Elder financial abuse is when someone takes or misuses an older person's money or property for someone else's benefit. It can be a scammer on the phone, but it's often someone closer: a neighbor, a caregiver, a professional, or even family or friends who take money without permission, don't repay loans, overcharge for services or don't do what they were paid to do1.
Older adults can be especially hurt by these losses, because they may not be able to earn back what was taken2. This guide explains how to spot the warning signs, the most common examples, how to protect your parent before anything happens, and what to do if you think abuse is already going on.
Warning signs of elder financial abuse
The Consumer Financial Protection Bureau lists common signs that an older person may be a victim of financial exploitation3:
- Money is missing from their accounts, or they say money or property is missing.
- They seem afraid of a relative, caregiver or friend.
- Someone keeps them from having visitors or phone calls, won't let them speak for themselves, or seems to control their decisions.
- Sudden changes in spending or savings: unexplained withdrawals, large wire transfers, heavy ATM use.
- Bills that used to be paid on time going unpaid.
- Buying things or services they don't usually buy.
- New names added to bank accounts that they can't or won't explain.
- No longer receiving account statements or bills.
- New or unusual gifts to family or to a "new best friend."
- Changes to the beneficiaries of a will, life insurance policy or retirement account.
- A caregiver, friend or relative suddenly starting to handle their money.
One sign alone may have an innocent explanation. Several together, or a sign your parent can't explain, deserve a closer look.
Common examples of elder financial abuse
Financial abuse takes many forms, and it often appears alongside other mistreatment (see signs of elder abuse). Families most often run into these:
- Theft by a family member or caregiver. Using a parent's debit card, writing checks to themselves, or taking cash, jewelry or medicines.
- Misuse of a power of attorney. An agent who uses a parent's money for their own benefit, mixes it with their own, or makes gifts the parent didn't authorize.
- Pressure to change documents. Pushing a parent to sign over a house, add someone to a deed or account, or change a will.
- Romance and friendship scams. Someone who builds a relationship, often online or by phone, then asks for money for emergencies, travel or investments.
- Impostor scams. Callers pretending to be from the government, a bank, tech support or a grandchild in trouble, often demanding payment by gift card, wire or cryptocurrency.
- Lottery and prize scams. "You've won, but you have to pay taxes first."
- Contractor and home repair fraud. Overcharging, asking for payment up front and never doing the work.
- Investment fraud. Promises of high, guaranteed returns with little risk.
Scammers sometimes even pose as the agencies that help victims. The Justice Department warns that impostors have claimed to be from its National Elder Fraud Hotline and asked for personal information or money4. Legitimate helpers won't ask your parent to pay to recover money.
Who commits elder financial abuse?
It's natural to picture a stranger on the phone, and scams by strangers are a huge problem. But financial abuse is also often committed by people the older person knows and trusts: family members, friends, neighbors, paid caregivers and professionals1. That's part of what makes it hard to spot and hard to report. Your parent may feel embarrassed, may want to protect the person, or may depend on them for care.
People with memory loss are at higher risk, because they may not notice missing money, may forget conversations and may be easier to pressure. If your parent has dementia, our guide to the early signs of dementia explains why money problems are often among the first signs. If your parent with dementia accuses family of theft, our guide to dementia accusations of stealing explains how to tell paranoia from real exploitation.
How to protect your parent
The best time to protect your parent's money is before anything goes wrong. The CFPB encourages older adults to plan for illness and diminished capacity and to work with their bank2. Practical steps include:
- Name a trusted contact at the bank and brokerage. A trusted contact is someone the institution can call if it sees unusual activity or can't reach your parent. It doesn't give that person access to the money2.
- Set up account alerts. Text or email alerts for large withdrawals, new payees or low balances, sent to your parent and, with their permission, to a family member. If Social Security checks are being misused, a representative payee can take over those benefits.
- Put a durable power of attorney in place. Choose an agent carefully, and consider requiring the agent to share account statements with another family member. See our guide to power of attorney for an elderly parent.
