Elder Financial Abuse: A 2026 Guide to Spotting and Stopping Scams

Key Points – Elder Financial Abuse: A 2026 Guide to Spotting and Stopping Scams

• Why elder financial abuse is a growing national crisis in 2026
• The most common scams targeting older adults today
• Warning signs families should never ignore
• How to help the seniors you love (Enjoy. Prepare. Connect.)
• How seniors can protect themselves and their assets
• Where to report suspected elder financial exploitation
• 8-minute read

Elder Financial Abuse Has Reached a Crisis Point

Every year on June 15, World Elder Abuse Awareness Day is recognized to spotlight the challenges older adults face and the importance of protecting them from harm.₁ At Modern Wealth Management, that mission is part of who we are. Helping clients enjoy life today, prepare for tomorrow, and connect with the people they love most means protecting the financial confidence they have spent decades building, and that includes shielding aging family members from exploitation.

The numbers in 2026 are sobering. According to the FBI’s 2025 Internet Crime Complaint Center (IC3) Annual Report, Americans age 60 and older filed 201,266 complaints of internet-enabled fraud last year and reported losses of $7.7 billion.₂ That’s a 59% jump from 2024 and the largest dollar loss of any age group tracked by the FBI.₃ The average reported loss for an older victim was more than $38,000, and at least 12,400 older Americans lost $100,000 or more to a single scheme.

The Federal Trade Commission’s data tells a similar story. The FTC’s Protecting Older Consumers 2024-2025 report and its 2025 Consumer Sentinel data show that adults 60+ reported more than $2.4 billion in fraud losses, with $1.6 billion (68%) of those losses coming from individual cases of $100,000 or more.₄ The number of older adults scammed out of $10,000 or more has more than quadrupled since 2020.

Charles Schwab acknowledged that staying connected, strengthening support networks, and educating older adults are the most effective ways to reduce vulnerability to fraudsters.₅ The data backs that up, and it makes the case for proactive planning louder than ever.

Frequent and Costly Scams Targeting Seniors in 2026

Knowing how criminals operate is the first step toward stopping them. According to the FBI’s 2025 IC3 data, these are the scam types causing the greatest financial harm to Americans 60 and older:_2,3

A few patterns are worth highlighting:

• Investment fraud now accounts for more than one-third of all elder fraud losses and increasingly involves cryptocurrency platforms or “pig butchering” relationship-based investment schemes._2,3,6
• Imposter scams, in which fraudsters pose as a bank, the IRS, Social Security, Medicare, or a well-known company, were the most-reported fraud category for the fifth straight year in 2025, with $3.5 billion in losses reported to the FTC, nearly triple the 2020 total.₄
• Social media is now the single most expensive contact channel for fraud, with victims reporting more than $2.1 billion in losses tied to those platforms in 2025.₄
• A disturbing new category, “recovery scams,” targets people who have already been victimized, promising to retrieve their stolen money and then stealing more._2,3

The U.S. Department of Justice’s October 2025 Annual Report to Congress on elder fraud notes that over the most recent reporting period, fraudsters attempted to steal or did steal more than $2 billion from over one million older Americans, figures the Department called the basis for “aggressively pursuing” both domestic and transnational offenders.₇

Warning Signs of Elder Financial Abuse Families Should Never Ignore 

Elder financial exploitation is often called “the hidden abuse” because many cases go unreported and victims may feel embarrassment, shame, or fear of losing independence. Both Schwab’s Financial Exploitation Prevention Checklist and the National Council on Aging recommend watching for these red flags:_8,9

• Sudden, unexplained account changes or large withdrawals
• New “friends,” caregivers, or online relationships who quickly become involved in financial matters
• Confusion about recent transactions, missing statements, or unpaid bills
• Pressure to sign documents, change a will, or update a power of attorney
• Secrecy about phone calls, emails, or mailed packages
• Wire transfers, gift cards, or cryptocurrency purchases that the older adult cannot fully explain

As litigation specialist Scott Rahn recently told InvestmentNews, a scam may cross into something more serious, financial elder abuse, when fraud exploits “age, dependency, cognitive decline, isolation, illness, emotional vulnerability, or susceptibility to undue influence_.10″

Enjoy. How to Protect Elderly Parents from Scams

A connected family is a protected family. Helping aging loved ones enjoy life today starts with simple, caring conversations.

