People with dementia are at higher risk for fraud due to cognitive decline affecting their decision-making abilities and financial judgment. As memory and thinking skills deteriorate, individuals may struggle to recognize scams or manage their finances effectively. Additionally, changes in the brain associated with Alzheimer’s disease, even before clinical symptoms appear, can increase vulnerability to financial exploitation.
Steps for Preventing Financial Fraud
Set Up Financial Safeguards
Establish durable power of attorney on key accounts
Add trusted contacts to financial accounts
Set up dual signature requirements for large withdrawals
Create daily withdrawal limits monitored by a trusted person
Update your estate plan
Simplify Financial Management
Set up automatic bill payments
Cancel unused or extra credit cards
Consolidate accounts for simplicity and easier monitoring
Monitor Financial Activity
Regularly review bank statements and credit card activity and set up alerts
Check credit reports for unexplained debts and place a security freeze to prevent any new credit accounts
Watch for signs of financial exploitation (e.g., unopened bills, unusual purchases, unexplained withdrawals)
Protect Personal Information
Never share sensitive information (Social Security #, account details) with unsolicited callers or emails
Shred or properly dispose of documents containing personal information
Use a locked file cabinet for important financial documents
Sign up for the National Do Not Call Registry
Gaining Knowledge
Utilize Community Resources
Engage with local support services for money management assistance
Connect with Alzheimer’s San Diego for financial planning guidance
Be Aware of Scams
Tech support scams
Fraudulent prizes or sweepstakes
Phony home or auto repair offers
Government impersonator scams
Romance scams: Online and mail romantic relationships with people who they have not met
Grandparent scams: Impersonating grandchildren who call in urgent need of help
Text messages from unknown numbers with links impersonating trusted sources about money
Educate and Communicate
Discuss potential fraud risks with the older adult
Encourage them to consult a trusted person before making financial decisions
Explain that legitimate offers don’t come with urgent deadlines
Teach Social Media Safety
Be cautious when accepting friend requests
Do not click on suspicious links, especially those shared in comments on posts
Be aware that information you share on social media is public
Enhance Banking Security
Choose a bank with age-friendly services and staff trained in elder fraud prevention
Opt for in-person banking if online services are challenging
Stay Informed
Keep up to date on local scams targeting older adults
Review resources from trusted organizations like the Consumer Financial Protection Bureau
Create a Support Network
Hold regular family financial meetings
Designate multiple trusted individuals to oversee finances
For personalized support, call us at 858.492.4400 to speak with one of our Dementia Care Coaches who are here to help San Diego County residents and/or those caring for someone living in San Diego County (Spanish speakers available). Also check out our free education classes, social activities, caregiver support groups, & more.
This information was put together in collaboration with Alzheimer’s Orange County and Alzheimer’s Los Angeles.
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Posted on February 5th, 2026