The Quiet Crisis of Elder Financial Exploitation

With online scams targeting seniors daily, here’s how to build protection into your plan.

It often starts quietly: a strange phone call, a suspicious email, or a friendly “tech support” pop-up. Before families even realize what’s happened, a loved one’s bank account is drained or their personal information is in the hands of a scammer.

Elder financial exploitation is a growing epidemic—and it’s not just strangers behind the fraud. In many cases, the exploitation comes from caregivers, friends, or even family members. That’s what makes it so dangerous—and so difficult to detect.

As elder law attorneys, we see firsthand how devastating this can be. The good news? With a thoughtful estate plan, you can build real protection into your legal documents and financial structures.

What Is Elder Financial Exploitation?

Elder financial exploitation refers to the illegal or improper use of an older adult’s funds, property, or assets. This can take many forms:

• Online and phone scams: impersonation fraud, phishing emails, and “grandparent” scams.
  
• Undue influence: when someone pressures or manipulates an elder into making financial decisions that benefit the influencer.
  
• Unauthorized use of accounts: including ATM withdrawals, forged checks, or digital access to bank or investment accounts.
  
• Abuse of legal authority: misuse of a Power of Attorney or Trustee role.
  

Why Seniors Are Targeted

Seniors are often targeted because they may:

• Live alone or be socially isolated
  
• Be managing cognitive decline or diminished capacity
  
• Be unfamiliar with digital technology
  
• Be trusting of others, especially family or long-time acquaintances
  

Scammers know this—and they prey on it.

Signs of Elder Financial Abuse

Financial abuse can be hard to spot, especially early on. But some warning signs include:

• Sudden or unexplained changes in financial activity
  
• New “friends” or caregivers with unusual influence
  
• Missing property or valuables
  
• Unpaid bills or eviction notices despite sufficient income
  
• Changes to estate planning documents that seem out of character
  

If you suspect something is wrong, don’t wait—speak up and seek guidance.

How to Build Protection Into Your Estate Plan

Your estate plan should be more than just a set of legal documents—it should act as a shield. Here’s how:

1. Choose Your Fiduciaries Wisely

Who you name as agent under your Power of Attorney or as Trustee matters. Choose someone trustworthy, financially responsible, and capable of stepping in if something seems off.

2. Add Layers of Oversight

You can require co-agents or co-trustees to act together. You can also authorize third parties to monitor account activity or receive copies of financial statements.

3. Keep Legal Documents Up to Date

Old estate plans may include people who are no longer appropriate or relevant to your current life situation. Regular reviews ensure your plan still protects you.

4. Use Legal Safeguards

Incorporate tools like revocable living trusts, limited Powers of Attorney, or asset protection structures. These can reduce the risk of exploitation while preserving independence.

5. Talk Openly With Your Family

One of the most effective ways to prevent financial abuse is through transparency. Let trusted loved ones know who’s been named in your plan, and what role they play.

Final Thoughts: A Plan That Works When It’s Needed Most

Elder financial abuse thrives in silence and confusion. But a strong estate plan doesn’t just distribute your assets—it protects your future self from those who may seek to take advantage.

If you or a loved one are concerned about financial exploitation—or simply want to make sure your plan includes the right protections—we’re here to help.