Talking to banks about the financial abuse of a person with dementia requires clear communication, preparation, and understanding of the legal protections in place. When you suspect or discover that someone with dementia is being financially exploited, the first step is to gather as much evidence as possible. This can include bank statements showing unusual withdrawals, unexplained transfers, or sudden changes in account activity. Documenting these irregularities helps the bank understand the situation clearly.
Next, contact the bank directly and ask to speak with the department that handles fraud or elder financial abuse. Many banks have specialized teams trained to recognize and respond to signs of financial exploitation, especially involving vulnerable adults. Explain the situation calmly and provide the evidence you have collected. It is important to inform the bank that the person involved has dementia, as this may qualify them for additional protections under new laws in many states. For example, some states allow banks to delay suspicious transactions for a period ranging from 15 to 45 days to investigate potential abuse and notify trusted contacts or family members[2].
You should also ask the bank about setting up safeguards such as adding trusted contacts to the account. Trusted contacts are people the bank can notify if they suspect exploitation, which can help prevent further abuse. Additionally, inquire about freezing the account or placing limits on withdrawals to protect the person’s assets while the situation is being resolved.
If you have legal authority, such as power of attorney or guardianship, provide the bank with the necessary documentation. This will allow you to act on behalf of the person with dementia and manage their financial affairs more effectively. If you do not have legal authority, the bank may still be able to assist by reporting the suspected abuse to adult protective services or law enforcement, who can then intervene[1].
Throughout this process, keep detailed records of all communications with the bank and any actions taken. If the abuse is confirmed, consider consulting an elder law attorney who can help with legal remedies, including recovering lost funds and updating legal documents to prevent future exploitation.
Financial abuse of people with dementia is unfortunately common and can be perpetrated by caregivers, family members, or strangers. Banks play a critical role in detecting and stopping this abuse, but they rely on concerned individuals to report suspicious activity promptly. Acting quickly and working closely with the bank can help protect the financial well-being of a vulnerable person with dementia.
Sources
https://frankkraft.com/resources/frequently-asked-questions/financial-exploitation-of-seniors/
https://getcarefull.com/articles/what-financial-institutions-need-to-know-about-new-elder-financial-exploitation-laws
https://www.thefp.com/p/my-elderly-father-fell-for-a-romance
