Older individuals are often targets for financial exploitation due to the fact that they often have assets and resources that are attractive targets to thieves and scammers.  According to the FBI, more than 88,000 Americans over the age of 60 were victimized by a fraud scheme that amounted to $3.1 billion in losses in 2022. The average dollar loss per victim was $35,000. What's more, 5,456 elderly persons each lost more than $100,000 to scammers, the FBI reported. Elder financial or material exploitation is defined as the illegal or improper use of an elder's funds, property, or assets. Examples include, but are not limited to, cashing an elderly person's checks without authorization or permission; forging an older person's signature; misusing or stealing an older person's money or possessions; coercing or deceiving an older person into signing any document (e.g., contracts or will); and the improper use of conservatorship, guardianship, or power of attorney.

According to the Bureau of Consumer Financial Protection (CFPB), "Elder financial exploitation is one of the most common and devastating forms of elder abuse. It can destroy the financial security of an older adult at a vulnerable stage of life. Financial exploitation can negatively impact physical and emotional health, or shorten an older person’s lifespan."

Signs of Elder Financial Abuse

According to the National Center on Elder Abuse (NCEA), signs and symptoms of financial or material exploitation include but are not limited to:

• Sudden changes in bank account or banking practice, including an unexplained withdrawal of large sums of money by a person accompanying the elder;
• Inclusion of additional names on an elder's bank signature card;
• Unauthorized withdrawal of the elder's funds using the elder's ATM card;
• Abrupt changes in a will or other financial documents;
• Unexplained disappearance of funds or valuable possessions;
• Substandard care being provided or bills unpaid despite the availability of adequate financial resources;
• Discovery of an elder's signature being forged for financial transactions or for the titles of his/her possessions;
• Sudden appearance of previously uninvolved relatives claiming their rights to an elder's affairs and possessions;
• Unexplained sudden transfer of assets to a family member or someone outside the family;
• Provision of services that are not necessary; and
• Elder's report of financial exploitation.

Tips from AARP to Protect Seniors from Financial Exploitation

1. Think ahead. Talk to your loved ones about their wishes for the future and help them plan for it by designating power of attorney and healthcare directives. Consider granting someone else authority in financial matters if their physical or mental health is declining.

2. Stay connected. Keep in regular contact with your loved ones through frequent calls, texts, emails, and visits.

3. Build trust with sensitive financial matters. Extreme privacy when handling money issues is common for senior citizens, but it also sets them up for vulnerability. If no one else has eyes on their finances, they could be scammed for months without knowing it. Become the trusted financial advocate your loved one needs.

4. Set up separate accounts. If your loved one is willing, set up several separate accounts so that they aren't completely wiped out should they fall victim to a scam.

5. Set up direct deposit. Have checks deposited right into an eider's account so that potential bad actors don't have the opportunity to cash them.

6. Track financial activity. Look into financial monitoring tools like EverSafe, which will track financial activity and make the user aware of any suspicious withdrawals or spending.

7. Know before you sign. Never sign any documents that you don't understand.

8. Recognize the red flags. Unfortunately, most cases of elder financial abuse are committed by someone the victim knows. Be aware of the sudden reappearance of any friend or family member who has been largely absent in your loved one's life or multiple requests to change account ownership.

9. Trust your gut. If something feels off or things are not adding up with your loved one's finances, follow your intuition and get help.

10. Report any wrongdoing. If you're convinced someone is scamming your loved one out of their money, contact your credit union and Adult Protection Services immediately and file a report with your local police department.

Additional Resources: