Financial exploitation of a person with dementia is the illegal or improper use of their money, property, or assets—and families document it by saving records and report it by calling Adult Protective Services through the Eldercare Locator at 1-800-677-1116. The National Institute on Aging defines this abuse and names people with memory problems or dementia as more vulnerable to it. This page walks through what the abuse looks like, how to build a clear paper trail, whom to contact, and how banks fit in. Acting early matters, because recovery is slow and money often does not come back.
Medical information disclaimer: This article is for general educational purposes only and does not provide medical advice, diagnosis, or treatment. Always consult a physician or other qualified health professional about symptoms, medications, tests, or treatment decisions.
Table of Contents
- What financial exploitation of someone with dementia looks like
- How to document suspected abuse
- Whom to report to, and when
- How banks and credit unions fit in
- Frequently Asked Questions
What financial exploitation of someone with dementia looks like
Exploitation ranges from a caregiver quietly draining a bank account to a stranger's phone scam that empties a retirement fund. Dementia raises the risk because memory loss and confusion make it harder to track money or spot a lie. The scale is large. Financial institutions filed 155,415 elder-exploitation reports over one year tied to more than $27 billion in suspicious activity, according to a FinCEN interagency statement.
The FTC separately estimates older adults may have lost up to $61.5 billion to fraud in 2023, though documented reported losses were $1.9 billion. One caveat keeps the picture honest. Research cited by the National Institute of Justice found elders without dementia or confusion were about 29% more likely to suffer "pure" financial exploitation than those with dementia. Vulnerability is real, but not uniform—so watch for warning signs regardless of diagnosis stage.
How to document suspected abuse
Documentation is your strongest tool, and it should start before you confront anyone or move money. Clear records let banks, police, and agencies act quickly on facts instead of impressions.
Gather these items as you notice a problem: Keep originals safe and share copies. The CFPB's recovery framework documents that recovery is slow and often incomplete, which is why early records—statements, timelines, transaction details—matter so much before funds disappear.
- Bank and credit-card statements showing unusual withdrawals, transfers, or new payees
- A dated timeline of transactions with amounts and, if known, who initiated them
- Copies of checks, wire confirmations, or receipts for large or repeated purchases
- Names and contact details of anyone with account access or a power of attorney
- Notes on conversations, including dates, what was said, and who was present
Whom to report to, and when
Start with Adult Protective Services (APS), the state agency that investigates abuse of vulnerable adults. Reach your local office through the Eldercare Locator at 1-800-677-1116; the CFPB confirms reports are free and can be anonymous. Do not stop at APS if the situation warrants more.
According to AARP, you can also contact local police on their nonemergency line, file with the FTC at ReportFraud.ftc.gov, and notify your state attorney general. Call 911 if there is an urgent risk of harm. Choosing where to report depends on the threat. A scam already reported to the FTC still belongs with APS if a family member or caregiver is involved, and with police if a crime like theft or forgery has occurred.
How banks and credit unions fit in
Financial institutions are a front line, not just a place to complain. They are urged to file Suspicious Activity Reports (SARs)—confidential reports to the government—under a dedicated "elder financial exploitation" category. Your documentation makes those reports stronger.
The CFPB notes the SAR narrative—dates, amounts, specific transactions—is critical, so give the bank clear records rather than a vague concern. Some families worry privacy law blocks the bank from talking. Interagency guidance clarified that reporting suspected elder abuse to authorities does not generally violate Gramm-Leach-Bliley Act privacy provisions. That eases information-sharing among the bank, family, and agencies.
Frequently Asked Questions
Can I report anonymously if I'm not sure abuse is happening?
Yes. The CFPB confirms reports to Adult Protective Services are free and can be made anonymously, so you do not need proof to raise a concern.
Will my parent's bank refuse to talk because of privacy rules?
Generally no. Interagency guidance clarified that reporting suspected elder abuse to authorities does not usually violate Gramm-Leach-Bliley Act privacy provisions.