- Automate regular bills. Fewer checks and fewer card payments mean fewer chances for misuse.
- Limit cash and cards at home. Keep checkbooks, cards and valuables secure, especially when caregivers or workers come into the home.
- Screen calls. Register for do-not-call lists, use call-blocking, and agree on a family rule: never give personal information to someone who calls you.
- Stay in touch. Regular visits and calls make it harder for an abuser to isolate your parent.
If you manage money for your parent, the CFPB's free guides for financial caregivers explain your duties and how to keep good records5.
Talking with your parent about money and scams
Many older adults are proud of managing their own money, and a conversation about scams can feel like an accusation. Frame it as something you're doing together, not something you're doing to them. Share a news story about a scam, or mention a call you got yourself. Ask how they'd handle a call from someone claiming to be a grandchild in jail, or a letter saying they'd won a prize.
Agree on a few simple family rules: no one pays for anything by gift card or wire transfer to someone who called them, and anyone asking for money urgently gets a callback from a number your parent already knows. Offer to be the person they call before sending money to anyone new. If your parent pushes back on any help with finances, our guide on what to do when an elderly parent refuses help has ideas for those conversations.
When a caregiver may be the problem
Paid caregivers do important work, and most are honest. But a caregiver who works alone in your parent's home has unusual access. Protect everyone by setting clear rules from the start: the caregiver doesn't use your parent's cards or checks, a family member covers shopping, or the caregiver uses a dedicated card with a low limit, and receipts are kept. Hiring through an agency that screens and supervises its workers adds another layer. Be alert if a caregiver discourages family visits, answers the phone for your parent, or becomes the only person your parent trusts.
How to report elder financial abuse
If you suspect elder financial abuse, report it. You don't need proof. The authorities who investigate don't expect you to know everything; share what you've seen1. If money just left your parent's account, start with our urgent checklist on what to do right now if a parent was scammed.
| Who to contact | When |
|---|---|
| 911 | There is urgent risk of harm to your parent or someone else |
| Adult Protective Services | Suspected abuse, neglect or exploitation of an older adult; every state has an APS program6 |
| Local police or sheriff (non-emergency) | To file a criminal report; financial abuse may involve theft, fraud or forgery |
| The bank or credit union | As soon as possible, if an account was involved; it may be able to stop transactions or recover money |
| National Elder Fraud Hotline | Fraud against anyone 60 or older; 833-372-8311, free, weekdays4 |
| FBI Internet Crime Complaint Center | Scams that happened online or by email7 |
| Long-term care ombudsman | Your parent lives in a nursing home or assisted living community |
When you report, include the dates and places of what happened, the names of anyone involved or who saw it, a description of the suspected abuse, your parent's health conditions and memory, and whether you think there's an urgent risk1. Keep copies of bank statements and notes of every conversation.
Financial abuse in nursing homes and assisted living
Residents of nursing homes and assisted living can also be targets, whether from staff, other residents, visitors or family. Signs include missing belongings, unexplained charges on statements, or a resident fund account that doesn't add up. Report concerns to the community's administrator, and if that doesn't resolve them, to the state long-term care ombudsman, who advocates for residents for free1. Our guide to the long-term care ombudsman explains how to reach yours, and our guide to nursing home resident rights covers residents' rights around their money and property.
After abuse is discovered
Discovering abuse is painful, especially when a family member is involved. Focus first on your parent's safety and on stopping further losses: change passwords and PINs, order new cards, ask the bank to flag the accounts, and put a fraud alert or freeze on your parent's credit files with the credit bureaus. If someone was misusing a power of attorney, your parent can revoke it if they have the capacity to do so; otherwise, an elder law attorney can explain options, which may include asking a court to appoint a guardian or conservator. Our guide to guardianship of an elderly parent explains that process.
Talk with your parent gently. Many victims feel ashamed and blame themselves. Remind them that scammers and abusers are skilled at what they do, and that reporting helps protect other people too. The Justice Department's Elder Justice Initiative has more resources for victims and families10.
