How to Protect Elderly Loved Ones from Financial Scams and Exploitation

Why Seniors Are Targeted—and How You Can Help

Elder financial abuse is a growing problem, with losses in the billions annually. Seniors are often targeted due to memory issues, social isolation, or trust in familiar people. This guide outlines actionable steps families can take to protect aging loved ones, especially when relatives or caregivers can access their finances.

7-Action Plan to Prevent Elder Financial Exploitation

1. Stay Socially Connected

Scammers thrive in silence. Loneliness increases vulnerability. Encourage your loved one to stay socially active by:

• Joining senior centers, hobby clubs, or volunteer groups.
• Participating in intergenerational events or community activities.
• Staying in touch with family and trusted friends regularly via phone or visits.

2. Organize and Secure Financial Documents

Help your loved one:

• Consolidate essential documents (wills, tax returns, bank info) in a locked cabinet or digital vault.
• Shred old documents containing sensitive data.
• Maintain an up-to-date contact list of trusted advisors and emergency contacts.

3. Strengthen Online and Digital Security

Support them in:

• Creating unique passwords and storing them securely using password managers.
• Enabling two-factor authentication (2FA) on all financial and email accounts.
• Avoid public Wi-Fi for financial transactions and be cautious of phishing emails.

4. Streamline Bill Payments

• Automate recurring bills to reduce the risk of missed payments or fraud.
• Become a trusted co-signer or monitor accounts through alerts.
• Review monthly statements together and watch for unusual charges.

5. Protect Credit and Identity

Encourage seniors to:

• Visit AnnualCreditReport.com for free annual credit reports.
• Freeze unused credit files through the major bureaus.
• Use identity theft monitoring services, especially if they’ve been targeted before.

6. Establish Power of Attorney or Guardianship

Discuss legal safeguards while your loved one is still mentally capable:

• Assign a Durable Power of Attorney (POA) for financial decisions.
• Review wills, trusts, and beneficiary designations regularly with a trusted attorney.
• Consider revocable living trusts to manage significant assets safely.

7. Block Scams and Robocalls

Register their number on the National Do Not Call Registry via:

• www.donotcall.gov or call 888-382-1222
• Use smartphone features or third-party apps to block robocalls and spam.

Red Flags of Elder Financial Exploitation

🚩 Alert #1: Suspicious Banking Activity

Watch for:

• Frequent checks made out to “cash”
• Sudden wire transfers
• New names added to bank or credit accounts
• Unpaid utility or healthcare bills

What You Can Do: Request monitoring access or open a joint account for oversight. Look into financial conservatorship if needed.

🚩 Alert #2: Unexpected Changes to Legal Documents

Be cautious if you notice:

• New beneficiaries or POAs added
• Changes in wills or trusts without family discussion
• Property titles or deeds transferred to unfamiliar names

Action: Speak privately with your loved one and involve their long-time attorney for a neutral review.

🚩 Alert #3: Dubious Family or Caregiver Behavior

Red flags include:

• Caregivers receiving frequent “gifts” or cash
• Family members showing sudden interest in assets or pressuring for access
• Credit cards used without explicit permission

Respond Quickly: Contact the National Elder Fraud Hotline at 833-FRAUD-11 (833-372-8311).
If your loved one is in a facility, report suspicions to Adult Protective Services (APS) in your area. Visit napsa-now.org to find local agencies.

Be Smart About Offers and Advisors

⚠️ “Free” Investment Seminars

• High-pressure tactics and false urgency are red flags.
• Always review materials with a trusted third party.

✅ Check Adviser Credentials

Even referrals from trusted friends should be vetted:

• Verify with FINRA’s BrokerCheck or the SEC Investment Adviser Public Disclosure website.
• Request a written plan and take time before making decisions.

❗ Beware of Complex Financial Products

• If something seems too good to be true, it probably is.
• Ask questions and seek a second opinion from an unaffiliated expert.

Final Thoughts: Keep the Conversation Open

Elder financial abuse often goes unreported due to embarrassment or fear. Preventive action, ongoing dialogue, and involving trusted professionals are key.

Talk early, stay engaged, and keep communication open. If you suspect something, act promptly. Your vigilance may prevent lifelong damage to your loved one’s financial future.

Elder Financial abuse can also involve friends, relatives, neighbors, or caregivers. Potential signs of financial exploitation include large withdrawals from bank accounts, excessive credit card purchases, or irregularities in investment accounts.