Elder financial abuse happens when someone takes or misuses an older person’s money, property, or other financial resources (for their own monetary or personal benefit) without the older person’s knowledge or permission.
The person responsible may be a family member, caregiver, financial advisor, or stranger. For example, a caregiver who has access to an elderly person’s bank account may use their money to pay personal bills without permission.
Punishments for elder financial abuse vary based on the amount of money involved and the laws in the state where the abuse took place. A person accused of financial abuse may face fines, restitution, jail time, or prison time.
You may also be able to sue for financial losses caused by elder financial abuse. Your ability to file a lawsuit and recover damages will depend on the facts of the case and the laws that apply.
In this article, we’ll explain what elder financial abuse looks like, go over common examples and warning signs, and discuss the potential criminal penalties and civil damages involved.
We’ll also explain what to do if you suspect financial abuse, how to report it, and how trusted contacts and temporary holds may help protect an older person’s finances.
What Is Elder Financial Abuse?
Elder financial abuse (or elder financial exploitation) involves the illegal or improper use of an elderly person’s assets and/or investments. These may include real or personal property, bank accounts, or other property that belongs to the elderly person.
Because the abuser is often a close family member or trusted financial advisor, elder financial abuse frequently goes unnoticed. It becomes even harder to detect when an older person’s physical or mental abilities have also changed.
If you or someone you know is a victim of elder financial abuse, it’s important to act quickly. The elder financial abuse attorneys at the Law Offices of Robert Wayne Pearce, P.A. can help walk you through the process to protect your rights and interests. Contact us today to schedule a consultation.
Examples of Elder Financial Abuse
Elder abuse, especially financial abuse, can take many forms, but the most common examples of elder abuse we see here at our law firm include:
- Power of Attorney Abuse: Using financial authority granted through a power of attorney to access an older person’s money or property for personal gain.
- Fraud: Deceiving an older person through fake investments, services, promises, or other schemes to obtain their money or property.
- Identity Theft: Using an older person’s personal or financial information without permission to open accounts, make purchases, or access their existing funds.
- Theft: Taking an older person’s cash, valuables, property, or other assets without their knowledge or consent.
- Emotional Blackmail: Using guilt, fear, threats, or family relationships to pressure an older person into giving money or property.
- Unpaid Loans: Borrowing money from an older person and refusing or repeatedly failing to repay it, particularly when the borrower took advantage of their trust.
- Coerced Documents: Pressuring an older person into signing a will, deed, power of attorney, loan agreement, or other document that affects their finances or property.
Signs of Elder Financial Abuse and Exploitation
At the Law Offices of Robert Wayne Pearce, P.A., we have seen firsthand the effects of elder financial abuse. Spotting the signs of elder financial abuse can be tricky, but it’s important to learn how to recognize them so that you can protect your loved ones.
The following are some common signs of elder financial abuse and exploitation:
Sign 1. Unusual Bank Account Activity
As they get older, many people grant financial powers of attorney to their spouse or adult children or trusted financial advisors. While this is perfectly normal, it opens up the possibility that the designated person may abuse that power.
If you suspect elder financial abuse, pay close attention to the elderly person’s bank accounts and investments in their brokerage accounts. Withdrawals, transfers, or other suspicious activity in his or her account are red flags, especially when new or inactive accounts suddenly become active.
Keep an eye on their investments as well. An elderly person’s portfolio is typically structured to provide a livable income off interest alone through low-risk investments.
Sign 2. Suspicious Internet Activity
Over the past few years, there has been a drastic increase in the number of online scams targeting elderly people. Because elderly people are more trusting and less able to distinguish a scam from a legitimate venture, scammers frequently target them with fake tech support calls and the like.
One of the most common online scams involves the scammer posing as a lover, friend, or family member online. After contacting the elderly victim, the scammer then requests money for plane tickets or some kind of emergency.
