A practical, compassionate guide for caregivers
Financial exploitation involves the illegal or improper use of an older adult's money, property or assets. It's also one of the most common-and devastating-forms of elder abuse. For caregivers, knowing what to watch for and how to help can make a meaningful difference in protecting an older adult’s financial security, independence and peace of mind is extremely important.
Why financial exploitation is on the rise
Financial exploitation costs older adults billions of dollars each year and continues to grow nationwide. A National Council on Aging analysis estimates that financial exploitation causes about $28.3 billion in losses to older adults annually. Studies also show that older adults often experience larger financial losses from fraud than younger adults, even when the number of incidents is similar.*
Older adults may be targeted because they’ve built retirement savings or home equity, or because they’re perceived as more trusting or socially isolated. Life changes such as cognitive decline, health challenges, mobility issues or the loss of a spouse can increase vulnerability, sometimes all at once.
The impact goes far beyond money. Financial exploitation can threaten an older adult’s independence, dignity and quality of life, and recovery is often difficult.
What financial exploitation can look like
Financial Exploitation can happen gradually or all at once, and it’s often committed by someone the person knows. Common examples include:
- Stealing or misusing money or property
- Misusing powers of attorney
- Unauthorized withdrawals or credit card charges
- Scams carried out by strangers, acquaintances or even trusted individuals
In one large population-based study, stealing or misappropriation of money/property accounted for approximately 77.8% of cases reported by older adults.**
Red flags caregivers should watch for
Caregivers are often the first to notice when something doesn’t feel right. Warning signs may include:
- Unexplained wire transfers, credit card charges or withdrawls
- New friends, caregivers or acquaintances showing unusual interest in finances or accompanying the older adult to the bank
- Sudden or unexpected changes to wills, powers of attorney, beneficiaries or property titles
- Unpaid bills, utility shutoffs or eviction notices despite adequate income or savings
- Fear, confusion or reluctance to talk about money, or answers that seem coached
- Missing belongings, altered checks or signatures that don’t match past handwriting
Trust your instincts. One red flag alone doesn’t always mean exploitation, but patterns or sudden changes deserve attention.
Everyday steps that can help prevent exploitation
The good news is that small, proactive steps can go a long way. Caregivers can help lower risk by focusing on planning, monitoring and open communication.
Planning and coordination
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Encourage the older adult to name a trusted contact on bank and investment accounts, allowing financial institutions to reach someone if they notice unusual activity.
- Discuss and document financial wishes, including who should help manage bills or decisions if help is needed in the future.
- Review and update powers of attorney, wills and beneficiary designations so they reflect current intentions and comply with state law.
Monitoring and account security
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Review bank and credit card statements together and ask questions about unfamiliar charges.
- Set up account alerts for large withdrawals, transfers or new payees using bank provided tools.
- Check credit reports periodically for accounts or inquiries the older adult didn’t initiate.
- Store checkbooks, financial records and identification documents securely, and limit access.
Education and open conversations
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Talk regularly about common scams, including impostor scams, tech support scams, romance scams and bank or government agency impersonation scams.
- Remind the older adult to never share account numbers, Social Security numbers or one time access codes unless they initiated the contact using a trusted number.
A shared role in protection
Caregivers play an essential role in helping older adults stay financially safe. By watching for warning signs, helping with planning and monitoring and keeping communications open and respectful, caregivers can reduce the risk of exploitation and help older adults maintain control, confidence and dignity in their financial lives.
*“Get the Facts on Elder Abuse,” National Council on Aging.
**“Financial Fraud and Deception in Aging,” National Institutes of Health.