Protecting Older Adults from Financial Abuse

Every year, millions of Americans 60+ years old lose money because of financial abuse and exploitation, according to a study by AARP.¹ Defined as the illegal or improper use of an older adult’s funds, property, or assets, financial exploitation not only affects the victims but also the caregivers who struggle to cover the costs. Taxpayers also bear a burden of the costs to offer public programs and other resources to assist the victims. Learn more about financial exploitation of older adults and how to help them.

Types of Financial Abuse

Besides being targets for common financial scams, older adults are often targets of financial exploitation, especially those with cognitive decline. Relatives, neighbors, friends, and others who are close to the victim account for three-fourths of the financial abuse suffered by older adults. These actions could include using the victim’s assets without their knowledge or consent through intimidation or manipulation. The person could lose money, property, income, benefits, or be the victim of identity theft to open other accounts. For those who are most vulnerable, exploitation is difficult to identify since they rely on the help of caregivers and others who they hope they can trust.

To prevent financial abuse, be aware of any activity where a member appears to be engaged in illegal or suspicious transactions that are not the type that person would normally be engaged in. These can include:

• Unpaid bills or unusual account activity, such as withdrawals that are larger than usual amounts.
• Adding someone who is not the formal power of attorney to an account or card.
• Frequent checks made out to “cash.”
• Requesting new debit cards or withdrawing money from an ATM when they rarely usually use ATMs.
• Missing checks or other belongings.
• Moving funds from one account to another when they haven’t made that transaction before.
• Using online banking if the person has not done so in the past.
• Bringing someone with them into a branch to conduct transactions when the member hasn’t done this in the past, especially if the transactions seem unusual or transferred to an account they haven’t used before.

Documents with forged signatures, naming a new power of attorney, abuse by the power of attorney, naming new people to their will or life insurance policies, or transferring property to someone else, especially if the person has just recently come into the victim’s life, are also signs of financial abuse. Older adults may also be victims of fraud by their caregivers or relatives. This includes the perpetrator suddenly claiming rights to the victim’s property or accounts, claims of being added to their will, or showing more concern for the victim’s assets than their health and ability to meet their financial needs.

How to Help Victims

To protect your older family members or friends, you can ask to meet with them and their caregiver or power of attorney regularly to discuss financial concerns. Make sure there is a trusted contact in control of their accounts. Create a balance sheet to track income and expenses so that you can spot any unusual transactions. Help them set up a system to pay bills online or automatically and cancel any unused credit cards or accounts. Discuss with them how to block unwanted or unsolicited phone calls, and talk about registering their number with the National Do Not Call Registry (link to https://www.donotcall.gov/). Finally, help them monitor their credit report for any credit check requests that were not authorized by them. Learn more in our article, Review Your Credit Report for Accuracy.  

It's important to stay in contact with your older family members or friends so that you’re informed of any suspicious activity or strange requests that they’ve received by email, text, or phone. If you suspect that someone you know is a victim of financial exploitation, you can file a report with the Department of Family and Protective Services at 1-800-252-5400. Learn more at dfps.texas.gov. 

If you’re a Texell member, we will never contact you to ask for your social security number, credit card or account number, or Digital Banking credentials. Do not give out personal information but call or text Member Services directly at 254.773.1604.

¹ The Scope of Elder Financial Exploitation: What It Costs Victims by Jilenne Gunther, MSW, JD, National Director of BankSafe, AARP. 

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