This sign may be impossible to notice without speaking to the potential victim. Be wary if they mention someone new they met online or if you notice suspicious financial activity initiated by the victim.
Sign 3. Missing Food or Unpaid Bills
Ordinarily, caregivers or family members will make sure that an elderly person’s home is stocked with food and that bills are paid on time.
Unpaid utility bills, overdue payments, or not having enough money for basic needs can be a sign of misused funds.
Sign 4. Frequent Requests for Money by Someone Close to the Victim
If someone makes frequent demands for money, that could be an indicator of financial exploitation.
Anyone from neighbors to adult children may make frequent requests for money when they know the victim has physical or mental limitations that may affect his or her ability to manage finances or say no.
Keep in mind that elder financial abuse like this is often subtle. Demands may not always be for large amounts of cash; this sign also includes polite requests for small amounts here and there. Over time, however, those “small amounts” can become exploitative.
Sign 5. Payment for Unnecessary Services
Door-to-door salesmen and “cold callers” may try to upsell your elderly family member on services they don’t want or need.
One common example of door-to-door sales abuse is roof repair or landscaping work. Cold callers barrage the elderly at home with the next best investment in gold, silver, diamonds, and the next supposed Apple, Amazon, or Netflix investment opportunity to get into before it’s too late!
These scams can take many different forms and may be difficult to spot.
Sign 6. Threats or Coercion
It may be difficult to imagine, but people may threaten their elderly family members to obtain money. These threats usually do not involve force, but rather things like, “I will put you in a home” or “I will stop visiting you.”
If you don’t buy this stock, I’ll never call you again with any investment opportunities. The abuser may also instruct the victim not to tell anyone what is happening.
Changes in the older person’s behavior can reveal that something is wrong. They may seem nervous when discussing money, become withdrawn, or act differently when the suspected abuser is around.
Sign 7. New Best Friends
It’s common for older adults to make new friends, but a new person who becomes unusually close in a short period of time may be worth watching.
Someone with bad intentions may try to gain their trust before asking for money, gifts, access to accounts, or other financial favors.
Pay attention if the new friend also starts handling their finances, accompanying them to the bank, or discouraging them from spending time with family and longtime friends.
Sign 8. Abrupt Changes to Wills or Documents
Sudden changes to a will, trust, power of attorney, deed, or other financial documents can be a warning sign, especially when they do not match the older person’s previous wishes.
Look closely at changes that give a new person control over their money or property or name them as a beneficiary. Changes made soon after a new caregiver, friend, or family member enters the older person’s life deserve particular attention.
Sign 9. New Credit Cards in Their Name
If an older person starts receiving credit cards or bills they do not recognize, someone may have used their personal information without permission.
New accounts or charges they did not authorize could point to identity theft or financial abuse. Pay attention to sudden changes in their credit card balances, purchases they do not remember making, or notices about accounts they never applied for.
These issues should be looked into quickly, especially if someone else has access to their mail, financial records, or personal information.
Can There be Criminal Charges for Elder Abuse?
Yes. A person who financially exploits an older adult may face criminal charges for theft, fraud, forgery, embezzlement, identity theft, or other financial crimes.
The charges and penalties are different from state to state and may also depend on how much money was involved and the details of the case.
Criminal penalties may include:
- Jail or prison time: Serious cases can result in incarceration, particularly when the financial loss is substantial, or the offense is charged as a felony.
- Fines: A person convicted of financial crimes may have to pay fines imposed by the court.
- Restitution: The court may order the offender to repay money or property taken from the victim.
- Probation: Some convictions may result in probation and other court-ordered conditions.
- A criminal record: A conviction can create a permanent criminal record that may affect employment, housing, and other areas of the person’s life.
The exact punishment varies from one state to another. For example, California law allows certain financial crimes against an elder or dependent adult to be charged as either misdemeanors or felonies, with penalties that can include jail time and fines.
Can We Sue for Elderly Financial Abuse Damages?
