Financial institutions filed 155,415 elder exploitation reports covering about $27 billion in suspicious activity in one year, and adult children were the most often named perpetrators of elder theft, in nearly 40% of cases (Financial Crimes Enforcement Network, Elder Financial Exploitation Financial Trend Analysis, April 18, 2024).
What elder financial abuse is
Elder financial abuse, also called elder financial exploitation, is the illegal or improper use of an older adult's money, property or assets. The Financial Crimes Enforcement Network (FinCEN), the Treasury bureau that collects bank suspicious activity reports, splits it into two kinds: elder scams, where the victim does not know the person, and elder theft, where the victim knows and trusts the person (Financial Crimes Enforcement Network, Elder Financial Exploitation Financial Trend Analysis, April 18, 2024).
The scale is large. In one year, from June 15, 2022 to June 15, 2023, financial institutions filed 155,415 elder exploitation reports covering roughly $27 billion in suspicious activity, which can include attempted transactions (FinCEN, April 18, 2024).
This page is about the second kind: theft by family, caregivers and others with access. For strangers on the phone, see our retirement scams guide.
Who does it, and how
In the elder theft reports FinCEN reviewed by hand, adult children were the most often named perpetrators, in nearly 40% of cases, and they tended to live near the parent. Professional caregivers such as aides and in-home care workers came next (FinCEN, April 18, 2024).
The methods are usually simple, because the person already has access. FinCEN lists transfers through the victim's online banking, checks written to themselves, use of the victim's debit or credit card, cash withdrawals, and paying their own bills through the victim's bill pay (FinCEN, April 18, 2024).
It rarely starts as a plan to steal. It often starts as "helping with the bills," then a loan to themselves, then a habit. That is why clear rules and a second set of eyes matter more than suspicion.
Signs to watch for
The Consumer Financial Protection Bureau (CFPB) lists these common signs in its guide for agents under a power of attorney (CFPB, Managing Someone Else's Money: Help for agents under a power of attorney, January 2022):
- Money or property is missing, or the older person says it is.
- Large unexplained withdrawals, attempts to wire large sums, or heavy use of cash machines.
- Bills that used to be paid on time are now unpaid.
- New names on bank accounts that the person cannot explain.
- Bank statements stop arriving.
- Unusual gifts to a "new best friend," or changed beneficiaries on a will, life insurance or retirement account.
- A caregiver, friend or relative suddenly starts handling the money.
- Someone keeps the person from visitors or phone calls, or will not let them speak for themselves.
Power of attorney abuse
A durable power of attorney (POA) lets someone you choose, called your agent, handle money for you. It is a useful document. It also hands one person broad access to your money, which is why it can be misused.
The CFPB says an agent has four basic duties: act only in your best interest, manage your money carefully, keep your money separate from theirs, and keep good records. Their authority is limited to what the document and state law allow (CFPB, Help for agents under a power of attorney, January 2022).
Misuse looks like: paying themselves without permission, mixing your money with theirs, making gifts to themselves the document does not allow, or refusing to show records. State laws differ on what an agent must report and to whom, so ask an elder law attorney in your state to build in an accounting requirement: for example, a yearly statement to a second family member.
Steps that prevent it
- Name a trusted contact on every brokerage account. Brokerage firms must make reasonable efforts to get the name of a trusted contact person age 18 or older (Financial Industry Regulatory Authority (FINRA), Rule 4512, checked October 14, 2026). A trusted contact cannot trade or see your balance; the firm can only call them in limited cases, such as suspected exploitation (Securities and Exchange Commission (SEC), FINRA and the North American Securities Administrators Association (NASAA), Why You Should Consider Adding a Trusted Contact, August 25, 2025). Ask your bank whether it offers something similar.
- Know about temporary holds. Under FINRA Rule 2165, a brokerage firm may place a temporary hold on a withdrawal or trade for a customer 65 or older, or an adult it believes has an impairment, if it reasonably believes exploitation is happening: up to 15 business days, plus 10 more after internal review, plus up to 30 more if the matter is reported to a state agency or court (FINRA, Rule 2165, checked October 14, 2026).
- Use view-only access for helpers. Many institutions let a family member see statements without being able to move money. Ask.
- Split the duties. One person pays bills, another reviews the statements each month.
- Write a durable POA with an accounting clause, drafted by an attorney for your state, and name a successor agent.
- Freeze your credit. A security freeze is free and is your right by law (CFPB, What is a credit freeze, last reviewed September 5, 2025).
- Review beneficiaries on retirement accounts and life insurance once a year. A changed beneficiary is a common sign of abuse.
How to report elder financial abuse
- If someone is in immediate danger, call 911.
