Financial exploitation is the illegal or improper use of an older person's money, property or assets. It can come from strangers, such as scammers, but it often comes from people the person knows: relatives, caregivers, neighbors or new acquaintances who gain their trust. It can wipe out savings that took a lifetime to build.
Common forms
- Scams by phone, email, text, mail or in person, such as fake government agents, lottery "winnings," romance scams and tech support scams.
- Misuse of a power of attorney or a joint account for the agent's own benefit.
- Pressure to change a will, deed or beneficiary designation.
- Taking money or valuables without permission.
- "Loans" that are never repaid.
- Contractor fraud, such as overcharging for home repairs or taking payment and never finishing.
Warning signs
- Unusual or large withdrawals, transfers or checks.
- New names added to bank accounts or cards.
- Unpaid bills despite enough income.
- Missing jewelry, checks, statements or other valuables.
- Sudden changes to a will, power of attorney or property titles.
- A new friend or caregiver who isolates the person from family and friends.
- The older person seems fearful, confused about their finances or reluctant to talk about money.
Practical safeguards
- Name a trusted contact person with your bank and brokerage firms. They can contact this person if they suspect exploitation or cannot reach you. A trusted contact cannot make transactions.
- Set up account alerts for large withdrawals, transfers and password changes.
- Review statements every month, or ask a trusted person to review them with you.
- Be careful with joint accounts. A joint owner can legally withdraw all the money. Ask your bank about adding someone as an authorized signer or setting up a "convenience" account instead.
- Choose a power of attorney carefully and consider naming someone to monitor the agent. An attorney can help.
- Freeze your credit with Equifax, Experian and TransUnion. It is free and helps prevent new accounts being opened in your name.
- Never share Social Security, Medicare or bank account numbers with anyone who contacts you unexpectedly.
- Take your time. Do not let anyone rush you into a financial decision.
What to do if you suspect exploitation
- If someone is in immediate danger, call 911.
- Report it to Adult Protective Services in your state. Find your local office through the National Adult Protective Services Association or the Eldercare Locator at 1-800-677-1116.
- Call the National Elder Fraud Hotline at 1-833-372-8311. Case managers can help you report and connect with services.
- Contact the bank or financial institution right away to stop transactions and secure accounts.
- Report scams to the Federal Trade Commission at ReportFraud.ftc.gov and to the FBI's Internet Crime Complaint Center at ic3.gov.
- Talk with an elder law attorney about recovering assets and changing legal documents.
Talking with a loved one
If you are worried about a parent or relative, approach the conversation with respect, not accusation. Focus on protecting their independence and wishes. Offer specific help, such as setting up account alerts together.
Read our guides to Social Security impostor scams and phone scams for more on common schemes.
