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Elder Financial Abuse: Warning Signs and What to Do

By Dewzu Staff ·

An older person's hands resting on a cane

Financial exploitation of older adults can be hard to spot because it rarely looks like a crime at first. It may be a new "friend" who calls every day, a caregiver who suddenly has access to a checking account, or a grandchild who keeps borrowing money that never comes back. By the time anyone notices, savings can be gone.

It helps to know the patterns. Exploitation usually comes from one of three directions: family members, caregivers or other trusted helpers, and scammers who may never meet the person they target. The warning signs overlap, and so does the response.

Signs in the bank account

Money changes are often the first clue. The Consumer Financial Protection Bureau and banking regulators point to patterns like these:

  • Large or frequent withdrawals that do not fit the person's habits, including repeated maximum ATM withdrawals
  • Checks written to "cash" or to people the older adult barely knows
  • Wire transfers, gift card purchases or cryptocurrency payments they cannot explain
  • New names added to bank accounts, credit cards or property titles
  • Bills going unpaid when someone else was supposed to be paying them
  • CDs or retirement accounts closed early, even with penalties
  • Missing statements, checkbooks, cards or ID
  • Signatures that do not look like theirs on checks or documents

Signs in behavior and relationships

Exploitation often changes how a person acts and who is around them.

  • They seem suddenly fearful, secretive or reluctant to talk about money they used to discuss openly.
  • A new person, whether a romantic interest, helper or "advisor," is very involved in their finances and discourages others from asking questions.
  • A caregiver or relative isolates them from friends, family or community activities, or insists on being present for every conversation.
  • Their living conditions do not match their resources: unpaid utilities, an empty fridge or missing medications despite adequate income.
  • They transfer a house or other assets for no clear reason, or change a will or power of attorney while ill or confused.
  • A caregiver receives unusually expensive or frequent gifts.

Signs of a scam in progress

Scammers often rely on urgency and secrecy. Watch for:

  • Calls, texts or emails claiming the person won a prize or lottery but must pay fees or taxes first
  • Someone posing as a government agency, bank or tech support and asking for account details or remote access to a computer
  • A grandchild or relative "in trouble" who needs money right now and asks them not to tell anyone
  • An online romance with someone they have never met in person who starts asking for money
  • Pressure to act immediately or face arrest, account closure or a lost opportunity
  • Requests to pay with gift cards, wire transfers, cryptocurrency or cash sent by courier

Legitimate agencies and banks do not demand payment this way.

How to respond

If something looks wrong, act sooner rather than later. You do not need proof to raise a concern.

  1. Talk privately and calmly. Ask open questions without blame, such as "I noticed some big withdrawals. Is everything OK?" People who have been scammed often feel embarrassed, and people being exploited by someone close may feel loyal or afraid.
  2. Call the bank or credit union. Explain your concern. Banks can often flag accounts, stop pending transfers, or reverse some transactions if contacted quickly. If you are not on the account, the bank may not share details, but it can still take your report.
  3. Stop the flow of money. Help the person change passwords and PINs, cancel compromised cards and, if identity theft is possible, place a credit freeze at the three credit bureaus.
  4. Save the evidence. Keep statements, receipts, texts, emails, call logs and the names and numbers scammers used.
  5. Report it. See the list below. Reports help protect the person and help authorities find patterns.
  6. Plan for the future. A trusted contact on brokerage accounts, a carefully chosen financial power of attorney, and regular check-ins can reduce the risk of it happening again.

If the person is in immediate danger, call 911.

Who to call

The CFPB's guide to reporting elder financial abuse lists where to go depending on the situation. The main contacts:

  • Adult Protective Services (APS). Every state has an APS program, though the name may differ. APS investigates abuse, neglect and exploitation of older and vulnerable adults. Find your state's reporting line through the National Adult Protective Services Association. Report to the state where the older adult lives.
  • Local police or sheriff. Financial exploitation is often a crime. Use the non-emergency number to file a report.
  • National Elder Fraud Hotline: 1-833-372-8311 (833-FRAUD-11). Run by the U.S. Department of Justice's Office for Victims of Crime, it is open Monday through Friday, 10 a.m. to 6 p.m. Eastern time. Staff help victims report fraud and connect with resources, and each caller is assigned a case manager (OVC). English and Spanish are available, along with other languages.
  • Eldercare Locator: 1-800-677-1116. A public service of the federal Administration for Community Living that connects older adults and families with local services, including help finding APS and aging agencies (eldercare.acl.gov).
  • Federal Trade Commission. Report scams at ReportFraud.ftc.gov.
  • Long-term care ombudsman. For problems involving a nursing home or assisted living facility.
  • Social Security if a representative payee is misusing benefits, and the court that appointed a guardian or conservator who is misusing funds.

If the person needs legal help to recover property or undo documents, USA.gov explains how to find free or low-cost legal aid.

Be ready for pushback

The older adult may deny there is a problem, defend the person taking advantage of them, or be angry that you got involved. Adults who have the capacity to make decisions have the right to make choices others disagree with. Stay connected, keep the conversation open and keep reporting concerns to APS when you see new warning signs. Isolation is what exploiters count on.

The bottom line

Elder financial abuse can come from family, caregivers or strangers, and the warning signs often show up first in bank statements and changes in behavior. If you suspect it, talk to the person privately, contact their bank right away, save the evidence and report it to Adult Protective Services and local police. For fraud, the National Elder Fraud Hotline at 1-833-372-8311 can help victims figure out next steps.

This article is general information, not legal or financial advice.