$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
power of attorney abuse scam
A trusted person granted power of attorney over an elderly individual's finances uses that authority to drain accounts, sell assets, or redirect funds for personal gain.
“elderly scam”
↑ 221%Key indicators
Estimated impact
$9.0K
median reported loss
Typical range$900 – $180K
Recovery rate~8%
Annual reports88,000
Scam breakdown
1
A family member, friend, or professional gains power of attorney over an elderly person's finances, often during a health crisis.
2
The agent gradually siphons funds through unauthorized transfers, cash withdrawals, or property sales.
3
By the time other family members notice, significant assets have been depleted or hidden.
What to do first
Contact Adult Protective Services (APS) in your state to report suspected financial exploitation.
Related terms
POA exploitationfinancial power of attorney fraudagent abuse of authorityElder financial abuseIn-personRisingSeniorsElderlyCaregiversHealthcare workersRetirees and seniorsNonprofit and charity workersUnited StatesCanadaUnited KingdomPOA exploitationfinancial power of attorney fraud
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Kevin, 72, a seniors, encountered what appeared to be a legitimate elder financial abuse situation while using In-person. A family member, friend, or professional gains power of attorney over an elderly person's finances, often during a health crisis.
Step 2
What happened next was calculated: The agent gradually siphons funds through unauthorized transfers, cash withdrawals, or property sales.
Step 3
The pressure escalated quickly: By the time other family members notice, significant assets have been depleted or hidden.
The outcome
Kevin realized something was wrong when the poa agent restricts family access to the elder or their financial records. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Contact Adult Protective Services (APS) in your state to report suspected financial exploitation. Kevin's experience shows why the poa agent restricts family access to the elder or their financial records and unexplained large withdrawals or transfers appear on the elder's accounts are the clearest early warning signs.
How to identify it
- The POA agent restricts family access to the elder or their financial records
- Unexplained large withdrawals or transfers appear on the elder's accounts
- The agent pressures the elder to sign documents without independent legal review
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
- Treat secrecy, urgency, and off-platform payment requests as strong scam signals.
What to do now
- ✓Contact Adult Protective Services (APS) in your state to report suspected financial exploitation.
- ✓Request a forensic accounting review of all transactions made under the power of attorney.
- ✓Consult an elder law attorney about revoking the POA and pursuing legal recovery.
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- The Consumer Financial Protection Bureau (CFPB) reported that financial exploitation by agents under power of attorney is one of the most common forms of elder financial abuse in the United States.
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓Contact Adult Protective Services (APS) in your state to report suspected financial exploitation.
- ✓Request a forensic accounting review of all transactions made under the power of attorney.
- ✓Consult an elder law attorney about revoking the POA and pursuing legal recovery.
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
The Consumer Financial Protection Bureau (CFPB) reported that financial exploitation by agents under power of attorney is one of the most common forms of elder financial abuse in the United States.
FTC Consumer Sentinel 2025
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. United States has dedicated agencies that handle fraud reports.
ReportFraud.gov
Federal Trade Commission
Central U.S. consumer fraud reporting portal.
File an IC3 complaint
FBI Internet Crime Complaint Center
FBI portal for internet-enabled crime reports.
Start identity theft recovery
IdentityTheft.gov
Official U.S. identity theft recovery plan builder.
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
Seniors, Elderly, Caregivers, Family members
Geographic concentration
United States, Canada, United Kingdom
Primary channel
In-person — Elder financial abuse
Why this group is vulnerable
Seniors are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The growing number of reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- The Consumer Financial Protection Bureau (CFPB) reported that financial exploitation by agents under power of attorney is one of the most common forms of elder financial abuse in the United States.
Source notes
- FTC Consumer Sentinel 2025
Frequently asked questions
Common questions about power of attorney abuse scam
How does the power of attorney abuse scam work?+
A family member, friend, or professional gains power of attorney over an elderly person's finances, often during a health crisis. The agent gradually siphons funds through unauthorized transfers, cash withdrawals, or property sales. By the time other family members notice, significant assets have been depleted or hidden.
What are the warning signs of power of attorney abuse scam?+
The POA agent restricts family access to the elder or their financial records Unexplained large withdrawals or transfers appear on the elder's accounts The agent pressures the elder to sign documents without independent legal review
What should I do if I encounter power of attorney abuse scam?+
Contact Adult Protective Services (APS) in your state to report suspected financial exploitation. Request a forensic accounting review of all transactions made under the power of attorney. Consult an elder law attorney about revoking the POA and pursuing legal recovery.
Who is most at risk for power of attorney abuse scam?+
This scam primarily targets Seniors, Elderly, Caregivers, Family members. It is most commonly reported in United States, Canada, United Kingdom and typically appears on In-person.
Is power of attorney abuse scam on the rise?+
power of attorney abuse scam is currently on the rise with growing reports. It has been reported across US, CA, UK. Last updated 2026-04-04.
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Help someone avoid this scam.
Scammers succeed because people do not talk about it. If you or someone you know has been affected, there is no shame in it — it happens to millions of people every year. Share this page with friends and family so they know what to look for.