Financial abuse of older people is on the rise in the United States. Seniors are frequently a target, as they may be less technologically savvy or have health problems that make detecting potential abuse more difficult. In the US, people aged 50 and older control 70% of the wealth. Baby boomers who've saved for retirement during their working years may be especially vulnerable. Last year, elder financial abuse robbed seniors of more than $2.9 billion.¹ 

What Is Financial Abuse of the Elderly?

Senior financial abuse takes resources from people and could even rob them of their independence. It may take shape as misuse of a person's credit or assets, influencing them to turn over control of their property or money, or theft. Many older Americans rely on help from others to maintain their independent lives at home. They may have a housekeeper, nurse or other in-home healthcare assistance. Many seniors work with lawyers and other professionals who end up gaining access to the person's intimate financial lives. Technological advances make it difficult for many seniors to understand scams that happen via email or phone as well. 

In many cases, when an older person understands the threat of financial abuse and has one or more people looking out for them, they can avoid some of the most common pitfalls of financial exploitation. 

Who Is at Risk of Elder Financial Abuse?

Anyone can suffer from financial abuse, but elderly people are particularly vulnerable because they may be more likely to live with cognitive decline. They may be isolated as well. While elder abuse can happen to even the savviest seniors, some people are more at risk than others. 

Elderly People Living With Dementia or Alzheimer's

Dementia may limit a person's ability to identify and avoid threatening situations. People experiencing cognitive decline may have problems identifying potential scams. If they are abused, they may not know who to trust or how to get help. 

Older People Who Live Alone or Are Isolated

Not everyone lives near family and close friends, and friends and family members may have a false sense of security with their older loved ones who have in-home caregivers or are in a nursing facility. If family and friends aren't regularly spending time with their elderly loved ones, financial abuse may be more difficult to detect and may even go unnoticed for long periods of time. 

Seniors Who Suddenly Have a New Close Friend

Making new friends is exciting, but for older people, it can also be dangerous if they are too trusting. When an elderly loved one has a new best friend, the joy of the relationship can make it difficult to realize that they are being financially abused. 

Why Do Criminals Commit Senior Financial Abuse?

Elder abuse perpetrators may be an older person's relative, friend or employee. In many cases, they are a complete stranger who has found success with a specific type of scam. 

Family members who steal money and resources from an older relative may feel entitled to the person's property and money. They may battle addiction, gambling problems or have other financial situations. 

More than half of all reported elder abuse is perpetrated by spouses and adult children of the victim.²

In some cases, the person's financial planner or lawyer is at fault for elder abuse. Older people trust financial managers to keep their money and property safe, which makes it easier for these professionals to exploit their elderly clients. 

Caregivers are also in a position to gain the trust of an older person and are often at fault when elder financial abuse becomes a problem. They may influence the person to give them money or assets. They may also steal cash, social security checks, or debit cards from the people they care for. 

Not all financial abuse perpetrators are close to the victim. Strangers may convince the person that they are representatives from a bank or investment firm. They may steal the identity of an elderly person and open accounts in their name, which is identity fraud. 

Elder abuse perpetrators may talk their way into the older person's home by saying they are a representative from a utility company or are there to perform repairs. They may pretend to be a distant relative who needs money or say they are affiliated with a financial institution. 

Warning Signs of Elder Financial Abuse

When an older person changes their financial patterns, it may be a red flag. Unusual account activity, large or frequent withdrawals, and evidence of uncharacteristic spending habits are signs that your loved one may be the victim of financial abuse. 

Here are some signs to watch out for:

• Use of credit cards or debit cards when the person hasn't historically been comfortable with those payment methods

• Opening new lines of credit or complicated investment accounts that the person may not fully understand or have any use for

• Unexplained bank transfers

• Sudden inability to pay bills or a large number of overdraft fees

• Closing long-held investments without a plausible explanation

• Wiring money to another country or state where the person doesn't know anyone 

• Reluctance to speak to trusted friends or relatives about their current financial situation 

• New power of attorney or changes to a will

• New caretaker or friend that is now handling financial matters for the person

What Are Some Examples of Elder Financial Abuse?

Elder abuse is a problem that involves theft of property, money and assets from an older person. Many people require help from professionals to manage their money. Unfortunately, not all professionals are trustworthy. 

Elder financial abuse may include:

• Stealing valuable possessions like jewelry, art or historical artifacts

• Using an older person's debit or credit cards for personal reasons

• Taking control of power of attorney

In many cases, elder abuse takes place over the course of months or years, which can make it difficult to detect. 

Older Americans are at risk of losing their life's savings, pension, cash and property. Financial abuse can be emotionally devastating, as well. In many cases, the older person knows and trusts their abuser, which adds another layer of distress to the situation. 

Where to Report Financial Abuse of Elderly

If you suspect that an older person is the victim of financial abuse, you can contact Adult Protective Services (APS) or your local law enforcement for support and guidance. 

If you are the victim of financial abuse, you can talk to a trusted family member, friend or call law enforcement for help. Your doctor, banker or clergy may also be able to help you end the abuse. 

What to Do if You Suspect Financial Abuse

If you suspect that an elderly person that you care about is enduring financial abuse, talk with them to learn more about their situation. You may have to contact their bank or financial institution for help as you attempt to stop the abuse. APS in your community also has resources to help you intervene and protect your loved one from further abuse. 

Tips to Prevent Elder Financial Abuse

You can protect yourself from financial abuse by planning ahead to make sure your assets and properties are protected. Talk with your banker or financial advisor about safeguards to put into place now, so you remain protected later on. 

Here are some tips to help you get started:

• Shred bank statements, credit offers, and receipts instead of simply throwing them in the recycle bin.

• Keep your account statements, personal identification like your passport and birth certificate, and your checkbook in a safe.

• Review your credit reports at least once every 12 months to monitor for unauthorized activity.

• Never provide logins, passwords, or personally identifying information over the phone or via email. 

• Never login to an account if someone calls claiming to be a representative from your credit card company or bank. They could have malware installed on your computer that allows them to capture your password and empty your account. 

• Never wire or send money to claim a prize or any type of winnings. 

• If you feel like something is off with your attorney or financial advisor, get a second opinion.

• Don't share information about your finances with caregivers.

• If you feel threatened or intimidated, contact your banker, a trusted relative or the police immediately. 

Elder financial abuse is a growing problem and it's OK to be extra cautious. If you or someone you love is unsure about whether they are experiencing abuse, it's crucial to reach out for help. Many older people find that establishing a relationship with their credit union or bank representatives provides them with additional resources and education that can help prevent elder fraud and abuse.