Dementia and Financial Exploitation: How to Protect Your Loved One in Florida

Every week, I talk with families across Palm Beach County who are worried about a parent's memory. And more often than you'd think, the first real sign that something was wrong wasn't forgetfulness. It was money. An unpaid electric bill. A strange withdrawal. A "new friend" who suddenly needed a loan. A $5,000 purchase of gift cards that no one can explain.

After 30 years as a Registered Nurse in this county, I can tell you plainly: dementia doesn't just affect memory. It affects judgment, and scammers know it. People living with Alzheimer's and other dementias are among the most targeted victims of financial exploitation in America, and here in South Florida, we have more of them than almost anywhere else.

This guide is for families who want to get ahead of the problem. I'll explain why people with dementia are so vulnerable, the warning signs to watch for, the scams hitting Florida seniors right now, and the concrete steps you can take to protect someone you love.

Why Dementia Makes Someone a Target

Alzheimer's disease and other dementias change the parts of the brain responsible for judgment, planning, and recognizing when something doesn't add up. A person who managed money carefully for 50 years can lose the ability to spot a lie, weigh a risk, or remember that they already sent money yesterday. Often, they don't realize anything has changed.

What surprises most families is how early this starts. A large study led by Johns Hopkins researchers and published in JAMA Internal Medicine linked Medicare records with credit reports and found that people who were later diagnosed with dementia were more likely to miss bill payments as early as six years before their diagnosis. In other words, financial vulnerability often begins long before anyone says the word "dementia" out loud.

Add in the things that often come with aging (loneliness, a trusting nature, pride about asking for help, and a lifetime of savings) and you have exactly what scammers look for.

The Scale of the Problem, and Why Florida Is Ground Zero

The numbers are staggering. According to the FBI's Internet Crime Complaint Center, Americans age 60 and older filed more than 201,000 fraud complaints in 2025 and reported losses of more than $7.7 billion, a 59% jump from the year before. The average reported loss for an older victim was more than $38,000, and over 12,000 seniors lost $100,000 or more.

And those are only the cases that get reported. Many victims never tell anyone, out of embarrassment, fear of losing their independence, or because they simply don't remember what happened.

Florida is consistently among the hardest-hit states. Roughly 21% of Floridians are 65 or older, about 5 million people, and in the FBI's 2023 elder fraud report, Florida ranked second in the nation for victims over 60. Meanwhile, the Alzheimer's Association estimates that 7.4 million Americans age 65 and older are living with Alzheimer's, about 1 in 9 people in that age group. Put those facts together and South Florida becomes one of the most targeted places in the country.

Who Takes Advantage: It's Not Always Strangers

When families picture elder fraud, they usually picture a stranger on the phone. That happens constantly. But financial exploitation also comes from people the senior already knows and trusts:

• Family members who "borrow" money that's never repaid, or who misuse a power of attorney
• Paid caregivers or household help with access to checkbooks, cards, or valuables
• New "friends" or romantic interests who appear suddenly and quickly become involved in finances
• Contractors and handymen who overcharge, take deposits and disappear, or push unnecessary repairs
• Financial "advisors" selling unsuitable investments or products the person doesn't understand

Exploitation by someone close is often harder to spot, because the person with dementia may defend them, and may genuinely believe they're being helped.

The Scams Hitting South Florida Seniors Right Now

Scams evolve constantly, but these are the ones I hear about most from Palm Beach County families:

