What is Elder Financial Exploitation and Abuse?
05/07/2025
What is Elder Financial Exploitation and Abuse?
Previously, we discussed resources for older adults who may be experiencing elder financial exploitation and abuse. In recognition of May being Older Americans Month, we want to expand on this topic and explain what is considered elder financial exploitation. It may not always be what you think!
The 2025 theme for Older Americans Month is to “flip the script on aging.” This involves a more proactive approach to the aging process with things like strengthening social connections, continuing lifelong learning, and prioritizing health. So, let’s get proactive on a very serious topic: elder financial abuse and exploitation.
According to the U.S. Department of Justice, “financial exploitation refers to two types of financial crimes committed against older adults” (Justice.gov). These two types of financial crimes are financial abuse, which is perpetrated by someone the victim knows, and financial fraud, which is committed by a stranger. Financial fraud is an enormous topic in and of itself, as older adults tend to lose more money than other age groups. The most common scams for older adults include romance, imposter, investor, and grandparent scams. In previous posts on the SmartBanking Talk blog, we have gone over many of these scams and how you can protect yourself.
Unfortunately, the harder topic to discuss is financial abuse against older adults by those they know and trust. Sometimes the victim isn’t even aware that something may be considered financial abuse. Below are some of the most common types of financial abuse and what actions are considered abusive.
Power of Attorney Abuse
Some individuals who experience illness or diminished capacity may elect to appoint a financial power of attorney to make decisions in the event they cannot. Abuse happens when that power of attorney takes money for themselves or does anything for their own benefit. The power of attorney’s job is to ensure ONLY you benefit from their financial decisions.
Theft
Financial abuse that involves theft can include many things. Sometimes this may mean someone you know takes your debit card and makes additional, unauthorized purchases beyond what you both agreed upon. It may also look like a financial advisor or attorney taking money from your account for themselves. This also includes loved ones or nursing home employees stealing your personal property or money.
Intimidation and Control
Financial abuse via intimidation and control is the scariest of all for the victim. This may look like a caretaker threatening to deny you care or commit physical violence against you if you do not do what they want. However, control and intimidation can also be very subtle. If you find your caretaker often speaks for you at the bank, or they pressure you into making certain purchases, this could be financial abuse.
If you or someone you know may be the victim of financial abuse, say something! You may even save their life. There is no shame for victims and there are many resources to help you recover from financial abuse or fraud. Your first step is to contact Adult Protective Services in your area, and they can guide you through the process.
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