Federal Agencies Warn of Billions of Dollars Exploited from Older Americans
Federal agencies are sounding the alarm about the increasing financial exploitation of older Americans, urging financial institutions to step up protection measures. The Financial Crimes Enforcement Network, the Consumer Financial Protection Bureau, and the Federal Deposit Insurance Corp. have estimated that older adults are losing over $28 billion annually due to scams.
This exploitation involves the unauthorized use of an older adult’s funds, leading to devastating financial consequences. In the past year alone, there were over 155,000 reports of potential abuse linked to suspicious activities totaling more than $27 billion.
According to the FBI, “elder fraud” complaints have been on the rise, with individuals over 60 losing an average of $33,915 in 2023. These scams often revolve around deceptive investment schemes promising guaranteed returns. Other prevalent scams include business email compromise, romance scams, government impersonation, and personal data breaches.
To combat this growing threat, regulatory agencies are recommending that financial institutions increase oversight over older adults’ accounts and train employees to identify and respond to financial exploitation. In suspicious situations, institutions are advised to delay fund disbursement and designate specific employees to assist older account holders.
If suspicious activity is detected, institutions are urged to contact regulatory authorities and “elder fraud prevention and response networks” promptly. These networks help coordinate efforts among financial institutions, law enforcement, adult protective services, aging service providers, and other key partners.
Experts point out that older adults are typically targeted by strangers through fake sweepstakes, fraudulent investments, and charity scams. Additionally, relatives or caregivers may exploit older adults by misusing their money or assets for personal gain.
Warning signs of financial exploitation include unusual bank account activity, unexplained withdrawals, and unauthorized monetary transactions by relatives or caregivers. It is crucial to report suspected incidents to adult protective services or law enforcement promptly.
If an older adult is facing immediate harm, contact 911. Otherwise, filing a complaint with the local police or sheriff’s office is recommended. Work with financial institutions to recover any lost funds and check for insurance coverage that may apply. By staying vigilant and taking proactive steps, we can protect older Americans from falling victim to financial exploitation.
