What To Do About Elder Law Financial Abuse

As our population ages, a quiet but deeply concerning issue continues to rise beneath the surface: financial abuse of older adults.

It is not always obvious.
It does not always involve strangers.
And often, it happens to those who are the most trusting.

For families, caregivers, and professionals, understanding how this happens—and what to do about it—is one of the most important steps in protecting the people we love.

A Growing and Underreported Problem

Financial abuse is one of the most common forms of elder abuse—and one of the least reported.

• Older adults lose an estimated $28.3 billion each year to financial exploitation¹
  
• Only 1 in 44 cases is ever reported²
• About 1 in 10 older adults experience some form of abuse annually³
  

These numbers tell a sobering story: what we see is only a fraction of what is actually happening.

And perhaps most surprising— the greatest threat is not always from strangers.

It’s Often Someone They Trust

While scams and fraud make headlines, many cases of financial abuse come from within a senior’s inner circle.

• Family members are frequently the most common perpetrators⁴
  
• Financial exploitation makes up a significant portion of abuse cases involving relatives⁵
  

This can make the situation more complicated—and more emotional.

Because it is not just about money.
It is about trust, dependence, and vulnerability.

What Does Financial Abuse Look Like?

Financial abuse can take many forms, and it is not always dramatic or obvious.

Some of the most common examples include:

• Unauthorized use of bank accounts or credit cards
  
• Pressure to change a will, trust, or beneficiary designation
  
• Isolation from family members or advisors
  
• Sudden “new friends” or caregivers influencing financial decisions
  
• Unexplained withdrawals, transfers, or missing assets
  
• Coercion to sign legal or financial documents
  

In many cases, the abuse happens gradually—small decisions that slowly erode a person’s financial security.

Why Older Adults Are More Vulnerable

There are several reasons why seniors are particularly at risk:

• Cognitive decline (including dementia or memory loss)
  
• Isolation or loneliness, making them more trusting of others
  
• Reliance on caregivers or family members
  
• A lifetime of accumulated savings and assets
  

Research shows that changes in cognitive function and increased trust can make older adults more susceptible to manipulation and fraud .

What You Can Do to Help Prevent Financial Abuse

The good news is that there are proactive steps families and professionals can take.

1. Start the Conversation Early

Discuss financial planning, decision-making, and trusted contacts before a crisis occurs.

2. Put the Right Legal Documents in Place

A well-structured estate plan can provide critical protection, including:

• Durable powers of attorney
  
• Revocable living trusts
  
• Clearly defined fiduciary roles
  

These tools help ensure the right people are making decisions—and being held accountable.

3. Create Oversight and Accountability

Checks and balances can make all the difference.

• Require dual signatures for large transactions
  
• Involve a third-party advisor or fiduciary
  
• Schedule regular financial reviews
  

4. Stay Connected

Isolation increases vulnerability.

Regular communication with aging loved ones can help identify concerns early—before they escalate.

5. Know the Warning Signs—and Act Quickly

If something feels off, trust that instinct.

Concerns can be reported to Adult Protective Services, which investigates abuse and helps protect vulnerable adults .

What to Do If You Suspect Financial Abuse

If financial abuse may already be occurring, timing matters.

Early action can:

• Prevent further financial loss
  
• Preserve evidence
  
• Protect the individual from continued harm
  

Depending on the situation, solutions may include:

• Legal intervention to freeze or recover assets
  
• Removal or replacement of a trustee, agent, or caregiver
  
• Litigation involving undue influence, fraud, or financial exploitation
  

These situations are rarely simple—but they are not without solutions.

A Final Thought

Financial abuse of the elderly is not just a legal issue.
It is a human one.

It impacts independence, dignity, and the legacy someone worked a lifetime to build.

And while it is a growing concern, it is also one we can address—
with awareness, planning, and the right support.

Because protecting a plan is just as important as creating one.

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¹National Council on Aging (NCOA), Get the Facts on Elder Abuse

²Adult Protective Services (APS) Program Overview

³Centers for Disease Control and Prevention (CDC), Elder Abuse Overview

⁴USC Keck School of Medicine, Financial Abuse by Family Members Study

⁵National Institute of Justice (NIJ), Financial Fraud Against Older Adults