Understanding Financial Abuse

 
 

June is Elder Abuse Awareness Month
Financial exploitation affects millions of older adults each year and is often committed by someone they know and trust. Learning the warning signs can help protect parents, grandparents, neighbors, and even ourselves as we age. 

What is Elder Financial Abuse?

Financial abuse occurs when someone improperly uses an older adult’s money, property, or assets for personal gain. It can happen gradually and may go unnoticed for months or years because victims are often embarrassed, isolated, or dependent on the person exploiting them.

Common Financial Abuse Scams

Impersonation scams 
Someone pretends to be from a government agency, bank, utility company, or tech support service and demands immediate payment. 

Investment fraud
Promises of high returns with little risk pressure victims into questionable investments.

Romance scams 

Fraudsters build online relationships and eventually request money.

Grandparent Scams
Scammers pretend to be a grandchild in trouble and ask for emergency funds.

Caregiver Theft
A trusted caregiver misuses debit cards, checks, or online banking access.

Warning Signs of Financial Abuse
Changes in Banking Behavior
  • Unusual withdrawals or transfers
  • Frequent ATM activity when it wasn’t common before
  • Sudden overdrafts or unpaid bills
Changes in Relationships
  • A new friend, caregiver, or family member becoming overly involved in finances
  • Someone insisting on speaking for an older adult
  • Isolation from trusted family or friends
Suspicious Documents
  • Unexpected changes to wills, powers of attorney, or account beneficiaries
  • Missing belongings or valuables
  • Signatures that don’t look authentic
Emotional Warning Signs
  • Anxiety about money
  • Confusion regarding recent transactions
  • Hesitation to discuss finances 
What to Do If You Suspect Financial Abuse
Act Quickly

The sooner suspicious activity is reported, the better the chance of limiting losses.

Talk With the Older Adult

Approach the conversation with compassion and avoid blame.

Contact Financial Institutions

Banks and credit unions can review accounts, stop transactions, and suggest protective measures. Visit the Partners Fraud Center if you suspect your account has fraudulent charges. 

Report the Abuse
Consider contacting:
  • Local law enforcement
  • Adult Protective Services
  • State elder abuse hotlines
  • The consumer fraud reporting agency in your state 
 
How to Help Protect Loved Ones and Yourself

Fraud and financial exploitation happen every day, often before anyone realizes it, and by then, the damage can be severe. The challenge is that warning signs aren’t always obvious, and anyone can be affected. Follow these simple steps to stay protected: 
  • Have regular conversations about finances
  • Encourage account alerts and transaction notifications.
  • Talk to a representative about adding a trusted contact to your account
  • Review statements together periodically
  • Be cautious about sharing passwords or PINs
  • Verify requests for money by calling a known phone number
  • Discuss powers of attorney and estate planning before a crisis occurs
  • Stay socially connected, financial abuse often thrives in isolation  
 



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