$27 billion stolen from seniors in one year. The Financial Crimes Enforcement Network (FinCEN) found that between June 2022 and June 2023, elder financial exploitation–related suspicious activity totaled $27 billion, and the average victim lost $33,915, often decades of savings.
This article will show you the 5 warning signs to spot exploitation early, where to report suspected abuse and what legal protections are available to get back stolen assets.
Scammers start small and escalate fast. Recognizing one red flag could mean the difference between a small loss and a financial disaster.
Elder financial exploitation is when someone illegally or improperly uses an older adult’s funds, property or assets (FinCEN definition). This includes everything from family member theft to elaborate international scams.
Two types you should know:
If you suspect exploitation, call the National Elder Fraud Hotline at 833-372-8311 for case management and reporting help.
Several reasons why seniors are targets:
Early detection can prevent big financial losses. Financial institutions, law enforcement and elder protection experts have identified these warning signs through case studies.
Red Flag | Key Indicators | Quick Example |
---|---|---|
Suspicious Cash Activity | Large/frequent ATM withdrawals, dormant accounts suddenly active | Widow starts daily $500 ATM withdrawals after meeting (financial advisor) |
Tech/Gift Card Payments | Gift card purchases, tech support payments, cryptocurrency buys | Senior buys hundreds of iTunes cards to (unlock lottery winnings) |
Suspicious Transfers | Wire transfers to unknowns, payments for taxes/fees/winnings | Widowed senior sends $2,000 monthly to Ghana (boyfriend) never met. |
Document Changes | New power of attorney, complex investments and missing papers | Dementia patient switches POA from daughter to helpful (neighbor) |
Financial Distress | Unpaid bills despite funds, early CD withdrawals and asset transfers | A stable retiree faces foreclosure while transferring the deed to a new caregiver |
The biggest indicator is unusual changes in spending or withdrawal habits.
Key Indicators:
Example: An 82 year old widow makes small withdrawals. Suddenly she’s taking out $500 daily from ATMs all over town and says she has a new financial advisor who is telling her to take cash for investment opportunities.
Tech scams create specific payment patterns that families should be aware of.
Warning Signs:
Example: A 75 year old man is buying hundreds of dollars in iTunes cards weekly and says he needs them to unlock overseas lottery winnings.
Interstate and international transfers often indicate serious exploitation schemes.
Critical Indicators:
Consider this scenario: A widowed senior sends monthly $2,000 wire transfers to someone in Ghana she met online but never in person, believing she's helping her boyfriend with medical expenses.
Sudden changes in account management often signal unauthorized influence over finances.
Key Warning Signs:
Specifically, consider this case: An elderly man with dementia changes his power of attorney from his daughter to a helpful neighbor, then moves his savings into complex investments he doesn't understand.
These signs often appear after criminals begin exploitation and require urgent intervention.
Urgent Indicators:
For example: A stable retiree faces utility shut-offs and foreclosure while simultaneously transferring her deed to a caregiver hired six months earlier.
Financial red flags often occur alongside behavioral changes. Watch for these additional indicators of potential coercion:
Emotional Indicators: Fear, anxiety or confusion when discussing finances can signal coercion. Family members should note expressions of fear about eviction or nursing home placement.
Social Changes: New friends who restrict family access raise immediate concerns. Be alert for reluctance to communicate privately or sudden changes in phone and email patterns.
Transaction Behavior: Taking direction from someone on the phone during banking transactions indicates external control. Nervousness about hanging up during financial discussions is also concerning.
You must act quickly to report suspected exploitation. Different agencies can help depending on your situation.
National Elder Fraud Hotline
The U.S. Department of Justice's National Elder Fraud Hotline operates at 833-372-8311, 6:00 a.m. to 11:00 p.m. ET, seven days a week. Professional case managers provide personalized support, guide you through reporting procedures and connect you with local resources.
Adult Protective Services
Every state's Adult Protective Services investigates elder abuse allegations, assesses risk, coordinates with law enforcement and connects victims with community resources.
Law Enforcement
Federal Agencies
Financial Institutions
Banks and credit unions are legally required to report suspected exploitation and may place temporary holds on suspicious transactions during investigations.
Contact an attorney right away if you discover:
Emergency Actions:
Recovery Efforts:
Protective Measures:
The Elder Justice Act (2010) and Older Americans Act (1965) provide federal funding for prevention, investigation and Adult Protective Services nationwide.
Most states offer enhanced criminal penalties and powerful civil recovery options including attorney fees, punitive damages and asset recovery. Many states also authorize banks to freeze suspicious transactions.
Laws vary significantly by state. California's Elder Abuse Act allows treble damages, while Florida's exploitation statute includes mandatory reporting requirements. For your state's specific protections, check the State Elder Abuse Statutes under the Department of Justice or contact a local elder law attorney.
Families can prevent exploitation through open and proactive dialogue.
Regular Financial Discussions
Partnering with your financial institution adds a vital layer of defense.
Account Protections
Secure, accessible documentation prevents last-minute scramble when crises arise.
Organization and Access
Strong digital hygiene is essential as more financial transactions move online.
Digital Protection
Stay informed and vigilant to protect your family from financial predators. Recognize the five critical warning signs—unusual account activity, technology-related expense patterns, suspicious transfers, abrupt changes in account management and unexplained financial distress—and act immediately if you see any red flags.
Use available resources, from the National Elder Fraud Hotline to state adult protective services and qualified elder law attorneys, to report abuse and recover assets. Early intervention not only protects savings but also prevents emotional trauma. Share this knowledge with loved ones and in your community—awareness is the strongest defense against financial predators.
Disclaimer
This article provides educational information about elder financial exploitation and available resources. It is not intended as specific legal advice for individual situations. If you suspect elder financial exploitation, consult with qualified legal professionals and report to the appropriate authorities immediately.