Elder financial exploitation occurs when someone takes advantage of an older adult to gain access to their money or assets.
This can happen whether you’re arranging an estate worth millions or living solely on a modest monthly Social Security benefit.
Financial mistreatment can present as an obvious scam or an attempt to alter your will, but it can also be subtler — such as a nursing facility or medical provider inappropriately increasing charges. It might be a caregiver giving you a small “allowance” from your own bank account while blocking access to the remainder of your funds. It could even be a relative who constantly “borrows” cash with no plan to return it.
There are steps you can take to reduce your risk of elder financial abuse, and concrete actions to pursue if you suspect you’ve been victimized.
Below are proactive measures to help protect your finances as you grow older.
Know Who Often Perpetrates Elder Financial Abuse
Financial exploitation is frequently committed by those closest to the victim. In cases involving older adults, it’s often people with whom you share emotional bonds — family members or close friends — but it can also come from those entrusted with your care.
Financial abuse can be hard to spot because early signs aren’t always linked to bank accounts or bills. Watch for relationships that are controlling or possessive, people who shower you with attention to gain trust (even outside romantic contexts), and those who oscillate between affection and manipulation.
Predators often target seniors because they see potential access to an estate. Their aim may be to liquidate assets or position themselves to inherit, ignoring your best interests. Because fraudsters commonly focus on older adults, be cautious not only of long-standing relationships but also of newcomers who try to become overly close too quickly.
Protect Yourself from Guardianship Abuse
High-profile cases like Nichelle Nichols, Britney Spears, and Michael Oher highlight the risks of guardianships or conservatorships, depending on the jurisdiction. Sadly, such scenarios are not limited to celebrities; they can affect anyone.
“Guardianship strips away your rights,” says Tony Brooks, an activist and advocate at Disabled in Action of Pennsylvania. “Due to a disability, your voice can be handed over to someone else. Your choices and freedom are removed. A guardian could determine where you live, how you live, and even what you do daily.”
Some people pursue guardianship over an older adult simply because the process can be easier than dealing with someone younger. Courts can harbor implicit biases that mistakenly assume diminished capacity due to age.
Because anyone can petition for guardianship to seize control of your finances, it’s sensible to have an attorney’s contact information in advance. If you enter these proceedings unprepared and a conservatorship or guardianship is granted, it can be extremely difficult to reverse — even with legal help.
Talk About Guardianship Risks with Family Members Now
Some relatives may push for guardianship out of genuine concern, often from a lack of information. Consider these possible consequences that well-meaning family members may not realize:
- Guardianship can be contested. If there’s even a remote chance that another sibling or distant relative has ulterior motives, guardianship can create an opening for them to challenge and potentially seize control from the supposedly protective family member.
- When guardianships are contested, courts sometimes remove family members or friends as caretakers altogether. You might then end up with a court-appointed guardian who meets you infrequently — perhaps only once a year — but makes significant choices about your life, or neglects those duties entirely, leaving you in limbo.
- Guardianship is sometimes used as a sanctioned means of financial exploitation, making it harder to escape abuse. If relatives truly wish to protect you, a better approach may be to preserve your autonomy and decision-making ability rather than strip it away.
Options Other Than Guardianship
There are many valid reasons to let someone act on your behalf occasionally. Perhaps you have a medical condition that makes public spaces risky but still need someone to run in-person errands at a bank. Maybe you’re in early stages of dementia and have already discussed your future care preferences with a trusted person.
In such situations, disability advocates often suggest supported decision-making, which functions through limited powers of attorney that allow someone to sign documents or make narrowly defined decisions for you. Unlike guardianship, a power of attorney can typically be revoked, so if you’re displeased with someone’s actions, you can remove that authority.
Powers of attorney can be tightly restricted in scope. You can grant a medical power of attorney, a financial power of attorney, or even a one-time authorization for a single decision or signature, tailored to very specific needs.
Whatever degree of authority you grant, draft these documents with your own lawyer — not someone who has represented the other party. Avoid free online templates for matters this important; accuracy and legal soundness matter.
Brooks warns that even supported decision-making can have downsides.
“It’s not ideal,” he says. “Because the other person still has the power to make choices about your finances.”
Keep Up with Current Financial Scams
Scams represent another major form of financial abuse. It isn’t only the classic phone calls asking for donations to bogus charities — though those persist.
Right now, romance scams are widespread, and older adults are particularly vulnerable. If you’re using dating sites or apps, be cautious of people who live far away, try to form intense emotional bonds quickly, or ask you to send money or purchase gift cards for any reason — regardless of how compelling their story sounds or how earnestly they promise to reimburse you.
Chances are they’re not who they say they are; they’re exploiting perceived loneliness or vulnerability. This is a modern twist on long-running cons, dressed in emotionally manipulative tactics.
Cultivate a Robust Social Circle
As we age, many of us experience a shrinking social network. That’s often due to societal structures that unintentionally isolate older adults. If this happens to you, it’s not your fault; it’s something you may need to actively counteract by rebuilding connections and seeking out affordable or free local activities tailored to seniors.
A dependable social circle can help shield you from financial exploitation. When you have regular contact with trustworthy people beyond your caregivers, it becomes harder for others to take advantage of you.
Use State Services with Full Awareness
If you suspect financial abuse, state agencies can help — but approach them informed and cautious. For example, Adult Protective Services provides assistance for financial mistreatment, but it also has the authority to seek involuntary placements in care facilities. That means an abuser might influence the outcome to push you into institutional care if the agency doesn’t side with you.
“It can go either way,” Brooks notes. “You don’t know what the result will be, because it’s often your word versus someone else’s.”
Brooks also points out that reports by well-meaning friends or family members don’t always result in thorough intervention.
“They might say, ‘Yes, we’ll investigate and perform a welfare check,’” he explains. “But when the caseworker visits and the alleged abuser is present, the person being abused may be too frightened to speak up. That creates the false impression that everything’s fine — when it isn’t.”
He recommends arranging a private, one-on-one conversation between the caseworker and the older adult, without caregivers or others present. That can create a safer space for the person to speak candidly.
Speaking out carries risks, but Brooks emphasizes it’s almost always better than remaining silent.
“When you’re silent, nothing is known. No one understands what’s happening. It’s preferable to speak up rather than to be a bystander.”
Tap into State Resources for Elder Financial Exploitation
Here are government agencies and services you can contact to report elder financial abuse:
- Adult Protective Services. Different office in each state.
- Long-Term Care Ombudsman Program. Different office in each state.
- National Elder Fraud Hotline. National number: 1-822-372-8311
If you prefer not to contact a state agency, consider engaging an attorney who specializes in elder law.
To reduce the risk of exploitation, consider reading resources on how to fight price inflation and protect your financial well-being in a changing economy.
Boston-based writer Maya Delacroix is the founder of Practical Pennywise and the author of “Everyday Money Sense.” She contributes regularly to Savinly.
