Elder Financial Abuse: How to Protect Aging Loved Ones
As our loved ones age, they become more vulnerable—not just to physical health issues but also to financial exploitation. Elder financial abuse is one of the fastest-growing crimes in the U.S., and sadly, it’s often perpetrated by those closest to them—caregivers, family members, or even financial professionals.
If you have aging parents or loved ones, it’s crucial to understand the warning signs of financial abuse, who is most at risk, and—most importantly—how to prevent it.
Let’s dive into what you need to know to protect your family’s financial security.
What Is Elder Financial Abuse?
Elder financial abuse occurs when someone fraudulently, unfairly, or illegally takes or misuses an elderly person’s money, property, or assets. This can happen through scams, coercion, theft, forgery, or manipulation.
Seniors often become targets because they:
Have accumulated savings or valuable assets over time
May be experiencing cognitive decline, making them more trusting or forgetful
Might feel isolated and dependent on others for help with financial matters
Want to avoid conflict with family and are reluctant to speak up
Unfortunately, most cases go unreported because victims either don’t realize they are being taken advantage of—or they fear retaliation or embarrassment.
Common Scenarios of Elder Financial Abuse
Elder financial abuse can take many forms, but these are some of the most common:
Fraud & Scams – Fake calls from the IRS, lottery scams, or "grandparent scams" where someone pretends to be a relative in distress.
Unauthorized Use of Assets – A family member or caregiver borrowing money without permission or making unauthorized purchases.
Pressure to Change Estate Plans – Forcing or manipulating an elderly person into changing their will, trust, or beneficiary designations.
Misuse of Power of Attorney – Using POA authority to withdraw money, transfer property, or make financial decisions that don’t align with the elder’s wishes.
Forgery & Identity Theft – Signing checks, legal documents, or credit card applications without consent.
Neglect or Overcharging for Care – A caregiver withholding necessities unless they are paid more or inflating the cost of services.
Warning Signs of Elder Financial Abuse
If you notice any of these red flags, it may indicate that an elderly loved one is being taken advantage of:
Unexplained bank withdrawals or missing funds
Sudden changes in wills, trusts, or beneficiaries
Bills piling up, despite having sufficient income
Unfamiliar or excessive transactions (gift cards, wire transfers, ATM withdrawals)
New “friends” or caregivers suddenly involved in financial matters
Being secretive or confused about financial decisions
Fear or hesitation when discussing money
How to Protect Your Aging Loved Ones
Preventing elder financial abuse starts with proactive planning and awareness. Here’s how you can safeguard your loved one’s finances:
Set Up Proper Legal Protections
Create a Durable Power of Attorney – Appoint a trusted individual to handle financial matters if they become unable to do so.
Establish a Living Trust – A properly structured trust protects assets and prevents unauthorized access.
Review Estate Plans Regularly – Ensure wills, trusts, and account beneficiaries reflect their true wishes and have not been changed under pressure.
Monitor Their Financial Accounts
Set Up Bank Alerts – Many banks offer real-time notifications for unusual activity.
Limit Access to Accounts – Encourage direct deposit for payments and avoid joint accounts with caregivers unless absolutely necessary.
Use a Trusted Advisor – A neutral financial professional or attorney can oversee large transactions or estate plan updates.
Watch for Caregiver & Family Manipulation
Keep Communication Open – Talk with your loved one regularly about their finances and decisions.
Be Aware of Caregiver Influence – If a caregiver is controlling their money or isolating them from family, this is a red flag.
Encourage Second Opinions – If they’re making major financial decisions, ensure they consult multiple professionals before making changes.
Educate & Encourage Vigilance
Teach Them to Recognize Scams – The elderly are often targeted by phone scams, fake charities, and fraudulent tech support calls.
Encourage a No-Pressure Policy – If someone is pressuring them to send money or sign documents, encourage them to say “Let me check with my attorney first.”
Regularly Review Financial Statements – Spot any unauthorized activity before it becomes a bigger issue.
What to Do If You Suspect Financial Abuse
If you believe an elderly loved one is being financially exploited, act quickly to prevent further loss.
Talk to Them – Approach them with care and concern, reassuring them that they are not at fault.
Contact the Bank – Report suspicious transactions and request temporary holds on accounts if needed.
Consult an Attorney – A probate or elder law attorney can help protect assets and undo fraudulent transfers.
Report the Abuse – Contact Adult Protective Services (APS) or your local authorities if you suspect a crime.
Most importantly: Don’t assume someone else will step in—elder financial abuse thrives in silence. Your voice could be the one that protects them.
Protect Your Loved Ones Today
At Ortego Law Firm, we help families create strong legal protections to ensure aging loved ones are financially secure and not vulnerable to exploitation. Whether it’s establishing a power of attorney, setting up a trust, or reviewing estate plans, we’re here to help.
Call Us: (832) 557-4593
Email: info@lawortego.com
Website: www.lawortego.com
Financial security isn’t just about assets—it’s about protecting the people you love. Let’s make sure your family’s future is safe.