• Stay informed. Keep an open dialogue with older family members about their finances. Ask gentle, non-controlling questions about how bill-paying systems are working, whether estate documents are current, and who has visibility into accounts.
• Promote account security. Encourage 2-step verification, mobile transaction alerts, and “mobile approve” features at every financial institution. Review social media privacy settings to limit what scammers can see, since fraudsters increasingly mine social profiles for personal details.
• Have a “code word.” Local prosecutors and consumer protection groups recommend that families establish a private code word that must be used to verify any unusual phone or text request, a low-tech defense that has stopped many “grandparent scams.”
• Report suspicions quickly. If you suspect financial exploitation, contact local Adult Protective Services, local law enforcement, and the senior’s financial institutions immediately. Speed matters, because requesting a wire recall within hours of a fraudulent transfer significantly improves recovery odds.

The Care Conversation

Earlier this year, we debuted our Speaker Series with The Care Conversation in which Managing Director, Jennifer Stone reviewed how to start conversations just like the above. Watch below or via the link above and subscribe to our channel to stay engaged with education like this.

Prepare. How Seniors Can Protect Themselves from Financial Exploitation

Preparation is the heart of a confident financial plan. Whether you are the older adult in question or someone supporting one, these steps build a stronger defense.

• Review finances regularly. Set a recurring monthly review of all account activity. Consider adding a trusted family member as an authorized viewer who can help you spot unauthorized transactions.
• Plan ahead with documents. Keep important financial and legal documents (wills, trusts, healthcare directives, powers of attorney, beneficiary designations) organized and accessible to your trusted contact.
• Designate a Trusted Contact Person. Most brokerage firms, including those custodied at major institutions, now allow you to formally name a Trusted Contact. This person cannot transact on the account, but the firm can reach out to them if suspicious activity is detected. The FBI specifically recommends this safeguard to slow down suspected fraud before money leaves the account.₁₁
• Shield personal information. Never share account numbers, passwords, Social Security numbers, or one-time verification codes in response to unexpected calls, texts, emails, or pop-ups. The federal “Never Ever” awareness campaign launched in 2026 puts it plainly: the government will never tell you to move your money to protect it, never threaten to cut off benefits unless you pay immediately, and never demand payment by gift card, wire transfer, crypto, or payment app.₁₂
• Never grant unsolicited remote access. Avoid clicking unknown links or letting anyone control your device unless you initiated the contact and have independently verified who you are dealing with.

Connect. Bringing Your Plan, Your Family, and Your Advisors Together

Elder financial exploitation thrives in isolation. Connection is the antidote. A connected financial plan, one in which your advisor, CPA, estate attorney, and family members share visibility, creates multiple sets of eyes on your accounts and your decisions.

At Modern Wealth Management, our Advantage Offerings are designed to coordinate investment management, tax planning, estate planning, insurance, and (for business owners) company retirement plans into one connected framework. That coordination matters here because elder fraud rarely shows up in just one place. A sudden, out-of-character IRA distribution, an estate document change, or an insurance beneficiary swap can each be an early warning, but only if someone is paying attention to the whole picture.

Practical ways to strengthen connection include:

• Naming a Trusted Contact with your advisor and custodian.
• Holding an annual family meeting to review estate documents, beneficiaries, and care preferences.
• Confirming where critical documents and passwords are stored, and who has authority to access them.
• Getting your Modern Confidence Score and reviewing it to identify which quadrants of your financial life (investments, tax, estate, insurance, or retirement plan strategy) feel most vulnerable today.

How and Where to Report Elder Financial Abuse

If you or someone you know may have been targeted, take action immediately and utilize the following resources:

• FBI Internet Crime Complaint Center
• DOJ National Elder Fraud Hotline
• Federal Trade Commission
• Your local Adult Protective Services agency and local law enforcement
• Contact your bank, brokerage, and any other affected financial institutions to request transaction holds and wire recalls

Final Takeaways: Confidence Is the Best Defense

Elder financial abuse is not just a financial problem. It is a human one. Behind every $7.7 billion headline is a parent, grandparent, or neighbor whose sense of security was stolen along with their savings.₂

The good news is that the most effective protections are also the most accessible: open conversations, basic account security, a designated Trusted Contact, and a financial plan that connects every part of your life under one coordinated strategy.

That is the heart of what we do. We help clients enjoy life today, prepare for whatever tomorrow brings, and connect with the people and causes they care about most, confidently and securely.

Frequently Asked Questions About Elder Financial Abuse

Q: What is elder financial abuse?

Elder financial abuse (also called elder financial exploitation) occurs when someone illegally, improperly, or unfairly uses an older adult’s money, property, assets, or financial resources for their own benefit. It’s one of the most common forms of elder abuse and can have serious financial, emotional, and health consequences for older adults.₁₃

Q: What are the warning signs of elder financial abuse?

