SMW Blog

Protecting Aging Loved Ones

June is World Elder Abuse Awareness Month, a time dedicated to recognizing and preventing the mistreatment, neglect, and exploitation of older adults. While many people think of elder abuse as physical harm, financial exploitation has become one of the fastest-growing forms of abuse in the United States.

The most troubling part? The person taking advantage of an older adult is often someone they know and trust.

According to the National Council on Aging, older Americans lose billions of dollars each year to financial exploitation, scams, and fraud. Many cases are never reported because victims feel embarrassed, fear losing independence, or don't realize they have been targeted.

What Elder Financial Abuse Really Looks Like

Financial exploitation is the unauthorized or improper use of an older adult's money, assets, property, or resources.

It can include:

• Unauthorized withdrawals from accounts
• Forged signatures
• Coercing someone to change a will or beneficiary
• Misuse of a power of attorney
• Taking control of finances under false pretenses
• Pressuring an older adult to "loan" money that is never repaid
• Romance scams
• Contractor fraud
• Sweepstakes and lottery scams
• Tech support scams

The Hidden Risk

Most people think financial abuse happens because someone falls for a scam. In reality, many cases begin with cognitive decline.

Research shows that changes in financial decision-making can appear years before a diagnosis of dementia. An older adult may continue managing daily life successfully while becoming more vulnerable to manipulation, unusual spending, or risky financial decisions.

Warning signs are:

• Uncharacteristic purchases
• Large withdrawals
• Increased generosity toward strangers
• Confusion about bills
• Missed payments
• New "friends" who suddenly become involved in finances
• Frequent requests for wire transfers or gift cards

Have the Conversation

One of the most effective ways to prevent financial exploitation happens long before it becomes necessary.

Families should discuss financial planning, emergency contacts, and legal documents while parents and grandparents are still healthy and fully capable of making decisions.

This includes:

Durable Power of Attorney

A durable power of attorney allows a trusted person to manage financial affairs if the account holder becomes unable to do so.

Waiting too long can create serious complications. If cognitive decline progresses before documents are completed, family members may be forced into costly court proceedings to obtain authority to help.

Review Beneficiaries

Many people update wills but forget to review beneficiary designations on retirement accounts, life insurance policies, and payable-on-death accounts.

These designations often override instructions in a will.

Create a Trusted Contact List

A trusted contact is not an account owner and does not have access to funds. Instead, financial institutions can reach out if they notice suspicious activity or concerns about a member's well-being.

Consolidate Financial Information

Families should know where important documents are located, including:

• Bank accounts
• Insurance policies
• Investment accounts
• Property records
• Estate planning documents

This information should be stored securely and shared only with trusted individuals.

Watch for Isolation

Isolation is one of the strongest predictors of financial exploitation. Scammers often target individuals who are lonely, grieving, or disconnected from family and friends.

Regular conversations and check-ins can provide protection that no security software can match.

Protecting Older Adults Starts with Awareness

Financial exploitation rarely happens overnight. It often begins with small requests, subtle manipulation, or changes that seem insignificant at first.

World Elder Abuse Awareness is a reminder to have important conversations now, before a crisis occurs. A few proactive steps today could help protect a loved one's independence, dignity, and financial security for years to come.