Elder financial exploitation happens when someone improperly uses an older adult’s money, property, or financial authority for personal benefit. It may involve a scam by a stranger, pressure from someone the adult trusts, or misuse of access to the individual’s account. If you have noticed an unfamiliar transaction or a sudden change in a loved one’s finances, understanding the warning signs can help you decide what to do next.
Willis Law Group helps New Jersey families address concerns about an older adult’s safety and financial decisions. Our practice focuses exclusively on elder law and estate planning. We can review the documents that give someone authority over a loved one’s affairs, discuss available ways to protect their assets, and help your family choose an approach suited to their circumstances.
What Is Elder Financial Exploitation?
Financial exploitation occurs when someone takes advantage of an adult to obtain money, property, or another financial benefit. It may involve the misuse or mishandling of an adult’s property or assets, including use without consent or through coercion or manipulation.
A person can gain access to an older adult’s finances in several ways. Some exploit a relationship of trust, while others contact the adult by phone, message, or through an online account.
Common situations include:
- Account misuse—someone with access to a debit card, checks, or online banking transfers money or makes purchases that the older adult did not authorize;
- Pressure to change documents—a person pushes the adult to add their name to an account, transfer a home, or change a will or power of attorney for that person’s benefit;
- Misuse of a power of attorney—an appointed agent uses the authority to manage the adult’s affairs to pay personal expenses or transfer property to themselves; and
- Scams—a stranger poses as a government employee, business representative, or person in urgent need of help to obtain money or account information.
These situations can overlap. A relative who helps pay bills may also control the mail or account passwords, making unexplained transactions harder for the older adult to spot.
Who May Be at Risk?
Anyone can be deceived or pressured. An older adult may face additional difficulty noticing or stopping exploitation if they rely on someone else for transportation, help with bills, or access to a phone and computer. Isolation can also leave them with fewer opportunities to discuss an unusual request with someone they trust.
Memory or health changes may affect a person’s ability to review transactions or explain what happened. Individuals who receive certain diagnoses, such as dementia, may be particularly vulnerable.
What Are the Signs of Elder Financial Exploitation?
The signs of elder financial exploitation often appear as changes in financial activity, documents, or relationships. You may notice:
- Withdrawals, card charges, or transfers the older adult does not recognize or cannot explain;
- Bills going unpaid despite funds that should cover them;
- Missing checks, statements, valuables, or financial records;
- A new authorized signer, unfamiliar name on an account, or unexpected change to a deed or power of attorney; or
- Someone speaking for the older adult about money, keeping them from private conversations, or insisting that questions about their finances are unwelcome.
A single change does not establish that abuse occurred. Ask about the change privately and look for an explanation that reflects the adult’s own wishes before assuming exploitation, but being aware of the warning signs can make all the difference in knowing when to intervene.
What Can You Do If You Suspect Elder Abuse Financial Exploitation?
If you suspect elder abuse financial exploitation, begin with the older adult and find a way to speak with them safely and privately. Describe what you noticed without accusing them or another person. Asking about a particular withdrawal or document may help you learn whether they understood and authorized it.
Your next steps depend on what you learn after speaking with the individual and what authority you have, but you can generally:
- Write down the facts. Record dates, amounts, names, and what the older adult told you. Keep copies of records you already have access to.
- Contact the financial institution. The account holder, or someone legally authorized to act on their behalf, can ask about transactions and account protections. You can also report a concern to the institution, although it may be unable to share private account information with you.
- Report suspected exploitation. Contact your county’s adult protective service provider if the adult lives in a community setting and may meet its criteria for a vulnerable adult. For concerns about a current resident of a long-term care facility, you can report information to New Jersey’s Long-Term Care Ombudsman.
New Jersey Adult Protective Services (APS) investigates reports involving adults living in the community who cannot make, communicate, or carry out decisions about their well-being due to an illness, disability, or other condition. APS generally cannot force an adult with capacity to accept services.
You can also contact law enforcement about suspected theft or fraud. If the adult faces immediate danger, call 911. You do not need to determine whether a crime occurred before raising a concern, and an attorney can help you understand your rights, the older adult’s rights, and what you can do to remedy the situation.
How Can an Elder Law Attorney Help Protect an Older Adult?
When you suspect elder financial exploitation, an attorney can help you identify who has legal authority to act and what options fit the older adult’s situation. That may begin with reviewing a power of attorney, account changes, or a property transfer, and discussing what the older adult wants to do.
If the adult can make their own decisions, an attorney can help them consider changing documents or choosing a different person to assist with finances. If the adult cannot manage essential decisions, the family may need advice about guardianship, a court process for appointing someone to make specified decisions. An attorney can also assess options for challenging an improper transaction or seeking the return of property. The right step depends on the facts and on the older adult’s legal rights, and your attorney provides advice tailored to your circumstances.
Speak with Willis Law Group About Your Concerns
If you are concerned about an older adult experiencing elder financial exploitation, Willis Law Group can help you understand your options to respond and develop a plan for protecting your loved one. Founding attorney Michael Willis brings more than 25 years of experience to the firm’s New Jersey elder law practice, and a dedicated paralegal can work with you from your first call through the close of your matter. Contact us to arrange an initial meeting.
Legal References Used to Inform This Page
To ensure the accuracy and clarity of this page, we referenced official legal resources during the content development process:
- New Jersey Division of Aging Services, Adult Protective Services (APS).
- New Jersey Long-Term Care Ombudsman, Complaint Form.
