Protecting your loved one from
financial exploitation —
warning signs and next steps.

Financial exploitation of older adults is the most common form of elder abuse in the United States. It causes an estimated $36 billion in losses annually, and in the majority of documented cases, the perpetrator is not a stranger — it is someone the victim knows: a family member, a paid caregiver, a neighbor, a friend, or a new acquaintance who gained access through the person's social world.

People with dementia are among the most vulnerable targets, for reasons that are straightforward and serious. As cognitive decline progresses, the ability to track financial activity, recognize inconsistencies, evaluate the legitimacy of transactions, or remember what one has already signed diminishes and eventually disappears. The trust placed in those closest to the person is not calibrated by the same risk assessment it once was. And isolation — which increases with dementia severity — limits the number of external observers who might notice that something is wrong.

Recognizing exploitation early, and putting protective structures in place before a crisis, can prevent financial harm that is often significant and frequently irreversible.

Warning signs: financial irregularities

The financial warning signs of exploitation can be subtle in their early stages and are often attributed to the person's dementia rather than to external interference. Look for:

• Unexplained bank withdrawals or transfers to unfamiliar accounts, particularly those the person cannot explain or does not remember
• Checks made out to cash, or to payees the person cannot identify
• Changes to account beneficiaries, powers of attorney, wills, or trusts that were made recently or under circumstances that seem unusual
• Bills going unpaid despite what should be adequate financial resources — suggesting funds are being diverted
• New credit cards, loans, or financial products the person did not independently initiate
• Signatures on documents that appear shaky or uncertain — or that were signed when the person's cognitive state made informed consent unlikely

Warning signs: relationship and behavioral patterns

Sometimes the warning signs are less about specific transactions and more about the dynamics around the person:

• A new or unfamiliar person who has assumed significant influence over the person's financial affairs or daily life — particularly one who appeared shortly after the diagnosis or change in living situation
• Increasing isolation from family — the person is harder to reach, family members are discouraged from visiting, phone calls are supervised or intercepted
• The person seems frightened, anxious, or unusually reticent when financial topics come up, or defers all questions to a third party rather than engaging
• Statements from the person that seem to reflect someone else's interests rather than their own: sudden decisions to give away significant assets, change estate plans, or limit contact with certain family members
• Pressure from any person — including family members — to sign documents, transfer assets, or change legal designations

"Financial exploitation by family members is particularly difficult to name and address — it involves both a legal violation and a betrayal by someone the person loves. But naming it is necessary. The financial harm is often severe and frequently cannot be recovered. Early intervention is almost always better than late intervention."

Protective steps to put in place now

The most effective protection is structural, put in place proactively rather than reactively. Several steps can significantly reduce vulnerability:

Establish a durable power of attorney with a trusted agent, and consider whether separate agents for financial decisions and healthcare decisions provide better oversight — this distributes authority and creates a check on each role. Having an elder law attorney prepare these documents, rather than using online templates, ensures the language provides adequate protections.

Set up account alerts at all financial institutions for transactions above a threshold amount. Most banks offer this service free of charge and will send email or text notifications for withdrawals, transfers, or new payees above a set dollar amount. This doesn't prevent exploitation, but it creates a detection mechanism.

Add a trusted contact designation at financial institutions. FINRA rules allow investment accounts to designate a trusted contact — a person the institution can reach out to if they have concerns about unusual activity or the account holder's capacity. This is separate from power of attorney and doesn't grant the contact any authority to transact; it simply creates a channel for concern to be reported.

Simplify and consolidate financial accounts wherever possible. Multiple accounts at multiple institutions are harder to monitor and easier to exploit than a simplified financial picture. A single checking account, a savings account, and an investment account that can be monitored together is much easier to oversee.

Remove the person from marketing lists and opt out of data brokers that sell contact information to marketers. Scams targeting older adults are more frequent and more sophisticated than most families realize, and they are made more likely by the availability of personal information through data brokers. The Federal Trade Commission provides guidance on opting out.

Have any significant legal or financial documents reviewed by an independent elder law attorney before signing — particularly if there is any question about the circumstances under which they were prepared or the cognitive state of the person at the time of signing.

If you suspect exploitation is happening now

Contact Florida's Adult Protective Services: 1-800-962-2873. Reports can be made anonymously. APS investigates reports of financial exploitation of vulnerable adults and can work with law enforcement and financial institutions to address ongoing exploitation.

For financial crimes, the Florida Attorney General's Office has an elder fraud unit, and the FBI's Internet Crime Complaint Center (ic3.gov) handles complaints about online financial fraud. An elder law attorney can advise on civil remedies — including the possibility of seeking to reverse or recover fraudulent transactions — and can represent the family's interests in proceedings to protect the person's assets.