Scams and financial abuse

Scams and money abuse take billions of dollars from older Americans every year. In 2025, people aged 60 and older reported losing about $7.7 billion to the FBI's internet crime center. That was a 59% jump from the year before.¹ Many losses are never reported at all.²

People living with dementia face extra risk. Memory and judgment change, so a trick can be harder to spot and a call harder to remember. Some people cannot tell anyone what happened.⁵ This page explains the most common scams, the warning signs, the tools banks and investment firms offer, and where to report in Virginia.

How big is the problem?

The numbers keep growing. In 2025, the FBI's Internet Crime Complaint Center (IC3) received about 201,000 complaints from people 60 and older. The average loss was about $38,500. More than 12,400 older people each lost over $100,000.¹

The Federal Trade Commission (FTC) tracks scams too. In 2024, people 60 and older reported losing nearly $2.4 billion to the FTC.² The FTC thinks the true cost may be much higher, because most people never report. Its main estimate for 2024 was about $81.5 billion, though that number is uncertain.²

The oldest adults are hit hardest when they do lose money. For people 80 and older, the typical (median) loss was $1,650, the highest of any age group. About 1 in 6 reports for this age group was filed by someone else, such as a family member.²

Common scams that target older adults

Scammers change their stories often, but the same few types show up again and again.

How the money leaves matters. For people 60 and older, bank transfers and cryptocurrency caused the biggest losses. Gift cards are also common.² For people 80 and older, scams that started with a phone call caused far more loss than other kinds of contact.²

The four signs of a scam

The FTC says almost every scam has the same pattern.³

1. They pretend to be someone you know or trust. A government office, a utility, a well-known company, a charity or a relative. Caller ID can be faked.
2. There is a problem or a prize. You owe money, your computer has a virus, your account is locked, or you won something.
3. They rush you. They say not to hang up, not to tell anyone, or that you will be arrested.
4. They want a certain kind of payment. Gift cards, a wire transfer, a payment app, cryptocurrency, or a check they send you to deposit and then send money back.

When the abuser is someone you know

Financial abuse means misusing or taking an older person's money or belongings. It can look like forged checks, taking Social Security or pension payments, or using a credit card without permission.⁴ It also includes not paying bills for the person when you are supposed to, and health care fraud such as billing for care that was never given.⁴

Virginia law counts many acts as financial exploitation. These include misusing money by someone with a duty to the person, such as a caregiver or an agent under power of attorney. They also include gaining control of money through pressure, threats or "undue influence" (using trust or power to steer someone's choices).¹⁰

This kind of abuse is hard to talk about. It may involve a child, a new friend or a paid helper the person loves. Our page on signs of elder abuse and neglect covers the other types of abuse.

Warning signs to watch for

One sign alone does not prove abuse.⁵ Look for a pattern, and gently ask questions.⁴

• Unpaid bills, shut-off notices or bounced checks, even though there should be enough money⁴
• A sudden drop in savings, or large withdrawals the person cannot explain⁵
• New gift card purchases, wire transfers or trips to a cryptocurrency ATM
• Many calls, letters or packages from strangers, or secret phone calls
• A new "best friend" or romantic partner who wants to talk about money
• Changes to a will, power of attorney, bank accounts or property titles that do not fit the person's past wishes
• A caregiver or relative who will not let you speak with the person alone
• Missing checks, jewelry or other valued items

Dementia can make the person unaware that anything is wrong. They may feel sure a scammer is a real friend. Arguing usually does not help. See when the person doesn't know they are ill for gentler ways to work around this.

Protections from banks and investment firms

Banks and brokerage firms can help, but they need you to set things up early.

