Fighting Elder Financial Abuse: Legal Help for New Jersey Seniors Facing Scams and Medical Debt
Authored by: Adaneka Witter Judge
Originally published June 2, 2025. Reviewed and updated August 27, 2026.
Adaneka Witter Judge
When we picture our golden years, we imagine enjoying the rewards of a lifetime of hard work, not worrying about financial exploitation and overwhelming medical debt. Yet, for a number of older adults in New Jersey, safeguarding their finances and dignity has become a growing concern. According to national census reports, by 2030, older adults aged 60 and over are expected to make up roughly 26 percent of New Jersey’s population. With this increase, the need for awareness on how to protect New Jersey’s aging population is an urgent priority. Continue reading to learn how to recognize the signs of elder financial abuse, understand the steps to take if you or an older adult you love is affected, and explore the legal resources available to older adults in New Jersey.
What is Elder Financial Abuse
Elder financial abuse is the illegal taking or improper use of an older adult’s money or assets for the personal gain of someone else. Elder financial abuse is the fastest growing form of abuse, depriving older adults of not only their financial security, but also their independence and peace of mind. While this form of abuse is often carried out by someone the victim knows and trusts, scammers also frequently target older adults with false claims related to Social Security, the Internal Revenue Services (IRS), bank accounts, investment opportunities, or fabricated emergencies involving family members. Understanding how elder financial abuse occurs is the first step toward prevention.
Common Types of Elder Financial Abuse in New Jersey
Recognizing elder financial abuse can be difficult, especially if the abuser is someone close to the victim. There are common types of scams and warning signs that New Jersey older adults and their families should be aware of:
Misuse of a power of attorney may occur when a relative or caregiver withdraws funds for personal benefit, or the relative or caregiver coerces the older adult into transferring assets. How to protect yourself: Choose someone you trust to act within your best interest to serve as your agent. Name a trusted third party, such as an attorney or another loved one to review the agent’s actions or approve transactions over a certain dollar amount.
Scammers pretending to be representatives from utility companies or government agencies. These scammers may call, text, or email threatening to shut off your services if you do not pay them immediately. How to protect yourself: Know that real utility companies will not demand immediate payment to avoid same-day disconnection. Contact your utility company direct by calling the number on your bill or the utility company’s website. Government agencies will not call to ask for money. Never pay any demands for immediate payment by wire transfer, payment apps, or gift cards.
Unusual bank activity such as unexplained withdrawals or new joint bank accounts with unfamiliar names. How to protect yourself: Regularly review your bank statements, keep your banking information in a secure place, and immediately report any suspicious activity to your bank.
Combatting elder financial abuse requires vigilance. Recognizing these warning signs can make the difference between prevention and irreversible loss. It is crucial to maintain oversight of financial statements and legal documents, and to consult with a professional when concerns arise. Don’t ignore the red flags!
The Hidden Toll of Medical Debt That Seniors and Their Families Encounter
Medical debt is another major concern for New Jersey residents. Recent reports show that nearly 11 percent of New Jersey families have reported medical debt exceeding $10,000, despite having some form of health insurance. For seniors, gaps in Medicare coverage, high cost-sharing for certain health care services, and out-of-pocket costs can increase the risk of accruing medical debt. As a result, some seniors delay or avoid medical care altogether due to the fear of overwhelming medical debt. Adding to this crisis, about 40 percent of those dealing with medical debt reported not being aware of resources or their legal rights regarding debt collection.
In response to this crisis, New Jersey has partnered with Undue Medical Debt to increase awareness and access to financial relief. Through this partnership, nearly $1.4 billion in medical debt has been erased for roughly 53,000 residents who are either at or below 400 percent of the federal poverty line, or have medical debts that equal 5 percent or more of their annual income. New Jersey also enacted the Louisa Carman Medical Debt Relief Act, which provides New Jersey residents with protection from certain medical debt collection actions. Some of these protections include limits on a medical creditor’s ability to report a patient’s medical debt to credit reporting agencies, limits the creditor’s ability to garnish the wages of a patient with an annual income of less than 600 percent of the federal poverty level, and caps the interest rate on medical debt to no more than 3 percent.
Resources and How to Get Help If You’ve Fallen Victim to Elder Financial Abuse
Taking immediate action is essential if you suspect that you, or an older adult in your life, have fallen victim to elder financial abuse. You can report suspected abuse to an organization aimed at identifying and responding to elder financial abuse.
Adult Protective Services (APS) offices are available in every New Jersey county. APS investigates reports of financial abuse of vulnerable adults. Concerned older adults or family members can report suspected abuse anonymously.
New Jersey Division of Consumer Affairs (Division) offers education and assistance related to fraud and financial scams targeting the elderly. The Division’s Anti-Fraud Toolkit provides a variety of documents containing information to assist older adults with recognizing and avoiding scam.
Federal Trade Commission (FTC) offers education on identifying fraudulent business practices and promotes consumer protection. Older adults may contact the FTC to report suspicions of fraud or identity theft.
If a crime of theft or fraud has already been committed, contact your local law enforcement to file a report.
VLJ’s Role in Protecting New Jersey’s Seniors From Financial Abuse
At Volunteer Lawyers for Justice (VLJ), we are committed to and play an active role in supporting New Jersey’s older adults through our legal programs. For older adults seeking legal help with civil lawsuits for medical debt collection cases in the Special Civil Court, or older adults who are veterans and require assistance with a power of attorney or will, VLJ is here to help. You can apply for VLJ’s services by calling (973) 645-1955 or submitting an online application.
You are not alone and we are here to help!