Financial elder abuse is one of the fastest-growing forms of exploitation in the United States, and California is at the epicenter of this terrible trend.
According to the California Department of Justice, thousands of seniors fall victim to financial abuse each year, often at the hands of trusted individuals. With an aging population and increasing reliance on digital banking, the risks are multiplying.
For estate planners, fiduciaries, and families, understanding the warning signs and knowing how to preserve evidence is critical—not only to stop the abuse but to build a strong case for recovery. In Part 1 we address the red flags. In Part 2 we discuss evidence preservation.
Why is California a Hotbed?
California’s large senior population and complex property laws make it a prime target for financial exploitation. The state has robust statutes under the California Elder Abuse and Dependent Adult Civil Protection Act (Welf. & Inst. Code §15600 et seq.), which provides civil remedies and punitive damages for victims. Probate remedies under Probate Code §§4231.5 and 859 allow recovery of double or treble damages for bad-faith takers of property.
Spotting Red Flags
Financial elder abuse rarely starts with a dramatic theft. It often begins with subtle changes in behavior or financial patterns. The most common indicators estate planners and families should watch for:
Behavioral Red Flags
- Isolation: The elder suddenly avoids friends or family, often under the influence of a new “caretaker” or confidant.
- Unusual Dependence: A single individual becomes the gatekeeper for all decisions, including financial matters.
- Emotional Pressure: Signs of fear or reluctance when discussing money or legal documents.
Financial Red Flags
- Unexplained Withdrawals: Large or frequent ATM withdrawals inconsistent with prior habits.
- New Joint Accounts: Accounts opened with non-family members or recent acquaintances.
- Changes in Estate Documents: Sudden amendments to wills, trusts, or beneficiary designations—especially favoring non-relatives.
- Misuse of Power of Attorney: Transactions benefiting the agent rather than the principal.
Digital Red Flags
- Unusual Online Activity: Multiple failed login attempts and new devices accessing accounts.
- Email or Text Scams: Messages urging immediate transfers or gift card purchases.
- Cryptocurrency Transactions: Seniors being coaxed into high-risk digital investments.