How to Protect Elderly Parents From Scams and Financial Exploitation

You stop by on a Saturday with groceries and find a shutoff notice from the electric company on the counter. Under it is a store receipt for $2,000 in gift cards.

Your father has paid every bill the day it arrived for sixty years. When you ask, he goes quiet. Then he tells you a man called, crying, and said he was your brother. There was a car accident. A lawyer came on the line and said to buy gift cards. And to keep it secret, because your brother was embarrassed.

If your parent is in immediate physical danger, or someone is threatening violence, call 911. If money is leaving the accounts right now, call the bank’s fraud line at the number on the back of the card, not one from an email or text.

This page covers how to protect elderly parents from scams and financial exploitation without taking over their money: the signs, the tools that help, who to call if money is already gone, and a monthly check you can do together.

On this page: Scam or memory problem? · Watch without taking over · Common scams · Someone they know · If money is gone · Talking with your parent

Is it a scam, a memory problem, or something else?

Money trouble is often one of the first things a family notices. The National Institute on Aging lists signs such as unpaid and unopened bills, many new purchases on a credit card bill, and strange new merchandise. Others are money missing from an account, and trouble counting change or understanding a bank statement.

A missed bill is a sign, not a diagnosis. It can come from a scam, from memory changes, or from illness, grief, poor eyesight, a new medicine or a pile of mail. A pattern of missed bills is worth looking into, and a medical check is the right next step. See how to prepare for a memory appointment. Don’t jump from one late payment to taking over her money.

How to watch your parent’s money without taking over

It is still her money. If she can manage it, the goal is to help her keep managing it, safely. Start by asking what she’d find helpful, and agree on what you’ll look at and how often.

The National Institute on Aging suggests that a family member review bank statements and financial records each month, and step in if there are serious concerns. Some families sit down together once a month with the statements and the mail. Others set up account alerts that go to both the parent and the adult child. Ask her bank what alerts or read-only access it offers.

A few tools give help without giving away control:

• A trusted contact. Your parent can name someone a brokerage firm, and some banks, can call if they see signs of exploitation. A trusted contact doesn’t have access to the money. For brokerage accounts, firms must make reasonable efforts to get this information, but she doesn’t have to provide it. If a firm reasonably believes a customer age 65 or older is being financially exploited, it may temporarily hold a disbursement or securities transaction. It must then notify the people authorized on the account and the trusted contact within two business days, unless someone is unavailable or the firm believes that person is involved.
• A financial power of attorney. This lets someone your parent chooses act for her on money matters. An agent has four basic duties: act only in her interest, manage her money carefully, keep it separate from their own, and keep good records. See what a power of attorney is and how it differs from a living will.
• A convenience account. Some banks let your parent authorize someone to deposit, withdraw or write checks without becoming an owner. Ownership doesn’t change, and the helper doesn’t keep the money when she dies. But the helper can reach the money, so misuse is still possible. Ask the bank exactly what arrangement it is creating.

Be careful with joint accounts. Adding a child as a joint owner can seem like the easy answer. But joint accounts usually let every owner withdraw the money while both are alive. If she doesn’t want the money to go to the helper when she dies, the Consumer Financial Protection Bureau suggests telling the bank she doesn’t want a joint account with the right of survivorship. That kind of account generally passes to the surviving owner outside the will, which can upset a plan to treat children equally.

If you’re her agent and she already has a joint account, get legal advice before changing anything. A joint account can also matter for Medicaid. See Medicaid and home care.

Social Security and VA benefits need their own arrangement. A power of attorney isn’t enough for federal benefit payments. If she can’t manage or direct her Social Security or SSI benefits, the person helping must apply to Social Security and be appointed as her representative payee. A power of attorney or joint bank account isn’t a substitute. The VA has its own fiduciary program for veterans who can’t manage their benefits. See VA Aid and Attendance.

Common scams that target older adults

Anyone can be fooled by a good scam. People 60 and older reported about $3 billion in fraud losses to the Federal Trade Commission in 2025, up from about $2.4 billion in 2024. Because many frauds go unreported, the agency also estimated the real cost at somewhere between $13.3 billion and $119.5 billion. Adjusted for population, older adults were more than twice as likely as younger adults to report a six-figure loss.

The FTC says older adults lose the most to investment scams and to government and business impersonators. Other common scams include tech support, romance and family emergency scams.