• Government impersonation: Callers claiming to be from Social Security, Medicare, the IRS, or law enforcement, threatening arrest or benefit cancellation unless money is paid immediately.
• Tech support scams: A pop-up or call warning that the computer is "infected" or the bank account is "hacked," followed by a request for remote access or payment. The FBI reports these cost older Americans more than $1 billion in 2025.
• Grandparent and "family emergency" scams: A frantic call from a "grandchild" in jail or in the hospital who needs money right away. Scammers now use artificial intelligence to clone a family member's voice from social media videos, so it can sound exactly like someone you love.
• Investment and cryptocurrency scams: Fake trading platforms and "guaranteed" returns, often ending with the senior feeding cash into a Bitcoin ATM. Investment fraud was the single biggest source of losses for older Americans in 2025.
• Romance scams: An online relationship that slowly turns into requests for money for travel, medical bills, or a "business opportunity."
• Sweepstakes and lottery scams: "You've won!" followed by fees or taxes that must be paid first.
• Home repair and storm fraud: After hurricanes and storms, door-to-door "contractors" target older homeowners with high-pressure deals, large up-front deposits, and work that never gets done.

A rule worth teaching everyone in the family: No legitimate government agency, bank, or company will ever demand payment by gift card, cryptocurrency, wire transfer, or cash handed to a courier. If anyone asks for payment that way, it is a scam, every time.

Warning Signs Families Should Never Ignore

If your loved one has dementia or you're noticing memory changes, watch for these red flags:

• Unpaid bills, late notices, or shutoff warnings, even though there's money in the account
• Unusual ATM withdrawals, wire transfers, or checks written to people you don't recognize
• Large purchases of gift cards, or trips to a cryptocurrency (Bitcoin) machine
• A new "best friend," romantic partner, or helper who is suddenly very involved
• New names added to bank accounts, credit cards, or property deeds
• Sudden changes to a will, trust, beneficiary designations, or power of attorney
• Secretive phone calls, or anxiety and fear about money that they won't explain
• Piles of sweepstakes mailings, prize notices, or unfamiliar subscriptions and charges
• Missing jewelry, cash, checks, or valuables from the home
• New credit cards or loans you didn't know about

One sign on its own may be innocent. Several together deserve a closer, calm look, and sometimes a phone call to the bank.

12 Steps to Protect a Loved One With Dementia

The most important thing I can tell families is this: start early, while your loved one can still take part in the decisions. Many of these protections require the person to have legal capacity to sign documents. Once dementia progresses, your options narrow, and some may require going to court.

1. Have the conversation now. Talk about money, wishes, and worries while your loved one can fully participate. Frame it as a plan to protect their independence, not take it away.
2. Put a durable power of attorney in place. This lets a trusted person manage finances if your loved one no longer can. Florida has specific rules: the document must be signed in front of two witnesses and a notary, and it must contain language making it "durable" so it stays valid after incapacity. Florida also no longer allows "springing" powers of attorney (ones that only take effect later), and certain powers, such as making gifts or changing beneficiaries, only apply if the person initials or signs next to each one. A Florida elder law attorney can make sure it's done right.
3. Choose the agent carefully, and build in accountability. A power of attorney is a powerful document, and misuse is one of the most common forms of exploitation. Consider requiring the agent to share regular accountings with another family member.
4. Complete a Designation of Health Care Surrogate and update the estate plan. Financial and medical decisions often go hand in hand. Review the will, any trusts, and beneficiary designations, and store copies where the family can find them.
5. Add a "trusted contact" at banks and brokerages. Most brokerage firms now ask customers to name a trusted contact person they can call if they suspect exploitation or notice signs of diminished capacity. Many banks offer something similar. It doesn't give that person access to the money; it simply gives the institution someone to call.
6. Turn on account alerts and get duplicate statements. Text or email alerts for withdrawals and large transactions let a family member spot problems within minutes, not months. Many banks also offer view-only access for a trusted family member.
7. Simplify their financial life. Consolidate accounts, set up automatic bill payments, and consider a debit card with a low daily limit for everyday spending. Fewer moving parts means fewer openings for mistakes and fraud.
8. Freeze their credit. A credit freeze at all three bureaus (Equifax, Experian, and TransUnion) is free and stops criminals from opening new accounts in your loved one's name. The FTC explains how on its credit freeze page.
9. Cut off the scammers' access. Register their phone numbers on the National Do Not Call Registry, turn on call blocking with their phone carrier, opt out of prescreened credit offers at OptOutPrescreen.com, and consider having mail reviewed by a family member.
10. Create a family "safe word." Because AI can now imitate voices, agree on a private word or question that any family member in a real emergency would know. If a caller can't answer it, hang up and call that family member directly.
11. Vet everyone who comes into the home. Use licensed agencies or run background checks on private caregivers, never give household help access to checkbooks or cards, and lock up or remove jewelry and valuables. Keep a simple inventory with photos.
12. Stay connected. Isolation is one of the biggest risk factors for exploitation. Scammers thrive when no one else is checking in. Regular calls, visits, and a set routine for reviewing mail and statements together make a real difference.

