Elder financial fraud is one of the fastest-growing forms of abuse in the United States. As Americans live longer and maintain greater control over their wealth into older age, they increasingly become targets for manipulation, theft, and coercion. According to the National Council on Aging, older adults lose an estimated $2.9 billion to financial exploitation each year, a number many experts believe significantly underrepresents the true scope of the problem.

This crisis affects families across every region, income level, and background. The tactics used by perpetrators are evolving, leveraging digital tools, emotional manipulation, and even relationships of trust to gain access to financial accounts or estate documents. At its worst, this abuse robs individuals not only of their assets, but of their autonomy and dignity.

In today’s complex financial landscape, understanding how to identify and prevent elder financial exploitation has never been more critical. Whether you’re supporting aging parents, managing your own transition into retirement, or serving as a fiduciary or caregiver, awareness and proactive planning are essential to safeguarding financial legacies.

The Tactics: How Scammers Target the Elderly

Financial predators employ a wide range of schemes, often designed to appear legitimate or emotionally compelling. Some of the most common include:

• Impersonation scams: Fraudsters pose as grandchildren, government officials, or even trusted advisors to convince seniors to send money urgently.
• Romance scams: Through online platforms, con artists build emotional connections with lonely individuals, eventually inventing emergencies that require financial “help.”
• Caregiver abuse: Unfortunately, those closest to an individual, paid caregivers, family members, or acquaintances, sometimes misuse their access to bank accounts or pressure the elder into changing estate plans.
• Investment fraud: Promises of high returns, limited-time offers, or exclusive insider access can lure victims into parting with large sums or giving up control of accounts.

Understanding the Risk Factors

While financial exploitation can affect anyone, older adults may be particularly at risk due to:

• Cognitive decline, including early-stage dementia, can impair judgment and increase trust in strangers.
• Social isolation creates emotional vulnerability and makes it easier for perpetrators to step in as “trusted” contacts.
• Wealth accumulation, as decades of disciplined savings and asset growth make seniors appealing targets.
• Lack of oversight, particularly when financial matters are handled independently or without regular review.

Prevention Through Planning

Protecting elder family members from financial exploitation requires a thoughtful, proactive approach. Families and advisors can take the following steps to reduce risk:

• Create layered oversight: Engage a corporate fiduciary, such as Legacy Trust, to act as trustee or co-trustee, ensuring independent oversight of account activity and estate decisions.
• Encourage transparency: Promote regular, open discussions about finances, account access, and long-term plans. Isolation often allows fraud to go undetected.
• Document intentions clearly: Keep estate planning documents updated and comprehensive, and involve trusted advisors in the process to ensure no party is exerting undue influence.
• Establish safeguards: Implement tools like dual authorization for large transactions, restricted access to sensitive accounts, or alerts for unusual banking activity.
• Educate and stay alert: Remain aware of common scams and educate older family members. Many fraudulent schemes can be thwarted with early recognition.

A Fiduciary’s Role in Protection

As a nationally chartered trust company with more than four decades of experience, Legacy Trust has worked closely with families to not only manage assets, but to preserve intent, trust, and stability across generations. We bring oversight, discretion, and accountability to the complex web of wealth management, helping prevent abuse before it begins.

Whether serving as trustee, agent for trustees, or in coordination with a family office, our role is to serve as a stabilizing presence, one that is impartial, professional, and always aligned with your long-term goals.

If you have concerns about the financial safety of a loved one or are interested in learning how a fiduciary relationship can help protect your family’s legacy, we welcome the opportunity to speak with you.