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What Is Considered Elder Financial Exploitation or Abuse in California?

As the population ages, protecting our seniors from financial harm becomes increasingly important.

Financial elder abuse in California refers to the illegal or improper use of an older adult’s funds, property, or assets by a caregiver, family member, or other trusted individual.

This form of abuse can devastate the victim’s financial stability and overall well-being. California elder abuse attorneys play a crucial role in helping victims and their families navigate the complex legal system to seek justice and compensation for their losses.

In this post, we’ll delve deeper into the various forms of elder abuse, the warning signs to look for, and the steps you can take to protect your loved ones from this insidious form of mistreatment.

What Is Elder Financial Abuse?

Elder financial abuse is a growing concern in today’s society, as it involves the unauthorized and unethical exploitation of an older individual’s financial resources.

This type of abuse is often perpetrated by those close to the victim, such as family members, caregivers, or friends, who may take advantage of their vulnerability, trust, or cognitive decline.

The consequences of elder financial abuse can be devastating, as it not only results in the loss of financial security for the victim but can also have a significant impact on their emotional state and overall quality of life.

Elder financial abuse can manifest in various ways, including theft, fraud, forgery, and undue influence.

Perpetrators may deceive the elderly person into signing over property or assets, manipulate them into making inappropriate investments, or simply steal money from their accounts. In some cases, the abuser may even coerce the victim into changing their will or estate plan to benefit the abuser.

Who Are the Perpetrators of Elder Financial Abuse?


The perpetrators of this heinous act can be anyone who has access to an older adult’s financial resources, including:

  • Family members
  • Caregivers
  • Friends
  • Neighbors
  • Strangers with access to the victim’s money or financial information

In some cases, professionals like financial advisors and healthcare providers may also commit elder financial abuse. This kind of exploitation highlights the need for comprehensive safeguards and increased awareness within these industries.

How Does Financial Abuse of the Elderly Happen?

Financial abuse of the elderly often takes place through cunning schemes and deceptive tactics. Let’s examine some of the methods abusers might employ to deceive and exploit their victims.


Impersonators use various tactics to deceive their victims. One common type of impersonation involves posing as a representative of a government agency, such as the Internal Revenue Service (IRS) or Social Security Administration (SSA).

The impersonator contacts the individual by phone, email, or traditional mail, claiming that there’s an issue with their taxes or Social Security benefits.

They may demand immediate payment or personal information, including Social Security numbers and bank account details, to resolve the supposed issue. By doing so, they gain access to the victim’s financial resources and exploit them for their own gain.

Another type of impersonation involves posing as a financial institution like a bank or credit card company.

The impersonator gets in touch with the elderly individual to alert them of an alleged problem with their account, such as fraudulent activity or an overdue payment. They may request sensitive information, including account numbers and passwords, ostensibly for the purpose of verifying the victim’s identity and resolving the issue.

Once the impersonator has this information, they can access the victim’s accounts and make unauthorized transactions.
Impersonators also sometimes pose as representatives of charitable organizations, soliciting donations for various causes. They may use high-pressure tactics to convince elderly victims to donate large sums of money, often through wire transfers or gift cards.

Lastly, some impersonators pose as relatives or friends in need of financial assistance. They may contact the victim by phone or email, claiming to be in a dire situation and urgently needing money. The victim, believing they’re helping a loved one, sends funds to the impersonator, only to later discover that they’ve been deceived.

Financial Fraud

Financial Fraud

Financial fraud against older adults can take several forms, including the following:

  • Loans: Perpetrators may coerce or convince the elderly person to take out loans in their name, burdening them with debt.
  • Investments: Seniors are often the targets of fraudulent investment schemes promising high returns or “exclusive opportunities.”
  • Credit cards: Abusers may take out unauthorized credit cards in the elder’s name or misuse their existing cards for personal gain.

Caretakers, Friends, and Family Members

In this particularly insidious form of elder financial exploitation, the abuser takes advantage of their close relationship with the older adult, preying on their vulnerability and trust. Here are some of the common methods used:

  • Power of attorney: Abusers may misuse their authorized access to an elder’s finances, making unauthorized transactions or siphoning funds.
  • Coercion: Perpetrators use emotional manipulation, threats of violence, or isolation to control and exploit the elderly victim.
  • Exploitative loans: Caretakers or family members may coerce the elder into taking out loans under false pretenses, leaving them financially overwhelmed.
  • Misuse of assets: Abusers may fraudulently transfer property or assets owned by the elderly person for their own benefit.

