Elder financial abuse is one of the fastest growing crimes in the United States. It is also one of the most underreported — estimated to cost American seniors more than $28 billion per year. Unlike physical elder abuse which leaves visible marks financial abuse often goes undetected for months or years while victims lose their life savings their homes and their financial security.
This guide explains what elder financial abuse is how to recognize it who commits it how to report it and how to protect yourself or a loved one from becoming a victim.
What Is Elder Financial Abuse?
Elder financial abuse — also called elder financial exploitation — is the illegal or improper use of an older adult’s money property or assets. It includes a wide range of conduct from outright theft and fraud to more subtle forms of manipulation and coercion.
Elder financial abuse can be committed by strangers — through scams and fraud schemes — or by people the victim knows and trusts including family members caregivers financial advisors attorneys and others in positions of trust. Research consistently shows that the majority of elder financial abuse is committed by people known to the victim — making it particularly difficult to detect and report.
The National Council on Aging estimates that one in ten Americans aged 60 and older has experienced some form of elder abuse including financial abuse. The true number is likely much higher because most cases are never reported.
Types of Elder Financial Abuse
Elder financial abuse takes many forms. Understanding the different types can help you recognize it when it occurs.
Theft
The direct taking of money or property without permission. This includes stealing cash from a wallet or purse — stealing checks and forging signatures — stealing credit or debit cards and making unauthorized purchases — and taking jewelry artwork or other valuables.
Fraud and scams
Deceiving a senior into giving money or personal information through false pretenses. Common fraud schemes targeting seniors include government impersonation scams — where criminals pose as IRS agents Medicare officials or Social Security Administration employees — lottery and sweepstakes scams — romance scams conducted through social media and dating websites — grandparent scams where a caller pretends to be a grandchild in trouble and asks for emergency money — contractor fraud where fake contractors collect payment for repairs they never complete — and investment fraud including Ponzi schemes and unsuitable investment recommendations.
Undue influence
Using a position of trust or authority to pressure an older adult into making financial decisions that benefit the abuser rather than the senior. Undue influence often occurs gradually — the abuser isolates the senior from family and friends cultivates dependence and then uses that dependence to manipulate financial decisions. Undue influence can be used to change wills trusts powers of attorney beneficiary designations and other legal documents.
Misuse of power of attorney
An agent under a power of attorney has a fiduciary duty to act in the principal’s best interests. Financial abuse occurs when an agent uses the power of attorney to benefit themselves — by transferring assets to themselves making gifts to themselves paying themselves excessive fees or otherwise misappropriating the principal’s funds.
Guardianship and conservatorship abuse
A court-appointed guardian or conservator who misuses their position to steal from or exploit the person in their care.
Predatory lending
Convincing a senior to take out loans with unfavorable terms — including high-interest loans home equity loans reverse mortgages with hidden fees and payday loans — that strip equity or create unsustainable debt.
Caregiver theft
A paid or unpaid caregiver who steals from the person they are caring for — either directly or by gaining influence over financial decisions.
Family financial abuse
Family members — often adult children grandchildren or other relatives — who take money from an elderly family member without permission or through manipulation. Family financial abuse is particularly common when a family member has substance abuse or gambling problems or is in financial distress.
Warning Signs of Elder Financial Abuse
Recognizing the warning signs of elder financial abuse can help you intervene before significant harm occurs.
Financial warning signs
Unexplained withdrawals from bank accounts — missing money or valuables — unpaid bills despite adequate income — sudden changes to wills trusts or beneficiary designations — new credit cards or loans in the senior’s name — unusual financial transactions — large unexplained gifts or transfers to a caregiver or new acquaintance — and a senior who is suddenly unable to pay for necessities.
Behavioral warning signs
A senior who seems fearful anxious or confused about their finances — who defers all financial questions to a caregiver or family member — who is suddenly isolated from longtime friends and family — who mentions a new close friend or romantic partner who has taken a strong interest in their finances — and who is reluctant to discuss financial matters or seems embarrassed about their financial situation.
Caregiver warning signs
A caregiver who controls all access to the senior — who intercepts mail and phone calls — who accompanies the senior to all medical and financial appointments and answers questions on their behalf — who has taken up residence in the senior’s home — who seems to be living beyond their means — and who speaks negatively about other family members and attempts to create conflict within the family.
Who Commits Elder Financial Abuse?
Elder financial abuse is committed by a wide range of perpetrators.
Family members
Research consistently identifies family members — particularly adult children — as the most common perpetrators of elder financial abuse. The combination of access trust and knowledge of the victim’s financial situation creates opportunity. Financial stress substance abuse and a sense of entitlement to an inheritance are common contributing factors.
Paid caregivers
Home care workers nursing home staff and other paid caregivers have direct access to seniors and their homes. While the vast majority of caregivers are honest the intimate nature of caregiving creates opportunities for abuse.
Financial professionals
Unscrupulous financial advisors brokers and insurance agents who recommend unsuitable products make excessive trades or charge excessive fees.
