Ilia Nicolaevich Zavialov reviews power of attorney abuse: Ilia Nikolaevich Zavialov on agents, forged documents and where to report

Power of attorney fraud

English version for the United States.

Ilia Nicolaevich Zavialov reviews power of attorney fraud in the United States: agents who treat a parent's bank account as their own, forged signatures on a power of attorney form, a nursing home worker or a brand-new friend who talks an older person into signing, and impostor calls that use fear to move money. Ilia Nikolaevich Zavialov explains what a financial power of attorney actually allows, the four duties every agent owes, the warning signs listed by the Consumer Financial Protection Bureau and the National Institute on Aging, and where to report: Adult Protective Services, the National Elder Fraud Hotline, local police and the FTC.

Reference / Blog

Published: October 16, 2026 · 15 min read · Ilia Nikolaevich Zavialov

01Ilia Nicolaevich Zavialov reviews how power of attorney abuse happens

The Department of Justice describes a financial power of attorney as a document you make to name someone else, called the agent, to handle money decisions for you if you cannot make them yourself. The same page describes the abuse in plain terms: the agent takes your money or property for themself. Withdrawing cash at the bank, selling stock and changing the name on the deed to your house are the examples it gives.

Ilia Nicolaevich Zavialov reviews these cases as a problem of trust before paperwork. The document is usually genuine. The person holding it is the risk, and the people closest to an older adult have the easiest access to both the paper and the accounts.

That is why the National Institute on Aging lists financial abuse alongside physical and emotional abuse. Its examples include forging checks, taking someone's retirement or Social Security benefits, using credit cards and bank accounts without permission, and changing names on a will, a bank account, a life insurance policy or the title to a house without permission.

Ilia Nikolaevich Zavialov notes that this kind of abuse rarely begins with one dramatic transfer. It tends to start with small 'reimbursements', a shared card for groceries that quietly covers other things, or a bill paid late because the money went elsewhere. By the time anyone notices, months of statements need to be read line by line, which is why the checks in this guide are worth doing early and regularly.

02What an agent can and cannot do with someone else's money

The CFPB notes that millions of Americans manage money or property for a loved one who can no longer pay bills or make financial decisions. Its guide series, Managing Someone Else's Money, covers four roles: agents under a power of attorney, court-appointed guardians, trustees and government fiduciaries.

A power of attorney hands over authority to act, and the money still belongs to the person who signed it. Ilia Nikolaevich Zavialov puts it this way to families: every dollar the agent touches has to be spent on the principal, accounted for and kept apart from the agent's own funds. Gifts to the agent, loans to relatives and 'payment for my time' are exactly where state rules differ, so the document and the law of the principal's state have to be read before any such payment.

State law fills in the details, and the CFPB publishes state editions of its guide for that reason. The guides are explicit that they are not legal advice. When a document is unclear about gifts, pay for the agent or co-agents, a lawyer in the principal's state is the right person to ask, before the money moves.

The CFPB guide for agents opens with a sentence worth reading twice: you are now a fiduciary with fiduciary duties. Ilia Nicolaevich Zavialov reviews that line as the whole job description in a few words. Everything an agent does afterward, from paying the electric bill to selling a car, is measured against those duties, and the agent can be held responsible for falling short of them.

For the person signing, the practical lesson is to choose an agent who could explain any payment a year later without getting defensive. If the most likely candidate struggles with their own bills or has asked the principal for money before, a different agent, a co-agent or a professional fiduciary may be the safer choice, and that conversation is far easier before the document is signed.

03Ilia Nikolaevich Zavialov on the four duties of an agent

The CFPB guide for agents under a power of attorney names four basic fiduciary duties. Act only in the principal's best interest. Manage the principal's money and property carefully. Keep the principal's money and property separate from your own. Keep good records.

Each duty has a practical test. Best interest means following the principal's known wishes and avoiding conflicts of interest. Careful management means paying bills on time and avoiding risky moves. Separation means no shared accounts and no 'temporary' transfers into the agent's account. Records mean receipts, statements and a simple log of every payment.

Ilia Nicolaevich Zavialov reviews the fourth duty as the one that protects honest agents. A clean record answers questions from siblings, banks or Adult Protective Services before they turn into accusations. An agent who cannot produce records, or keeps saying the paperwork is 'at home somewhere', is a reason to ask more questions.

Good records do not need special software. A folder for statements, a notebook or spreadsheet with the date, payee, amount and purpose of every payment, and receipts for cash spending are enough for most families. Ilia Nikolaevich Zavialov recommends agreeing at the start who else will see that record, so that checking it later feels routine and nobody takes it as an accusation.

