As we grow older, it’s natural to rely more on others for help with daily tasks and financial responsibilities. But with that reliance comes a risk that’s both real and deeply personal: financial elder abuse.
What Is Financial Elder Abuse?
Financial elder abuse occurs when someone—often a trusted family member, friend, or even an advisor—takes advantage of an older adult’s vulnerability to exploit or steal from them. This can include:
- Misusing a power of attorney
- Pressuring someone into unwise financial decisions
- Direct theft of money, credit cards, or property
- Persuasive strangers or caregivers taking control of finances through manipulation
How Big Is the Problem?
Unfortunately, financial elder abuse is more common than many realize:
- Estimates of annual losses range from $3 billion to $36 billion
- 55% of perpetrators are family, friends, or caregivers
- Victims often feel ashamed or fearful, and therefore don’t report the abuse
- Most victims are women aged 70–89, but no one is immune—this issue crosses all backgrounds and income levels
What Can You Do to Protect Yourself?
The good news is, there are practical steps you can take to reduce your risk:
1. Stay in control of your finances.
- Handle your own bank accounts and mail if possible
- Use direct deposit for checks like Social Security
- Sign your own checks and review all statements
2. Be cautious with legal documents.
- Don’t sign anything unless a trusted advisor or attorney reviews it
- Be selective about who holds your power of attorney
- Keep your will and directives up to date
3. Be vigilant about relationships.
- Stay involved in financial decisions
- Avoid isolating yourself—abuse often occurs in secrecy
- Screen caregivers and professionals carefully
4. Speak up.
- If something feels wrong, tell someone you trust
- Reporting abuse protects not just you, but others in your community
How Your Financial Advisor Can Help
Your advisor should be your advocate. They can:
- Help you set up safeguards in your financial plan
- Watch for red flags of abuse
- Provide education about scams and fraud
- Assist with trusted contact designations and long-term care planning
You deserve to age with dignity, safety, and peace of mind. If you have questions or concerns about financial elder abuse—or want to make sure your financial plan includes protections—please reach out.