• Investment scams. A friendly contact, often online, promises high returns, frequently in cryptocurrency.
• Government and business impersonators. A caller claims to be from an agency, a bank or a well-known company. Some say her money “is at risk” and must be moved to protect it.
• Tech support scams. A pop-up or call says the computer has a virus. Adjusted for population, older adults were more than four times as likely as younger people to report losing money this way.
• Romance scams. Someone builds an online relationship over weeks or months, then needs money.
• Family emergency scams. A caller pretends to be a grandchild or other relative in trouble. Some use voice cloning to sound like the real person.

Watch how they ask to be paid. Older adults reported the largest losses through bank transfers, followed by cryptocurrency. Credit cards were the method they reported most often. Gift card payments were overwhelmingly in impersonation scams. Some people are told to mail cash, or put it into a Bitcoin ATM, to keep it “safe.” The FTC’s rule of thumb is simple: no real business or government agency will ever tell you to buy a gift card to pay them.

Watch how they make her feel. The FTC lists four signs of a scam. The caller pretends to be from an organization you know, says there’s a problem or a prize, pressures you to act immediately, and tells you to pay in a specific way. Many also ask her to keep it secret. Help her practice one response: hang up, then call the person or company back at a number she already knows. Some families agree on a code word for real emergencies.

Guard the Medicare card, too. Medicare will only call and ask for personal information in limited situations, and it won’t call to sell anything or visit the home. Compare her Medicare statements with her calendar, to make sure each service listed was actually received. If you suspect fraud, call 1-800-MEDICARE (1-800-633-4227). The Senior Medicare Patrol can also help families review questionable charges. Call 1-877-808-2468 or find your local program at smpresource.org.

Make her a harder target. Small habits help. Turn on the phone’s call-blocking or spam-filter features, and let unknown numbers go to voicemail. Shred old statements, and keep checkbooks and cards in a safe place. Ask the bank about a lower daily limit on withdrawals or transfers. None of this takes control away from her, and she can choose which ones she wants.

Financial exploitation by someone your parent knows

Not every loss comes from a stranger. Sometimes the person taking advantage is a caregiver, a new friend, a neighbor or a relative. The Department of Justice lists these red flags:

• sudden changes in bank accounts, including large unexplained withdrawals
• new names added to a bank signature card
• abrupt changes to a will or other financial documents
• money or valuables that disappear without explanation
• bills left unpaid when there’s enough money to pay them
• a sudden transfer of assets to a family member or someone outside the family
• unexplained credit card charges, or a forged signature

None of these proves exploitation on its own, but a pattern is worth acting on. Write down what you see, with dates and amounts. Talk with your parent first, if it’s safe to do so. Then talk with the bank, and contact Adult Protective Services or the police. The Eldercare Locator, 1-800-677-1116, can connect you with local reporting agencies.

Adult Protective Services is voluntary for your parent, except where state law says otherwise. Don’t confront the person if it could put her at risk. If that person is the agent under her power of attorney, she may be able to cancel it. If it’s a sibling, see how to handle a brother or sister who won’t see the problem, and consider an elder law attorney.

What to do if money has already gone

Act quickly, because a bank can sometimes stop money that hasn’t left yet. Your parent will usually need to make these calls with you beside her, unless you have authority under a power of attorney that is in effect and covers the task. Go through these steps in order:

1. Call the bank and card companies. Use the number on the card or statement, and ask them to protect the accounts. Stop pending payments, and change passwords and PINs.
2. If a wire was sent, ask the bank to request a recall right away.
3. If gift cards were used, call the card company at once, and keep the card and the receipt.
4. Consider a credit freeze. If she shared her Social Security number or other personal information, a freeze can stop anyone opening accounts in her name. It is free, but it must be requested separately from each of the three credit bureaus, and it stays in place until she lifts it. If her identity was stolen, report it at IdentityTheft.gov too.
5. Report it. Report scams to the FTC at ReportFraud.ftc.gov and to the FBI at ic3.gov. For help filing, call the Elder Fraud Hotline at 1-833-372-8311, Monday through Friday, 10 a.m. to 6 p.m. Eastern. Its case managers help callers report the crime and find other resources, in English, Spanish and other languages. Tell local police too.
6. Watch for a second scam. Scammers often come back, posing as someone who can recover the money for a fee. Don’t trust anyone who offers to get the money back for a fee.