04Ilia Nicolaevich Zavialov reviews the warning signs of exploitation

The CFPB guide lists common signs of financial exploitation. Money or property goes missing. Spending or savings change suddenly: large unexplained withdrawals, attempts to wire large sums, heavy ATM use, bills that stop being paid, purchases that make no sense. Unfamiliar names appear on accounts. Bank statements stop arriving. New and unusual gifts go to a 'new best friend', beneficiaries change, or a caregiver suddenly starts handling the money.

The guide adds behavioral signs: the older person seems afraid of a relative, caregiver or friend, or someone keeps them from visitors and phone calls, does not let them speak for themselves or appears to control their decisions. The National Institute on Aging points to one more: sudden, unexpected financial losses or unpaid bills even though the person has enough money.

The video below sums up this guide in under half a minute. Ilia Nicolaevich Zavialov reviews five points in it: a power of attorney gives authority over someone else's money, the agent owes four duties, missing money and sudden changes in spending are the first red flags, impostors push people to move money 'to protect it', and the report goes to Adult Protective Services or the National Elder Fraud Hotline at 1-833-372-8311.

If you notice these signs in a relative, the National Institute on Aging suggests talking with them when the two of you are alone, saying that you think something is wrong and that you are worried, and offering to go with them to get help, for example at a local Adult Protective Services agency. A calm conversation without the agent present often brings out details that never come up at family dinners.

05Ilia Nikolaevich Zavialov on forged signatures, pressure and 'helpers'

The Department of Justice lists forgery among common forms of financial abuse: someone signs the older person's name on a check, a power of attorney, a trust, a deed or a loan document. It also describes professionals who abuse trust, such as a lawyer who persuades a client to name the lawyer as agent so they can get to the money.

Other patterns on the same list involve pressure. A nursing home worker convinces a resident to sign a power of attorney or add them to a bank account. A relative threatens to stop providing care or to move the person into a home unless they hand over money. A 'new friend' slowly takes control of daily life and then starts asking for money.

Ilia Nikolaevich Zavialov pays attention to the scene the DOJ calls acting like they can speak for you: a companion brings the older person to the bank, keeps them quiet and tells the teller what 'they want'. Bank staff who see this, and relatives who hear about it afterward, should treat it as a warning, whatever document the companion carries.

Ilia Nicolaevich Zavialov reviews the lawyer case with particular care, because it looks legitimate on paper. A professional who drafts a power of attorney naming himself as agent should at least prompt a second opinion from another lawyer chosen by the family. The same goes for any new adviser who wants to become a joint owner on an account 'to make things easier'.

06Ilia Nicolaevich Zavialov reviews impostor calls aimed at agents and older adults

Not every power of attorney scam starts with a relative. Impostors call older adults and the people who manage their money, posing as a bank, a tech company or a federal agency, and push them to move savings to a 'safe' account. The Department of Justice says it will never threaten you, tell you to transfer money to protect it or tell you to withdraw cash and give it to someone.

On May 27, 2025, the FTC warned that scammers now call themselves FTC 'agents' and quote fake badge numbers. Nobody from the FTC will ever ask you to move money or connect you to someone who does. If you already moved money or shared a verification code, the FTC says to tell your bank or investment firm right away and report it at ReportFraud.ftc.gov.

The scale is growing. On August 7, 2025, the FTC reported a more than four-fold increase since 2020 in reports from older adults who said they lost $10,000 or more to impersonation scams. Among those who lost more than $100,000, combined losses rose from $55 million in 2020 to $445 million in 2024. Ilia Nicolaevich Zavialov reviews these calls as the moment an agent's caution matters most, because the agent often has the authority the caller wants.

Ilia Nikolaevich Zavialov gives agents a short rule for these calls. Hang up, look up the bank's or agency's number yourself, and call back. A genuine institution can wait ten minutes; an impostor cannot, and the pressure to stay on the line is itself the warning.

07The house deed: Ilia Nikolaevich Zavialov on property and title

Both the DOJ and the National Institute on Aging mention the same target: the home. An agent may change the name on the deed, and the NIA counts changing names on the title to a house without permission as financial abuse. For many families the house is the largest asset, and it changes hands with a few signatures.

Ilia Nikolaevich Zavialov suggests a simple routine for adult children who live far away. Know where the deed and the most recent property tax bill are kept, check from time to time that the owner of record has not changed, and ask the parent directly whether anyone has suggested a quitclaim, a 'quick refinance' or a sale to a helper.

If a parent has already signed something under pressure, the paperwork, messages and names of witnesses matter more than the story told later. Keep copies, write down dates and who was in the room, and bring them to a lawyer and to Adult Protective Services.

