At WE Trust Company in Seattle, we see undue influence and financial exploitation far too often. Both are serious threats to vulnerable adults, especially seniors, but they are not the same thing.
Undue influence is a tactic. It’s when someone manipulates a vulnerable person. Financial exploitation can be an outcome—the unauthorized use of a person’s money or property for someone else’s benefit. The two often overlap, but understanding the difference is key to prevention.
So how do we safeguard seniors while respecting their rights and dignity? Let’s start by looking at what exploitation can look like.
What Does Financial Exploitation of a Senior Look Like?
Financial exploitation takes many forms:
- Scams: Imposter scams (like the “grandchild in distress”), lottery scams, or home repair frauds. We once had a client who lost nearly $500,000 to Jamaican lottery scammers before we became involved. Another client was convinced to mail cash wrapped in aluminum foil to “protect her computer from hackers.”
- Identity theft: Sometimes it’s an online stranger, but just as often it’s closer to home—like an adult child quietly using a parent’s credit card without permission.
- Theft and abuse of authority: Forging signatures, stealing valuables, or misusing a Power of Attorney.
These cases, though devastating, are often very easy to recognize after the fact. But the murkier and more dangerous issue we face as fiduciaries is undue influence.
Jane’s Story: A Lesson in Undue Influence
Let me share a story (with details changed for privacy).
Jane was an 87-year-old retired schoolteacher, fiercely independent, sharp, and proud of her frugality. She built her life on a modest income and wise investments and, by the time I met her, had a net worth of $4 million.
When her attorney introduced us, Jane had recently moved into a retirement community and was just starting to notice her memory slipping. She wisely appointed WE Trust as her Attorney in Fact under a Durable Power of Attorney (DPOA).
Not long after, I noticed repeated payments in her checkbook to someone named Florence. Florence had started out helping Jane with errands and groceries, but soon she was spending long hours with her – cooking, driving, even bathing her. Jane insisted Florence was a dear friend, but I began to see some red flags.
Jane wanted to give Florence her brand-new car. Later, she wanted to give her $20,000, despite never having given gifts of that size to anyone before.
As fiduciaries, we had to walk a fine line. If we pushed too hard, Jane might have revoked the DPOA and handed full control to Florence. Instead, we slowed the impulse to give, collaborated with Jane’s attorney to develop a comprehensive plan, and carefully navigated a tricky relationship.
Ultimately, Jane gave Florence her car and later made a modest one-time cash gift. Jane’s attorney also added a codicil to Jane’s will to provide a generous bequest to Florence upon her passing. This protected Jane’s wishes, preserved her dignity, and honored Jane and Florence’s true friendship and connection without draining Jane’s resources during her lifetime.
When Jane passed at age 91, Florence – who had indeed cared for her until the end – received her gift as intended.
Lessons Learned
Jane’s story illustrates several important lessons:
- Undue influence can be interrupted. It doesn’t always have to lead to full exploitation.
- Love and vulnerability often overlap. Relationships can be genuine and still carry risks of exploitation.
- Collaboration is powerful. A unified team of attorneys, fiduciaries, care managers, and family can safeguard someone far better than one person alone.
- Tools matter, even gentle ones. A Durable Power of Attorney is not the strongest legal safeguard, but in this case it was enough
At the heart of this work is balance – protecting people without stripping them of agency. Safeguarding seniors isn’t about saying “no” to every risky or seemingly rash decision. It’s about slowing things down, asking the right questions, and surrounding vulnerable individuals with a strong fabric of community, legal tools, and ethical guidance.
Financial exploitation thrives in isolation, fear, and shame. But it melts away when trusted advisors, family, and professionals stand together to protect dignity while honoring independence.
That’s what safeguarding looks like.