Common Elder Financial Abuse Scams in California: How to Recognize and Stop Them

by Michael Hackard

Publication Date November 2, 2026 in Elder Financial Abuse

Elder Financial Abuse Is a Growing Crisis

I am Michael Hackard, founder of Hackard Law, and over my five decades of practice I have fought for heirs, beneficiaries, and elder abuse victims across California  –  from Sacramento to the San Francisco Bay Area and Los Angeles. I have written four published books on inheritance protection, and our firm has produced more than 1,000 educational videos that have reached over seven million viewers. I share all of this not to impress, but to make one thing clear: elder financial abuse is not a rare or isolated problem. It is a silent epidemic, and I have spent my career working to stop it.

Research from the National Adult Protective Services Association estimates that 1 in 20 seniors have reported elder financial abuse in the recent past. The economic damage runs anywhere from $3 billion to $36 billion per year. As the senior population in California and across the country continues to grow, so does the threat posed by those who prey on the elderly.

Hackard Law provides contingency fee representation for qualified elder financial abuse cases  –  no upfront costs to you. If you believe a loved one has been targeted, call us today at (916) 313-3030.

Quick Summary

Elder financial exploitation takes many shapes and forms, from telephone scams to investment fraud, and California seniors are targeted daily. The best protection a family can have is knowing the warning signs early.

• The grandmother scam involves conning seniors into wiring money to someone impersonating a grandchild in trouble.
• The most commonly reported scams include email phishing, phony lotteries, and telemarketing fraud.
• Seniors may gradually lose their wealth over months or years to investment fraud and identity theft.
• Legal intervention early on can stop continued abuse and assist in recovering stolen assets.
• Detection and prevention involve families, neighbors, and financial professionals.

The Grandparent Scam and Why It Works

The grandparent scam is one of the most emotionally manipulative scams targeted at elders. A caller will start off with, “Grandma?” and wait for the elder to provide a grandchild’s name. Then the fraudster pretends to be that grandchild, saying they are in jail or stuck overseas or some other dire situation. They request an emergency wire transfer and typically plead with the senior to not disclose other family members.

The reason this fraud works is because it uses affection and haste at the same time. Seniors receiving these calls are not stupid; they are purposefully influenced by someone who has researched how to provoke a protective reflex. Once that money is transmitted, it’s very much gone for good.

Families can aid by adopting a simple code word or check-in process with their senior relatives. If a grandchild should ever call in distress, the senior should hang up and call the grandchild directly on a known number before sending anything.

Case pattern: Loss due to grandparent wire transfer

In California, an 80-something woman got a panicked phone call from someone who said he was her grandson and was in jail overseas and required a series of wire transfers right away. She wired a few thousand dollars till a neighbor talked her into calling her grandson. He didn’t know that the calls had been made. This pattern – hurry, secrecy, and wire transfers – is one that families and attorneys immediately identify as a hallmark of financial exploitation.

Email Scams, Phishing, and Identity Theft

Email scams have been around for decades, and they’re not disappearing. The economics are simple: It costs a fraudster essentially nothing to send millions of spam messages, and a little response rate yields victims. Older people who are less comfortable with internet communication are particularly vulnerable.

Phishing emails are designed to look like they are coming from banks, government institutions, and insurance firms. They invite recipients to check account details, open a link, or download a file. Nigerian prince-style frauds promise you a fortune for a tiny upfront payment or your personal details. Spoofing methods go one step further, making it appear as if the email came from a trusted friend, family member or coworker.

Often, the end purpose is identity theft. Scammers using a senior’s Social Security number, bank account information or Medicare information can open credit lines, deplete accounts and do financial damage that can take years to untangle. Families should help their elderly relatives set up spam filters, avoid clicking on strange websites and check any request for personal information by calling the agency directly.

Investment Fraud and Telemarketing Schemes

Investment fraud is a particularly damaging form of elder financial exploitation because the losses can be enormous and the schemes are often sophisticated. Ponzi schemes, pyramid marketing programs, and abuses by licensed brokers and investment advisers all fall under this category. Seniors who have accumulated retirement savings over a lifetime are natural targets.

Telemarketing fraud compounds the problem. Slick callers pitch penny stocks, dubious oil and gas holdings, foreign currency exchange, real estate ventures, and even movie productions  –  all with the promise of life-changing returns. Lonely or isolated seniors are especially vulnerable to high-pressure sales tactics delivered over the phone. Fake charity calls are also common, with callers impersonating well-known nonprofits to solicit donations that go straight into a fraudster’s pocket.

