Seven Ways to Protect Older Adults from Financial Abuse
Scams are everywhere, and older people are prime targets. It’s critical to be vigilant, safeguard personal info, get paperwork in order and more.


The sad truth is we all become more vulnerable to scams and financial abuse as we age into our later years. Here are some sobering statistics from Consumer Affairs:
- Older people are swindled out of more than $3 billion each year.
- More than 3.5 million older adults are victims of financial exploitation each year.
- Older people targeted by fraudsters suffer an average loss of $34,200.
As a financial adviser, I believe it’s crucial to ensure that our clients’ hard-earned wealth remains secure and protected from potential financial abuse. We can play a pivotal role in guiding our clients through the complexities of preventing elder financial abuse. Here are some insights I often share with clients and, with their permission, with their adult children, too, as they are often more concerned about scams and financial abuse than their parents.
1. Raise awareness.
A primary step in the battle against elder financial abuse is raising awareness. You must talk about the potential risks associated with growing older, including scams, fraudulent investments and exploitation by family members or caregivers.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
You can use your own experiences or trending news to start the conversation. A good resource is the AARP Scams & Fraud page with up-to-date information on fraudulent schemes and quizzes about scams.
2. Maintain open communication.
Just like meeting with your financial adviser quarterly, you should be talking about finances with your loved ones this frequently. We encourage honest and clear communication within families because this can lead to early detection and prevention of financial abuse.
Talking about money can be challenging for families, but an open dialogue helps identify unusual or suspicious activities related to finances that could indicate abuse.
3. Arrange for a durable power of attorney.
A durable power of attorney (POA) should be trustworthy and capable of managing their loved one’s finances if incapacitated. Speak with your financial adviser or elder law attorney about selecting the right financial power of attorney for your circumstances.
If you are a solo ager, your attorney may be able to act as your POA. See my previous article on Tips for Managing Money for an Incapacitated Loved One.
4. Get estate planning in order.
Another essential aspect of wealth management for older adults is estate planning. It’s crucial to discuss the importance of creating or updating a will, trust or estate plan. We advise clients to seek legal counsel to understand the legal protections available and explore options for safeguarding your assets. Not only does this protect your assets, but it also ensures that your wishes are followed accurately.
A well-structured estate plan can help transition wealth to the next generation.
5. Regularly monitor accounts.
Reviewing financial statements, bank accounts and investment portfolios monthly is essential. A few simple steps can help avert fraud, such as setting phones to send unknown numbers to voicemail, using a credit freeze and setting stricter privacy controls on social media. Signing up for financial account and credit monitoring helps detect any irregularities or unauthorized transactions.
It may make sense, in some cases, to allow a trusted loved one to also monitor your parents’ accounts, depending on their support needs and comfort level. Timely identification is essential to prevent financial abuse.
6. Safeguard personal information.
The digital world has increased risks, and scams abound online. Using strong, unique passwords is a simple yet effective measure to enhance online security. Consider using a password manager like LastPass, which offers a free password generator.
We also recommend steps like keeping documents secure, shredding sensitive papers and avoiding sharing personal information with unknown parties. These seemingly small actions can make a big difference in safeguarding against fraud.
7. Stay informed about scams.
Financial scams and elder abuse tactics evolve continually. The scams (e.g., romance scams, grandparent scams, investment scams, phone scams, sweepstakes scams, crime scams, Medicare scams, phishing, charity scams, funeral scams, IRS impersonation scams, counterfeit prescription drugs, malware, false investment opportunities, health product scams, home repair scams, lotteries, reverse mortgage scams, account takeover scam texts, cryptocurrency fraud, fake insurance and identity theft) are constantly evolving and regularly threatening older adults. The National Council on Aging (NCOA) explains some of the most common scams.
Vigilance is the key. Being diligent and partnering with an elder law attorney and your trusted financial adviser helps to stave off predatory efforts against older adults.
Related Content
- Financial Abuse Is on the Rise: What It Is and What to Do About It
- Signs of Financial Abuse in Marriage: What to Watch For
- What to Discuss With Your Aging Parents as They Get Older
- What Gen X Needs to Know About Their Aging Parents' Finances
- How to Monitor Your Credit Reports for Free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Financial adviser Tom West, CLU®, ChFC®, AIF®, founded Lifecare Affordability Plan (LCAP) to address a critical need for actionable planning that integrates finances, healthcare and senior housing. Tom has nearly 30 years of experience guiding families through financial and healthcare decisions. By bridging the gap between finance and healthcare, LCAP’s experienced team works with individuals and financial advisers to provide families with a financial strategy that meets changing healthcare needs while preserving the caregiver’s quality of life.
-
Take It From a Tax Attorney: This Is a Magic Multimillion-Dollar Tax-Saving Strategy
The qualified small business 1202 stock exemption is a $10 million exclusion that seems too good to be true and is often overlooked.
-
What Would You Like to Leave Behind? A Financial Planner's Guide to Family Wealth Discussions
Communicating about your assets and plans for passing them on increases clarity while preventing surprises and family disputes.
-
Seven Financial Considerations When Downsizing for Retirement
With prices going up on everything, you may be looking for a cheaper place to live. To truly evaluate costs, take a hard look at taxes and intangibles.
-
I Have Plenty of Money: Why Do I Need a Long-Term Care Plan?
Long-term care planning, whether through insurance or self-funding, is crucial not only for financial protection but also to preserve family relationships and reduce the emotional and logistical burdens on loved ones.
-
Three Steps for Evaluating a Downsize in Retirement: A Financial Planner's Guide
Unless you think things through, you could end up with major (and costly) regrets. To make the right choice, base it on the three keys to retirement happiness.
-
Worried About Your Retirement Income? Four Questions to Ask Yourself, From a Financial Planner
If you're nearing or in retirement and stressing about your retirement income (so many of us are), consider taking some time to think about these four issues.
-
Do You Need Flood Insurance? I'm an Insurance Expert, and Here's Where You Can Get It
Standard homeowners insurance does not cover flood damage, so you might need separate flood insurance, which you can get either through FEMA or private companies. Here are the details.
-
I'm an Investment Professional: These Are the Three Money Tips I'm Giving My College Grad
College grads can help set themselves up for financial independence by focusing on emergency savings, opting into a 401(k) at work (if it's offered) and disciplined, long-term investing.