Elder financial abuse occurs when someone improperly uses, controls, or steals an older adult’s money, property, or assets. Common warning signs include financial red flags, changes in financial management, behavioral signs, scam-related indicators, and property and asset concerns.

Q: What are the most common scams targeting seniors?

Seniors are often targeted because they may have retirement savings, own assets, and are frequently approached by scammers through phone calls, email, text messages, social media, and dating sites. Scams targeting seniors may include imposter scams, investment and cryptocurrency scams, tech support scams, romance scams, grandparent or family emergency scams, lottery and sweepstakes scams, and Medicare and health insurance scams.

Q: How do I report elder financial abuse?

If you suspect elder financial abuse, it’s important to report it as soon as possible. In the United States, you can contact Adult Protective Services, call local law enforcement, report to the older adult’s financial institution, and file a complaint with state agencies.

Q: How can I protect my elderly parents from scams?

Protecting elderly parents from scams requires a combination of education, technology, and financial safeguards. The goal isn’t to make them suspicious of everyone; it’s to help them recognize common tactics and slow down before taking action.

How Confident Are You in Your Plan to Protect Aging Loved Ones?

If you would like to discuss adding a Trusted Contact, updating estate documents, or building a coordinated plan that helps safeguard your family from financial exploitation, our team at Modern Wealth Management is here to help. Take the first step by getting your Modern Confidence Score today.

Get Your Modern Confidence Score

Resources Mentioned in This Article

[1] Social Security Administration. World Elder Abuse Awareness Day, We All Have a Role in Protecting Older Adults. https://www.ssa.gov/blog/en/posts/2026-06-15.html

[2] Federal Bureau of Investigation, Internet Crime Complaint Center. 2025 IC3 Annual Report.  https://www.ic3.gov/AnnualReport/Reports/2025_IC3Report.pdf

[3] Federal Bureau of Investigation. Scammers Target Older Adult Victims. https://www.fbi.gov/news/stories/scammers-target-older-adult-victims

[4] Federal Trade Commission. Protecting Older Consumers 2024-2025: A Report of the Federal Trade Commission. https://www.ftc.gov/system/files/ftc_gov/pdf/P144400-OlderAdultsReportDec2025.pdf

[5] Charles Schwab. Protecting Senior and Vulnerable Investors. https://www.schwab.com/schwabsafe/protecting-senior-investors

[6] United States Secret Service. Investment Fraud and Pig Butchering. https://www.secretservice.gov/investigations/investmentfraud-pigbutchering

[7] U.S. Department of Justice. Annual Report to Congress on DOJ Activities to Combat Elder Fraud and Abuse. https://www.justice.gov/elderjustice

[8] Charles Schwab. Financial Exploitation of Older Adults: Prevention Checklist. https://www.schwab.com/schwabsafe/financial-exploitation-checklist

[9] National Council on Aging. Top Financial Scams Targeting Older Adults. https://www.ncoa.org/article/top-5-financial-scams-targeting-older-adults/

[10] InvestmentNews. When Does a Scam Become Elder Financial Abuse? There’s a Fine Line, Says Litigation Specialist. https://www.investmentnews.com/practice-management/when-does-a-scam-become-elder-financial-abuse-theres-a-fine-line-says-litigation-specialist/267186

[11] Federal Bureau of Investigation. Identity Theft Resources. https://www.fbi.gov/how-we-can-help-you/victim-services/seeking-victim-information/identity-theft-victim-resources

[12] Federal Communications Commission. Stopping Scam Calls Starts with “Never, Ever.”  https://www.fcc.gov/news-events/blog/2026/06/16/stopping-scam-calls-starts-never-ever

[13] FinCEN Advisory. Advisory on Elder Financial Exploitation. https://www.fincen.gov/system/files/advisory/2022-06-15/FinCEN%20Advisory%20Elder%20Financial%20Exploitation%20FINAL%20508.pdf

Investment advisory services offered through Modern Wealth Management, LLC, a registered investment adviser.

The views expressed represent the opinion of Modern Wealth Management, LLC. Information provided is for illustrative and educational purposes only and does not constitute investment, tax, or legal advice.

Statistics cited are drawn from third-party sources believed to be reliable as of the date of publication and have not been independently verified. Modern Wealth Management does not accept any liability for the use of the information discussed. Consult with a qualified financial, legal, or tax professional prior to taking any action.