- Call Adult Protective Services (APS). Find your local office through the Eldercare Locator at 1-800-677-1116 or eldercare.acl.gov.
- Call the National Elder Fraud Hotline, 1-833-FRAUD-11 (833-372-8311), run by the Department of Justice (DOJ), weekdays 10 a.m. to 6 p.m. Eastern (DOJ Elder Justice Initiative, Find help or report abuse, checked October 14, 2026).
- Call the bank, brokerage and card companies. Ask them to flag the account and preserve records.
- File a report with local police or the sheriff. Ask for a report number.
- Contact your local prosecutor or state attorney general's consumer or elder abuse unit.
- If the person lives in a nursing home or assisted living, call the long-term care ombudsman. These steps follow the CFPB guide above.
- For a brokerage account, the FINRA Securities Helpline for Seniors is 844-574-3577.
A plain example with numbers
First, what the bank reports show. These are averages from suspicious activity reports, not proven losses.
| FinCEN review, June 2022 to June 2023 | Elder scams (stranger) | Elder theft (known person) |
|---|---|---|
| Share of elder exploitation reports | about 80% | about 20% |
| Average reported amount | $129,483 | $98,863 |
| Median reported amount | $33,499 | $23,762 |
Source: (Financial Crimes Enforcement Network, Elder Financial Exploitation Financial Trend Analysis, April 18, 2024). FinCEN notes that theft by people the victim knows is likely underreported.
Now a hypothetical. A widow has $850,000 in savings. Her son holds her power of attorney and pays her bills. He also writes himself a $2,500 check each month as a "loan," with no records.
| Hypothetical | Amount |
|---|---|
| Monthly checks to the agent | $2,500 |
| Months before anyone notices | 30 |
| Total taken ($2,500 x 30) | $75,000 |
| Share of savings ($75,000 / $850,000) | about 8.8% |
A yearly accounting to a second family member would have caught it after 12 months, at $30,000. A monthly statement review by another person would have caught it after one or two checks.
Red flags
- A relative or caregiver suddenly takes over the mail, bills or online banking and discourages questions.
- Bank or brokerage statements stop arriving at the older person's address.
- Large cash withdrawals, wires or checks that the person cannot explain.
- A new joint owner or authorized user appears on an account.
- Beneficiaries on a will, life insurance or retirement account change after a new person arrives.
- An agent under a power of attorney will not show records or mixes the money with their own.
- Someone keeps the older person from visitors or phone calls, or answers for them.
- A "new best friend" or new romantic partner receives gifts or loans.
- Bills that were always paid on time start going unpaid.
- The older person seems afraid of a relative, caregiver or friend.
- Someone pressures the older person to sign documents they do not understand.
Questions to ask before you pay or share anything
- Who has access to my accounts today, and can any of them move money?
- Have I named a trusted contact on every brokerage account?
- Can my helper have view-only access instead of full access?
- Who reviews the statements besides the person who pays the bills?
- Does my power of attorney require my agent to give an accounting, and to whom?
- Does my power of attorney allow gifts, and if so, how much and to whom?
- Who is my successor agent if my first agent cannot or should not act?
- When did I last check the beneficiaries on my retirement accounts and life insurance?
- Is my credit frozen at all three credit reporting companies?
- If something seems wrong, do I know the number for Adult Protective Services?
Read This Before You Sign
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Sources
- Financial Crimes Enforcement Network: Elder Financial Exploitation: Threat Pattern and Trend Information, June 2022 to June 2023 (April 18, 2024)
- Consumer Financial Protection Bureau: Managing Someone Else's Money, Help for agents under a power of attorney (January 2022)
- Consumer Financial Protection Bureau: Guides for managing someone else's money (checked October 14, 2026)
- SEC, FINRA and NASAA: Why You Should Consider Adding a Trusted Contact to Your Account, updated Investor Bulletin (August 25, 2025)
- FINRA: Rule 2165, Financial Exploitation of Specified Adults (checked October 14, 2026)
- FINRA: Rule 4512, Customer Account Information (checked October 14, 2026)
- U.S. Department of Justice, Elder Justice Initiative: Find help or report abuse (checked October 14, 2026)
- Administration for Community Living: Eldercare Locator (checked October 14, 2026)
- Consumer Financial Protection Bureau: What is a credit freeze or security freeze (last reviewed September 5, 2025)
The Retirement Literacy Foundation is a 501(c)(3) public charity. This page is general education, not tax, legal or investment advice. Nothing is sold here, no product is recommended, and RLF accepts no funding from financial companies. Rules and figures change; each one above shows its source and date. Check anything you plan to act on with your state insurance department or a qualified professional who is not paid on the product.