Imagine this: you take your car in for a repair. When you return to the shop to pick it up, the bill is enormous—far higher than you would have thought. If this is a mechanic you trust, it may just be one of those unexpectedly high repair costs, and there’s not much anyone can do about it. But if it’s a case of financial abuse, someone could be trying to take advantage of you.
It might surprise you to learn that one in 10 older adults is on the receiving end of some form of financial exploitation. As many as 72 percent of such cases involve someone the individual knows. Sadly, over 87 percent of those cases are estimated to go unreported.1,2
While the statistics are grim, here are some strategies you can use to educate and equip yourself.
Common Types of Exploitation
Financial abuse targeting older adults can take many forms. Here are a few everyday situations.
- Fraud, Scams, and Identity Theft. This includes any person or entity that gains your trust to scam you or steal money. The previous example of a car mechanic handing you an overinflated bill is one of many possible examples.
- Pressure, Threats, Emotional Blackmail, or Intimidation. These situations involve any situation in which you are pressured into doing something not in your best interest. Demands for money or sensitive information can come via email, text, letter, or other forms.
- Theft. Any individual can be a victim of theft.
- Family Issues. Unfortunately, family and close friends can also be a source of financial maltreatment. Unscrupulous family members may:
- Misuse power of attorney
- Dishonor informal family agreements
- Misappropriate funds
- Compel decisions about inheritances or loans
- Fail to provide promised care
As painful as it is to contemplate, it is essential to be informed about what constitutes abuse and how to seek assistance if needed. Let’s look at ways to protect yourself.
How to Protect Yourself
Being on the lookout for “red flags” is always a good idea, but it can be hard to do it alone. Here are some strategies that can be helpful:
- Talk to your team of financial professionals before signing any important documents.
- Designate a trusted contact person. If you are unavailable, this person can legally discuss important matters on your behalf.
- Regularly check your credit reports for any unusual activity.
- Secure your documents. Shred older documents and secure your checkbooks and other sensitive financial information.
- Thoroughly check references and credentials when hiring anyone to work around your house.
- Talk to your financial professional, attorney, and bankers about best practices for keeping accounts secure.
- If anything seems “off” to you, trust your instincts.
- If you have a trusted friend or family member, seek their help.
- Tell your bank/financial institution immediately if you notice any odd transactions.
- If necessary, go to your local police or other law enforcement (the FBI handles crimes that cross state lines, for instance).
Remember, you are not alone. Your trusted financial professional is in your corner for the long haul regarding these situations, and we are always happy to talk with you if you have questions.
Sources:
1. TheSeniorList.com, January 6, 2025.
2. SeniorLiving.org, April 18, 2025.
