How to Recognize and Prevent Elder Financial Abuse

Financial abuse can happen to anyone, but older adults are often disproportionately affected because they may have accumulated assets over a lifetime while facing circumstances that make them more attractive targets for financial exploitation.

In California, elder financial abuse is one of the most common types of elder abuse. It can range from sophisticated scams to the misuse of money or property by someone close to the victim. Because it often develops gradually and out of view, the warning signs can be easy to miss until significant financial damage has already occurred.

While scams are one form of financial exploitation, they're only part of the picture. For more information about recognizing and avoiding today's most common scams, read our Fraud & Scam Prevention Guide.

What Is Elder Financial Abuse?

Elder financial abuse occurs when someone improperly uses an older adult's money, property or assets for personal benefit. Common examples include:

Stealing cash, valuables or personal property.
Using someone's debit or credit card without permission.
Forging checks or signatures.
Pressuring someone to change a will, deed or beneficiary designation.
Misusing a power of attorney.
Diverting money intended to pay rent, utilities or other living expenses.
Convincing someone to transfer money or property through deception, intimidation or manipulation.

Financial abuse isn't always obvious. It often develops gradually, making the warning signs easy to miss until significant financial losses have occurred.

Why Older Adults Are More Vulnerable to Financial Abuse

Older adults aren't targeted because of age alone. Financial exploitation often occurs when someone sees an opportunity to take advantage of a person's finances, health or personal circumstances.

Several factors can increase the risk:

A lifetime of accumulated savings, retirement accounts or home equity.
Increased reliance on others for transportation, caregiving or financial assistance.
Health or cognitive changes that may affect financial decision-making.
Social isolation or fewer opportunities to discuss financial concerns with trusted family or friends.
Reluctance to report concerns, particularly when a family member or caregiver is involved.

These risk factors don't guarantee someone will become a victim, but understanding them can help you recognize potential concerns earlier.

"I knew I shouldn't call that number. I am intelligent. I am responsible. I am ethical. And I got taken," said one victim featured in the San Diego County District Attorney's Elder Scam Prevention Campaign.

Financial abuse isn't a reflection of someone's intelligence or judgment. Professional scammers rely on fear, urgency and manipulation, which is why anyone can become a victim.

Signs of Elder Financial Abuse

Financial abuse often develops gradually. While one warning sign may have an innocent explanation, several together can indicate something isn't right.

Changes in Financial Activity

Unusual account activity is often one of the first signs of financial abuse. Watch for:

Unexplained withdrawals or transfers.
Large cash withdrawals that don't match past spending habits.
Large withdrawals made while another person is present.
Missing checks, debit cards, credit cards or valuables.
New joint account holders without a clear explanation.
Unpaid bills despite adequate income or savings.
Unexpected changes to financial institutions or banking relationships.
Purchases, wire transfers or other transactions the older adult cannot explain.

Unexpected changes in spending or banking habits shouldn't be ignored, especially when they can't be easily explained.

Changes in Behavior or Living Conditions

Financial abuse often affects more than someone's finances. Changes in behavior, relationships or living conditions can also signal potential abuse:

Becoming unusually anxious, fearful or withdrawn.
Isolation from family, friends or other trusted people.
Reluctance to discuss personal or financial matters.
A caregiver or companion who insists on speaking for them or limits access to others.
A noticeable decline in physical or emotional well-being.
Poor living conditions or inadequate care despite having adequate financial resources.
New or unusually close relationships that seem to involve increasing control or influence.

While these changes may have other explanations, they can also indicate someone is exerting inappropriate influence or control.

Changes to Legal or Financial Documents

Unexpected changes to important legal or financial documents can also signal financial abuse, particularly when they don't reflect the older adult's long-standing wishes or are made under pressure.

Sudden changes to wills or trusts.
New or unexpected powers of attorney.
Changes to beneficiaries on financial accounts, insurance policies or retirement plans.
Property transfers or deed changes that don't align with the person's wishes.
Documents signed under pressure or without full understanding.

Don’t ignore the warning signs. Ask questions early and discuss concerns with a trusted attorney, financial professional or family member.

Preventing Elder Financial Abuse

Simple habits can make financial abuse much more difficult.

Slow down. Scammers often create a false sense of urgency to pressure people into making quick financial decisions.
Review bank and credit card statements regularly.
Set up account alerts for large or unusual transactions.
Never share passwords, PINs or one-time security codes.
Be cautious of unexpected phone calls, emails or text messages requesting money or personal information.
Encourage a second opinion before making major financial decisions.
Review legal and estate planning documents regularly.
Shred sensitive financial documents before disposing of them.

When something doesn't feel right, remember: Stop. Hang Up. Tell Someone.

If you're being pressured to act immediately or keep a financial transaction secret, pause the conversation, verify the request independently and contact your financial institution if you have concerns.

How Frontwave Helps Protect Members

Frontwave combines fraud detection technology with experienced employees who recognize unusual activity and ask questions when something doesn't seem right.

Recently, a retired Marine visited a Frontwave branch to send a large wire transfer after being contacted by someone requesting the funds. By recognizing potential warning signs and taking time to ask a few additional questions, our team helped the Member avoid what was believed to be a fraudulent transaction.

Stories like this reinforce why education matters. That's why Frontwave encourages Members and their families to learn about emerging scams through trusted resources, including the San Diego County District Attorney's Elder Scam Prevention Campaign.

Frontwave also:

Monitors for unusual account activity.
Uses account alerts and identity verification tools.
Reviews transactions that appear unusual or out of character.
Provides education and resources to help Members recognize fraud and financial abuse.

The sooner suspicious activity is reported, the sooner we can help protect your accounts.

Reporting Elder Financial Abuse

If you suspect financial abuse, contact the financial institution immediately to report suspicious activity and help secure the account. Reporting suspected abuse quickly may help protect not only the victim but others who could be targeted by the same individual or scam.

You should also report it to:

Your county's Adult Protective Services (APS) office. Find your local APS .
Your local police department or Sheriff's office. Call 911 if there's an immediate risk of harm.
Your local District Attorney's office.
Your local Long-Term Care Ombudsman if the person lives in a nursing home or assisted living community. Find your ombudsman .

If you're in California, you can also call 1-833-401-0832. Enter your five-digit ZIP code when prompted, and you'll be connected to your county's Adult Protective Services office, available 24 hours a day, 7 days a week.

If you live outside California, begin by contacting your state's Adult Protective Services agency or local law enforcement.

You're Not Alone

Suspecting financial abuse can be overwhelming, but you don't have to face it alone. Reporting concerns early may help protect your loved one, preserve financial assets and prevent additional losses.

If something doesn't feel right, don't wait. Contact your financial institution, talk to a trusted family member and report your concerns to the appropriate authorities.

Remember the San Diego County District Attorney's advice: Stop. Hang Up. Tell Someone.

Southern California Resources

If you live in San Diego, Riverside, San Bernardino or Imperial County, contact your county's Adult Protective Services office:

For the most current reporting information, phone numbers and office locations, visit your county's Adult Protective Services website.

This article incorporates guidance from the California Department of Financial Protection and Innovation, the Consumer Financial Protection Bureau and the San Diego County District Attorney's Office, including its Elder Scam Prevention Campaign and educational resources.