How to Spot and Prevent Elder Financial Exploitation

Do you know how to spot elder financial exploitation? Imagine visiting your mom and hearing about a new friend who has been helping her manage money. A few weeks later, you notice large, unexplained withdrawals from her account. When you bring it up, she gets defensive—or worse, confused.

Unfortunately, this is a common scenario of elder financial exploitation, and it is something families are encountering more often than they realize.

What Is Elder Financial Exploitation?

Elder financial exploitation is when someone illegally or improperly uses an older adult’s money, assets, or property. And the scary part? It is not always a stranger. Often, the people exploiting seniors are those they know and trust—like caregivers, financial advisors, or even family members.

This type of elder financial exploitation can be obvious, like pressuring someone to change their will or access their bank account without permission. But it can also be subtle. Sometimes, it is convincing them to invest in something that only benefits the other person or manipulating them into handing over cash under false pretenses.

And once that money is gone? It is incredibly difficult to recover.

Red Flags: How to Recognize Elder Financial Abuse

The first step to protecting your loved ones from elder financial exploitation is knowing what to watch for. Here are some common warning signs:

●        Sudden financial issues – Are bills going unpaid or accounts mysteriously overdrawn?

●        Unusual withdrawals – Large sums disappearing without a clear reason.

●        New loans or credit cards – Especially when your parent has never needed one before.

●        Legal document changes – A sudden change in a will, a new power of attorney, or unexpected additions to bank accounts.

●        Isolation – If someone new is limiting your parent’s contact with others, this could be a sign of manipulation.

Isolation is a huge red flag. The more cut-off a senior is from trusted friends and family, the easier it is for someone with bad intentions to take control.

How to Protect Elderly Parents from Financial Abuse

You do not need to take over your parent’s finances to help protect them. However, staying involved and informed can make a world of difference in preventing elder financial exploitation.

Start Conversations Early and Often

Talk to your parents regularly about their finances. Ask about bills, bank accounts, and major decisions. If they seem hesitant, ask why—without judgment. These conversations build trust and help you catch any red flags early.

Set Up Practical Safeguards

Consider taking these protective steps:

●        Set up automatic bill payments to reduce dependence on others.

●        Limit large transactions unless approved by a trusted person.

●        Stay involved – Reassure your parent that you are always there to help.

●        Get to know who is around – If there is a new friend or caregiver suddenly involved in financial decisions, do not ignore it. Ask questions and pay attention.

Legal and Financial Tools to Consider

●        Add a trusted contact to brokerage or financial accounts.

●        Create a durable general power of attorney while your parent is still mentally capable.

●        Designate a trust protector and consider setting up a trust.

●        Use the Social Security advance designation feature.

●        Freeze your parent’s Social Security number with all major credit bureaus to avoid identity theft.

These tools provide an extra layer of security—especially when put in place before there is an issue.

It is Not Just About Money

Elder financial exploitation is not only about the loss of funds. It is about trust, dignity, and safety. Watching a loved one go through this can be emotionally devastating, especially when the abuser is someone close to them.

If you feel overwhelmed, you are not alone. Many families struggle with these same fears and questions. Asking for help is not only okay—it is essential.

Whether it is time to tighten up safeguards, investigate suspicious behavior, or just talk things through, do not wait. A simple conversation could be the first step to protecting someone you love—and giving yourself peace of mind. Contact Johnson McGinnis to schedule a consultation.