The Most Underreported Crime in America
Financial elder abuse is more common than most families realize, and far more likely to be committed by someone the victim knows than by a stranger. According to the National Council on Aging, roughly 1 in 10 Americans over 60 has experienced some form of financial exploitation. The FBI estimates the annual cost at $28 billion.
The cases that make headlines — the elaborate scams, the sweepstakes fraud — are real. But they’re not the most common pattern. In the majority of documented cases, the perpetrator is a family member, caregiver, or trusted friend who exploits ongoing access to financial accounts.
Knowing the warning signs is one of the most concrete things an adult child can do to protect a parent. Most of these signs show up in financial records — which is precisely why having visibility into a parent’s accounts matters so much.
1. Unexplained Withdrawals or Transfers
Large cash withdrawals with no clear purpose, or wire transfers to unfamiliar accounts, are among the most direct red flags. This includes ATM withdrawals that are inconsistent with a person’s normal patterns — a parent who rarely carries cash suddenly pulling out $400 a week.
Watch for this especially: transfers to accounts you’ve never heard of, described vaguely as “helping a friend” or “an investment.”
2. Changes to Beneficiary Designations or Legal Documents
A sudden change to a will, trust, or beneficiary designation — particularly one that benefits someone who has recently become close to the older adult — warrants careful scrutiny. These changes are legal, and they’re sometimes entirely appropriate. But they can also be the result of undue influence, especially when made in a period of health decline or cognitive change.
This is difficult to catch unless you have a relationship with the older adult that includes at least occasional conversation about their intentions.
3. Unpaid Bills Despite Adequate Resources
When a parent who has always been financially responsible begins missing utility payments, insurance premiums, or other regular bills, something has changed. This can indicate that money is being diverted before it reaches the accounts that need to cover those expenses. It can also indicate that someone else has taken over bill payment and is not doing it properly.
4. Sudden New “Best Friends” or Companions
This is harder to quantify, but experienced elder abuse investigators consistently flag it: an older adult who suddenly has a new close relationship — often with someone significantly younger, or someone who appeared in their life recently — and who begins making financial decisions that benefit that person.
This pattern shows up in both scam scenarios (a romantic partner met online) and in-person exploitation (a caregiver or neighbor who gradually becomes indispensable and then begins receiving gifts, loans, or changes to legal documents).
5. Reluctance to Discuss Finances
Older adults who have always been open about their finances — or at least not secretive — who suddenly become evasive or defensive about money may be under pressure from someone else. This is sometimes paired with a new gatekeeper: a person who is now present for all conversations or who answers questions on behalf of the older adult.
6. Signatures on Financial Documents That Don’t Match
Forged signatures on checks or financial documents are a direct form of financial fraud. This requires access to the accounts and documents — again, pointing to someone with proximity. If checks are being written in unusual amounts or to unfamiliar payees and the signatures look inconsistent, that’s worth investigating.
7. Confusion About What’s Been Signed
This is subtle but important: an older adult who mentions signing documents without clearly understanding what they contained. “He helped me with the paperwork” or “I’m not sure exactly what I agreed to” should prompt a closer look. High-pressure tactics — “you need to sign this right now” — are a hallmark of exploitation.
What to Do If You Recognize These Signs
Document what you’ve observed with dates and specifics before taking action. Then:
Talk directly with your parent, if it’s safe to do so. Sometimes what looks like exploitation has an innocent explanation. Sometimes the conversation itself prompts a parent to share concerns they haven’t voiced.
Contact Adult Protective Services in your parent’s state. APS investigates financial exploitation and has legal authority to intervene. Reports can be made anonymously.
Consult an elder law attorney if there are changes to legal documents involved, particularly changes to power of attorney or estate documents.
Contact financial institutions if you believe fraud is actively occurring. Banks have fraud units and, in some states, have obligations to report suspected elder financial abuse.
The hardest cases to address are the ones involving family members — where the impulse to protect the relationship competes with the impulse to protect the finances. But financial exploitation by family members is still exploitation, and it causes real harm. Acting early, when the signs are still subtle, is almost always better than waiting for the situation to escalate.