Elder financial exploitation is more than just a fraud issue — it’s a pressing public health and consumer protection challenge. As the population ages and digital channels become more prevalent, older adults are increasingly targeted by scammers and abusers,
often with greater frequency and success.

From romance scams to trusted caregivers abusing their authority, elder fraud manifests in many forms. What unites these diverse schemes is the profound damage they inflict — not only in financial terms but also in diminished independence, shattered trust,
and loss of peace of mind.

Financial institutions often serve as the first — and sometimes only — line of defense against elder financial exploitation. Recognizing the warning signs and responding swiftly can prevent vulnerable customers from losing their savings, homes, or financial
security.

What Financial Institutions Can Do

Regulatory guidance has evolved to better support financial institutions in protecting vulnerable customers. Clear advisories encourage the filing of SARs when elder exploitation is suspected, even if the elder’s behavior seems voluntary.

Importantly, privacy laws generally do not prevent institutions from reporting suspected abuse. Legal protections are in place, such as legislation that grants immunity to staff who report concerns in good faith, ensuring they can act without fear of liability.

Many states have enacted laws allowing or requiring financial institutions to temporarily freeze transactions when elder exploitation is suspected. Coupled with real-time monitoring tools and frontline staff training, these measures give institutions the
flexibility to pause suspicious activities, investigate further, and intervene to safeguard the elder’s assets

Understanding the Scope of the Problem

Recent analyses reveal alarming statistics: in a single year, financial institutions filed over 155,000 Suspicious Activity Reports (SARs) related to suspected elder financial exploitation, flagging approximately $27 billion in potentially illicit activity.
However, these figures likely represent only a fraction of the true scale, as many cases remain unreported due to shame, fear, or confusion.

The majority of reported cases involve scams by strangers — impostors posing as romantic interests, tech support personnel, lottery officials, or desperate family members. The remaining cases often involve exploitation by someone the victim knows, such as
adult children, caregivers, or acquaintances who manipulate access to accounts, forge checks, or coerce elders into harmful financial decisions.

Human and Financial Consequences

The impact of elder exploitation extends beyond financial loss. Victims can experience lasting trauma, increased dependence on social services, and a significant loss of autonomy. Some never fully recover financially, while others develop deep mistrust toward
financial institutions and withdraw from managing their finances altogether.

Certain financial products are particularly vulnerable to exploitation, including:

· Wire transfers — often initiated under false pretenses like romance or grandparent scams.

· Debit accounts — where scammers pressure victims to withdraw cash or purchase gift cards.

· Investments and savings accounts — especially when access is granted to third parties through joint accounts or power of attorney.

Because these transactions can appear legitimate or authorized, detecting exploitation requires contextual awareness and vigilance.

Challenges in Detecting Elder Fraud

One of the most significant hurdles in combating elder financial exploitation is distinguishing between legitimate financial decisions and those made under duress or manipulation. For example, a senior might make a risky investment or gift a large sum to
a family member, which could be suspicious if made under pressure but seem normal if voluntary.

Other challenges include:

· Victim reluctance — elders may feel ashamed or unaware they’ve been scammed and may try to hide unusual transactions.

· Caregiver control — in cases involving family or caregivers, victims might feel compelled to stay silent or might not fully understand their rights.

· Scammer techniques — fraudsters often coach victims on what to say at financial institutions, instructing them to claim funds are for home repairs or emergencies.

Behavioral cues are as crucial as transaction patterns. For instance, an elder who suddenly defers to a companion, appears nervous, or withdraws funds under vague pretenses may be under coercion.

Building a Culture of Vigilance and Compassion

Addressing elder financial exploitation requires a concerted effort from financial institutions, regulators, caregivers, and communities alike. By fostering a culture of vigilance, staff training, and ethical responsibility, institutions can create an environment
where suspicions are promptly identified and acted upon without delay.

Equally important is empowering older adults through education and awareness. Informing seniors about common scams, warning signs, and their rights can help strengthen their defenses and encourage proactive communication.

Ultimately, safeguarding our elders’ financial well-being is not just about protecting assets—it’s about preserving dignity, independence, and trust. As financial institutions continue to innovate and collaborate, they play a vital role in ensuring that
older adults can enjoy their retirement years with security and confidence, free from the fear of exploitation.

Together, through vigilance, compassion, and decisive action, we can make significant strides in combating elder financial exploitation and building safer communities for all generations.