Talking with your parent

Shame keeps people quiet, and silence helps scammers. Tell your parent plainly that these are professional criminals, and that smart, careful people are fooled every day. Thank her for telling you.

Then make a plan together, starting with what she wants. Ask what would help her feel safer: a call-blocking feature on the phone, a habit of calling you before any large payment, or a monthly look at the statements together. If she can still make her own decisions, she decides. If you think memory changes are making money harder to handle, see when dementia gets worse.

After a scam: “Dad, these people do this all day, and they’re very good at it. You didn’t do anything foolish. Let’s call the bank together.”

To set up a habit: “If anyone ever asks for money in a hurry, even if it sounds like my brother, call me first. I won’t be upset. I’ll be glad you did.”

To raise a monthly check: “Would it help if we looked at the statements together once a month? You’d still be in charge. I’d just be a second pair of eyes.”

To the bank, with your parent beside you: “My father may have been the victim of fraud. What can you do to stop more money from leaving his account, and can he name a trusted contact?”

Common mistakes

• Blaming your parent. Shame makes the next scam more likely to stay secret.
• Taking over the checkbook without asking. If she can manage, help her manage.
• Adding your name as a joint owner without advice. It can change who owns the money and who inherits it.
• Waiting to report. Banks and card companies can sometimes stop money that hasn’t gone yet.
• Assuming it was a one-time thing. Scammers often call back, sometimes posing as people who can recover the money.
• Keeping it from other family members. Ask your parent who should know. You can warn family about the scam without sharing her details.

What comes next

If your parent is also moving, read moving a parent into assisted living or a nursing home. It covers the accounts and address changes that follow. If you’re weighing what care will cost, see how families pay for care.

Free help that has nothing to sell you

• Elder Fraud Hotline: 1-833-372-8311, Monday through Friday, 10 a.m. to 6 p.m. Eastern.
• ReportFraud.ftc.gov and ic3.gov: report scams to the FTC and the FBI.
• Senior Medicare Patrol: 1-877-808-2468. Free help reviewing questionable Medicare charges.
• Eldercare Locator: 1-800-677-1116. Connects you with Adult Protective Services and local aging services.
• 1-800-MEDICARE: 1-800-633-4227, to report suspected Medicare fraud.

Questions families ask

How do I protect my elderly parent from scams?

Help her stay in charge while adding a second pair of eyes: review statements together monthly, set up alerts that go to both of you, name a trusted contact at the bank and any brokerage, and turn on call blocking. Teach one response: hang up, then call back at a number she already knows.

What should I do if my parent sent money to a scammer?

Call the bank and card companies right away, using the number on the card. If a wire was sent, ask the bank to request a recall. If gift cards were used, call the card company and keep the card and receipt. Then report the scam at ReportFraud.ftc.gov and ic3.gov, and tell local police.

What are the warning signs of financial exploitation?

The Department of Justice lists sudden bank account changes, new names on a signature card, abrupt changes to a will, money or valuables that disappear, unpaid bills despite enough money, sudden asset transfers, and unexplained charges or a forged signature. One sign proves nothing, but a pattern is worth acting on.

Should I add my name to my parent’s bank account?

Be careful. Joint accounts usually let every owner withdraw the money while both are alive, and an account with right of survivorship generally passes to the surviving owner outside the will. That can change who inherits and can matter for Medicaid. Ask about a trusted contact or a convenience account, and get legal advice first.

Can I pay my parent’s Social Security benefits through a power of attorney?

No. A power of attorney isn’t enough for federal benefit payments. If she can’t manage her Social Security or SSI benefits, the person helping must apply to Social Security to be appointed her representative payee. The VA has its own fiduciary program for veterans.

What do real businesses never ask for?

The Federal Trade Commission says no real business or government agency will ever tell you to buy a gift card to pay them. Be wary of anyone who pressures you to act immediately, says there is a problem or a prize, pretends to be an organization you know, or tells you to pay in a specific way.

Last verified: 4 November 2026 against the FTC, FBI, Department of Justice, CFPB, Social Security and Medicare sources above · Next review: May 2027

This page is educational and is not legal, financial or medical advice. Mark Duda is not an attorney, a financial advisor or a physician. Banking, reporting and benefit rules vary by state and by situation. For large amounts, joint accounts or a power of attorney, talk with an elder law attorney. See our disclaimers.