Elder fraud is a growing crisis, with older adults losing an estimated $40 billion (or more) annually. Today’s scammers have moved beyond simple “lottery” phone calls; they now use AI-generated voice cloning, sophisticated text phishing, and fake investment platforms to target seniors.
As a family caregiver, you are the most effective line of defense. Here are 5 updated strategies to help you protect your loved one from modern financial exploitation.
5 Updated Strategies to Help Protect Your Loved Ones from Elder Fraud: 2026 Edition
1. Watch for “Urgency” and “Secrecy” Red Flags
Modern scams, such as the Grandparent Scam and fake government agency calls (IRS/Social Security), rely on two things: urgency and secrecy.
- The Tactic: Scammers claim a loved one is in jail or a bank account is “compromised,” insisting the senior act immediately without telling anyone.
- The Defense: Teach your loved one that any request for immediate payment via wire transfer, gift cards, or cryptocurrency is a guaranteed scam. Encourage a “cooling off” period where they must call you before making any transaction over a certain amount.
2. Implement “Read-Only” Financial Monitoring
You don’t need to take over their bank accounts to protect them. Many modern financial institutions offer “View-Only” or “Inquiry-Only” access for family members.
- This allows you to see transaction history and balance alerts without having the power to spend their money.
- You can spot unusual patterns—like multiple small “test” charges or large, uncharacteristic withdrawals—before the account is drained.
3. Leverage Technology & Silence “Unknown Callers”
Phone scams remain the #1 entry point for fraud. Help your older adult set up their smartphone to act as a filter:
- Silence Unknown Callers: Both iPhone and Android have settings to automatically send calls from numbers not in the contact list to voicemail.
- Call Blocking Apps: Use services like Robokiller or Hiya to flag or block known fraudulent numbers.
- Email Filters: Ensure their email provider has strong spam filters and teach them never to click links in “urgent” emails from delivery services (like UPS/FedEx) or retailers.
4. Create a “Safe Word” for AI Voice Scams
One of the most terrifying new developments is AI Voice Cloning. With just a 30-second clip of a person’s voice from social media, scammers can “clone” a grandchild’s voice to ask for emergency money.
- Establish a family safe word: a simple, memorable word or phrase that only family members know.
- If your loved one receives a panicked call, they should ask for the safe word. If the caller can't provide it, they should hang up immediately and call the family member back on their known number.
Real-World Scenario: The 3:00 AM Crisis
Understanding how a scam feels in the moment is the best way to prepare. This common scenario shows how a “Safe Word” works in practice.
Real-World Scenario: The 3:00 AM Crisis
Understanding how a scam feels in the moment is the best way to prepare. This common scenario shows how a “Safe Word” works in practice.
“Grandma? It’s me… I’m in trouble. I was in a wreck and I need $2,000 for bail. Please don't tell Mom, she'll kill me.”
The DailyCaring Defense: Stay calm. Interrupt the caller and ask: “I’m here for you, but first—what was the name of our first family dog?”
If they can't answer your Family Safe Word, hang up immediately. Scammers use AI to mimic voices, but they can't mimic your private family memories.
5. Review the “Top Scams” Regularly
Scam tactics change seasonally. For example, Tax Season often sees a spike in IRS impersonation, while the holidays bring “package delivery” scams.
- Schedule a monthly “coffee and check-in” to discuss new scams you’ve read about.
- Use resources like Fraud.org or the NCOA to stay up to date on the latest trends, such as “Pig Butchering” (long-term investment scams) and romance scams.
Pro-Tip: If you suspect fraud has already occurred, don't wait. Contact their bank immediately and report the crime to the FBI’s Internet Crime Complaint Center (IC3) at ic3.gov.
2026 Fraud Readiness Quiz
Before you download our printable guide, take 30 seconds to test your knowledge against the latest tactics scammers are using this year.
2026 Fraud Readiness Quiz
Before you download our printable guide, take 30 seconds to test your knowledge against the latest tactics scammers are using this year.
✅ YES. AI only needs 30 seconds of audio from social media to mimic a voice perfectly.
❌ NEVER. Any request for gift cards, wire transfers, or crypto is a 100% confirmed scam.
❌ NO. These are “Smishing” links. Always check the official carrier app or website directly.
Printable “Scam Warning Sheet” for 2026
Scam Warning Sheet: 2026 Edition
A DailyCaring Safety Resource
1. THE RED FLAGS
Be wary of Urgency. If they demand gift cards, wire transfers, or crypto, it is a scam.
2. THE AI SAFE WORD
Ask for your secret Family Safe Word. If they don't know it, hang up immediately.
3. ACCOUNT SAFETY
Use “Read-Only” bank access for trusted family to spot fraud early.
Final Thoughts About Elder Fraud Due to Scams in 2026
Preventing elder fraud in 2026 requires a proactive mix of updated technology, financial transparency, and open communication. While scammers have become more sophisticated with tools like AI voice cloning, your involvement remains the most powerful defense.
By implementing these five strategies (from setting up a family “safe word” to monitoring accounts with read-only access), you are creating a vital safety net for your loved one. The goal isn't to remove their independence, but to provide the support they need to navigate an increasingly digital world safely.
Stay vigilant, keep the conversation going, and always report suspicious activity immediately to the FBI’s Internet Crime Complaint Center.
You might also like:
— Get Rid of Junk Mail to Prevent Elder Fraud
— 5 Keys to Helping Aging Parents with Finances
— How to Prevent Caregiver Theft
About the Author
Chris is a seasoned healthcare executive and entrepreneur from the Pacific Northwest. He strongly advocates for older adults and the caregivers who serve them. Chris has personal experience caring for his father, who had dementia. Chris is an avid outdoorsman; if he's not in his office, he can usually be found on a golf course or in a garden out west somewhere.
The article is very informative and if disseminated well, can help a lot of seniors.
Unfortunately a lot of senior fraud are committed by those close to them, caregivers, family members, etc. So how are seniors to be protected from these predators that live with them?
That’s a great point. It’s a sad fact, but fraud by a trusted caregiver accounts for $6.67 billion out of the total $36.48 elder fraud committed each year. A small consolation is that it’s the smallest category of elder fraud. Source: True Link Financial’s 2015 report — https://www.truelinkfinancial.com/files/True-Link-Report-on-Elder-Financial-Abuse-Executive-Summary_012815.pdf
One way to combat this is to be involved and keep an eye on hired caregivers in case there are signs that something underhanded might be going on. That’s not to say you should be suspicious of everyone, but just to keep your eyes and ears open and trust your gut. We’ve got some tips on that here — http://dailycaring.com/how-to-prevent-caregiver-theft/ and here — http://dailycaring.com/family-hired-caregiver-for-aging-parent-now-what/
Another way is for families to keep in touch with their older adult and with each other. When everyone is informed of what’s happening, it will be clear how decisions are made and where money is being spent. If the family member in charge isn’t willing to share information, try to stay close to the situation, talk with your older adult frequently, and try to get information from any other source. If you suspect something is seriously wrong, you could consult a lawyer or contact the city’s Adult Protective Services, especially if the situation seems dangerous or abusive.