When scams cause serious financial loss in someone with dementia, taking prompt and careful action is essential to protect their remaining assets and well-being. Dementia impairs judgment and memory, making individuals vulnerable to financial exploitation by strangers or even trusted family members. Here are practical steps to take when such a situation arises.
First, recognize the signs of financial abuse. These may include unusual bank withdrawals, missing money or valuables, unexpected changes in legal documents like wills or powers of attorney, unpaid bills despite available funds, or sudden transfers of assets. Emotional signs such as withdrawal, anxiety, or reluctance to discuss finances can also indicate exploitation[1][4][5].
Once financial loss is suspected or confirmed, immediately contact the financial institutions involved. Banks and credit unions often have protocols to freeze accounts, stop automatic payments, and delay suspicious transactions to prevent further loss. Many states have laws allowing financial institutions to hold disbursements for a period if elder exploitation is suspected, giving time to investigate[1][3].
Next, report the abuse to Adult Protective Services (APS) and local law enforcement. APS can investigate and intervene to protect the vulnerable adult. Documentation is crucial—gather bank statements, receipts, and any evidence showing irregular financial activity. This documentation supports investigations and potential legal action[2][5].
Legal intervention may be necessary. Consulting an elder law attorney experienced in dementia-related financial abuse can help assess the situation, review existing estate plans, and pursue restitution if possible. Updating or establishing durable powers of attorney, trusts, or guardianships can provide oversight and prevent future exploitation. These legal tools allow trusted agents to manage finances responsibly and include safeguards such as requiring co-agents or regular accountings[1][4].
Family involvement is important but can be complex if abuse comes from within the family. If a family member is exploiting the person with dementia, it is vital for other relatives or guardians to advocate for the elder’s protection. This may involve confronting the abuser, seeking court intervention, or removing the abuser’s access to finances[2][6].
Education and prevention are key to reducing risk. Understanding common scams targeting seniors, such as fake IRS calls or tech support fraud, helps families and caregivers stay vigilant. Financial institutions and community programs often offer workshops and resources to recognize and avoid scams[1][3].
In summary, taking action involves recognizing abuse signs, securing financial accounts, reporting to authorities, seeking legal help, and involving trustworthy family or professionals to safeguard the person with dementia. Early intervention can limit losses and protect dignity and independence.
Sources
https://frankkraft.com/resources/frequently-asked-questions/financial-exploitation-of-seniors/
https://pameladwilson.com/how-to-stop-elderly-abuse-of-parents-by-adult-children/
https://getcarefull.com/articles/what-financial-institutions-need-to-know-about-new-elder-financial-exploitation-laws
https://www.collinsfamilylaw.com/blog/2025/november/legal-options-to-prevent-elder-abuse/
https://www.pittcountync.gov/901/Elder-Abuse-Prevention
https://www.breakingbullying.com/financial-exploitation-in-families-protecting-seniors-from-abuse/