Yes, you may be able to sue if someone has taken your loved one’s money or property through elder financial abuse. A lawsuit can help the victim recover financial losses and, in some situations, receive additional damages.
Whether you can sue will depend on what happened, who was involved, and the laws in your state.
For example, a lawsuit may be possible when someone misused a power of attorney, took money they were trusted to manage, used fraud or undue influence to obtain assets, or breached a fiduciary duty. Some states also allow victims to recover additional damages and attorney’s fees.
An elder financial abuse attorney can review the facts and explain whether you have grounds to file a lawsuit and what you may be able to recover.
What to Do If You Suspect Elder Financial Abuse
If you suspect your loved one is the victim of elder financial abuse, there are a couple of things you can do. If there is a health emergency, call 911 immediately; calling state Adult Protective Services may also be appropriate in some circumstances.
In most cases, your next step should be contacting an elder financial abuse attorney. They can provide legal advice and support to help stop the abuse and may be able to help the victim recover lost assets.
Reporting Elder Financial Abuse to the Authorities
If you suspect elder financial abuse, report it as soon as possible. Acting quickly can help protect the older person and may prevent further financial losses.
- Adult Protective Services (APS): Contact APS in the older person’s state or county to report suspected financial exploitation. APS also helps vulnerable adults with physical or developmental disabilities. Find your local agency through the Eldercare Locator at 1-800-677-1116.
- Local law enforcement: Call 911 if the older person is in immediate danger. For other situations, contact the local police department or sheriff’s office to report suspected financial crimes.
- Bank or credit union: Contact the financial institution right away if you notice unauthorized withdrawals, transfers, or other suspicious activity. The bank may be able to place alerts on the account or take steps to prevent additional transactions.
- Federal agencies: Online scams and identity theft can be reported to the FTC at 1-877-382-4357 or through ReportFraud.ftc.gov. Online financial crimes can also be reported to the FBI’s Internet Crime Complaint Center (IC3).
- National Elder Fraud Hotline: People age 60 and older can call 1-833-372-8311 for help reporting suspected fraud and finding available resources.
When making a report, keep records of suspicious transactions, bank statements, emails, text messages, checks, or other documents related to the suspected abuse. Details about who may be responsible and how much money may have been lost can also help investigators understand what happened.
How Do Trusted Contacts and Temporary Holds Help Stop Elder Financial Abuse?
Trusted contacts and temporary holds help stop elder financial abuse by giving a FINRA member firm a structured way to pause suspicious disbursements and verify the customer’s intent with a reliable third party.
A trusted contact person is an account-level safeguard because it lets the firm reach someone you choose when unusual behavior, cognitive decline, or coercion is suspected. FINRA Rule 4512 also addresses the use of trusted contact persons for customer accounts.
A temporary hold is a short, compliance-driven freeze on a withdrawal, wire, ACH, or securities transaction because it limits further loss while facts are gathered.
Common triggers include a sudden change in beneficiaries, unexplained peer-to-peer transfers, pressure from a new “helper,” or power-of-attorney misuse that conflicts with the elder’s prior instructions.
At the Law Offices of Robert Wayne Pearce, P.A., our attorneys often recommend requesting these safeguards in writing and documenting the “who, what, when, and how” of each disputed move.
Evidence equals leverage because statements, trade confirmations, call notes, and screenshots can help prove unauthorized activity, unsuitable recommendations, or exploitation and support a faster recovery strategy.
Elder Financial Abuse and Financial Fraud Attorneys
At the Law Offices of Robert Wayne Pearce, P.A., we have the experience and resources necessary to properly handle your elder financial abuse claim.
We’ve helped hundreds of clients with securities and investment fraud of all kinds. If you need an investment fraud lawyer, our attorneys are prepared to give you the professional, dedicated representation you need.
Contact us today through our website or by phone at 866-860-8078 for a free consultation.
