Did you know elder financial abuse causes an estimated $28.3 billion in losses each year? This staggering dollar amount highlights a growing crisis affecting some of society’s most vulnerable individuals. Understanding the impact of elder financial abuse is the first step toward prevention and protection.

Here’s what you need to know about elder financial abuse and how you can help prevent it.  

5 common scams targeting older adults.

Older adults are common targets for scammers, but their communities can help protect them by knowing what to look for.

1. Romance scams: Fraudsters strategically target recently widowed or divorced seniors online via dating apps or social media. Typically, these fraudsters use romantic relationships as a way to extract sensitive information or funds, taking advantage of elderly adults who may be lonely or isolated. Alarm bells should go off if you hear that the older adult has never met this “romantic partner” or fraudster in person.

2. IRS impersonation: IRS impersonation scams are one of the most significant forms of elder abuse. Criminals will impersonate IRS professionals to steal money and personal information. These scammers often use fake phone calls, threatening emails, or letters to trick victims into sharing sensitive details or paying a false tax debt.

3. Phishing scams: Phishing scams target everyone, especially the elderly. They use deceptive tactics, often disguised as the communications of legitimate companies or government agencies, to trick victims into sharing sensitive personal information or sending money. These scams take advantage of individuals who may be less tech-savvy or more trusting of those they don’t know.

4. Sweepstakes and lottery scams: Scammers may claim that victims have won a lottery or sweepstakes, requiring a fee to claim the prize. They may also pose as charitable organizations to gain trust and access sensitive information.

5. Family and caregivers: In many cases, this type of abuse is carried out by someone close to the individual — such as a family member or caregiver — with direct access to their finances. Those close to an older adult may exploit their trust and vulnerability to gain financial control and access to assets.

4 elderly fraud warning signs.

Knowing about common frauds is a good start but understanding how to spot them is the key to preventing them. Here are four signs you should look out for:  

1. Unexplained charges or unusual activity on an account may indicate someone has gained unauthorized access to sensitive financial information. 

2. Sudden changes to account beneficiaries or authorized users can suggest an elderly family member is being taken advantage of.  

3. New “friends” or caregivers begin to influence financial decisions, as this could signal manipulation or abuse. 

4. Missing checks, important documents, or noticeable shifts in spending habits may also suggest financial exploitation. 

5 protective measures for older adults.

While elder abuse is common, some safeguards can help prevent it. 

1. Frequently review accounts and bank statements to catch fraudulent activity early.

2. Activate account alerts to be notified of account balances, withdrawals and purchases, deposits, and more.

3. Have conversations with older family members about cybersecurity tactics so they know how to keep their information safe. Read “6 Tips for Protecting Your Accounts Online” for more information.

4. The AARP, formerly the American Association of Retired Persons, is a nonprofit advocating for older adults and offers valuable resources and education. This organization provides membership benefits, including discounts, healthcare options, insurance products, and informative resources.

5. The National Center on Elder Abuse (NCEA) provides research, training, and public awareness to help prevent elder mistreatment. The NCEA works to spread public awareness about elder abuse, educating the public on how to recognize and respond to signs of mistreatment. 

How and where to report suspected abuse.

If you suspect elder financial abuse, it’s important to report it as soon as possible. Early intervention can help minimize financial loss and increase the chances of recovering stolen assets.

  • If there is an urgent risk of harm to your loved one or elderly individual, you should call 911 right away. Otherwise, you can contact the non-emergency number for your local police or Sheriff’s office to file a report.
  • Notify the individual’s financial institution immediately to help stop ongoing fraudulent activity and prevent further harm.
  • Contact Adult Protective Services (APS) — this agency investigates cases of abuse, neglect, and exploitation involving older adults and adults with disabilities.
  • Report abuse to the Consumer Financial Protection Bureau (CFPB) — a federal agency that regulates financial services and works to protect consumers, including seniors, from fraud and abuse.

The most important step to preventing elder financial abuse is knowing how to spot it. For more tips, visit the Fraud Prevention page at efirstbankblog.com.

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Published: June 11, 2025