Protecting Older Adults From Financial Exploitation

Summary

• Financial exploitation happens when someone improperly or illegally uses an older adult’s money, property or assets for their own benefit.
• Warning signs can include unexplained account changes, missing financial documents, unusual spending, unpaid bills or a new person who tries to isolate the older adult.
• Abuse can involve theft, misuse of a power of attorney, improper care charges, extortion, forgery or scams.
• Secure financial information, review account activity regularly and keep trusted people involved.
• If you suspect exploitation, act quickly to understand what happened and report concerns to the appropriate financial institution or authorities.

Financial exploitation can threaten the savings, property and independence an older adult has worked to build. It can also be difficult to recognize because the person causing harm may be someone the older adult knows and trusts, such as a family member, friend, caregiver, business associate or health care professional.

Understanding common forms of exploitation and knowing the warning signs can help you protect yourself or someone you care about.

What Is Financial Exploitation?

Financial exploitation occurs when an older adult’s money, property or other assets are taken or used without permission, illegally or improperly for someone else’s financial benefit.

Sometimes the behavior is easy to recognize as theft. In other cases, it can be hidden behind an offer to help manage money, provide care or handle important decisions.

Common Forms of Financial Exploitation

Financial exploitation can take several forms.

Misuse of a Power of Attorney

A power of attorney may give another person authority to make certain decisions for an older adult. Exploitation can occur when that authority is used for the other person’s financial benefit rather than the older adult’s interests. Examples may include transferring money to themselves or changing financial documents for personal gain.

Theft or misuse of money intended for care

Someone providing or arranging care may overcharge, bill more often than appropriate or take money that was intended to cover care expenses. Because some care may still be provided, this type of exploitation may be difficult to notice.

Extortion

An abuser may use threats to obtain money or financial information. Threats can include physical harm or more subtle pressure, such as threatening to stop providing care or move the older adult to a care facility.

Forgery

Forgery can involve illegally signing an older adult’s name on checks or altering documents to gain access to money or property.

Scams

Older adults may also be targeted by scams involving questionable investments, fake prizes, romance schemes or other requests for money or sensitive information. A request that creates urgency, asks for sensitive information or requires payment to receive a supposed prize deserves extra scrutiny.

Warning Signs to Watch For

Changes in finances, relationships or communication can signal possible exploitation. Warning signs may include:

• Unexpected or unexplained changes to bank accounts or other financial records.
• A new friend or caregiver who quickly gains trust or tries to isolate the older adult.
• Missing wills, insurance policies, account information or other financial documents.
• Someone insisting on providing services that do not appear necessary.
• Unusual changes in how the older adult communicates by text or email.
• Significant changes in regular spending habits.
• More bounced checks, unpaid bills or overdraft fees than usual.

One warning sign does not necessarily prove abuse. A pattern of unexplained changes, however, can be a reason to ask questions and look more closely.

Steps That Can Help Reduce the Risk

A trusted support network can make it easier to notice changes and raise concerns early. Talk openly about potential warning signs and make sure the older adult knows whom they can contact when something does not seem right.

If you live far away or the older adult lives in a care facility, regular phone or video check-ins can help you stay connected.

Additional precautions include:

• Keep financial documents and sensitive information in a secure place.
• Use strong, unique passwords and review online privacy settings.
• Review account activity and credit reports regularly.
• Be cautious about unexpected requests for money or personal information.
• Ask questions before giving someone access to accounts, property or important financial documents.

What to Do if You Suspect Financial Abuse

If you believe you or an older adult in your life may be experiencing financial exploitation, act promptly. Start by gathering enough information to understand what may have happened. If a financial account may be involved, contact the financial institution.

Concerns about elder abuse can also be reported through Adult Protective Services. The U.S. Department of Justice provides resources for finding local help, and the National Elder Fraud Hotline can be reached at 833-372-8311.

If a suspicious call, text or other communication involves a First Financial account, contact First Financial promptly so the appropriate team can help review next steps.

Staying connected, watching for unusual financial activity and speaking up when something seems wrong can help protect an older adult’s finances and independence.