Elder Financial Exploitation: Loans and Cards in an Older Relative’s Name

Published by the Modern Lending Solutions editorial team. Last reviewed: October 30, 2026.

Short answer: if a loan, credit card or withdrawal shows up in an older relative’s name and they did not agree to it, or they were pushed into it, treat it as possible financial exploitation. Write down what you see, help them contact the bank or lender, and report it. The National Elder Fraud Hotline at 833-372-8311 and the Eldercare Locator at 1-800-677-1116 can help you find local help. A federal law, the Senior Safe Act, protects trained bank and credit union staff who report suspected exploitation of a person 65 or older to the right agencies. This is general information, not legal or financial advice.

What financial exploitation means

The Senior Safe Act defines exploitation as “the fraudulent or otherwise illegal, unauthorized, or improper act or process of an individual, including a caregiver or a fiduciary” that uses an older person’s resources “for monetary or personal benefit, profit, or gain”, or that results in depriving the person “of rightful access to or use of benefits, resources, belongings, or assets” (12 U.S.C. 3423(a)(1)(G), GovInfo, read October 30, 2026). In that law a senior citizen is “an individual who is not younger than 65 years of age” (3423(a)(1)(N)). A loan or card opened in someone’s name without their consent, or one they signed under pressure for someone else’s benefit, can fit this description.

Warning signs the CFPB lists

The CFPB lists these signs that a friend, neighbor or family member may be a victim (CFPB, last reviewed September 5, 2025, read October 30, 2026; this page may be out of date):

Money is missing from the person’s account, or the person says money or property is missing.
The person is afraid, or seems afraid, of a relative, caregiver or friend.
Someone keeps the person from visitors or phone calls, does not let them speak for themselves, or seems to control their decisions.
Sudden changes in spending or savings, such as withdrawals without explanation, wiring large amounts, heavy ATM use, or bills that stop being paid.
Names the person cannot explain are added to bank or other accounts.
Account statements or bills stop arriving.
New or unusual gifts, for example to a “new best friend”, or changes to beneficiaries.
A caregiver, friend or relative starts handling the person’s money.

For a loan or card, also look at the person’s credit reports for accounts they do not recognize. See a loan taken out in your name for how to dispute them.

If a loan or card was opened without consent

When an account was opened by someone else, the steps are the ones for identity theft: report it to the lender’s fraud department, dispute it with the credit bureaus, and keep copies of everything. Our guide on a loan taken out in your name walks through them. A credit freeze stops new lenders from seeing the person’s report, which can block new accounts in their name.

If money was taken with a power of attorney the person never signed

The CFPB says a bank or credit union may have honored a forged power of attorney, and whether the bank is liable depends on the power of attorney law where the person lives and the facts (CFPB, last reviewed August 22, 2024; this page may be out of date). Its steps:

Contact the branch manager at once, report that the person did not sign the power of attorney, and ask the bank to return the missing money to the account.
Ask bank staff to take a sample of the person’s signature and have it notarized.
Report the unauthorized withdrawal to the bank’s fraud department to prevent more theft.
Report the theft to local law enforcement, and tell the bank you are doing so.

You can also talk to a lawyer about the bank’s liability. For money taken through a debit card or electronic transfer, see lost or stolen debit card liability for the reporting deadlines.

If the person was pressured to borrow or cosign

A loan the person signed is harder to undo than one opened by a stranger. Keep notes of who asked for the money, when and how, and keep any messages. Before the person signs anything else for someone, read the risks of cosigning a loan: a cosigner owes the debt if the borrower does not pay. Get advice from a legal aid office or a lawyer about the law where the person lives.

What the Senior Safe Act does

The Senior Safe Act (Pub. L. 115-174, section 303, May 24, 2018, codified at 12 U.S.C. 3423) gives immunity from suit, “including in any civil or administrative proceeding”, to a trained individual who discloses “the suspected exploitation of a senior citizen” to a covered agency, if the disclosure is made “in good faith” and “with reasonable care” (3423(a)(2)(A)). The individual must serve as a supervisor or in a compliance or legal function at a covered financial institution, or be a registered representative, investment adviser representative or insurance producer affiliated with one. The institution is also protected for that disclosure if the staff described in the law were trained before it (3423(a)(2)(B)).

Term	What the law includes
Covered financial institution	A credit union, depository institution, investment adviser, broker-dealer, insurance company, insurance agency or transfer agent (3423(a)(1)(D))
Covered agency	Financial regulators, including the federal agencies on the Financial Institutions Examination Council and the SEC, a law enforcement agency, or the agency that runs adult protective services where the person lives (3423(a)(1)(C))
Training	How to identify and report suspected exploitation, privacy, and fit for the job (3423(b)(2)(A))

The law protects staff who report; its text does not require them to report, and it does not stop a transaction by itself. That is why a report from a family member or friend still matters.

Where to report and get help

National Elder Fraud Hotline, run by the U.S. Department of Justice: 833-372-8311 (833-FRAUD-11), Monday to Friday, 10:00 a.m. to 6:00 p.m. eastern time, with English, Spanish and other languages (Office for Victims of Crime, read October 30, 2026). The hotline warns that scammers have posed as its staff; it says not to give a Social Security number or money in response to such calls.
Eldercare Locator, a public service of the Administration for Community Living: 1-800-677-1116, to find services for older adults (ACL). Ask how to reach adult protective services where the person lives.
Local law enforcement, for theft or forgery.
The CFPB, if a bank, lender or card issuer does not fix a problem: consumerfinance.gov/complaint or (855) 411-2372. See how to file a loan complaint.

Ways to protect an older relative ahead of time

The CFPB describes options for someone who wants help with money (CFPB, last reviewed June 27, 2023; this page may be out of date):

Informal help: a friend or relative reviews the bills, but the person still signs and no one else can make transactions.
A convenience or agency account: a helper can deposit and withdraw, but the money stays the person’s. The CFPB warns the helper could withdraw money for their own use.
A trusted contact person: the institution can contact them if it sees signs of exploitation; they get no access to the money.
A power of attorney: an agent can handle banking. The CFPB says to think carefully first, since an agent could withdraw money without permission.

The CFPB’s resources for older adults collect more guides on fraud, trusted contacts and planning for illness (CFPB, page last modified March 10, 2026).

Questions to ask the bank or lender

Which accounts or loans were opened or changed in the person’s name, when, and with what documents?
Can you put a hold or alert on the account while this is reviewed?
Can the person add a trusted contact to this account?
How do I send you a fraud report, and what will you need from us?

Checklist

Watch for the signs the CFPB lists, and check credit reports for unknown accounts.
Dispute accounts opened without consent, and think about a credit freeze.
Forged power of attorney: branch manager, fraud department, police.
Report to the National Elder Fraud Hotline (833-372-8311) and ask about adult protective services.
Set up protections, such as a trusted contact, before they are needed.

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Sources

Disclosure: Modern Lending Solutions is not a lender, loan broker or agent for any lender or loan broker, and does not make credit decisions. Any compensation we receive is paid by participating lenders, only for advertising services. This guide is general information, not financial or legal advice.

Elder Financial Exploitation: When Someone Borrows in an Older Person’s Name