June 15 is World Elder Abuse Awareness Day. A form of elder abuse increasing rapidly is financial fraud. In 2024, older Americans lost $2.4 billion to scams. The FBI received over 147,000 complaints from individuals age 60+ being scammed.
Fraudsters target elderly because they have more money in savings, home equity, and better credit. The top products and schemes involving these victims were digital assets, relationship scams, stocks/equities and social media fraud.
The highest losses from scams happen on social media. Many victims are lured into investment or fraudulent cryptocurrency platforms. Wisconsin adults age 60+ suffered $26 million in cryptocurrency-related losses.
AI-Enhanced Deception is a newer tactic. AI can clone a grandchild’s voice to make a plea for emergency bail money appear authentic. Scammers also pose as government agencies (IRS, Medicare, FTC) claiming elders owe money, or tech service reps or phony businesses selling a fraudulent or unneeded service. Tech support scams cost adults age 60+ over $150 million annually.
Relationship scams are another form of financial fraud commonly used to target older adults.
To avoid being scammed, add a trusted contact to investment accounts, establish family code words to verify identities during urgent calls, and remain alert to red flags of financial fraud.
When facing pressure to turn over funds quickly, pause to consider your options. If you feel an emotional need to follow through, that is a huge red flag. Stop, think it through, validate through reliable sources, and listen to your brain. Bounce it off a trusted friend if you can’t separate your emotions from the decision.
If you fall for a financial scam, report it to local law enforcement immediately, especially if you have sent money already. Inform the Wisconsin Elder Abuse hotline at 833-586-0107. The faster you act, the more likely something can be done.
