Elder Financial Abuse: How to Spot It and Stop It
Minute Read
By Members 1st Federal Credit Union
As we age, our financial well-being becomes just as important as our physical and emotional health. Unfortunately, older adults are often targeted for financial exploitation, sometimes by strangers, but more often by those they trust the most.
The Reality of Elder Financial Abuse
Elder financial abuse is estimated to cause $28.3 billion in losses each year, according to the National Council on Aging. Even more alarming is that the perpetrators are most often relatives. Sadly, many incidents go unreported due to embarrassment or fear of losing independence.
Types of Financial Exploitation
Elder financial abuse can take many forms, but it generally falls into two categories:
- Financial exploitation by someone the victim knows—A family member, caregiver or trusted person misuses an older adult’s money or assets for their own benefit. This can include:
- Stealing income or assets
- Pressuring someone to change their will or Power of Attorney
- Committing fraud or misrepresentation to gain control of finances
- Using financial authority improperly
- Scams and fraud by strangers or “new friends”—Unfortunately, some criminals actively seek to deceive seniors through scams such as:
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- Lottery scams—Telling seniors they have won money but need to pay fees to claim their prize.
- Romance scams—Building an emotional connection online and then asking for financial help.
- Grandparent scams—Pretending to be a grandchild in trouble and needing money urgently.
- Fake charities—Exploiting generosity by pretending to represent a worthy cause.
- Tech support scams—Convincing a senior they have a technology problem and need to pay for unnecessary “repairs.”
- Social media scams—Using personal details found through a senior’s social media page to encourage the senior to send funds or provide more personal information.
Warning Signs – Do Any of These Sound Familiar?
If you or a loved one are experiencing any of the following, it may be a red flag:
- Receiving frequent calls requesting or demanding money
- Feeling confused about financial decisions someone else is making on your behalf
- Feeling pressured by someone to give money, lend money or change your financial documents
- Noticing unauthorized access to accounts or missing money
How to Protect Yourself
The best is awareness and proactive steps: defense against financial exploitation is awareness and proactive steps:
- Review financial statements regularly to catch any unusual transactions.
- Safeguard personal information and store important documents securely.
- Choose a trustworthy financial advocate to help you manage your finances if needed.
- Monitor your credit report for suspicious activity at annualcreditreport.com.
- Get a second opinion before making major financial changes such as altering your will or Power of Attorney.
Why Are Older Adults More at Risk?
Several factors can make seniors more vulnerable to financial abuse, including:
- Isolation and loneliness—Seniors who live alone or have limited social interaction may be more susceptible to scams or manipulation.
- Recent losses—The passing of a spouse or close friend can leave someone emotionally vulnerable and more likely to trust the wrong person.
- Physical or mental disabilities—Health challenges can make it harder to keep up with financial matters and recognize red flags.
- Lack of familiarity with financial matters—If a senior has not been the primary money manager in their household, they may be unfamiliar with handling financial affairs.
- Family pressures—Unemployed or substance-abusing relatives may take advantage of an older family member’s generosity or trust.
The Devastating Impact on Seniors
Unlike younger adults, seniors who lose money to financial abuse often do not have the time or resources to recover. The financial strain can lead to serious consequences, including:
- Loss of life savings, property or assets
- Increased reliance on publicly funded services
- Emotional distress, depression and loss of trust in others
- Declining health—because financial stress affects overall well-being
Speak Up – You Are Not Alone
If something feels off, trust your instincts. Talk to someone you trust—whether it’s a family member, a doctor, your financial institution or local law enforcement. Financial security is essential for peace of mind, and no one should have to navigate these challenges alone.
At Members 1st, we are committed to protecting our members and their financial well-being. If you ever have concerns about financial safety, we are here to help.
Your best defense against scams is to use these tips to stay vigilant. When in doubt, give us a call at (800) 826-4314 or visit one of our nearly 60 branch locations.
