Financial Elder Fraud: 10 Ways to Help Stop It
August 14, 2025
When Mike Conner, a 57-year-old chief marketing officer in Chicago, helped his 86-year-old father with his taxes, he found a surprising issue. While visiting, he noticed IRS letters on his father’s desk about an unfiled return.
Mike looked through online records like bank statements, brokerage accounts, and credit card bills. He found something troubling. Over the past year and a half, his father had bought 94 different financial and investment newsletters. This added up to $56,000 in subscription fees, all charged to credit cards.
Technically, it wasn’t outright theft, but the situation bore the hallmarks of elder financial exploitation. In fact, more than half of the newsletters could be traced back to a single company and its affiliates. “I don’t think they broke laws,” Mike says, “but it was predatory.”
Elder financial abuse isn’t always a scam in the traditional sense—it can also be a series of manipulative sales tactics that prey on older adults’ trust. Dr. Tim Habbershon, managing director of family engagement at Fidelity, explains, “It’s a sophisticated online problem that can happen to anyone.
Awareness is the first line of defense. These conversations can trigger fear, embarrassment, or anger, so empathy is key. Families need to avoid getting stuck in reactive emotions.”
Even when it feels awkward, stepping in to help manage an aging loved one’s finances can be essential. Sometimes the person at risk isn’t a parent—it could be an aunt, uncle, or close family friend. Here are ten proactive steps to protect against trouble before it starts.
1. Start talking early
Elizabeth Loewy, co-founder of EverSafe, recommends easing into financial discussions by making it mutual. For example: “I’d like you to get alerts on my accounts if something unusual happens—can I do the same for you?” Habbershon adds that these talks don’t need to be all-or-nothing. Instead, ask what they’re comfortable sharing and what they prefer to keep private, then gradually build trust.
2. Create a shared financial plan
Money can be emotional, so acknowledge that this is a sensitive stage of life. Start small—gather contact info for their attorney, accountant, broker, or even a neighbor who sees them often. Later, expand the conversation to online accounts, bill payments, and budgeting.
3. Know which documents are in place
Identify whether critical items like a will, durable power of attorney, and health care proxy are completed and current. Confirm beneficiaries on accounts and insurance policies. Keep a checklist of essentials: deeds, retirement accounts, insurance policies, loan documents, and regular bills.
4. Watch for red flags
Warning signs of declining financial capacity include missed bill payments, sudden spending changes, overdrafts, and bounced checks. In Mike’s case, he wishes he’d asked more questions when his father started talking about stock purchases.
Conner family prevention tips:
● Hold regular family finance meetings
● Maintain a simple “personal balance sheet”
● Establish power of attorney and add a trusted contact on accounts
● Set up automatic bill payments
● Reduce excess credit cards
● Monitor credit reports
● Say “no” to unsolicited offers and opt out of marketing lists
5. Streamline accounts
After the newsletter incident, Mike’s sister reduced their father’s credit cards from six to two, reviewed expenses, set a budget, and automated bill payments.
6. Stay updated on scams
Ask casually, “Heard about the latest scam?” Use these moments to reinforce the rule: never share personal details by phone, email, or mail unless you initiated the contact. The FTC’s website has resources for spotting and reporting scams.
7. Keep social ties strong
Isolation increases vulnerability. Regular calls, group texts, or family email chains can help keep older relatives connected and engaged.
8. Share responsibilities
Divide financial duties based on proximity and skills. In Mike’s family, his sister monitors credit cards, his stepsister tracks bank accounts, and Mike oversees investments. Consider naming a “trusted contact” with financial institutions to add another layer of oversight.
9. Use tech safeguards
Secure digital vaults like FidSafe® store essential documents, while services like EverSafe monitor accounts for unusual activity. Mike created a FidSafe account for his father containing all account details and insurance policies, with shared access for his siblings.
10. Schedule regular check-ins
Frequent, focused family meetings about finances are the best long-term defense. Keep agendas tight and avoid letting old family tensions take over. In the Conner family, weekly calls began immediately after the discovery, bringing everyone—including their stepmother—into the loop.
Bottom Line
Elder financial abuse is often subtle, and sometimes it takes a tax letter—or a massive subscription bill—to spot it. The earlier families open the conversation, the more options they have to prevent lasting harm.
Sources:
https://www.fidelity.com/viewpoints/wealth-management/elder-fraud
Disclosure:
This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.
This material is provided as a courtesy and for educational purposes only.
These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.