Attorneys and other professionals
Professionals who handle legal and financial matters for seniors can in rare cases misappropriate funds or manipulate seniors into arrangements that benefit the professional.
Strangers
Scammers who contact seniors by phone email text message mail or in person with fraudulent schemes.
Romantic partners and new acquaintances
People who cultivate romantic or close personal relationships with isolated seniors for the purpose of financial exploitation — sometimes called sweetheart scams.
Why Elder Financial Abuse Goes Unreported
Elder financial abuse is estimated to be vastly underreported. Several factors contribute to low reporting rates.
Shame and embarrassment
Many victims feel embarrassed about having been deceived — particularly when the scam involves a romantic relationship or when the perpetrator is a family member.
Fear of consequences
Victims who are dependent on the abuser for care may fear losing that care if they report the abuse. Victims whose abuser is a family member may fear family conflict or the abuser’s criminal prosecution.
Cognitive impairment
Seniors with dementia or other cognitive impairments may not recognize that they have been abused or may lack the capacity to report it.
Loyalty
When the abuser is a family member victims often feel loyalty that overrides their willingness to report the abuse.
Lack of awareness
Some victims do not know who to report elder financial abuse to or that it is a crime.
How to Report Elder Financial Abuse
If you suspect elder financial abuse act quickly. The sooner abuse is reported the sooner intervention can occur and the better the chance of recovering lost assets.
Adult Protective Services — APS
Every state has an Adult Protective Services agency that investigates reports of elder abuse including financial abuse. APS can be reached through your local social services office or through the Eldercare Locator at 1-800-677-1116.
Local law enforcement
Elder financial abuse is a crime. Report it to your local police department or sheriff’s office. Many law enforcement agencies have dedicated elder abuse units.
State attorney general
Most state attorneys general have consumer protection divisions that handle elder financial abuse cases. Contact your state attorney general’s office to report fraud scams and financial exploitation.
Financial institutions
Banks and other financial institutions are increasingly trained to recognize and report signs of financial exploitation. If you are concerned about unusual transactions contact the senior’s bank directly.
Federal agencies
For specific types of fraud contact the appropriate federal agency. The Federal Trade Commission — FTC — at ftc.gov handles consumer fraud. The Consumer Financial Protection Bureau — CFPB — at consumerfinance.gov handles financial product fraud. The FBI handles major fraud schemes.
The National Elder Fraud Hotline
The U.S. Department of Justice operates a National Elder Fraud Hotline at 1-833-FRAUD-11 — 1-833-372-8311 — that provides resources and referrals for elder fraud victims.
How to Protect Yourself or a Loved One
Prevention is the most effective protection against elder financial abuse. The following steps can significantly reduce the risk.
Plan ahead with legal documents
Execute a durable power of attorney designating a trusted person to manage finances — but choose the agent carefully and consider adding oversight mechanisms such as requiring the agent to provide annual accountings to a trusted third party.
Stay connected
Isolation is one of the primary risk factors for elder financial abuse. Seniors who maintain strong connections with family friends and community are significantly less vulnerable than those who are isolated.
Be skeptical of unsolicited contact
Never give personal or financial information to anyone who contacts you unexpectedly by phone email or in person. Legitimate government agencies never demand immediate payment by gift card wire transfer or cryptocurrency.
Set up account monitoring
Ask your bank about transaction monitoring services that alert you or a trusted family member to unusual account activity. Many banks offer free monitoring services for seniors.
Add a trusted contact to financial accounts
Many financial institutions now allow account holders to designate a trusted contact person who can be notified — but not given account access — if the institution has concerns about potential exploitation.
Shred documents
Shred all documents containing personal or financial information before discarding them.
Be cautious with powers of attorney
A power of attorney gives the agent enormous power over your finances. Choose your agent carefully — consider naming a co-agent who must approve significant transactions — and review the agent’s actions regularly.
Discuss finances with trusted family members
Having open conversations about finances with trusted family members makes it harder for abusers to operate in secret.
Resources for Elder Financial Abuse Victims and Families
- National Elder Fraud Hotline — 1-833-FRAUD-11 — U.S. Department of Justice
- Eldercare Locator — eldercare.acl.gov — 1-800-677-1116 — connect with local Adult Protective Services
- Federal Trade Commission — ftc.gov — report scams and fraud
- Consumer Financial Protection Bureau — consumerfinance.gov — elder financial exploitation resources
- National Center on Elder Abuse — ncea.acl.gov — information and resources on all forms of elder abuse
- AARP Fraud Watch Network — aarp.org/money/scams-fraud — fraud alerts and resources
- Your state Adult Protective Services — see our state resource pages for APS contact information in your state
The information in this article is for general informational purposes only and does not constitute legal or financial advice. If you believe you or someone you know is a victim of elder financial abuse contact Adult Protective Services or law enforcement immediately.
Last updated: July 2026