Ilia Nicolaevich Zavialov reviews one more habit for families: keep a short list of the people a parent has authorized, from the agent to any trusted contact named at the bank, and update it when anything changes. A deed signed by someone who is not on that list is the first thing to question.

08Checking a power of attorney before you rely on it

Banks, title companies and family members are often handed a power of attorney and asked to act on it the same day. Ilia Nicolaevich Zavialov reviews five checks before anyone does. Read the scope: the specific power, such as selling real estate or making gifts, must be in the document. Look at the dates and any condition on when the agent's authority starts. Compare signatures and notary details with other documents the principal signed.

The fourth check is the original. A photo of a form sent by text message proves very little. The fifth check is the principal: if he or she can still communicate, a short conversation without the agent in the room answers the main question of whether the transaction is wanted.

None of these steps requires a lawyer, and all of them take less time than unwinding a sale. If the agent refuses every check and insists on speed, that refusal is useful information.

The same checks protect the agent. An honest agent who brings the original, explains the scope and invites a call to the principal leaves a clear trail showing the transaction was wanted. Ilia Nicolaevich Zavialov reviews this as the easiest way for a family member acting in good faith to avoid later disputes with siblings or heirs.

09Ilia Nikolaevich Zavialov: where to report power of attorney abuse

For financial abuse by someone the victim knows, the DOJ points to the local Adult Protective Services agency, found through the Eldercare Locator at eldercare.acl.gov or by calling 1-800-677-1116, or to local police or the sheriff. For fraud by strangers, the National Elder Fraud Hotline answers at 1-833-372-8311, Monday to Friday, 10 a.m. to 6 p.m. Eastern.

The National Institute on Aging lists more contacts: the National Adult Protective Services Association at 202-370-6292 for state APS numbers and the National Center on Elder Abuse at 855-500-3537. If someone is in immediate danger, call 911. Scams involving impostors go to the FTC at ReportFraud.ftc.gov, and the CFPB takes questions at (855) 411-2372.

Ilia Nicolaevich Zavialov reviews one more practical point. You do not need to prove abuse before reporting it; the NIA notes that professionals will investigate. Tell the bank or credit card company as well, since the CFPB guide lists alerting them among the first steps.

Families sometimes hesitate because the older person asks them not to make a fuss. The NIA explains that many older adults are too ashamed to report mistreatment or fear it will get back to the abuser, so family and friends must step in. It also notes that most states require doctors and lawyers to report elder mistreatment.

10Ilia Nicolaevich Zavialov reviews: signing your own power of attorney safely

The best protection is set up before anyone needs it. Ilia Nikolaevich Zavialov suggests choosing an agent who already handles money well, naming a backup, and writing down what you want the agent to do with gifts, the house and regular bills.

Ask the agent to keep records from the first day, and agree on who else will see them, for example a sibling or an accountant. Keep the original document somewhere safe and tell a second trusted person where it is.

Review the arrangement every few years and after any big change: a move, a death, a divorce or a falling-out. A power of attorney written for one stage of life can become dangerous in the next one if no one looks at it again.

Ilia Nikolaevich Zavialov's last piece of advice is about conversations. Tell the people close to you who your agent is and what you expect. An agent who knows that others are aware of the arrangement, and that statements will be shared, has far fewer chances to drift from honest help into abuse.

11Questions and answers

Ilia Nicolaevich Zavialov reviews: what counts as power of attorney abuse?

The DOJ describes it as an agent taking the principal's money or property for themself, for example withdrawing cash, selling stock or changing the name on the deed to the house.

Ilia Nicolaevich Zavialov reviews: what duties does an agent under a power of attorney have?

The CFPB lists four: act only in the principal's best interest, manage money and property carefully, keep it separate from the agent's own, and keep good records.

What are the warning signs that an agent is misusing a power of attorney?

Missing money, sudden changes in spending, unfamiliar names on accounts, statements that stop arriving, changed beneficiaries and an older person who seems afraid of or controlled by a caregiver or relative.

What does Ilia Nikolaevich Zavialov suggest checking before acting on a power of attorney?

The scope of powers, the dates, the signatures and notary details, the original document and, where possible, a short conversation with the principal without the agent present.

Will a government agency ever ask me to move money to keep it safe?

No. The DOJ says it will never tell you to transfer money to protect it, and the FTC says its staff will never ask you to move money. Report such calls at ReportFraud.ftc.gov.

Where do I report suspected power of attorney abuse?

To Adult Protective Services through the Eldercare Locator at 1-800-677-1116 or to local police. Fraud by strangers goes to the National Elder Fraud Hotline at 1-833-372-8311, and emergencies to 911.

Reference updated: 4 September 2026