Dementia and Financial Scams: How to Protect Your Loved One

Why People with Dementia Are at Risk

Financial fraud and scams are one of the most serious and often overlooked risks in dementia care.

As dementia affects memory, judgment, and decision-making, individuals may become more vulnerable to manipulation, pressure, or deception.

They may have difficulty recognizing suspicious situations, remembering prior conversations, or evaluating whether a request is legitimate.

This vulnerability makes them a frequent target for scammers, both strangers and, in some cases, people they know.

Common Types of Financial Scams

Scammers often use tactics designed to create urgency, fear, or emotional pressure.

Common scams include:

• Phone scams. Calls claiming to be from government agencies, banks, or tech support
• Email or phishing scams. Requests for personal or financial information
• Lottery or prize scams. Claims that money has been won but requires a payment to receive it
• Romance scams. Emotional manipulation leading to financial requests
• Impersonation scams. Someone pretending to be a family member or trusted contact
• Door-to-door scams. Individuals offering fake services or repairs

These scams are often repeated, with the same individual being contacted multiple times once identified as vulnerable.

Warning Signs of Financial Exploitation

Financial exploitation can sometimes go unnoticed until significant damage has occurred.

Warning signs may include:

• Unusual or unexplained withdrawals or transactions
• New “friends” or contacts asking for money
• Increased volume of phone calls, emails, or mail solicitations
• Confusion about financial decisions or purchases
• Missing funds or unpaid bills despite available resources
• Sudden changes in financial habits

Early detection is critical in preventing further loss.

Why Scams Are Hard to Detect

Several factors make financial scams difficult to detect in dementia.

• Memory loss. The individual may not remember giving money or sharing information
• Lack of insight. They may not recognize that they are being scammed
• Shame or embarrassment. They may hide what has happened
• Trust in others. Many older adults are more trusting of authority figures or strangers

Because of these factors, scams can continue over time without immediate detection.

How Families Can Prevent Financial Fraud

Preventing financial exploitation requires proactive planning and oversight.

1. Monitor financial activity. Regularly review bank and credit card statements
2. Limit access. Reduce access to large sums of money or sensitive accounts
3. Set up alerts. Enable bank alerts for unusual transactions
4. Reduce exposure. Limit unsolicited calls, emails, and mail
5. Have open conversations. Discuss scams in a calm, non-judgmental way
6. Assign a trusted contact. Ensure someone can help oversee finances

Taking these steps early can significantly reduce risk.

What to Do If It Happens

If financial exploitation is suspected, it is important to act quickly.

• Contact the bank or financial institution immediately
• Report the incident to appropriate authorities
• Secure accounts and change passwords
• Monitor for additional suspicious activity

Quick action can help limit further damage and protect remaining assets.

Legal and Financial Protections

There are legal tools that can help protect individuals with dementia from financial exploitation.

• Power of attorney. Allows a trusted individual to manage finances
• Trusted contact designation. Adds a secondary contact for financial institutions
• Account safeguards. Limits or monitoring tools provided by banks

Establishing these protections early can help prevent serious financial harm later.

Financial safety is an essential part of dementia care. Addressing these risks early helps preserve both security and peace of mind for individuals and their families.