People with dementia are at higher risk for fraud due to cognitive decline affecting their decision-making abilities and financial judgment. As memory and thinking skills deteriorate, individuals may struggle to recognize scams or manage their finances effectively. Additionally, changes in the brain associated with Alzheimer’s disease, even before clinical symptoms appear, can increase vulnerability to financial exploitation.
Steps for Preventing Financial Fraud
Set Up Financial Safeguards
- Establish durable power of attorney on key accounts
- Add trusted contacts to financial accounts
- Set up dual signature requirements for large withdrawals
- Create daily withdrawal limits monitored by a trusted person
- Update your estate plan
Simplify Financial Management
- Set up automatic bill payments
- Cancel unused or extra credit cards
- Consolidate accounts for simplicity and easier monitoring
Monitor Financial Activity
- Regularly review bank statements and credit card activity and set up alerts
- Check credit reports for unexplained debts and place a security freeze to prevent any new credit accounts
- Watch for signs of financial exploitation (e.g., unopened bills, unusual purchases, unexplained withdrawals)
Protect Personal Information
- Never share sensitive information (Social Security #, account details) with unsolicited callers or emails
- Shred or properly dispose of documents containing personal information
- Use a locked file cabinet for important financial documents
- Sign up for the National Do Not Call Registry
Gaining Knowledge
Utilize Community Resources
- Engage with local support services for money management assistance
- Connect with Alzheimer’s San Diego for financial planning guidance
Be Aware of Scams
- Tech support scams
- Fraudulent prizes or sweepstakes
- Phony home or auto repair offers
- Government impersonator scams
- Romance scams: Online and mail romantic relationships with people who they have not met
- Grandparent scams: Impersonating grandchildren who call in urgent need of help
- Text messages from unknown numbers with links impersonating trusted sources about money
Educate and Communicate
- Discuss potential fraud risks with the older adult
- Encourage them to consult a trusted person before making financial decisions
- Explain that legitimate offers don’t come with urgent deadlines
Teach Social Media Safety
- Be cautious when accepting friend requests
- Do not click on suspicious links, especially those shared in comments on posts
- Be aware that information you share on social media is public
Enhance Banking Security
- Choose a bank with age-friendly services and staff trained in elder fraud prevention
- Opt for in-person banking if online services are challenging
Stay Informed
- Keep up to date on local scams targeting older adults
- Review resources from trusted organizations like the Consumer Financial Protection Bureau
Create a Support Network
- Hold regular family financial meetings
- Designate multiple trusted individuals to oversee finances
For personalized support, call us at 858.492.4400 to speak with one of our Dementia Care Coaches who are here to help San Diego County residents and/or those caring for someone living in San Diego County (Spanish speakers available). Also check out our free education classes, social activities, caregiver support groups, & more.
This information was put together in collaboration with Alzheimer’s Orange County and Alzheimer’s Los Angeles.
Posted on February 5th, 2026