Example of Financial Exploitation of the Elderly by Family Members

Betty, an 85-year-old widow, relies on her son Joe to perform daily living tasks. Her daughter Mary, who has a good relationship with Betty but lives out of state, has recently made a troubling discovery: Joe, who has a history of financial irresponsibility and heavy drinking, has become the trustee of Betty’s trust.

Mary learns that an equity line of credit has been taken out on Betty’s home, nearly maxed out at $200,000. Credit card statements reveal purchases unrelated to Betty’s expenses, including liquor, sports tickets, and cash advances at a casino. Mary’s concerns about Joe’s financial management deepen.

*Disclaimer: This is a fictional narrative. Any resemblance to real people, events, or places is coincidental. Photos depict fictional individuals. They are not real clients, witnesses, or attorneys and are not involved in actual legal proceedings.

What Are the Consequences of Elder Financial Abuse?

What Are the Consequences of Elder Financial Abuse

The effects of elder financial abuse are far-reaching and can have a profound impact on the well-being of the person who’s targeted. For example:

  • The stress and anxiety caused by the loss of financial resources can exacerbate existing health conditions and lead to depression, isolation, and reduced quality of life.
  • The loss of trust resulting from the betrayal can have a lasting effect on the victim’s ability to form new relationships and maintain social connections.
  • In some cases, the financial loss may be so severe that the elderly person is forced to rely on public assistance or move into a long-term care facility, further diminishing their independence and sense of self-worth.

The repercussions of elder financial abuse can be devastating and long-lasting, underscoring the importance of addressing and preventing this form of exploitation.

Factors that Make Seniors Susceptible to Financial Abuse

Elder or dependent adult individuals are particularly vulnerable to financial abuse. Their susceptibility stems from various factors, such as:

Accumulated Wealth

Wealth, particularly in the form of real or personal property, is a significant factor in the prevalence of elder financial abuse. As the elderly population comes into possession of substantial assets over their lifetime, they become prime targets for unscrupulous individuals seeking to exploit their vulnerability.

A Trusting Nature

Another factor contributing to the financial exploitation of elderly adults is their trusting nature, which leaves them exposed to the threat of manipulation and deceit.

Many older adults come from a generation that values trust, respect, and loyalty, often assuming the best intentions in others. Unscrupulous individuals may use this sincerity to manipulate and deceive seniors for personal gain.

The abuser may establish a bond of friendship or caregiver relationship, winning the senior’s trust in a bid to gain access to their financial resources. Once they’ve succeeded, they may trick the victim into signing documents or making financial decisions that benefit the abuser.

The victim may be hesitant to question or report suspicious activities due to feelings of embarrassment or shame, or fear of losing the relationship.

Diminished Financial Capacity

Diminished Financial Capacity

As people age, their cognitive abilities often diminish, resulting in impaired judgment and decision-making skills. When an elderly individual can no longer make sound judgments regarding their finances, it’s known as diminished financial capacity.

Those with diminished financial capacity may struggle to understand complex financial transactions, contracts, or investments, which increases their likelihood of falling victim to scams or unfavorable agreements.

Opportunistic individuals may use this lack of awareness to their advantage, pressuring the victim into making unwise financial decisions or seizing control of their assets.

Tips for Seniors to Protect Themselves from Financial Abuse

Elderly individuals should take the following measures to protect themselves against financial exploitation:

  1. Stay informed: Keep up-to-date with financial news and trends, and educate yourself on common scams targeting seniors. Knowledge is power, and a little research can help you recognize and avoid potential threats.
  2. Maintain control: Avoid giving others access to your accounts or personal information. If you need assistance, work with a trusted financial advisor or family member, but always stay involved in the decision-making process.
  3. Monitor your accounts: Review your bank and investment statements regularly to look for unauthorized transactions or suspicious activity. Report any discrepancies immediately.
  4. Protect your personal information: Be cautious when sharing personal information, such as your Social Security number or bank account numbers, and never give this information to unsolicited callers or emailers.
  5. Set up safeguards: Work with a financial advisor to create a plan that includes protocols that defend against abuse, such as setting up alerts for unusual transactions or requiring multiple signatures for large withdrawals.
  6. Build a support network: Develop relationships with trusted friends, relatives, and professionals who can help you monitor your financial situation and provide guidance when needed.

