A growing number of financial institutions are finding themselves named in lawsuits tied to elder financial abuse, and the implications go far beyond reputational damage. In recent months, several major banks and wealth advisory firms have been accused of ignoring red flags that allowed caregivers, family members, and even internal staff to exploit aging account holders. For institutions managing this rising risk, partnering with an elder law lawyer has become more than a precaution, it’s a necessary component of compliance and loss prevention.
The data tells a compelling story. The Consumer Financial Protection Bureau (CFPB) reported a sharp increase in suspicious activity reports involving older adults, with over $3.4 billion in suspected fraud flagged in 2023 alone. Civil litigation is now following that trend, as victims or their estates seek compensation from institutions that failed to act.
When Compliance Gaps Become Legal Targets
Until recently, most elder financial abuse cases focused on the perpetrators themselves. But that’s changing. Plaintiffs’ attorneys are increasingly targeting banks and advisors for allegedly ignoring signs of undue influence, unusual transactions, or failure to follow internal protocols for vulnerable clients.
High-profile cases in California, Florida, and Illinois have drawn media attention to how easy it is for abusers to operate undetected within financial systems. Some of these lawsuits allege that advisors continued to execute large wire transfers or account changes even when a client showed signs of cognitive decline or was under clear pressure from a third party. As aging clients face more complicated legal and financial challenges, institutions that fail to adapt their protocols are more likely to face scrutiny in both court and regulatory investigations.
The Legal Safeguard Smart Firms Are Using
To reduce exposure, many banks and financial firms are now building formal partnerships with elder law attorneys. These collaborations help teams better understand fiduciary duties, reporting obligations, and how to respond when abuse is suspected.
Elder law attorneys are also being brought in to help train advisors on how to document due diligence, spot red flags, and prepare legally sound policies for serving clients over the age of 65. Some institutions are taking it a step further, offering clients optional legal wellness reviews as part of their estate or wealth planning services, especially when powers of attorney or guardianships are involved.
This preventive approach does more than protect aging clients. It also strengthens institutions’ defenses should a claim arise. Courts are increasingly asking not just what a bank knew, but what it should have known, and legal preparedness matters.
Build Partnerships That Withstand Legal Scrutiny
With elder exploitation cases on the rise and litigation gaining momentum, the need for legal-financial collaboration has never been greater. Firms that proactively address this risk are not only safeguarding their clients but also their bottom line.
If your firm is looking to deepen its resources and credibility in this area, consider listing your law office with Estate Planning Pros, a trusted hub for estate and elder law professionals. Featuring your practice among others committed to high standards can support stronger referral networks and legal partnerships. For those ready to lead the charge against elder abuse, our team offers a strategic step forward.