Common Examples of Elder Financial Abuse: What Families Can Do

Elder financial abuse keeps climbing, and families often spot it only after money is gone or trust is broken. The harm is not just dollars; it steals independence and peace of mind. At Bassett Murray Law Group, PLLC, we have spent more than 30 years helping Michigan families plan ahead, protect aging loved ones, and clean up the mess when abuse happens.

Our goal here is simple: show you the common schemes, share steps that reduce risk, and explain what to do if something feels off. This article is educational, not legal advice. For your specific situation, talk with a qualified attorney who can look at the facts and guide the next steps.

What is Elder Financial Abuse?

Elder financial abuse means someone uses an older adult’s money, property, or assets without proper permission, or in a way that puts the wrong person first. It drains resources, limits choices, and often damages family ties. Abusers can be family, friends, caregivers, or strangers who spot an opening and exploit it.

Reports show this is one of the fastest-growing forms of elder abuse in the United States. A 2023 AARP study estimated losses of around $28.3 billion each year, and the Federal Trade Commission reported more than $10 billion in consumer fraud losses in 2023. The numbers vary by source, but the trend is clear: the impact is massive and widespread.

Common Types of Elder Financial Abuse

Abuse often starts small, like a new “helper” running errands, then grows into missing cash or changed documents. By the time patterns surface, damage is done. Knowing the types of abuse helps you spot trouble sooner.

Theft and Misappropriation

This is the classic form of taking what is not yours. It often happens in private moments, then repeats when no one objects.

Direct Theft: Someone steals cash, jewelry, credit cards, or other valuables. It can look like small amounts at first, then larger withdrawals show up.

Forgery: A bad actor signs checks or fills out forms to access accounts. In serious cases, they forge deeds or title transfers.

Misuse of Funds: A person with account access pulls out money or pays their own bills. It often hides behind phrases like “reimbursement” or “quick payback.”

Misappropriation: Money set aside for medications, appointments, or home care gets used for something else. The senior’s needs slide while someone else benefits.

Coercion and Undue Influence

Here, the abuser pressures the older adult into choices that serve the abuser. The pressure can be loud or whispered, but the result is the same.

Changes to Legal Documents: The person is pushed to change a will, a deed, or a beneficiary list. These changes often happen in secret or in a medical crisis.

Influencing Financial Decisions: The abuser steers large purchases or property transfers. They present it as “what you want,” even when it is not.

Isolation Tactics: The older adult gets cut off from friends and family. With fewer voices around, pressure gets easier.

Emotional Manipulation: Threats, guilt trips, and scare tactics push quick decisions. Complaints like “you do not love me if you do not help” are common.

Scams and Fraud

Scammers track headlines and use new hooks all the time. Many target older adults who value politeness, trust official-sounding calls, or have solid savings.

Romance Scams: A scammer builds an online bond, then asks for money for emergencies or travel. Once money moves, the requests keep coming.

Fake Charity Calls: Calls claim to be raising funds for disaster relief or veterans. They push for quick donations by card or wire.

Home Repair Scams: A stranger offers cheap repairs, takes an advance payment, then disappears. Sometimes they do shoddy work and demand more cash.

Sweepstakes or Lottery Scams: The “winner” must pay taxes or fees first. After payment, the prize never shows up.

Tech Support Scams: A caller claims the computer has a virus and sells a fake fix. Remote access tools get installed, giving thieves a direct path to accounts.

The chart below lists common scam hooks, what they often sound like, and fast steps you can take. Share it with your loved one, and keep it near the phone or computer.

Scam Type	What You Hear or See	Quick Response
Romance	New online friend asks for money for travel or medical bills	Pause. Talk to family. Refuse wires or gift cards
Lottery or Prize	“You won,” but pay fees or taxes first	Hang up. Report to the bank and the FTC site. Keep records
Tech Support	“Your computer has a virus,” request for remote access	Do not allow access. Call your device maker directly
Home Repair	Cheap offer, pressure for upfront cash	Get written bids. Verify license. Say no to cash-only
Charity	Urgent pitch linked to a disaster or veterans	Donate through known sites. Never by wire or gift card

 

Small checks and friendly voices can make a scam feel safe. Trust your gut, then verify with a trusted contact or your bank before sending a penny.

Neglect

Neglect can be financial abuse when someone controls funds and fails to pay for care or basic needs. The bank balance looks fine, yet bills go unpaid or essential items vanish.

Withholding Necessities: Medication, food, or hygiene supplies are delayed or denied. The victim feels trapped and helpless.

Failure to Pay Bills: Utilities or rent go unpaid even though money is available. Late fees pile up, and credit gets damaged.

Mismanaging Funds: Care money gets spent elsewhere. The person in charge puts their wants first.

Abuse of Power of Attorney

A financial power of attorney gives someone authority to act for another person. It can be a safe tool when used properly. Abuse happens when the agent treats the account like their own or benefits others without permission.

Family-Related Exploitation

This often starts with real help, then slides over the line. A child or grandchild begins paying bills, then “borrows” from the account or pressures changes to estate plans.

Caregiver Abuse

Paid helpers can gain access to homes, wallets, checkbooks, and passwords. Some steal cash, forge checks, or nudge a senior into making a “gift” that was never wanted.