What to Do If You’ve Fallen Victim to Financial Elder Abuse in California

If you find yourself a victim of financial abuse, it’s crucial to take immediate action to protect yourself and your assets. Here’s how:

  • Report the abuse right away.
  • Seek support and guidance from trusted relatives, friends, or advisors.
  • Contact your financial institutions to secure your accounts and monitor for suspicious activity.
  • Contact local law enforcement and adult protective services to prompt investigation and intervention.
  • Take steps to preserve evidence of the abuse, like collecting relevant documents or records.
  • Consider consulting an attorney specializing in elder law to understand your rights and explore legal remedies.
  • Maintain open communication with authorities and provide any requested information or documentation.

Remember, reporting elder financial abuse is critical for putting a stop to it and ensuring your financial security.

Tips for Protecting Your Senior Loved One from Financial Abuse

Tips for Protecting Your Senior Loved One from Financial Abuse

Friends and relatives aren’t powerless when it comes to shielding seniors with physical or developmental disabilities from financial abuse. Here are some helpful tips for preventing your elderly loved one from suffering financial harm:

  • Educate seniors about common scams targeting older adults.
  • Encourage open communication about financial matters.
  • Offer assistance with financial tasks like paying bills and managing bank accounts.
  • Regularly review bank statements and credit reports for suspicious activity.
  • Set up alerts for large transactions or unusual account activity.
  • Establish a power of attorney to help manage finances if the senior becomes incapacitated.
  • Limit your loved one’s number of credit cards and accounts to minimize the potential for abuse.
  • Encourage the use of direct deposit for Social Security and pension payments.
  • Store important financial documents in a secure location.
  • Report suspected financial abuse to the appropriate authorities.

Signs of Financial Abuse in the Elderly

Understanding how elder financial abuse occurs is essential for preventing it. Keep an eye out for the following warning signs:

  • Unexplained withdrawals or transfers from bank accounts.
  • Sudden changes in spending habits or living conditions.
  • New acquaintances or “friends” taking an interest in the senior’s finances.
  • Missing valuables or personal belongings.
  • Unpaid bills or utilities being shut off.
  • Suspicious changes to wills, trusts, or other legal documents.

Where to Report Elder Financial Abuse in California

If you suspect that an older adult you know is a victim of financial exploitation, you can file a financial elder abuse lawsuit or make a financial elder abuse claim. To do so, you can contact the following authorities:

These agencies are equipped to investigate and address such situations and provide the necessary support and resources to the victims.

Recovering from Elder Financial Abuse

Recovering from financial exploitation can be challenging, but with time, it’s possible to regain control of and rebuild one’s finances.

Seek support from trusted professionals, such as attorneys, financial advisors, or counselors specializing in elder abuse, who can provide valuable guidance. It’s also vital to report the abuse to the relevant authorities, including law enforcement and adult protective services.

Finally, take steps to secure your or your loved one’s financial accounts, restore stolen assets, and develop a proactive plan for future financial protection.

Is There a Statute of Limitations in California for Financial Elder Abuse Cases?

Is There a Statute of Limitations in California for Financial Elder Abuse Cases

Under California law, the statute of limitations for financial elder abuse is typically four years from when the abuse is discovered or reasonably should have been discovered. However, it’s important to note that certain exceptions and circumstances can affect this timeframe.

An attorney experienced in elder law can provide specific guidance on your situation and ensure that you take appropriate legal action as soon as possible.

How to Prove Elder Abuse in California?

Proving elder abuse in California requires gathering sufficient evidence to support the claim. This may include:

  • Documentation of financial transactions, such as bank statements, receipts, and contracts;
  • Medical records and expert opinions that corroborate the physical or psychological harm;
  • Testimonies from witnesses, caregivers, or family members who have observed the abuse.

Any time you suspect elder abuse, it’s wise to document any changes in the elderly individual’s behavior, health, or financial circumstances that are consistent with such mistreatment.

When Should I Consult an Elder Financial Abuse Attorney?

Recognizing the signs of elder financial exploitation and taking action is crucial for protecting the rights and financial security of vulnerable individuals.

Don’t hesitate to seek legal aid if you suspect elder financial abuse. Contact Barr & Douds Attorneys to schedule a free case review. We can help you understand your options and take the necessary steps to right the wrongs and hold the perpetrators accountable.

Safeguarding our seniors is a collective responsibility. Together, we can make a difference.

Loren Barr
by Loren Barr
Updated: January 11, 2024

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