Lay the foundation to help protect yourself and your assets — now and in the years to come.
As we age, changes in cognitive function are common. Tasks that once felt automatic — like managing finances, remembering passwords, or evaluating whether something is “too good to be true” — can become more difficult. Even mild cognitive decline can increase vulnerability to fraud, manipulation, and financial exploitation.
According to the Federal Trade Commission (FTC), in 2024 consumers reported losing more than $12.5 billion to fraud,1 with adults over 60 reporting the highest median losses of any age group. These numbers may be even higher, as many incidents go unreported due to embarrassment, fear, or lack of awareness.
But cognitive decline doesn’t have to mean losing financial independence or security. By taking proactive steps early, you can set up protective systems that help safeguard your future and reduce the risk of becoming a target.
Spot the warning signs of a scam
Fraudsters are adept at exploiting emotion and confusion. They often create urgency, fear, or false intimacy to manipulate their victims. Some of the most common scams targeting older adults include romance scams, tech support hoaxes, government impersonation, fake sweepstakes, and “grandparent” emergencies.
Scammers frequently ask for payment in gift cards, cryptocurrency, or wire transfers — and they may pressure victims to act fast or keep the situation secret. These are all major red flags. According to the FBI’s 2023 Elder Fraud Report, tech support and investment scams were among the most financially devastating for older victims.2
Simplify and monitor your finances
As cognitive tasks become more challenging, a simpler financial landscape can help reduce mistakes and make fraud easier to detect. Consider consolidating accounts, minimizing credit cards, and setting up automatic bill payments. Opting for paperless statements with digital alerts can help you track your spending in real-time.
Most banks and credit card companies now offer free transaction alerts that notify you of unusual activity — such as large withdrawals, new payees, or purchases in distant locations. Credit monitoring services like Experian or Equifax can add another layer of protection. In more advanced cases of cognitive decline, a certified Daily Money Manager (DMM) can assist with day-to-day financial tasks.
Build a trusted financial team
One of the smartest moves you can make is to build a small team of trusted individuals who can help monitor and protect your finances. This might include adult children, close friends, a financial advisor, or an attorney who acts in your best interest. Importantly, you should consider:
- Designating a Durable Power of Attorney (POA) for financial decisions while you’re still fully competent.
- Completing Trusted Contact Forms at your financial institutions, allowing them to reach out to a named individual if they suspect fraud.
- Drafting or updating advance directives and healthcare POA so your wishes are known in the event of illness or emergency.
Waiting too long can result in missed opportunities to put these protections in place. When early planning happens, you remain in charge of the process.
Leverage technology for protection
Technology can feel overwhelming, but the right tools can serve as powerful allies. Consider:
- Using a password manager to safely store and auto-fill complex passwords.
- Installing voice-activated assistants to remind you of bill due dates or appointments.
- Activating robocall blockers on your phone or using apps to filter out spam calls.
- Exploring financial safety tools which offer real-time account monitoring and alerts for suspicious activity. These platforms can also share alerts with a trusted family member or advisor.
Stay social, stay informed
One of the strongest predictors of fraud vulnerability is social isolation. According to the National Institute on Aging, loneliness in older adults is associated with increased risk of cognitive decline — and more exposure to scams due to fewer social touchpoints.3
Stay connected. Talk openly about fraud with your friends and family. Share what you’re hearing and reading. Joining community groups, attending workshops, or engaging with fraud education resources like AARP’s Fraud Watch Network can keep you informed and confident.
Don’t be afraid to ask for help
Admitting that managing finances has become challenging can be difficult — but asking for help is a sign of strength, not weakness. If you or a loved one is experiencing cognitive changes, a primary care doctor can conduct a cognitive screening using tools like the Mini-Mental State Exam (MMSE) or the Montreal Cognitive Assessment (MoCA). Early diagnosis allows for more planning, and potentially more autonomy.
According to the Alzheimer’s Association, approximately one in nine people aged 65 and older has Alzheimer’s disease. Even more live with mild cognitive impairment.4 That’s why it’s crucial to make financial protections part of a broader conversation about aging well.
In summary
Cognitive decline doesn’t make someone incapable — it makes them more susceptible. But susceptibility is not inevitability. With foresight, transparency, and the right tools, you can help maintain financial independence and dignity even in the face of cognitive change. By simplifying finances, leveraging technology, naming trusted advocates, and staying socially engaged, you will lay the foundation to help protect yourself and your assets— now and in the years to come.
1. Federal Trade Commission. (March 2025). Consumer Sentinel Network Data Book 2024. https://www.ftc.gov/reports/consumer-sentinel-network-data-book-2024
2. Federal Bureau of Investigation. (April 30, 2024). Elder fraud, in focus. https://www.fbi.gov/news/stories/elder-fraud-in-focus
3. National Institute on Aging. (March 27, 2019). Social isolation, loneliness in older people pose health risks. https://www.nia.nih.gov/news/social-isolation-loneliness-older-people-pose-health-risks
4. Alzheimer’s Association. (2024). 2024 Alzheimer’s disease facts and figures. Alzheimer’s Association. Retrieved from https://www.alz.org/alzheimers-dementia/facts-figures
Wells Fargo & Company and its affiliates do not provide tax or legal advice. This communication cannot be relied upon to avoid tax penalties. Please consult your tax and legal advisors to determine how this information may apply to your own situation. Whether any planned tax result is realized by you depends on the specific facts of your own situation at the time your tax return is filed.