Inheritance Impatience

Some adults feel entitled to a parent’s assets now. They move money, skim from accounts, or transfer property to themselves, claiming they are “protecting” it.

Emotional Blackmail

This one hides in plain sight. A child refuses visits with the grandkids unless money changes hands, or tugs at a parent’s worry to wring out a steady stream of cash.

Warning Signs of Elder Financial Abuse

Catching the small signs early can block larger losses later. If something feels off, ask gentle questions and look for patterns across weeks, not just one day.

Financial Red Flags

Watch for money moves that do not fit past habits. A few of these together call for a deeper look.

• Sudden Withdrawals: Unusually large cash pulls or wire transfers.
• Unexplained Purchases: Charges the senior does not recognize.
• New Account Names: A fresh name on a bank or investment account.
• Missing Assets: Disappearing cash, checks, or valuables at home.
• Unpaid Bills: Shut-off notices even with income in place.
• Misuse of Power of Attorney: Transactions that help the agent, not the senior.

If you spot one or more of these, talk with your loved one and their bank quickly. Early conversations often prevent deeper harm.

Behavioral & Emotional Red Flags

Money problems often show up in behavior first. Pay attention to shifts that do not match your loved one’s normal style.

• Overly Involved Individuals: A new “friend,” romantic interest, or caregiver inserts themselves into every decision.
• Behavioral Changes: Fearful looks or withdrawn behavior toward one person.
• Confusion or Lack of Awareness: Not knowing about recent transactions or account balances.
• Refusal to Make Eye Contact: Shame, tension, or reluctance to discuss money.

Kind curiosity gets more answers than blame. Keep the tone supportive so your loved one stays open.

Documentation Red Flags

Papers tell a story if you read them closely. A few quick checks each month can reveal serious trouble.

• Forged Signatures: Signatures that do not match prior documents.
• Changes to Estate Plans: Sudden will or deed changes with no clear reason.
• Suspicious Paperwork: Missing records or forms that look altered.
• Unusual Statements: Strange withdrawals or new accounts on bank or credit statements.
• Statements Redirected: Bank statements no longer arrive at the home.
• Checks Labeled “Loans” or “Gifts”: Frequent checks with that memo line and no repayment terms.

If records are hard to get, that alone is a sign. Ask for online access so you can review together.

Steps Families Can Take to Prevent Elder Financial Abuse

Prevention works best when the family treats money talks as normal, like updating a calendar. Small routines add up to strong protection.

Maintain Open Communication: Schedule regular chats about bills, mail, and account activity. A quick check-in keeps surprises small.

Establish Trusted Contacts: Ask the bank or investment firm to add a trusted contact for alerts. A second set of eyes helps catch odd moves fast.

Plan Legal Protections: Set up a carefully drafted power of attorney with clear limits and backups. Share where originals are stored.

Stay Informed About Scams: Talk with your loved one about new schemes you see in the news. Share simple rules like, never send gift cards, never share codes.

Monitor Records Regularly: Review bank statements, credit reports, and account alerts each month. Look for changes in spending patterns or recurring charges.

• Shred receipts, bank statements, and unused credit card offers before trash day.
• Lock up checkbooks, account statements, and other sensitive papers when others visit the home.
• Pull credit reports on a regular schedule to catch new accounts you did not open.
• Talk to a financial advisor or attorney before signing anything you do not fully understand.

Simple habits like these cut off common entry points. Keep it friendly and routine, not accusatory.

Responding to Suspected Elder Financial Abuse

Speed matters. Quick action limits losses and preserves proof that helps law enforcement and banks respond.

• Contact Multiple Agencies: Call local police, Adult Protective Services, the bank or brokerage, and the National Elder Fraud Hotline.
• Document Everything: Save statements, voicemails, emails, caller IDs, and text messages.
• Implement Protective Measures: Ask the bank to place holds, add dual authorization, or freeze cards.
• Provide Support: Speak calmly and avoid blame. Many seniors feel embarrassed or scared.
• Talk to a trusted family member or friend.
• Report it to the local police.
• File a report with the FBI at IC3.Gov.

After the first wave of calls, meet with an attorney who handles elder and probate matters. That meeting helps shape next steps and lines up proof.

Legal Options for Victims of Elder Financial Abuse in Michigan

Michigan law allows prosecutors to bring charges for theft, fraud, embezzlement, and exploitation of a vulnerable adult. In criminal cases, courts can order restitution to help repay losses. Victims can also file civil lawsuits to recover money or property, ask for injunctions, and request attorney fees where allowed by law.

Time matters for both criminal complaints and civil claims. Acting fast helps freeze assets, secure records, and protect ongoing income.

Bassett Murray Law Group, PLLC: Your Advocates for Protecting Seniors

For more than three decades, our team at Bassett Murray Law Group, PLLC has invested in improving lives. We protect Michigan families through elder law, estate planning, Medicaid planning, and probate. We listen first, then build a plan that fits your loved one’s safety and your family’s goals. If you need help, reach out and let us step in.

We welcome your questions, and we handle cases with calm focus and care. Call us at 734-930-9200 in Ann Arbor or 231-427-2292 for our Petoskey office, or visit our website to set up a time to talk. If you suspect abuse, do not wait; even one call can make a difference and protect a lifetime of work.