Elder Financial Exploitation

How It Works

Scammers target older adults by exploiting their trust, vulnerability, or mental state, often using fraudulent relationships to access their money or assets.

Common Methods of Elder Financial Exploitation

• Caretaker fraud: Caretakers misuse their access to the older adult’s funds.
• Fake charities: Scammers target older adults to request donations for non-existent causes, especially around holidays.
• Grandparent scams: Fraudsters impersonate a grandchild in distress and ask for emergency funds. This may occur via Artificial Intelligence tools.
• Lottery scams: Targeting older adults with fake lottery or sweepstakes claims.
• Medicare and health insurance fraud: Scammers file false medical claims with insurance providers or sell unnecessary medical equipment to older adults.
• Power of attorney abuse: Trusted individuals misuse legal authority to steal assets.
• Romance scams: Older adults are tricked into giving money to fraudsters pretending to be romantic partners.

Warning Signs

• Sudden changes in bank account balances, particularly large or unusual withdrawals.
• Unexplained or unusual purchases or transfers to unfamiliar people.
• New “friends” or “romantic interests” pressuring the older adult to make financial decisions or provide access to their accounts.
• Increased isolation from family members or trusted advisors, often as a way for the fraudster to maintain control over the older adult.

Ways to Avoid It

• Maintain open communication: Keep in touch with older adult family members and discuss their financial health regularly.
• Recognize potential signs of exploitation, such as unexplained withdrawals, sudden changes in financial situations, missing belongings, unusual changes in wills or powers of attorney, and suspicious signatures on checks or documents.
• Be wary of new relationships: If an older adult forms a new relationship and the person quickly becomes involved in their finances, investigate further.
• Encourage legal protections: Help older adults establish legal protections, like a durable power of attorney or placing limits on their accounts to prevent large withdrawals.
• Report suspicious activity: If you suspect elder financial abuse, report it immediately to local authorities.
• Provide the older adult with resources and educate them about financial exploitation to help them protect themselves.
  • Online: Interagency Statement on Elder Financial Exploitation, which includes links to additional resources from government agencies.
  • Online: Contact the National Center on Elder Abuse (NCEA).

Ways to Report It

If you are or know an older adult who has been manipulated or deceived into giving away money or property, take immediate action to protect their financial well-being.

• Notify local law enforcement
  • Emergency: If the older adult is in immediate danger, call 911.
  • Non-emergency: Contact your local police department or sheriff’s office to file a report.
• Contact the older adult’s bank
  • Notify the older adult’s bank about the suspected exploitation.
  • Consider requesting a new account.
• Report to the Internet Crime Complaint Center (IC3)
  • Online: Submit a complaint to the IC3, a division of the FBI.
  • This is especially useful for internet-related crimes.
• Report the exploitation to the Federal Trade Commission (FTC)
  • Online: Visit ReportFraud.ftc.gov to report the exploitation.
  • Phone: Call the FTC at 1-877-FTC-HELP (1-877-382-4357) if you prefer to file your complaint over the phone.
• Report to the Department of Justice National Elder Fraud Hotline
  • The Department of Justice National Elder Fraud Hotline provides services to adults, age 60 and older, who may be victims of financial fraud.
  • Online: Contact DOJ’s National Elder Fraud Hotline.
• Place a fraud alert on the elder’s credit report
  • Contact credit reporting agencies: Place a fraud alert or credit freeze on elder’s credit reports by contacting one of the three major credit bureaus. The bureau you contact will inform the other two.
    • Equifax: 1-800-525-6285
    • Experian: 1-888-397-3742
    • TransUnion: 1-800-680-7289
  • A fraud alert makes it harder for identity thieves to illegally open accounts.
  • Duration: A fraud alert lasts for one year, but you can extend it.

Remember: Elder financial exploitation, or elder fraud, is a serious issue affecting older adults, often involving a range of tactics designed to steal money or assets.