For families managing a loved one's money, the Consumer Financial Protection Bureau publishes free, plain-English guides called Managing Someone Else's Money, written specifically for powers of attorney, trustees, and guardians.

What to Do If You Suspect Exploitation

If you believe your loved one is being exploited, act quickly. Money sent by wire or cryptocurrency can disappear within hours.

1. If someone is in immediate danger, call 911.
2. Call the bank or financial institution's fraud department right away. Ask them to stop pending transactions, attempt a recall of any wires, and flag the account.
3. Report it to the Florida Abuse Hotline: 1-800-96-ABUSE (1-800-962-2873), available 24/7, or report online for non-emergencies. Florida Adult Protective Services investigates exploitation of vulnerable adults, and Florida law requires anyone who knows or suspects abuse, neglect, or exploitation of a vulnerable adult to report it.
4. File a report with the FBI at IC3.gov for any online or phone scam, no matter the amount, and with the FTC at ReportFraud.ftc.gov.
5. Call the U.S. Department of Justice National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311) for help reporting and next steps.
6. Contact the Florida Attorney General's Fraud Hotline: 1-866-966-7226.
7. File a report with local law enforcement, such as the Palm Beach County Sheriff's Office or your city police department.

One more warning: after a scam, victims are often targeted again by "recovery" scammers who promise to get the money back for a fee. Legitimate agencies never charge to recover stolen funds.

Palm Beach County Resources for Families

• Florida Abuse Hotline (Adult Protective Services): 1-800-962-2873
• Area Agency on Aging of Palm Beach/Treasure Coast Elder Helpline: 1-866-684-5885 (aaapbtc.org), for caregiver support, elder law resources, and Alzheimer's services
• Florida Department of Elder Affairs: Elder protection programs and fraud alerts
• DOJ National Elder Fraud Hotline: 1-833-372-8311
• Florida Attorney General Fraud Hotline: 1-866-966-7226

When Living Alone Is No Longer Safe

Sometimes, despite everyone's best efforts, the risks keep adding up: the calls, the mail, the new "friends," the missed bills, and the moments of confusion. For many families, that's the point when they realize their loved one needs more than a safer bank account. They need people around them every day.

In a small residential care home, the people caring for your loved one know them well. At Amazing Grace, we keep a 1:3 caregiver-to-resident ratio, so the changes that signal trouble (a new worry, a strange phone call, a shift in mood or behavior) are noticed by people who see your loved one every single day, and shared with the family. And as a Registered Nurse, I personally oversee every resident's care plan.

If you're worried about a parent's safety, finances, or memory, I'm happy to talk it through with you. It's a free consultation, and you'll be speaking with a nurse, not a salesperson. If another option fits your family better, I'll tell you that too.

Call Debbie Lytle, RN, directly: (561) 818-5790, or schedule a private tour at any of our six Palm Beach County homes. You may also find our guide to assisted living costs in West Palm Beach helpful as you plan ahead.

This article is for general educational purposes and is not legal or financial advice. For powers of attorney, estate planning, or guardianship questions, please consult a Florida elder law attorney.

Amazing Grace Assisted Living: RN-owned residential care homes in West Palm Beach, Lake Clarke Shores, Palm Beach Gardens, and Wellington, FL. Licensed by the Florida Agency for Health Care Administration.