Reporting Suspected Financial Exploitation: A Step-by-Step Guide for Caregivers

Step 1: Stay calm and gather information. Before making any report, take a deep breath. Do not confront the suspected abuser or accuse anyone yet. Instead, quietly collect evidence: bank statements, credit card charges, canceled checks, or records of unusual transfers. Look for patterns like large withdrawals, new accounts opened in your loved one’s name, or unexplained changes in spending habits. Keep a written log of dates, amounts, and any conversations you overhear.

Step 2: Talk directly to your loved one—gently and privately. Choose a quiet time when you are both calm. Use simple, non-accusatory language: 'Mom, I noticed some money went out of your account yesterday. Can you help me understand what happened?' Do not pressure them or express anger. If they seem confused or defensive, drop it and try again later. Their answer may be a 'sprinkle'—a hint that something is wrong. Listen for fear, shame, or reluctance to talk about a specific person.

Step 3: Contact Adult Protective Services (APS) in your state. APS is the primary agency for reporting elder financial exploitation. You can find your local APS office by calling the Eldercare Locator at 1-800-677-1116 or visiting the National Center on Elder Abuse website. When you call, be ready to provide the older adult’s name, address, age, and a clear description of what you suspect. You do not need proof—only reasonable suspicion. APS will investigate confidentially. If the abuser is a family member living in the home, APS can help arrange alternative care or safety planning.

Step 4: If the exploitation involves a professional caregiver or home care agency, contact the agency immediately. Tell them you suspect theft or financial abuse. Ask them to cancel the caregiver’s shifts, provide a substitute, and file a claim with their insurance if they are bonded. If the agency does not take your complaint seriously, file a formal complaint with their licensing or regulatory authority. Also consider contacting the police—especially if a checkbook or credit card is missing. The police can begin a criminal investigation, and the agency’s insurance company will do its own investigation.

Step 5: Report the crime to your local police department. Financial exploitation is a crime. Call the non-emergency number and ask to speak to an officer who handles elder fraud. Provide the evidence you have gathered. If the abuser is a family member, the police can still investigate, but be aware that prosecution may be difficult if the victim is unwilling to testify. The police report is also useful for freezing accounts or reversing fraudulent transactions.

Step 6: Contact your loved one’s bank or credit union. If you have legal authority (such as a financial power of attorney), ask to speak with the fraud department and request a fraud alert, freeze on large transactions, or a second signature requirement for withdrawals over a certain amount. If you do not have legal authority, ask to speak with the fraud department to report your concerns; they may place an internal note without changing account settings. Some banks have special protocols for vulnerable adults. You may need to provide a copy of the police report or a letter from a doctor documenting cognitive decline.

Step 7: Consult with an elder law attorney. An attorney can help you obtain a financial power of attorney (if not already in place), set up a trust, or pursue civil action to recover stolen funds. They can also advise you on reporting to the state’s Attorney General’s office, which often has a dedicated elder fraud unit. Many states have coalitions like the Colorado Older Adults Financial Justice Coalition that offer free or low-cost legal help.

Step 8: Report the exploitation to the Federal Trade Commission (FTC) if it involves a scam. Go to ReportFraud.ftc.gov and file a complaint. The FTC collects data on scams and shares it with law enforcement. This is especially important if the exploitation involved a phone call, email, or social media impersonation. For social media scams, use the platform’s reporting tool (e.g., Facebook’s 'Report Page' feature) to flag fake accounts.

Step 9: Protect your loved one’s finances going forward. After consulting with an elder law attorney, you may consider moving most assets to a trust or other protective arrangement. Never transfer assets to yourself without clear legal authority and professional guidance. If you are already a trusted contact or have legal authority, ask the bank to help you set up account alerts. Otherwise, work with the bank’s fraud department to discuss monitoring options suitable for your situation. If your loved one is still capable, involve them in decisions—but be honest about why you are making changes. Use simple language: 'We’re doing this to keep your money safe, so no one can take it without you knowing.'

Step 10: Take care of yourself. Reporting exploitation is emotionally draining, especially when the abuser is family. You may feel guilt, fear, or anger. Reach out to a support group for caregivers, talk to a counselor, or call a helpline like the National Elder Abuse Hotline at 1-866-363-4276. You are doing the right thing, and your loved one’s safety comes first.