Signs of Elder Financial Abuse and Legal Steps to Stop It

Elder financial abuse is one of the most underreported and devastating crimes affecting older adults today. It doesn’t always look like theft. Sometimes it’s manipulation. Sometimes it’s subtle pressure from someone they trust. And too often, the signs are missed until it’s too late.

Whether you’re a concerned family member, caregiver, or elder yourself, knowing how to recognize and act on financial abuse is crucial. This guide breaks down the red flags, who’s most at risk, and what legal steps you can take to stop it.

What Is Elder Financial Abuse?

Elder financial abuse occurs when someone illegally or improperly uses an older adult’s money, property, or assets. This can happen through:

Theft or fraud
Coercion or deception
Misuse of a Power of Attorney
Identity theft
Unlawful changes to wills or deeds

The abuser is often someone close: a family member, caregiver, financial advisor, or even a trusted neighbor.

According to the National Council on Aging, older Americans lose over $36 billion a year to financial abuse and exploitation yet only 1 in 44 cases is ever reported.

Common Signs of Elder Financial Abuse

Not every financial mishap is abuse but repeated or unusual patterns are often cause for concern. Here are warning signs to watch for:

Unusual Banking Activity

Large or unexplained withdrawals
Sudden ATM usage when the elder rarely used ATMs before
Bank transfers between unfamiliar accounts
Forged checks or altered financial documents

Changes in Legal or Financial Documents

Sudden updates to wills, trusts, or deeds
A new Power of Attorney under suspicious circumstances
Missing financial paperwork or mailed bank statements

Isolation or Control by a “Helper”

A new caregiver or relative limits visitors or calls
Elder is confused about financial transactions they “agreed” to
Someone else insists on “handling everything” financially

Physical and Emotional Red Flags

The elder seems fearful, withdrawn, or ashamed
Unpaid bills despite adequate income
Lack of basic necessities or decline in standard of living

Who’s Most at Risk?

While any older adult can be targeted, some are more vulnerable than others. Risk factors include:

Cognitive decline (such as dementia or Alzheimer’s)
Physical disabilities or mobility issues
Social isolation or recent loss of a spouse
Dependence on others for basic care
Previous financial naiveté or lack of digital literacy

It’s important to note: many victims don’t realize they’re being abused or they’re too embarrassed to admit it. Some are afraid of losing a caregiver or being institutionalized.

Legal Protections and Steps You Can Take

If you suspect elder financial abuse, time matters. There are several legal avenues for protecting your loved one and pursuing justice.

1. Talk to the Elder Privately (If Safe)

Start with a calm, respectful conversation. Ask if they’ve noticed any strange activity, or if someone is making financial decisions on their behalf. Don’t confront the suspected abuser immediately it could cause them to become more controlling or threatening.

2. Gather Documentation

Collect evidence like:

Bank and credit card statements
Power of Attorney documents
Emails, texts, or voicemails
Photocopies of checks or withdrawal slips
Testimonies from friends, neighbors, or professionals

3. Report to the Proper Authorities

Depending on your state and the situation, here’s where to file a complaint:

Adult Protective Services (APS)

Every state has an APS agency.
Call 1-800-677-1116 to reach the Eldercare Locator and find your local APS office.

Local Police

If theft, fraud, or threats are involved, call your local police department or sheriff’s office. In emergencies, dial 911.

State Attorney General or District Attorney

Most states have a consumer protection division or elder justice unit. They can prosecute crimes and pursue civil actions.

Financial Institutions

Banks are now required to report suspected financial exploitation. Talk to a branch manager or fraud department as soon as possible.

Long-Term Care Ombudsman

If abuse is happening in a nursing home or assisted living facility, contact your state’s ombudsman program via www.ltcombudsman.org.

4. Consult an Elder Law Attorney

A qualified attorney can:

File for a restraining order or injunction
Pursue civil litigation against the abuser
Help revoke or reassign a Power of Attorney
Petition for guardianship or conservatorship
Recover stolen funds or assets

Preventing Future Abuse

While not every case can be prevented, there are steps you can take to reduce the risk:

Regularly review financial statements with your loved one
Establish checks and balances, such as co-signers or dual Power of Attorney agents
Use financial tools with built-in alerts or spending limits
Keep legal documents in a secure, monitored location
Encourage social interaction and keep communication open

Real-Life Example: How One Family Caught the Abuse

After her mother’s stroke, Sarah noticed new credit card charges, a drained savings account, and excuses from a distant cousin who had moved in to “help.” With help from an elder law attorney and APS, they revoked the cousin’s Power of Attorney, pressed charges, and were able to recover some of the lost funds.

The Cost of Staying Silent

Financial exploitation often doesn’t end until someone intervenes. And the longer it goes on, the harder it becomes to recover stolen assets—especially if the abuser has already spent or hidden them.

If you suspect elder financial abuse, speak up. You might be the only person who can.

Resources and Hotlines

Eldercare Locator: 1-800-677-1116 — Connects you to local APS offices
National Center on Elder Abuse: ncea.acl.gov
Consumer Financial Protection Bureau (CFPB): consumerfinance.gov/older-americans
National Adult Protective Services Association: napsa-now.org
Long-Term Care Ombudsman: ltcombudsman.org

Final Thought

Protecting elders from financial abuse isn’t just about catching criminals it’s about preserving dignity, autonomy, and trust. Be observant. Be respectful. But don’t be afraid to act.

If you or someone you love is showing signs of financial manipulation, there are legal tools and professionals ready to help.

Up next: Guardianship vs. Conservatorship: What’s the Difference? — Learn how the legal system steps in when an elder can no longer manage their own affairs, and what responsibilities these roles carry.