What Are the Signs of Elder Financial Abuse? (2026)

Elder financial exploitation is on the rise, according to the FBI. Signs of elder financial abuse include sudden shifts in banking habits such as frequent ATM withdrawals, and bills going unpaid, despite the person having enough money to pay them.

If you have older relatives or loved ones in your life, it’s wise to watch out for red flags that might indicate financial elderly abuse. According to one recent study, elder financial exploitation causes more than $28 billion in losses annually.

What Is Elder Financial Abuse?

A simple definition of elder financial abuse is the improper, illegal use of an older person’s assets for personal gain, whether a stranger, family member, friend, or caregiver is responsible. It often involves manipulation, fraud, and theft to exploit the older person, and it plays upon the vulnerabilities of older people.

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7 Common Signs of Elder Financial Abuse

Being aware of the signs of elder financial abuse is a key step in protecting those you care about. These are seven common red flags of possible financial elderly abuse to be alert for.

1. Sudden Changes in Bank Account Activity

One clue that elder financial abuse may be happening is a shift in bank account activity. For instance, if ATM cash withdrawals used to occur weekly and are now happening every other day, that could merit further investigation.

Or if suddenly there are transfers of thousands of dollars from an elder’s checking account to an unknown account, this could be an important warning sign.

2. Unexplained Disappearance of Valuable Possessions

If an elder reports that they can’t find their beloved gold watch or you visit and notice that a pricey piece of electronic equipment is missing, that may be a signal of financial abuse. While most people lose or misplace things from time to time, when this happens repeatedly with an older person, it could indicate elder financial abuse.

3. New “Best Friends” or Sudden Interest from Relatives

If an older person has a new best friend who is taking an interest in them or a relative who suddenly seems to be playing a key role in their daily life, including money matters, that may be a sign that this individual is getting close to them in order to perpetrate elder financial abuse. For example, they might encourage the older person to transfer funds to them as a loan or gift, invest in a fraudulent “fund,” or make a large purchase for them.

Approximately 90% of elder financial abuse is carried out by someone close to the older person. This could be a relative, a caregiver, or a criminal who finds a way to develop a relationship with the elder as a way to try to access their assets or otherwise commit a banking scam.

4. Changes to Wills, Power of Attorney, or Beneficiaries

Estate planning documents like wills, power of attorney, and beneficiary designations allow people to give others access to their finances. If unexpected changes are made to these forms, it might indicate elder financial abuse. For example, designating a new beneficiary might reveal that a friend or a relative is trying to direct assets their way.

5. Unpaid Bills Despite Having Adequate Funds

If you notice that an elder who has always managed their money effectively suddenly has unpaid bills, that may mean that financial abuse is happening. Someone could be siphoning off funds, making it difficult for the older person to stay on top of their payments.

6. Atypical ATM Withdrawals or Transfers

Another sign of possible elder financial abuse can be unusual ATM withdrawals or transfers. You might know that the individual used to withdraw $100 once a week but observe that they are suddenly visiting the cash machine three times a week. Or perhaps they are bumping up against their ATM withdrawal limits, which was rarely or never the case in the past.

7. Confusion or Fear Regarding Personal Finances

If an older person expresses unsettled feelings like fear or confusion regarding their finances, this might be an indication of financial abuse. For instance, perhaps a relative is telling the older person that they urgently need money for medical bills or to avoid foreclosure, and the elder is giving their money to them. As a result, in addition to the financial loss, the older person may be experiencing stress about the situation.

Recognizing Elder Financial Abuse by Family Members

As noted above, elder financial abuse is often perpetrated by relatives. Here are some warning signs of potential elder financial abuse by family members.

•   A new joint bank account or credit card suddenly opened with a relative

•   The relative is now accompanying the elder to the bank and/or conducting financial transactions on their behalf without proper documentation

•   The family member starts signing checks for the elder

•   The elder is writing checks or making transfers, say, from their high-yield saving account to their relative as a loan or a gift

•   New power of attorney and other estate planning documents are created that give the relative access to funds or add them as an account beneficiary

The Rise of AI Scams and Digital Exploitation in 2026

Sophisticated AI scams and digital exploitation of elders can also cause financial loss. Here are some of the methods that criminals may use to access older people’s assets.

•   AI voice cloning: In this scam, criminals can use AI-created voice snippets, typically to sound like a relative (a grandchild, in many cases). These fake calls say the “relative” urgently needs funds transferred due to an emergency.

•   Romance scams: These schemes prey upon an elder by striking up a relationship or friendship, usually online. Eventually, the scammer begins to either ask for money or encourage the elder to invest in fraudulent accounts or financial products.

