Family Financial Exploitation

Rosca Scarlato LLC, a senior investor advocacy law firm, released an educational guide titled "Recognizing and Preventing Elder Financial Abuse" to address the growing problem of financial exploitation targeting elderly Americans, particularly Baby Boomers in retirement. The guide identifies vulnerabilities that make seniors susceptible to fraud—including substantial savings, cognitive decline, and limited investment knowledge—and provides actionable advice for seniors, caregivers, professionals, and local governments to identify red flags and implement protective safeguards.

This educational column outlines four prevalent scams targeting seniors: elder financial abuse (where trusted individuals gain unauthorized access to finances), romance scams (where online/phone relationships lead to requests for money), tech support scams (fraudulent calls claiming computer or banking problems), and bereavement scams (scammers targeting grieving family members by posing as funeral homes). The article estimates that over 10% of U.S. elderly are victimized annually and recommends protective measures including adding trusted contacts to financial accounts, establishing estate plans, verifying unexpected calls by contacting organizations directly, and reporting fraud to law enforcement.

Puerto Rico's Cossec (Cooperatives Supervision & Insurance Corp.) launched financial education initiatives to help elderly residents recognize and avoid financial exploitation, emphasizing preventive measures such as protecting personal information, monitoring account activity, and contacting credit unions directly about suspicious transactions. The organization highlighted that credit unions have protocols in place to assist vulnerable elderly populations and stressed the importance of institutions complying with Puerto Rico's 2010 regulation (amended in 2022) requiring detection and prevention procedures for elder financial abuse. Exploitation cases involving elderly adults—perpetrated by family members, caregivers, financial advisers, or scammers—can result in significant financial losses and are addressed through institution notification requirements and law enforcement

A 96-year-old California woman, Violet Evelyn Alberts, was murdered in May 2022 as part of a murder-for-hire scheme orchestrated by Pauline Macareno, who had befriended the vulnerable widow and exploited her through financial fraud, forged documents, and a fraudulent reverse mortgage scheme to gain control of her property. Four suspects were arrested in connection with the case, with Macareno sentenced to six years in prison for elder abuse and fraud, while three others face murder and conspiracy charges; authorities determined the motive was to accelerate Alberts' death to fraudulently obtain her estate. Alberts was found dead from

In May 2022, 96-year-old Violet Alberts was found dead in her Montecito, California home and ruled a homicide by asphyxiation; authorities later determined her death was part of a murder-for-hire plot following financial fraud and elder abuse. Pauline Macareno was sentenced to six years in prison for forging documents and establishing fraudulent entities to gain control of Alberts' assets, while Henry Rostomyan and Ricardo Martin Del Campo were charged with murder and conspiracy to commit murder in connection with the scheme.

Violet Evelyn Alberts, a 96-year-old California widow, was murdered in May 2022 in a murder-for-hire plot orchestrated as part of a larger financial exploitation scheme. Pauline Macareno, who befriended the vulnerable elderly woman, engaged in elder abuse and fraud by forging documents to fraudulently acquire Alberts' property through a reverse mortgage scheme, then arranged her death to accelerate gaining control of her estate. Four suspects have been arrested and charged, with Macareno sentenced to six years in prison for fraud and the other three charged with murder and conspiracy to murder.

The U.S. population of adults age 60 and older grew 33% from 2010 to 2020, yet research on fraud victimization in this demographic remains limited despite older adults losing over $36 billion annually to financial fraud. Older adults face heightened vulnerability to fraud due to cognitive decline, reduced financial literacy, social isolation, and greater trustfulness, with 34.8% of those age 50+ targeted by scams in a five-year period and 2.7-6.6% experiencing fraud annually, though actual numbers are likely higher due to significant underreporting.

AARP is endorsing the Guardianship Grant Flexibility Act, which would help states fund legal representation programs for over 1.3 million adults living under court-ordered guardianship who cannot afford attorneys. Many guardianship arrangements have involved abuse, mismanagement, and conflicts of interest, leaving vulnerable individuals without adequate legal advocacy to protect their rights regarding finances, living arrangements, medical decisions, and voting.

A 72-year-old Hialeah man was charged with exploiting his 95-year-old mother by gaining unauthorized access to her bank account and withdrawing approximately $57,000 between March and August 2024, leaving her facing eviction. The victim, a mentally sharp widow who had previously managed her finances independently, was persuaded by her son to grant him account access under the pretense of helping her. Diaz was charged with exploitation of an elderly person, grand theft, organized fraud, and misuse of a communication device, while authorities secured emergency housing for the victim.

The city of Goleta partnered with the Santa Barbara District Attorney's Office and the Greater Goleta Santa Barbara Lions Club to hold a community scam-prevention presentation called "Name that Tune, Stop that Scam!" on April 15. The program educated seniors and caregivers about current local and nationwide scams, protection strategies, and victim resources, addressing the fact that one in five seniors becomes a victim of abuse or fraud, with nearly 90% of elder abuse cases involving family members.