Elder Financial Exploitation: The Warning Signs and How to Stay Protected

Elder abuse comes in many forms, one being elder financial exploitation. A new report released by the U.S. Treasury Financial Crimes Enforcement Network (FinCEN) indicates that financial institutions report about $27 billion a year in suspicious activity related to elder financial exploitation. In the same report, FinCEN reported 155,451 filings from June 2022 to June 2023 related to elder financial exploitation.

From 2022 to 2023, the Federal Bureau of Investigation’s (FBI) Internet Crime Complaint Center Elder Fraud Report states that elder fraud increased by 14%, with losses increasing by roughly 11%. These staggering increases place a renewed importance on elder abuse awareness, how to stay protected, the warning signs, and what actions can be taken if you or someone you know falls victim.
 

Staying Protected

1. Shred old receipts, bank statements, and unused credit card offers

Are there old receipts, statements, or credit card offers laying around your living space? These are prime pieces of information that can be used for financial abuse. It’s common for elder abuse to take place where the senior lives and is not uncommon for their abusers to be family members, friends, or visitors.
 

2. Lock up your checkbook

Locking up the checkbook is a critical step in staying protected against elder abuse. Not only are your routing and account numbers on your checks, but an unlocked checkbook could provoke someone to write a check to themselves or someone else without you knowing.
 

3. Don’t fall for sweepstakes or “lottery winnings”

One common elder abuse scam involves seniors being told they won a sweepstakes or lottery drawing. Typically, this could be in the form of a phone call or letter, and either will state that there is a lump sum of money that needs to be sent before the prize can be received. If you or a loved one don’t remember entering sweepstakes or lottery drawings, it’s likely a scam.
 

4. Pay with debit or credit card to keep a paper trail

Paying with cash can be harder to track if you do fall victim to elder abuse, however, paying with credit cards will help “leave a paper trail” and can better identify how much was potentially lost to financial exploitation.

First Bank’s Debit Mastercard® can help you stay protected from ID theft and with mobile card controls, you’ll be able to turn your card on or off, set spending limits, and more.
 

Warning Signs

 

1. Unusual bank activity

Unusual bank activity is typically a red flag and can reveal that an elder is potentially being abused financially. This can include large, frequent, or unexplained withdrawals that are not normal bank activity for the account holder.
 

2. Attempts at wiring large sums of money

Have you noticed an elderly relative trying to wire money? If they have no previous history of wiring money or they are suddenly interested in how to wire money, they may be a victim of elder abuse.
 

3. Checks written as loans or gifts

Another telltale sign that elder abuse could be taking place is evidence that large checks are written as loans or gifts. If this is not something they have done in the past or have mentioned previously, it’s a good idea to investigate the situation further.
 

4. Altered wills or trusts

Sudden changes in a will or trust could also signal elder abuse, especially if there are multiple changes in a specific time frame without discussion of making those changes.
 

Reporting Financial Elder Abuse

If you or a loved one has fallen victim to financial elder abuse, there are numerous steps you’ll want to take immediately.
 

1. Talk to a trusted family member or friend

Identify a trusted family member or friend that you can confide in to let them know what happened. They can help you work through the situation, next steps, and provide support.
 

2. Tell your bank

It’s important to tell your bank what has happened, especially if funds have already been withdrawn from any of your accounts.
 

3. Report it to local police

Be sure to also report it to your local police department. They could be receiving reports of other financial elder abuse in the area and your report could help them locate and identify a suspect or pattern of abuse.
 

4. File a report with the Federal Bureau of Investigation (FBI)

Lastly, report it to the FBI. Your report will help with investigating ongoing elder abuse scams and aid in efforts to put a stop to them.

Being a victim of elder abuse can be a scary situation, but it’s important to remember you don’t need to be ashamed or embarrassed to report these crimes. Keep in mind the proactive measures you can take, the warning signs, and what to do if you fall victim.

For more information on how to keep your money safe, visit our Security Hub.