Recognize the Warning Signs Early
Financial exploitation doesn’t always announce itself loudly via a spam caller. Sometimes, the person draining your accounts is a trusted caregiver, a new friend, or even a family member.
You might notice unexplained withdrawals, sudden changes to wills or power of attorney documents, missing belongings, or unpaid bills despite having adequate funds.
Watch the behavior of people around you or your aging parent. Scammers and abusers create isolation, discouraging contact with longtime friends, pushing away family members, controlling access to financial information, and insisting on handling all money matters alone.
Watch the behavior of people around you or your aging parent. Scammers and abusers create isolation, discouraging contact with longtime friends, pushing away family members, controlling access to financial information, and insisting on handling all money matters alone.
Build a Strong Support Network
You shouldn’t navigate financial decisions in isolation, especially as you age. A trusted team protects you far better than going it alone.
Your network might include an attorney who specializes in elder law, a financial advisor (look for the meaningful CFP® designation), an accountant familiar with retirement finances, and family members who respect your autonomy.
Schedule regular check-ins with this team. These conversations make it harder for one person to manipulate your finances without others noticing.
Schedule regular check-ins with this team. These conversations make it harder for one person to manipulate your finances without others noticing.
Set Up Safeguards Before You Need Them
The best time to protect yourself is before problems arise. Consider these protective measures:
- Arrange automatic bill payments so you don’t fall behind if someone interferes.
- Set up account alerts that notify you of large transactions or changes.
- Designate a trusted contact at your financial institution who can flag suspicious activity.
- Create a durable power of attorney while you’re still sharp and clear-headed.
- Review your bank and credit card statements monthly. Yes, it’s tedious, but this habit catches unauthorized charges quickly.
Know Your Rights and Resources
You have legal protections.
- Every state has Adult Protective Services that investigates suspected abuse.
- The Consumer Financial Protection Bureau offers resources specifically for older Americans.
- Local Area Agencies on Aging provide free counseling and support.
Take Action When You Suspect Abuse
Discovery is just the first step. If you believe financial abuse is happening, contact your bank immediately to freeze accounts, report the situation to Adult Protective Services, file a police report, and consult an attorney about recovering lost funds.
Document everything. Save emails, texts, receipts, and any evidence of unauthorized transactions. This paper trail is crucial if you pursue legal action.
In the end, being aware of how to protect seniors from financial abuse preserves the financial security you and your loved ones worked a lifetime to build. These steps put you in the driver’s seat, where you belong.