Name a trusted contact person. This works like an emergency contact for an account. A firm may call this person if it cannot reach the account owner or thinks someone is taking advantage of them. A trusted contact must be at least 18. They cannot see the balance, make trades or make decisions. They do not become a power of attorney or guardian.⁶ Brokerage firms must make a reasonable effort to ask for one when an account is opened or updated.⁸

Virginia banks can speak up. Under Virginia law, a bank or credit union that suspects exploitation may tell the trusted contact, a co-owner, or the agent under a power of attorney. It will not tell someone it suspects of the abuse. It may also report to Adult Protective Services, local police or the FBI.⁹ Federally chartered banks follow these rules only if they choose to adopt them.⁹

Brokerage firms can pause a payout. A FINRA rule lets investment firms place a temporary hold on a suspicious withdrawal from the account of a person 65 or older, or an adult with an impairment. The first hold lasts up to 15 business days. It can be extended to as long as 55 business days in total in some cases.⁷

1. Call or visit each bank and investment firm. Ask, "Can we add a trusted contact to this account?"
2. Set up alerts. Ask for text or email alerts for large withdrawals, new payees and low balances. Many banks offer read-only access for a family member.
3. Lower the risk. Ask about lower daily limits on ATM and debit card use, and turning off wire transfers that are not needed.
4. Sign a durable power of attorney while the person can still decide. See durable power of attorney for finances. Give the bank a copy ahead of time.
5. Freeze credit. A credit freeze at each of the three credit bureaus stops new accounts from being opened in the person's name.
6. Block and screen calls. Use call-blocking and spam filters on phones.³

If you manage money for someone as an agent, trustee, guardian or Social Security representative payee, the Consumer Financial Protection Bureau (CFPB) has free plain-language guides called Managing Someone Else's Money.¹⁴

Helping without taking over

Many people in early dementia can still handle some of their money. Taking all control at once can feel like a loss of dignity. Try sharing the work instead. Go over bank statements together each month. Keep a small "spending account" with a limited amount of money for daily use. Hold a family meeting so more than one person keeps an eye on things. A care circle can help share these jobs.

When the person can no longer protect their money and there is no power of attorney, a court may need to appoint someone. Learn about guardianship and conservatorship and less restrictive options. An elder law attorney can explain choices.

What to do if a scam or abuse happens

Act fast. The sooner you report, the better the chance of stopping more loss.

1. Stop contact. Hang up, do not reply, and do not send any more money.
2. Call the bank and card companies using the number on the card or statement. Ask them to stop or reverse payments and to flag the account.
3. Change passwords and remove any remote access program a "technician" installed.
4. Report to Adult Protective Services if the person is 60 or older, or an adult with an impairment. You do not need proof. Trained staff will look into it.^5,10
5. Report to local police and get a copy of the report.¹³
6. Report online crime to the FBI at ic3.gov.^1,15
7. Report to the FTC at ReportFraud.ftc.gov.^3,13
8. Call the National Elder Fraud Hotline for help with all of the above.¹²

Where to report

Watch out for "recovery" scams

After a loss, scammers often strike again. They pretend to be a lawyer, a government agency or a fund-recovery service that can get the money back for a fee. The FBI's IC3 says it never contacts people directly to ask for money or information, and it does not work with private firms to recover funds.¹⁵ Scammers have also pretended to be staff of the National Elder Fraud Hotline.¹² Never pay anyone to "recover" lost money.

Common questions

Do I need proof before I report?

No. You only need to share what you saw or heard. Trained staff will look into it.^4,5 If you think a family member is the abuser, you can also talk with an elder law attorney about safe next steps.

My parent keeps sending money to an online "friend." What can I do?

Stay calm and keep talking. Do not attack the person they trust. Go over the four signs of a scam above, together. Ask the bank to add a trusted contact and set alerts.⁶ Report the scammer to the FBI and FTC.^15,3 If the person cannot understand the risk, talk with an elder law attorney about power of attorney or guardianship.

Can a bank just refuse to send money?

Investment firms can place a temporary hold on a suspicious payout from the account of someone 65 or older or an impaired adult.⁷ Virginia banks may alert a trusted contact or report to APS or police.⁹ Ask your bank what it can do before a problem starts.

Education only. This page is general information written from the sources listed. It is not medical, legal or financial advice and does not replace a doctor, therapist or lawyer who knows your situation. How we write and check pages.