How to Report Financial Exploitation of an Elder

Financial exploitation is one of the most common—and damaging—forms of elder abuse. It involves the unauthorized or improper use of a senior’s money, property, or assets, often by someone in a position of trust: a family member, caregiver, financial advisor, or even a scammer.

Because the consequences can be devastating—both financially and emotionally—it’s essential to understand how to recognize exploitation, take legal action, and set up protections before abuse occurs.

Recognizing the Signs of Financial Exploitation

Financial abuse is not always easy to detect, especially when the perpetrator is someone close to the elder. Common warning signs include:

• Unexplained withdrawals or wire transfers from bank or retirement accounts
• Sudden changes to legal documents like wills, trusts, or beneficiary designations
• Missing property or valuables
• Unpaid bills, utilities, or mortgage despite the elder having sufficient income or savings
• Forged signatures or coerced contract signing
• Isolation from other family or advisors, often paired with secrecy around finances
• "Gifting" of large amounts of money or assets, sometimes to new acquaintances

Sometimes the signs are subtle—such as confusion over financial decisions or a noticeable drop in standard of living. The earlier these red flags are spotted, the easier it is to intervene and potentially recover lost assets.

How to Report Financial Exploitation of an Elder

Taking action quickly not only helps the current victim—it can stop an ongoing pattern of abuse and even lead to criminal penalties for the perpetrator. Here’s how to report suspected elder financial exploitation step-by-step:

1. Contact Adult Protective Services (APS)

• APS is a government agency that investigates elder abuse, including financial exploitation. Most states have dedicated APS units for seniors.
• Find your local office using the National Adult Protective Services Association’s state directory.
• Reports can often be made anonymously, and investigations begin promptly.

2. File a Police Report

• If theft, fraud, or forgery is involved, it's essential to treat it as a crime. Contact your local law enforcement agency to file an official report.
• Provide any supporting documents such as bank statements, power of attorney records, or written communication showing coercion or misuse.
• Law enforcement can open a criminal investigation and work with prosecutors to bring charges if warranted.

3. Notify the Elder’s Bank or Financial Institution

• Banks and credit unions are required to take suspicious activity seriously. Most have fraud departments trained to respond to elder abuse cases.
• Request a freeze or monitoring on affected accounts.
• Consider placing a fraud alert or credit freeze via credit bureaus if identity theft is suspected.
• For more detail on identifying legal risk in elder finances, see Understanding Elder Abuse and Neglect and the Consumer Financial Protection Bureau’s protections for older adults.

4. Reach Out to the Long-Term Care Ombudsman

• If the elder resides in a nursing home, assisted living facility, or residential care, financial exploitation may involve caregivers or staff.
• Contact the National Long-Term Care Ombudsman Resource Center, which advocates for residents' rights and investigates abuse or exploitation in care settings.

5. Consult an Elder Law Attorney

• A specialized attorney can:
• Recover stolen or misused funds
• File civil claims or protective orders
• Assist with revoking a fraudulent power of attorney
• Help families update estate plans to prevent future abuse

The National Academy of Elder Law Attorneys (NAELA) offers a directory of vetted professionals who can help protect assets and initiate recovery efforts.

Preventive Legal and Practical Measures

Stopping exploitation before it happens is always the best course. Here are effective legal tools and daily practices to help secure an older adult’s finances:

• Establish a Durable Power of Attorney with someone trusted—not just convenient. Choose an agent who will act ethically and provide oversight.
• Set up automatic bill pay and limit access to large sums of money for daily caregivers or aides.
• Use joint accounts cautiously. They can provide access for convenience but also expose assets to risk if the co-owner misuses the funds.
• Implement a revocable living trust. Trusts allow assets to be managed while setting clear boundaries and oversight roles.
• Regularly review bank and credit card statements with a neutral family member or advisor. Some banks allow “view-only” access for third-party monitoring.
• Encourage conversations among family members about financial wishes, so that a single bad actor cannot isolate or mislead the elder.

Further preventive tips are available in Estate Planning Basics and through national authorities like the National Center on Elder Abuse.

Additional Resources for Reporting and Prevention

• National Adult Protective Services Association – Find state-by-state APS offices
• National Center on Elder Abuse – Training, education, and legal tools
• Consumer Financial Protection Bureau – Elder fraud resources and guides
• Understanding Elder Abuse and Neglect – Financial, emotional, and legal abuse signs
• Estate Planning Basics – Setting up a protection-first estate plan

Key Takeaway

Elder financial exploitation is often silent and hidden—but it’s also preventable and prosecutable. If you notice warning signs, trust your instincts and take immediate steps to report it.

From reporting abuse and engaging legal counsel, to proactively drafting estate and financial documents, these steps protect not just an individual’s assets—but their autonomy, dignity, and safety.