Uncovering Elder Financial Abuse: Warning Signs and How Forensic Accounting Can Help
The Hidden Crisis Affecting Our Seniors
Elder financial exploitation is one of the fastest-growing—and most underreported—forms of abuse in Virginia. Seniors in the Commonwealth may be losing over $3 billion annually to scams, manipulation, and outright theft, according to The Roanoke Star, Yet for every 23 incidents, only one is ever reported.
The Alarming Rise of Elder Financial Abuse in Virginia
This is not just a national problem—it’s accelerating right here in Virginia. The Virginia Department for Aging and Rehabilitative Services (DARS) reported a 30% increase in financial exploitation cases in a single year, following a 20% rise the year before. In Henrico County alone, reports of elder abuse—including financial exploitation—have climbed from about 100 cases in 2004 to more than 700 cases annually, as reported by WTVR CBS 6
Financial exploitation often occurs alongside neglect, coercion, or isolation—and is frequently carried out by someone the victim knows and once trusted.
What Elder Financial Abuse Looks Like
Elder financial abuse refers to the unauthorized, deceptive, or coercive use of an older adult’s money, property, or assets. The damage is often hidden until until it’s too late.
Common examples include:
Taking money or property without consent
Manipulating or forging legal documents
Abusing power of attorney or guardianship authority
Scams involving fake investments or urgent “emergencies”
Theft or misuse by caregivers, relatives, or professionals
Warning Signs: What to Watch For
Elder financial abuse doesn’t always leave visible evidence. Some signs to look for:
Financial Red Flags
Sudden large withdrawals or wire transfers
Unpaid bills despite available funds
New joint accounts or unfamiliar names added to assets
Checks written to “cash” or with suspicious handwriting
Legal and Paperwork Issues
Changes to wills, trusts, or beneficiaries under questionable circumstances
Disappearance of financial statements or legal records
Confusion about recently signed documents
Social or Behavioral Changes
Fearfulness around certain people
Isolation from longtime friends or family
Sudden appearance of a new “friend” with access to finances
Unexplained anxiety when money is mentioned
How Forensic Accounting Makes a Difference
Elder abuse cases involving money are rarely clear-cut. Traditional accounting simply isn’t enough. Forensic accounting digs deeper—combining investigative skill with financial reconstruction to uncover what really happened.
A typical elder exploitation investigation includes:
Rebuilding account history to identify suspicious activity
Tracing financial transactions across multiple accounts
Examining legal documents, check images, and power of attorney actions
Comparing lifestyle or spending changes against historical patterns
Documenting findings clearly for attorneys, law enforcement, or the court
Reports are tailored to be understood by non-accountants, and visual timelines help tell the story clearly and persuasively.
Case Examples From Virginia
Colonial Heights Nursing Home Under Scrutiny
A WTVR CBS 6 investigation in April 2025 uncovered irregularities at a Colonial Heights nursing facility. The center reported an $89,000 loss, despite having posted over $8 million in profits from 2020 to 2023. Analysts cited “related party transactions” as a potential method of hiding true profits—raising questions about financial accountability and the impact on resident care.
Navy Veteran Loses $3.6 Million to Scam
Commander Larry W. Cook, a retired U.S. Navy officer from Virginia, lost more than $3.6 million in a coordinated international scam. According to PR Newswire, Navy Federal Credit Union processed dozens of wire transfers—even after flagging concerns to Adult Protective Services. Following his death, his niece filed a lawsuit alleging the bank failed to protect him. Though dismissed initially, the case was reinstated on appeal.
This case prompted new legislation in Virginia, commonly known as “Larry’s Law,” which allows financial institutions to alert a designated contact person when elder fraud is suspected.
Elder Abuse Investigation Center Opens in Central Virginia
In June 2024, Virginia Attorney General Jason Miyares announced the opening of the state’s first Elder Abuse Investigation Center. The initiative is focused on improving collaboration between law enforcement, social services, and financial professionals in addressing cases of abuse and exploitation.
What to Do if You Suspect Financial Abuse
Taking early action can prevent further harm. Here’s what to do:
Document everything – dates, amounts, and conversations
Report it – call Virginia Adult Protective Services at 888-832-3858
File online – Virginia APS Reporting Form
Contact an elder law attorney
Engage a forensic accountant for professional review and documentation
Set up protective measures – such as account alerts or restricted POA rights
Support for Families and Attorneys
Elder financial abuse cases require discretion, accuracy, and a strong evidentiary foundation. Services available through Blake Files Forensic Solutions include:
Private consultations to assess potential financial exploitation
Detailed financial analysis and account tracing
Clear written reports and visual exhibits
Expert witness support in court or mediation
Coordination with attorneys, law enforcement, and adult protective services
Each case is handled with care—because behind the spreadsheets is a person who deserves justice.