Families concerned about a loved one’s investment accounts should check any adviser’s background through FINRA’s BrokerCheck. A second opinion from a trusted financial professional is always worthwhile. California law also provides civil remedies for elder financial abuse, including double damages and attorney fee recovery in qualifying cases.

Case Pattern: Investment Account Depletion

An elderly man in California who had dealt with the same broker for years was approached by someone new who pushed him to invest right away. For months, he moved a large portion of his retirement assets into accounts he couldn’t monitor. By the time his grown children realized unaccounted-for withdrawals, the losses were significant. The family’s recovery effort centered on early legal action and a forensic assessment of account records.

Sweepstakes Fraud and Fake Prize Scams

Fake sweepstakes, lotteries, and raffle schemes are among the most widespread forms of fraud targeting seniors. The pitch arrives by flashy mailer, phone call, or spam email: you have won a fabulous prize, and all you need to do to claim it is pay a small tax, shipping fee, or processing charge. The amounts seem reasonable at first  –  $50, $100  –  but the requests keep coming.

In many cases, the scammer also asks for a Social Security number or bank account information to “process” the winnings. There are no winnings. The entire operation is designed to extract money and personal data. Seniors who fall for the initial pitch are often targeted again and again by the same network, or their names are sold to other fraudsters.

The rule is simple: no legitimate lottery or sweepstakes requires a payment to claim a prize. If a senior receives one of these solicitations, the right response is to discard it and tell a family member.

What California Law Offers Victims and Their Families

California has some of the strongest elder financial abuse protections in the country. Under the Elder Abuse and Dependent Adult Civil Protection Act, victims and their families may be entitled to double damages, attorney fee recovery, and the return of wrongfully transferred assets. These remedies exist precisely because the financial toll grows quickly and the fracture these crimes cause within families often runs too deep for any judgment to fully mend.

Hackard Law litigates elder financial abuse cases throughout California, including matters involving early intervention in estate transfers where abuse is discovered before assets are fully dissipated. Acting quickly matters. The longer exploitation continues, the harder recovery becomes.

For decades, I have stood with families who discovered too late that someone they trusted had been systematically stealing from an elderly loved one. Discovery, forensic account analysis, and the pursuit of justice are not just legal strategies  –  they are safeguards for families threatened by greed and deception. A steadfast commitment to truth restores what dishonesty tried to steal. You can learn more about guarding against elder financial abuse in California trust and estate matters on our firm’s resource pages.

Key Definitions

• Elder financial abuse: The illegal or improper use of a senior’s funds, property, or assets, whether by a stranger, caregiver, family member, or professional.
• Phishing: A fraudulent attempt to obtain sensitive information by posing as a trustworthy entity in electronic communications.
• Grandparent scam: A telephone fraud in which a caller impersonates a grandchild in distress to solicit emergency wire transfers from a senior.
• Ponzi scheme: A fraudulent investment operation that pays returns to earlier investors using money from newer investors rather than from legitimate profits.
• Spoofing: The practice of disguising a communication’s origin to make it appear to come from a known or trusted source.
• Telemarketing fraud: Unsolicited phone-based schemes that pressure seniors into making payments or disclosing personal information under false pretenses.
• Sweepstakes fraud: A scam in which victims are told they have won a prize but must pay fees or provide personal data to claim it.
• Identity theft: The unauthorized use of a person’s personal information to commit fraud or access financial accounts.
• BrokerCheck: A free online tool provided by FINRA that allows consumers to research the background and credentials of financial advisers and firms.
• Civil remedies: Legal relief available to elder abuse victims under California law, which may include double damages, attorney fees, and asset recovery.

What to Do Next

• Be on the lookout for abrupt changes in a senior’s bank accounts such inexplicable withdrawals or new recurring charges.
• If your loved one appears to be confused about their money, obtain recent bank and investment statements.
• Try to prevent an older person from making major financial decisions alone, especially if they are being pressured by someone they don’t know.
• Look for signs of social isolation, which fraudsters deliberately cultivate to reduce the chance of detection.
• Get copies of any suspicious mailings, emails, or phone records that document a potential scam attempt.
• Try to avoid dismissing a senior’s account of a suspicious contact  –  take every report seriously and follow up.
• Look for a financial adviser’s background on FINRA’s BrokerCheck before trusting anyone with a senior’s retirement assets.
• Get copies of any trust or estate documents if you suspect financial exploitation has affected an inheritance or estate transfer.
• Learn more about four types of elder financial exploitation patterns that attorneys recognize in California cases.
• Call Hackard Law at (916) 313-3030 to discuss your situation with our team, or visit our contact page to schedule a free consultation.

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