tell that I hit a point in my life where I was missing children at my table; eh? lolz