Financial abuse in early stage dementia is a serious concern because individuals may still have some decision-making ability but are increasingly vulnerable to exploitation. Recognizing the signs early can help protect them from losing their savings or assets.
Some common signs of financial abuse include unusual or unexplained withdrawals from bank accounts, unpaid bills despite having sufficient income, missing money or valuables, and sudden changes to legal documents like wills or powers of attorney. You might also notice unopened mail piling up or utilities being shut off, which can indicate the person is no longer managing their finances properly or someone else is interfering[1][2][4].
Another red flag is when new acquaintances or caregivers show excessive interest in the person’s finances or try to isolate them from family and friends. Emotional changes such as anxiety, confusion, or reluctance to talk about money can also signal financial exploitation. Sometimes the person with dementia may be pressured to add someone’s name to their bank account or to transfer property without fully understanding the consequences[2][3].
Monitoring financial activity closely is important. Setting up alerts for large transactions, simplifying accounts, and involving a trusted family member in managing finances can help prevent abuse. It is also wise to regularly check credit reports and remove the person’s name from pre-approved credit card lists. If you notice any suspicious financial behavior or signs of exploitation, consulting an elder law attorney promptly is crucial to protect the individual’s assets and rights[1][3].
In early stage dementia, the person may still be able to express concerns or report exploitation, so maintaining open communication and observing changes in behavior or financial habits is key. Family members and caregivers should be vigilant and compassionate, as victims often feel embarrassed or fearful about disclosing abuse[2][4].
Sources
https://www.jameslwest.org/the-conversation-no-one-wants-to-have-legal-and-financial-planning-after-a-dementia-diagnosis/
https://frankkraft.com/resources/frequently-asked-questions/financial-exploitation-of-seniors/
https://www.collinsfamilylaw.com/blog/2025/november/legal-options-to-prevent-elder-abuse/
https://www.pittcountync.gov/901/Elder-Abuse-Prevention
