Updated on 2/12/2025

Protecting Your Loved Ones from Elder Financial Abuse

While aging comes with unavoidable issues, challenges, and risks, few are as devastating and insidious as elder financial abuse. Unfortunately, this phenomenon is growing – in occurrences and in number of victims – with financial scams and fraud among the most common tactics. 

In the face of this challenge, one of the best steps families can take for their loved ones is to discuss the prevalence of elder financial abuse, provide examples of how it occurs, and help put measures in place to lower their loved one’s risk.

What is elder financial abuse?

Elder financial abuse is the illegal or unauthorized use of an older person’s money, property, or assets. It’s exploiting their financial resources for personal gain, often resulting in significant monetary loss, emotional distress, and even physical harm.

What is considered financial elder abuse? Although a person of any age can become a victim of financial abuse, it often happens more to older adults.  

Why are older adults at higher risk of financial abuse?

It’s thought that social isolation, physical and cognitive decline, and dependence on others may contribute to the occurrence of elder abuse and financial exploitation. Consider the following:

Cognitive decline: This can make awareness of fraudulent schemes more challenging.
Isolation: Seniors might not have access to outside news or be alerted to potential scams. 
Physical health issues: Conditions like vision or hearing loss can make it challenging to interpret communications accurately.
Dependence on caregivers: This can lead to misplaced trust or fear of retaliation like not being allowed to remain at home or receive compassionate assistance. 
Lack of familiarity with technology: The speed of the digital world can make it increasingly difficult for older adults to recognize online scams or threats.
Generational values: Growing up in an era when handshake agreements were standard, older adults’ trust can be easily exploited.

Elder Financial Exploitation Red Flags and Warning Signs

Using funds without permission, fraudulent telemarketing calls, identity theft, and persuading an older adult to sign over deeds or make changes to their will can all be examples of elder abuse and financial exploitation.

The U.S. Department of Justice has listed the following as warning signs that may provide clues a loved one is being taken advantage of:

Sudden changes in bank accounts, including an unexplained withdrawal of large sums of money by a person accompanying the elder
The inclusion of additional names on an elder’s bank signature card
Unauthorized withdrawal of the elder’s funds using the elder’s ATM card
Abrupt changes in a will or other financial documents
Unexplained disappearance of funds or valuable possessions
Substandard care being provided or bills left unpaid despite the availability of adequate financial resources
Discovery of an elder’s signature being forged for financial transactions or for the titles of his/her possessions
Sudden appearance of previously uninvolved relatives claiming rights to an elder’s property or possessions
Unexplained sudden transfer of assets to a family member or someone outside the family
The provision of services that are not necessary
An elder’s report of financial exploitation

Steps to protect your loved ones from elder financial abuse

Taking these steps can help you spot potential elder financial exploitation opportunities or catch them sooner.

Stay informed: Keep up to date and share details of the latest scams that target older adults. 
Regular communication: Communicate with your loved ones regularly and watch for any inconsistencies or behaviors that might signal abuse.
Limit a caregiver’s access to finances: Check the background records of caregivers and limit their access to bank accounts or credit cards.
Daily money management: Consider management services to assist with bill payments, bank statement reconciliations, and other financial tasks.
Legal protection: Set up a power of attorney for finances so a trusted individual can make financial decisions if your loved one is unable to.
Secure personal information: Remind your loved ones never to share their personal information over the phone and suggest they may want to talk to a family member before making on-line financial transactions.
Review financial statements: Regularly review bank and credit card statements for any unauthorized or suspicious transactions.
Encourage skepticism: Discuss the risk of unsolicited offers. If an offer sounds too good to be true, it likely is.
Educate about technology: Provide basic training on online safety. Make sure they are familiar with the signs of phishing emails or fraudulent websites.
Report suspicions: If you suspect elder financial exploitation, don’t hesitate to report it – either to local law enforcement, Adult Protective Services, or other relevant agencies.

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For more resources about making the move to senior living, we invite you to download our complimentary informational guide, “Family Decision Toolkit: How to Choose the Right Senior Living Community.”