As the number of older Americans hits record levels, financial exploitation of seniors is also sharply on the rise.
It’s been estimated that as many as one in five Americans over age 65 have been victimized by financial fraud.
According to a 2025 FTC report, total fraud losses reported by adults ages 60 and up increased about 400% between 2020 and 2024, from about $600 million in 2020 to $2.4 billion in 2024.
It’s important for older members of our community to be aware of the ways financial exploitation can happen, as well as the legal options available to them if they fall victim.
At Legal Aid Society of Middle Tennessee and the Cumberlands, where my legal work includes assisting older adults, I see financial exploitation of elders coming not just from strangers, but also family members and other trusted individuals and businesses.
Online scams and identity theft
Many seniors fall prey to online and telephone scams, which exist in numerous forms and are constantly evolving.
The FTC has reported a recent increase in online scams and impersonation fraud, involving fake government agencies, businesses and banks.
Scammers also impersonate tech support professionals pretending to solve a nonexistent problem or pose as police officers or lawyers claiming to need bail money for a grandchild or other family member.
Romance scams target single adults, with scammers gradually building trust with their victims before asking for money.
Scammers who’ve attained an older adult’s Social Security number, birth date and address can potentially open a credit card account or take out a loan — throwing victims’ financial lives into upheaval and sending their credit ratings spiraling.
The scammer may use the victim’s information to file a fraudulent tax return or other tax document.
Victims may not learn they’ve been scammed until they get sued for a debt that isn’t theirs or the IRS comes after them for a tax debt that they don’t owe.
Older adults can help protect themselves from scams by never giving out their personal information (especially credit card, debit card, bank account or Social Security numbers) over the phone unless they’ve initiated the call and have verified the number is legitimate.
They should be highly skeptical of any unsolicited calls, letters, texts or emails, even if they’re purportedly coming from a familiar place.
Financial exploitation by trusted individuals
Though scams like the ones above are more widely publicized, financial exploitation can also be committed by individuals the victims know well: family members, local individuals with whom the victims transact business, caregivers and even trusted employees handling money or property.
A family member or other trusted person might misuse their power of attorney authority to gain access to an older adult’s bank accounts or investments, depleting their savings or putting them in debt.
Sometimes, an older adult is pressured or tricked into signing documents they don’t understand, such as a property title transfer, only to later face eviction from their own home.
When financial exploitation is committed by someone with whom the victim has a relationship, it can sometimes be a very delicate, emotional situation.
It’s not uncommon for people who’ve been mistreated by a family member to not want to see their perpetrator get into trouble.
How Legal Aid Society can help
At Legal Aid Society, we focus on the practical matters around financial exploitation, trying to undo and prevent as much damage as possible using various civil remedies and working with partner organizations.
We discuss available options with each client and develop an individualized plan according to that client’s preferences.
That can include steps such as revoking a power of attorney; filing an action to recover stolen property, money or benefits; challenging identity theft-related debt or tax matters; correcting credit reports; and seeking orders of protection under a special provision in Tennessee law for older and vulnerable adults.
If you or an older adult you know has been scammed or financially exploited, Legal Aid Society may be able to help.
Call us at 1-800-238-1443 or visit https://las.org to learn more.
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Rae Anne Smith is a senior attorney at the Legal Aid Society of Middle Tennessee and the Cumberlands’ Tullahoma office. She currently focuses on cases involving financial exploitation of older adults, consumer protection, federal income tax, and assistance to nonprofit organizations.