Preventing Elder Financial Abuse: What You Need to Know

What Is Elder Financial Abuse?

Elder financial abuse happens when someone improperly or illegally uses a senior’s money, assets, or property for personal gain. This can happen even if the senior gives permission, especially if they are impaired or dependent on others.

Real-world examples include:

• Forging checks or signatures
• Coercing a senior into signing documents
• Misusing or stealing money or possessions
• Scamming them into risky investments
• Convincing them to pay for fake services

The Consequences Go Beyond Money

Elder financial abuse doesn’t just hurt bank accounts; it impacts emotional well-being and family trust.

Financial Consequences:

• Loss of savings and property
• Damaged credit
• Unpaid bills and rising debt
• Costly legal battles

Emotional Consequences:

• Stress, confusion, or shame
• Isolation from loved ones
• Fear of losing independence
• Mental health decline

Who’s at Risk?

While any older adult can be targeted, these factors increase vulnerability:

• Cognitive decline or dementia
• Limited mobility or physical health challenges
• Living alone or in isolated settings
• Lower financial literacy
• Trusting or agreeable personalities

Who Commits Elder Financial Abuse?

Unfortunately, abuse often comes from people the victim knows. Here are common sources:

• Family members or caregivers
• Trusted business professionals
• Scammers or fraudsters
• Acquaintances who gain access

Common Scams That Target Seniors

Scammers have gotten creative. Here are some fraud types identified by government agencies:

• Tech support scams: Callers pretend to fix fake computer issues
• Government imposters: Claiming to be from the IRS or Social Security
• Romance scams: Creating fake online relationships to exploit victims
• Lottery or sweepstakes fraud: “You’ve won, just pay a fee first”
• Investment scams: High-return opportunities with no real backing

5 Tactics Used to Gain Trust

Perpetrators may use:

• Emotional manipulation
• Fake authority or credentials
• Isolation from trusted contacts
• Urgency tactics to pressure decisions
• Ingratiation (offering help, favors, or gifts)

How to Prevent Elder Financial Abuse

Here are some “Do” and “Don’t” tips that can help protect loved ones:

DO:

• Vet businesses with the Better Business Bureau or Charity Navigator
• Ask for written documentation of offers or services
• Block robocalls and avoid sharing information over the phone
• Create regular check-ins with aging loved ones
• Approach financial conversations with empathy and patience

DON’T:

• Rush into signing contracts or investments
• Trust anyone who demands secrecy
• Share banking or Social Security information over the phone
• Assume only strangers are a threat; family can be perpetrators, too

Warning Signs to Watch For

You may notice:

• Unusual banking activity or large withdrawals
• Sudden changes to wills or power of attorney
• Missing possessions or unpaid bills
• A new friend or caregiver limiting access
• The senior seeming confused, anxious, or isolated

Next Steps

If you suspect abuse:

1. Document what you see or hear
2. Report it to local Adult Protective Services or law enforcement
3. Talk with your bank to put fraud protections in place
4. Seek legal advice if you suspect financial exploitation