Elder financial abuse—also known as elder financial exploitation—is defined as the theft or misuse of an older person’s money by someone they know and/or mistakenly trust. According to a recent study of federal and state data, nearly 370,000 incidents of elder financial abuse are reported to authorities in the U.S. each year, and that abuse is responsible for an estimated $4.8 billion in losses.1 Even worse, elder financial abuse may be extremely underreported.2 The good news is that there are ways to prevent elder financial abuse and to take action if it happens.
Examples of elder financial abuse
Older adults needing help with the management of their finances may put their trust in people who don’t have their best interests at heart. This can be especially true for seniors with dementia, which causes a decline in mental function. A relative, a friend, even a caregiver may try to rob an older adult by using their cash or credit cards, abusing the senior’s power of attorney or simply stealing their valuables. Elder financial abuse can also happen in other ways including:3
- Financial neglect
This type of abuse occurs when a senior’s financial responsibilities—rent/mortgage, medical expenses, insurance, utility bills, property taxes, etc.—are ignored, and the older adult’s bills go unpaid.
- Financial exploitation
The misuse or mismanagement of money, belongings or property is exploitation. It may include using the older adult’s assets without consent, via false pretenses or through manipulation/intimidation.
- Healthcare fraud
This can include overcharging, double billing, falsifying Medicaid or Medicare claims, or charging for care that the abusive doctor, hospital staff or other healthcare worker didn’t provide.
Who commits financial abuse of the elderly?
There are several groups of unscrupulous people who commit elderly financial abuse. They may include:4
- Family members and friends
Surprisingly, strangers aren’t the most common perpetrators. According to a University of Southern California study, nearly 62% of elder financial fraud is committed by family members.5
- Lawyers and financial planners
Older adults believe that their lawyers or financial advisors have their best interests at heart and will keep their assets safe. Instead, some of these people use their positions of power to take advantage of their clients.
- Nursing home staff and caregivers
Elder financial abuse can happen in nursing homes, too. Staff members may steal residents’ cash or debit and credit cards, write fraudulent checks using the senior’s unguarded checkbook or steal and sell jewelry or other valuables.
- Strangers
Phone and email scams perpetrated by strangers play a huge role in elder financial abuse. According to the Federal Bureau of Investigation (FBI), in 2021 there were more than 92,000 victims of financial fraud targeting seniors, resulting in nearly $2 billion in losses.6
Warning signs of elder financial abuse7
- Forgeries on legal documents or checks
- Large bank withdrawals or transfers between accounts
- Missing belongings or property
- New changes to a senior’s will or power of attorney
- Unpaid bills and eviction notices
- Utilities being discontinued if bills weren’t paid
- Unexplained withdrawals the older adult could not have made
Where to report financial abuse of the elderly
While elder financial abuse is a well-known and widespread problem, only 1 in 24 cases is reported to the authorities,8 perhaps because people are unsure where to turn. Here are several options for reporting financial abuse of older adults.9
- Financial institutions
If the elder financial abuse involves a financial account, contacting the corresponding bank, credit union or credit card company offers an avenue to report the fraud and perhaps even recover lost funds.
- Law enforcement
Local police and sheriff’s offices can provide both emergency help if the older adult is in immediate danger (call 911) and non-emergency assistance via criminal fraud investigations.
- Adult Protective Services (APS)
APS organizations serve older adults in each state who need help due to abuse, neglect or exploitation. Seniors can connect with the APS office in their county by calling 1-833-401-0832 toll-free.
- Ombudsmen at long-term care facilities
Ombudsmen help residents of nursing homes, assisted living communities, and similar adult care communities, and they may advocate for older adults victimized by financial abuse and help solve the problem.
The information needed to file a report with any of these organizations includes:
- Time, date and location of incident(s)
- Name of anyone who was involved
- Description of the suspected financial abuser
- Whether there’s an urgent risk of danger
How to prevent elder financial abuse
Taking these 5 steps can help protect a vulnerable older adult from financial fraud and exploitation.10
- Designate a trusted individual as the senior’s financial power-of-attorney
- Appoint a trusted contact at the bank or financial institution to monitor account activity
- Sign up for a service that tracks bank accounts, investments and credit cards
- Maintain contact with loved ones who can help watch out for fraud
- Make sure caregivers are screened, bonded and trustworthy
By following these tips and remaining aware of risks, seniors may be better armed with ways to avoid elder financial abuse.
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Sources:
1Paul Bischoff, “The United States of Elder Fraud,” Comparitec.com, last accessed April 5, 2023,
2John Rosengren, “5 Ways to Prevent Elder Financial Exploitation,” AARP, last accessed April 5, 2023,
3“Elder Abuse,” National Institute on Aging, last accessed April 13, 2023,
4“Elder Financial Abuse,” Nursing Home Abuse Center, last accessed April 13, 2023,
5“Study: Financial abuse of older adults by family members,” Keck School of Medicine of USC, last accessed April 5, 2023,
6“2021 Elder Fraud Report,” Federal Bureau of Investigation, last accessed April 5, 2023,
7“Elder Financial Abuse.”
8Kelly Anne Smith, “What is Elderly Financial Abuse,” Forbes Advisor, last accessed April 5, 2023,
9“Elder Financial Abuse.”
10“5 Ways to Prevent Elder Financial Exploitation,” AARP, last accessed April 13, 2023,
This information is provided for educational purposes only. It is not to be used for medical advice, diagnosis or treatment. Consult your healthcare provider if you have questions or concerns.
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