What Are the 5 Warning Signs of Elder Financial Exploitation

$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.

What is Elder Financial Exploitation

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:

Elder Scams (80% of cases)

• Strangers contact victims through phone, email or online platforms
• Use psychological manipulation and impersonation tactics
• Common schemes include fake government officials, tech support or romance scams

Elder Theft (20% of cases)

• Involves people the victim knows and trusts
• Perpetrators include family members, caregivers or financial advisors
• Cases often go on for extended periods before being detected

If you suspect exploitation, call the National Elder Fraud Hotline at 833-372-8311 for case management and reporting help.

Why Criminals Target Older Adults

Several reasons why seniors are targets:

1. Financial: Decades of retirement savings make older adults a big score for fraudsters looking for a quick hit.
2. Social vulnerabilities: Limited social contact and isolation make seniors desperate for connection and more likely to trust unsolicited calls or visitors.
3. Generational traits: Older generations are polite and deferential so they won’t challenge someone they think is an authority.
4. Technology gaps: Many seniors are less familiar with online security and scam tactics so they’re prime targets for phishing, malware and tech-support fraud.
5. Health issues: Cognitive decline or physical limitations can impair judgment and make it harder to spot or report suspicious activity.

The 5 Financial Red Flags

Early detection can prevent big financial losses. Financial institutions, law enforcement and elder protection experts have identified these warning signs through case studies.

1: Watch for Suspicious ATM Withdrawals and Large Cash Transfers

The biggest indicator is unusual changes in spending or withdrawal habits.

Key Indicators:

• Large, frequent or unexplained withdrawals
• Someone who never used ATMs suddenly maxes out daily
• Dormant accounts with large balances suddenly become active
• Withdrawals not in line with established spending patterns

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.

2: Spot Gift Card Purchases and Tech-Support Scam Payments

Tech scams create specific payment patterns that families should be aware of.

Warning Signs:

• Payments with memo lines that say tech support services or computer repair
• Large purchases of gift cards or prepaid access cards
• Sudden cryptocurrency purchases with no explanation
• Multiple payments for virus removal or software protection

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.

3: Identify Wire Transfers to Unknown Recipients and Romance Scams

Interstate and international transfers often indicate serious exploitation schemes.

Critical Indicators:

• Interstate or international transfers to unknown recipients
• Wire transfers with explanations that seem suspicious or inconsistent
• Payments labeled as winnings, taxes, fees, or clearance charges
• Money transfers following urgent emergency phone calls

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.

4: Recognize Sudden Power of Attorney Changes and Document Manipulation

Sudden changes in account management often signal unauthorized influence over finances.

Key Warning Signs:

• Switching from simple to complex financial products without clear need
• Sudden changes to wills, trusts or power of attorney documents
• Missing important financial or legal documents
• New people added to accounts without family discussion
• Financial authority transferred to recently met individuals

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.

5: Notice Unpaid Bills Despite Available Funds and Asset Transfers

These signs often appear after criminals begin exploitation and require urgent intervention.

Urgent Indicators:

• Sudden insufficient funds in previously stable accounts
• Unpaid bills when money should be available
• Early withdrawals from CDs or retirement accounts despite penalties
• Unexplained asset transfers or property changes
• Giving away money or valuable items without a clear reason

For example: A stable retiree faces utility shut-offs and foreclosure while simultaneously transferring her deed to a caregiver hired six months earlier.

Behavioral Warning Signs That Indicate Exploitation

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.

Immediate Action Steps

You must act quickly to report suspected exploitation. Different agencies can help depending on your situation.

Call These Numbers First

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.

More Places to Report

Law Enforcement

• Local police for criminal investigations
• District attorney offices for prosecution
• FBI's Internet Crime Complaint Center (IC3) for online scams

Federal Agencies

• Federal Trade Commission's Consumer Sentinel for fraud reports
• U.S. Postal Inspection Service for mail-related scams
• Social Security Administration for benefits-related fraud

Financial Institutions

Banks and credit unions are legally required to report suspected exploitation and may place temporary holds on suspicious transactions during investigations.

When to Call an Attorney and What They Can Do

Contact an attorney right away if you discover:

• Ongoing financial exploitation
• Forged or suspicious documents
• An urgent need to prevent further asset transfers
• Complex family disputes over financial management

How Elder Law Attorneys Stop Exploitation and Recover Your Money

Emergency Actions:

• File motions to freeze accounts immediately
• Obtain court orders to stop unauthorized transfers
• Coordinate closely with law enforcement

Recovery Efforts:

• Pursue civil lawsuits for damages
• Seek asset recovery and restitution
• Negotiate settlements with perpetrators

Protective Measures:

• Establish guardianships or conservatorships when necessary
• Create protective legal arrangements
• Implement ongoing monitoring systems

Attorney Fees and Costs: What You Need to Know About Payment

• Many elder law attorneys work on contingency for financial exploitation cases, so clients pay no upfront fees.
• Courts may allow recovery of attorney fees from the perpetrator, reducing out-of-pocket costs.
• Early legal intervention often minimizes overall costs and secures faster asset protection.

Know Your Legal Rights And Recovery Options

Federal Protections

The Elder Justice Act (2010) and Older Americans Act (1965) provide federal funding for prevention, investigation and Adult Protective Services nationwide.

State Recovery Tools

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.

State-Specific Resources

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.

Protect Your Family Before Problems Start

Talk Money Regularly: Family Communication That Prevents Scams

Families can prevent exploitation through open and proactive dialogue.

Regular Financial Discussions

• Schedule monthly check-ins about finances with your elderly family members.
• Discuss common scam tactics and warning signs so everyone knows what to watch for.
• Establish clear procedures for large financial decisions (for example, requiring two family members' sign-off).
• Create a trusted contact list at your financial institutions to be notified of unusual account activity.

Work with Your Bank: Set Up Alerts and Transaction Limits

Partnering with your financial institution adds a vital layer of defense.

Account Protections

• Configure real-time account alerts for large withdrawals, transfers or bill payments.
• Establish transaction limits on debit cards and online transfers to cap potential losses.
• Designate one or more trusted contacts at your bank who can verify transactions if anything appears suspicious.
• Learn your bank's elder fraud policies—many institutions offer specialized teams and hold for suspected exploitation.

Organize Important Papers: Document Security and Family Access

Secure, accessible documentation prevents last-minute scramble when crises arise.

Organization and Access

• Keep organized financial records—bank statements, investment documents, insurance policies—in a locked, fire-resistant safe.
• Ensure at least two trusted family members know where key documents are stored and have access codes or keys.
• Store scanned copies of critical papers (wills, powers of attorney) on encrypted cloud services with family access permissions.
• Maintain an up-to-date inventory of assets and designated beneficiaries to reduce confusion.

Secure Online Accounts: Passwords, 2FA Authentication

Strong digital hygiene is essential as more financial transactions move online.

Digital Protection

• Use strong, unique passwords for every online account—consider a password manager to generate and store them securely.
• Enable two-factor authentication (2FA) wherever available, especially on banking and email accounts.
• Educate family members about phishing emails, fake websites and suspicious phone calls; practice spotting red flags together.
• Schedule quarterly reviews of all online account statements and credit reports to catch unauthorized activity early.

The Bottom Line

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.