•   Government impersonation and other forms of phishing: There are many variations on this kind of exploitation. One common form is an authentic-seeming text message, email, or phone call, saying that unpaid taxes are now due and must be paid to avoid arrest. Or scammers might send a message that seems to be from a bank, retailer, or other trusted business, saying an account has been compromised and needs to be “secured.” They then steal the person’s credentials and money.

New Protections: The Financial Exploitation Prevention Act and State Laws

Given the extent of elder financial abuse, the U.S. government has developed ways to help protect citizens, which include the following:

•   The Financial Exploitation Prevention Act (FEPA), which allows exchange-traded funds (ETFs) and mutual funds to delay transactions if elder financial abuse might be involved.

•   The Elder Abuse Prevention and Prosecution Act (EAPPA), which operates at a federal level, like FEPA. It mandates training of law enforcement and justice personnel on this issue and supports prosecution of these crimes.

•   Transaction Delays and Safe Harbors: These protections function at a state-level and can give financial institutions the ability to halt or delay suspicious transactions.

•   Mandatory Reporting: This requires certain individuals (including financial agents) in many states to report suspected elder abuse to the proper agencies.

•   Trusted Contacts: In some states, certain institutions must ask clients to name a trusted contact who can be notified if suspicious activity seems to be occurring.

How to Prevent Elder Fraud and Protect Your Loved One

If you are concerned about the possibility of elder fraud, these are some steps you can take to enhance fraud protection and minimize the risk to your loved one.

Setting Up a Trusted Contact Person

It can be helpful to set up a trusted contact person to keep an eye on an elder’s financial matters as a method of elder fraud prevention. That way, in the event of a financial institution suspecting elder financial abuse, the institution would typically reach out to the designated individual so they might intervene together as needed. And unlike a power of attorney relationship, the trusted contact generally cannot access the elder’s finances.

Utilizing Account Alerts and Monitoring Tools

Another technique that may help prevent elder financial exploitation is to set up account alerts and monitoring tools on the older person’s financial accounts. These alerts can inform you in real time if, say, a bank account balance falls below a certain threshold or a large funds transfer is being made. These online banking security features could help keep elders safe.

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What to Do If You Suspect Elder Financial Abuse

In addition to working toward preventing elder financial abuse, it’s helpful to know what to do if you believe this kind of crime is underway. According to the Consumer Financial Protection Bureau, recording and reporting what you are observing is important. Document whatever has raised your suspicions: transactions, statements, and comments the older person has made about their finances and so on. Note the date, time, who is involved, and what happened.

Next, file reports with the appropriate agencies. At a state level, you can connect with the Adult Protective Services agency in the elder’s state. A directory can be found here. The National Elder Fraud Hotline is an additional resource. Local law enforcement should be contacted if actual theft occurred, such as jewelry being stolen.

You can also reach out to any financial institutions involved to freeze accounts and/or take other important security steps to protect the account holder. Lastly, you may want to speak with an elder law attorney, depending on the circumstances, for guidance on managing the situation.

The Takeaway

Unfortunately, elder financial abuse causes tens of billions of dollars in losses every year. To help prevent it from occurring in your circle of friends and family, it’s a good idea to be aware of how these crimes transpire as well as how to spot them, avoid them, and respond if they do occur. Your financial institution may partner in this with you by alerting you to unusual financial activity.

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FAQ

How do I report suspected elder financial abuse?

If you see signs of elder financial exploitation, it’s helpful to document the details and contact your local Adult Protective Services agency. Depending on the situation, you may also want to contact the financial institutions involved, law enforcement, and an elder law attorney.

Can a bank freeze an account if they suspect elder exploitation?

If elder financial exploitation is suspected, a financial institution can freeze an account or put a hold on transactions in many instances. These actions reflect the federal and state regulations in place to help prevent financial elderly abuse.

What is a “trusted contact” on a bank account?

A trusted contact on a bank account is someone the financial institution can contact, other than the account holder, if they believe fraudulent or exploitative transactions may be underway. The bank can reach out to that individual for assistance in evaluating and resolving the suspicious activity.

Is elder financial abuse a crime if a family member is involved?

Yes, elder financial abuse is a crime, regardless of whether a stranger or a family member is involved. Being related to the target of this kind of financial abuse does not lessen the fact that this is a serious crime with potential legal repercussions.

How is AI being used to target seniors in 2026?

AI is being used to target seniors in 2026 in several ways. One scam is AI voice cloning, in which fraudsters copy a loved one’s voice and place a call to the older person saying they need money immediately. AI can also be used to identify seniors and engage them in romance schemes, investment scams, and other scams that can result in financial losses.

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