Financial exploitation of older adults is one of the fastest-growing challenges families face today. Scams are getting more sophisticated, caregiving arrangements are more complex, and many seniors are relying on others to help manage their day-to-day finances. We have seen that when someone begins taking advantage—whether it’s a stranger, a caregiver, or even a family member—the damage can be devastating.
At Generations Legal Group, we feel a huge obligation to our clients to regularly help families in Northwest Arkansas investigate concerns, update legal protections, and respond when something doesn’t look right. This article explains the common warning signs, the legal tools that help reduce risk, and what families can do if they suspect a problem.
Common Forms of Financial Exploitation
Exploitation can occur in many ways. Some of the most frequent issues we see include:
• Misuse of a power of attorney
An agent may make withdrawals or transfers that are outside the scope of their authority or inconsistent with the senior’s needs.
• Caregiver or family-member financial pressure
This may look like “borrowing,” adding names to accounts, or taking control of debit cards.
• Romance and relationship scams
Fraudsters increasingly target older adults online, often building emotional trust before asking for money.
• Tech-based fraud
This includes account takeovers, phishing, impersonation scams, and remote-access schemes that allow someone into a senior’s computer or phone.
• Home-improvement or contractor schemes
Door-to-door or unsolicited repair services can result in overpayment, incomplete work, or outright theft.
Early Warning Signs Families Should Watch For
Financial exploitation usually begins subtly. Pay attention to signs such as:
- New “friends” or helpers who suddenly play a major role in your loved one’s life
- Unusual withdrawals, repeated ATM use, or unfamiliar charges
- Confusion about bills or complaints that utilities or services were unexpectedly shut off
- A sudden desire to keep financial matters secret
- Changes to beneficiary designations, deeds, or bank accounts without explanation
- A caregiver or relative speaking for the senior in all financial conversations
In our opinion, we feel that if something feels “off,” it’s worth pausing and taking a closer look.
Legal Tools That Help Protect Seniors in Arkansas
The right legal documents can provide oversight, structure, and transparency. Our team takes this job very much to heart and ensure that these are done correctly. Something you don't get from "online tools". Helpful tools include:
• A well-drafted durable power of attorney
The document should clearly define the agent’s authority and may include safeguards such as clear set ways to change the agent if needed, requirement for accounting and notice to others.
• Trust planning with accountability measures
Co-trustees or professional trustees can add checks and balances for asset management.
• Representative payees
For Social Security or VA benefits, appointing a representative payee ensures funds are used appropriately.
• Supported decision-making arrangements
For seniors who need help but do not require guardianship (which is always our goal), supported decision-making can maintain autonomy while adding structure.
As a reminder, when financial exploitation intersects with Medicaid eligibility issues, it is important to stay current on Arkansas Medicaid rules. The Medicaid gifting penalty divisor is $8,853 per month (as last provided by our firm), and these numbers typically update each April. Always verify with Arkansas DHS or contact Generations Legal Group at 479-601-4119 for guidance.
What to Do If You Suspect Financial Abuse
Taking action early can prevent further loss. Consider the following steps:
- Secure access to accounts
Update passwords, disable online access if necessary, and review recent transactions. - Monitor credit
Consider placing a security freeze or fraud alert. - Document concerns
Keep copies of statements, texts, emails, or transactions that seem unusual. - Reach out to Adult Protective Services (APS)
APS can investigate financial exploitation and connect families with resources. - Consider guardianship when appropriate
If your loved one is unable to protect themselves and exploitation is ongoing, guardianship may be necessary to safeguard assets. However, this should ONLY be the very last resort and should be considered an extreme measure. - Consult an elder law attorney
Our team of attorneys can help evaluate what is happening, recommend protective steps, and guide the family through next decisions.
How We Support Families
Generations Legal Group works with families throughout Northwest Arkansas to create protective legal structures, conduct timely reviews, and help respond when problems arise. If you have concerns about a loved one or want to strengthen your own planning, our team is here to help you understand your options.
To schedule a conversation, call us at 479-601-4119.
