It started when an alert broker called to let Alan Sims know that $3,360 was being withdrawn weekly from his 103-year-old friend’s brokerage account. Turns out that a live-in caretaker was padding her hourly wages, writing checks of varying amounts that could have pushed her annual salary to more than $165,000 a year.

Sims, executor of his elderly friend’s estate, and her attorney had to step in and confront the caregiver, who was immediately fired.

“It was devastating,” said Sims, recalling the events eight years later. “Not only the amount of money that was taken, but the trust that was broken.”

Sadly, it’s not unusual. Every year, thousands of examples of financial abuse of the elderly occur, often at the hands of friends, family or caregivers. In 2010, the annual amount of losses due to financial exploitation of seniors was estimated at $2.9 billion, according to a study by the MetLife Mature Market Institute and the National Committee for the Prevention of Elder Abuse.

“Unfortunately, it’s a lot more common than we like to think,” said Marylou Robken, a Carmichael, Calif., CPA who has worked as a forensic investigator on dozens of elderly abuse cases in the past 15 years. “So many elderly people are isolated, and they may not even know that something’s wrong.”

Certainly, financial exploitation of seniors is nothing new. In recent years, local, state and national organizations have attacked the problem on numerous fronts, encouraging more awareness, better reporting and stiffer penalties.

Plenty of older Americans are more than capable of handling their own affairs and value their independence. But for many, “admitting that we can no longer manage our financial affairs can be as traumatic as having to give up driving,” noted Eleanor Blayney, consumer advocate for the Certified Financial Planner Board in Washington, D.C.

• Getting help: An estimated 50 million-plus U.S. residents are 62 and older. As cognitive abilities fade or health issues intervene, it’s a given that many of us will be – or already are – picking up the financial reins for aging parents, family, friends or neighbors.

That role is what’s known as being a fiduciary, someone who puts another person’s best interests above their own. It takes many forms. It could be a daughter who has power of attorney for financial or medical decisions on a parent’s behalf. It could be a trusted friend who’s the designated receiver of veterans’ or Social Security benefits for someone unable to do banking. It could be the trustee named to manage assets in a person’s living trust.

• Keep good records: Fiduciaries are expected to act in the other person’s best interest, manage the finances carefully and maintain good records.

Keep a detailed list or a file of all money you receive or spend. Include the date, amount and purpose of checks paid or deposited, as well as names of people/companies involved. Keep receipts and notes, even for small expenses. For example, write on the receipt: “$50, groceries, AllBrands Grocery Store, May 2.”

After Sims was given power of attorney for the financial affairs of his 103-year-old friend, for instance, he maintained a written journal and took meticulous notes of every financial transaction he made on her behalf. Also, checkbooks and other financial documents were safely put away where they weren’t accessible to caregivers.

• Avoid conflicts: No matter what kind of fiduciary role you’re taking, it’s imperative to keep the senior’s money separate from your own, the Consumer Financial Protection Bureau says. For instance, it might be OK to buy a car with the senior’s funds to drive to doctors’ appointments or to do banking, but if you’re using the vehicle mainly for personal use, that could be a conflict of interest.

• Get signed up: No matter our age, all of us should designate someone to act on our behalf, in the event we’re incapacitated due to illness or other impairments.

• Report financial abuse: According to the board’s survey, only 5 percent of seniors report financial abuse, either due to embarrassment, fear of naming the perpetrator or uncertainty about exactly what occurred.