Financial exploitation can threaten an older adult’s savings, independence, and long-term financial security. From fraudulent phone calls and investment schemes to the misuse of money by someone they trust, financial abuse can take many forms.
According to the Federal Trade Commission (FTC), adults age 60 and older reported approximately $3 billion in fraud losses in 2025. Because many incidents go unreported, the actual financial impact may be substantially higher.
While financial exploitation can affect people of any age, understanding common scams, recognizing warning signs, and knowing where to turn for help can make a meaningful difference.
What Is Financial Exploitation of Older Adults?
Financial exploitation occurs when someone improperly or illegally uses another person’s money, property, or financial resources.
It may involve a stranger attempting to steal personal information, but it can also involve a family member, caregiver, or another trusted individual misusing access to financial accounts or assets.
Examples include:
- Unauthorized withdrawals or transfers from financial accounts.
- Pressuring someone to give money or change beneficiaries.
- Misusing funds under a power of attorney.
- Convincing someone to invest in a fraudulent opportunity.
- Taking property or financial assets without informed consent.
Not every unusual transaction indicates exploitation. However, unexpected financial changes, particularly when accompanied by pressure, secrecy, or isolation, may warrant further attention.
Common Financial Scams Targeting Older Adults
Fraudsters use a variety of methods to gain trust, obtain personal information, or persuade someone to transfer money.
Phone, Text, and Impersonation Scams
Scammers may impersonate banks, government agencies, financial institutions, or family members.
A fraudulent message might claim that an account has been compromised, a tax payment is overdue, or a loved one needs emergency assistance.
Common tactics include:
- Fake bank alerts requesting account information or verification codes.
- Calls from someone pretending to represent the IRS or another government agency.
- Messages claiming a family member needs money immediately.
- Instructions to move funds into a supposedly secure account.
Scammers can also manipulate caller ID information, making an unfamiliar call appear to come from a legitimate organization.
What to watch for: Unexpected requests involving money, sensitive information, or immediate action. Rather than responding directly, contact the organization or individual through a phone number you independently verify.
Social Media, Investment, and Relationship Scams
Social media platforms, online advertisements, and messaging services can provide opportunities for scammers to establish contact.
Some fraudsters promote nonexistent products or fraudulent investment opportunities. Others build personal or romantic relationships over time before requesting financial assistance.
Potential warning signs include:
- Investment opportunities promising guaranteed returns or unusually low risk.
- Online relationships that lead to repeated requests for money.
- Pressure to keep financial transactions secret.
- Requests to send funds through cryptocurrency, gift cards, or wire transfers.
What to watch for: A convincing personal relationship or professional-looking website doesn’t establish legitimacy. Investment opportunities and financial professionals can be independently researched before funds are transferred.
Email, Phishing, and AI-Generated Scams
Phishing emails and messages often imitate communications from legitimate businesses or financial institutions.
They may contain links to fraudulent websites designed to collect passwords, account numbers, or other sensitive information.
Artificial intelligence can also help scammers create convincing messages, images, and voice recordings that imitate people or organizations.
As a result, familiar voices, professional formatting, and messages without spelling errors are not reliable proof that a communication is legitimate.
What to watch for: Unexpected requests to share credentials, disclose verification codes, download software, or transfer money. Verify the request using a separate, trusted communication channel.
Warning Signs of Financial Exploitation
Financial exploitation isn’t always immediately apparent. In some cases, unusual transactions or changes in behavior may be the first indication that something is wrong.
Potential warning signs include:
- Unexplained withdrawals, transfers, or missing funds.
- Unpaid bills despite having sufficient financial resources.
- Unexpected changes to beneficiaries, account ownership, or legal documents.
- A new acquaintance or caregiver who attempts to control financial decisions.
- Unusual gifts or transfers that the older adult cannot readily explain.
- Changes in property ownership or unexpected borrowing against a home.
- Reluctance to discuss financial activity because someone has instructed the person to keep it secret.
- Fear, confusion, or distress surrounding financial transactions.
A single warning sign doesn’t necessarily establish that exploitation has occurred. Changes in spending, relationships, or financial arrangements may have legitimate explanations.
However, several unexplained changes or evidence of pressure may justify a closer review.
How to Help Protect Yourself or a Loved One
Although no precaution can prevent every form of fraud, a few practices may help reduce exposure to financial exploitation.
Verify Financial Requests Before Responding
If someone unexpectedly requests money or personal information, independently verify the request before taking action.
For example, if a caller claims to represent your bank, end the call and contact the institution using a number from its official website or your account statement.
Strengthen Account Security
Use unique passwords and two-factor authentication when available.
Regularly review financial statements and consider enabling alerts for withdrawals, transfers, and changes to account information.
A credit freeze may also help prevent certain new credit accounts from being opened using stolen personal information, although it doesn’t prevent all forms of fraud.
Consider Adding a Trusted Contact
Many brokerage firms allow clients to designate a trusted contact who may be contacted in limited circumstances, such as when the firm suspects possible financial exploitation or has difficulty reaching the account holder.
Importantly, a trusted contact does not automatically receive permission to withdraw money, make investment decisions, or manage the account.
This arrangement can provide an additional point of contact without transferring financial authority.
Review Financial and Legal Arrangements
Estate planning documents, beneficiary designations, and powers of attorney may need periodic review.
A power of attorney can authorize someone to handle financial matters, making the selection of a trustworthy agent and the scope of that person’s authority especially important.
Depending on individual circumstances, consulting an estate planning attorney may help clarify responsibilities and establish appropriate safeguards.
Keep Communication Open
Family members can help by discussing common scams and creating an environment where financial concerns can be raised without embarrassment or judgment.
Rather than assuming an older adult needs someone else to manage their finances, focus on maintaining independence while offering support when requested or needed.
The key takeaway: Financial protection involves more than account security. It also means having reliable ways to verify requests, recognize unusual activity, and ask for help.
What to Do If You Suspect Financial Exploitation
If you believe you or someone you know may be experiencing financial exploitation, acting promptly may help limit additional losses.
- Contact the financial institution. Report suspicious transactions or unauthorized account changes and ask about available protections. Depending on the situation, the institution may be able to restrict certain activity or help secure the account.
- Preserve relevant information. Keep records of suspicious messages, transactions, account changes, and communications with individuals involved.
- Report suspected abuse. Contact your state or local Adult Protective Services (APS) agency. Eligibility, investigation procedures, and available services vary by state.
- Consider contacting law enforcement. Local police may be able to document suspected theft, fraud, or other criminal activity. If someone is in immediate danger, call 911.
- Report suspected fraud to federal authorities. The FTC accepts consumer fraud reports, while the FBI’s Internet Crime Complaint Center accepts reports of suspected internet crime.
- Seek additional assistance. The U.S. Department of Justice’s National Elder Fraud Hotline, 833-372-8311, provides information and assistance to older adults affected by financial fraud.
If someone you care about may be experiencing exploitation, approach the conversation with patience and respect. Avoid assuming that unusual financial decisions automatically indicate diminished capacity or an inability to manage money.
The Bottom Line
Financial exploitation of older adults can involve sophisticated online scams, impersonation, or the misuse of trust by someone close to the individual.
Recognizing warning signs, reviewing financial accounts, verifying unexpected requests, and maintaining appropriate safeguards may help reduce the risk of financial harm.
One of the most important steps is creating an environment where financial concerns can be discussed openly and suspicious activity can be addressed promptly.
At Navalign Wealth Partners, we recognize the importance of protecting financial assets as part of a broader financial plan. If you have concerns about suspicious activity involving an account we help manage, contact our team through a trusted communication channel to discuss the situation.