The phone rings. An urgent voice says your grandchild has been arrested in another state and needs bail money right away. They don’t want their parents to know. You want to help — of course you do — but something about the call feels… off.
That moment of hesitation is exactly what can help prevent elder financial fraud. Scammers are getting more sophisticated — and they often target older adults who’ve worked hard, saved well, and tend to be trusting. Knowing what to look for — and what to do — can make all the difference.
What Is Elder Financial Fraud?
Elder financial fraud happens when someone steals, manipulates, or misuses an older adult’s money, property, or personal information. It might come from a stranger, an acquaintance, or even someone close to the victim.
š Elder financial fraud means any attempt to take or misuse an older adult’s money, property, or personal information — with or without their knowledge or consent.
Fraud can take many forms — and it’s not always a high-tech crime. Sometimes it starts with a phone call, an email, or a visit from someone offering help. It can happen through:
- Phone calls or texts
- Email or online messages
- Social media “friend” requests
- Mail or fake letters
- Even in-person visits
Why Are Older Adults Often Targeted for Fraud?
Fraudsters look for opportunity, and older adults often have what scammers want — savings, a steady income, and a generous nature. They may also be more likely to pick up the phone, trust a friendly stranger, or feel uncomfortable hanging up.
Social isolation, the loss of a spouse, or cognitive decline can make someone even more vulnerable.
That’s why awareness and open communication with a trusted family member or professional is so important — they make it harder for scammers to succeed.
š” Tip: If someone pressures you to act fast, pay upfront, or keep a secret — that’s a major red flag.
What Are the Most Common Financial Scams Targeting Seniors?
The methods may change, but the goals stay the same: to gain trust, create urgency, and take money. Here are a few of the most common scams to watch for:
- Romance scams: You meet a new “friend” on an online dating site, they build trust, then begin to ask for money — often claiming it’s for travel, emergencies, or medical costs.
- Tech support scams: Someone calls, claiming your computer has a virus, and asks for remote access or payment.
- Grandparent scams: A caller pretends to be a grandchild in trouble and begs for money to be wired immediately.
- Government impersonation scams: Someone claims to be from the IRS or Social Security, threatening arrest unless you pay a fee.
- Lottery or sweepstakes scams: You’re told you’ve “won” a prize — but must pay taxes or fees before you can claim it.
- Home repair scams: A stranger offers quick home repairs, takes payment in advance, and never returns.
- Caretaker or family exploitation: A trusted person misuses access to accounts, credit cards, or legal authority.
š Read our blog post – How to Protect Yourself from Tax Scams and Identity Theft
What Are the Warning Signs of Elder Financial Abuse?
Financial abuse isn’t always obvious — and it doesn’t always come from a stranger.
Sometimes it’s small, gradual changes that only someone close will spot.
If you help a parent, spouse, or loved one with their finances, stay alert to subtle shifts in behavior or money habits that don’t seem to add up.
Watch for these red flags:
- Sudden withdrawals or wire transfers
- Unpaid bills or collection calls despite available funds
- Missing cash, jewelry, or valuables
- New “friends” or romantic interests who seem overly involved
- Unusual changes to wills, beneficiaries, or account ownership
- Reluctance to talk about money or new secrecy around finances
š” Tip: Changes in money habits don’t always mean something is wrong — but taking a closer look early can prevent bigger issues down the road.
Steps to Help You Avoid Elder Financial Exploitation
Scams can happen to anyone, but staying aware makes them easier to avoid. Try making money check-ins with family a regular habit, not just something that comes up when there’s a problem.
Here are some ways to reduce risk:
- Stay in touch. Check in regularly with family and talk about any calls or offers that seem suspicious.
- Be cautious of urgency. Real companies don’t demand immediate action or secrecy.
- Verify before you act. If someone calls claiming to be from your bank or a government agency, hang up and call back using an official number.
- Review financial statements often. Look for unusual transactions, even small ones.
- Be aware of the technology you’re using. Keep antivirus software current and avoid clicking on pop-ups or links from unknown senders.
- Set up safeguards. Many banks let you add alerts or “trusted contacts” who can be notified of suspicious activity.
- Know your legal tools. A durable power of attorney or joint account with limits can help prevent misuse while maintaining independence.
š Read our blog post – Holiday Conversations That Count
What To Do If You Suspect Elder Financial Fraud
If you think you or someone you love has been targeted, act quickly. The faster you respond, the better the chances of recovering funds or preventing further damage.
- Contact your bank or financial institution right away. Ask them to freeze accounts, stop payments, or recall wire transfers.
- Report the scam. If you believe you’ve been targeted, notify the proper authorities as soon as possible. This may include federal agencies that handle online or consumer fraud, as well as your local police department if the situation feels urgent.
- Review your credit. Consider contacting the major credit bureaus to place a temporary fraud alert or credit freeze. This can make it harder for scammers to open new accounts in your name and helps you monitor for unusual activity.
What Connecticut Does to Help Seniors Avoid Financial Exploitation
Connecticut has taken steps to help older residents avoid scams and financial abuse by passing a state law (Public Act 23-161) that grants banks, credit unions, and investment firms the authority to temporarily pause suspicious transactions if they suspect that an individual over 60 may be at risk of exploitation.
That pause — which can last up to 45 days — gives authorities time to investigate before money leaves the account. Financial institutions that act in good faith are covered by this law, and are encouraged to report concerns to the Connecticut Department of Banking or the Department of Social Services for follow-up.
š” Tip: Many Connecticut banks and advisors now offer a “trusted contact” option — someone you choose who can be notified if unusual activity occurs. Ask your financial institution if this feature is available on your accounts.
Why Talking About Money Matters
Money conversations can be uncomfortable, but they’re one of the best ways to avoid financial problems before they start. Checking in with family, friends, or a trusted advisor can reveal things you might otherwise miss.
If you’d like to discuss your broader financial plan or ways to stay organized as you age, our team is here to help. Schedule a complimentary introductory meeting with our team in Glastonbury or Wilton, CT, to learn more.
Michael Nicoletti is a CERTIFIED FINANCIAL PLANNER® professional and works with clients throughout Connecticut and nationwide, offering financial planning and wealth management services. Based in Glastonbury and Wilton, CT, Michael helps families and individuals plan for their financial, insurance, investment, and retirement goals. Schedule a complimentary introductory meeting with Michael.
This information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete, it is not a statement of all available data necessary for making an investment decision and it does not constitute a recommendation.
Prior to making an investment decision, please consult with your financial advisor about your individual situation. Any opinions are those of the author, and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice.