Learn

Personal Resource Center
Back

Elder Financial Abuse Is on the Rise: Trending Frauds and Resources

June 15 marked World Elder Abuse Awareness Day (WEAAD), which recognizes any act that causes harm to an older person and is carried out by someone they know and trust, such as a family member or friend. One of the worst forms of abuse can be financial, where elders fall victim to scams or fraud. Read on to learn more. 

The cost of financial crimes against older Americans is on the rise. Between 2021 and 2022, total losses among financial fraud victims 60 and older reported to the FBI increased by 84%.1

Are criminals targeting seniors more? Or are there just more seniors to target? As fraudsters' methods become increasingly advanced and more Americans will turn 65 in 2024 than at any point in history, it seems likely that both are contributing factors.2

Fortunately, governmental efforts and resources available to individuals and families to prevent elder financial fraud are also on the rise. Here's a close look at what's driving this particularly heinous type of fraud, what's being done to curb it and how older Americans can protect themselves.


Behind the Elder Financial Fraud Data

The National Cybersecurity Alliance (NCA) made headlines recently with a study that indicated Baby Boomers were less likely to fall for certain cybercrimes than Gen Z or Millennial respondents.3 But according to the Department of Justice (DOJ), underreporting of financial fraud is higher among older adults.4 The U.S. Attorney General's 2023 report to Congress on elder fraud asserted, "We know that the vast majority of elder abuse cases go unreported and that their victims remain unseen."5

The more technologically advanced a fraud is, the more vulnerable older people may be as well, though data can lag on emerging crimes. Many news reports have shared anecdotes about AI-voice scams targeting grandparents, for example.6,7 However, a U.S. Senate request to the Federal Trade Commission (FTC) to assess the prevalence of AI-related scams targeting seniors only occurred in late 2023.8 No timetable has been set yet.


Types of Rising Elder Financial Fraud

Additionally, the NCA study measured only reporting of online dating, phishing and identity theft. According to the FBI, the types of elder crime having the most impact include:


Investment Scams

The number of investment scams reported to the FBI by victims older than 60 years of age skyrocketed from 1,062 in 2020 to 4,661 in 2022.1 As if that wasn't dramatic enough, the total losses increased by more than 900%, with $990,235,119 reported stolen in 2022. This fraud is often presented to victims as a low-risk investment with surefire returns, including advanced fee frauds, Ponzi and pyramid schemes, real estate investing scams and more.9


Tech Support Scams

Tech support scams, in which a criminal poses as a customer service agent in order to collect payments or gain remote access to a victim's computer or financial accounts, jumped from 9,429 reports in 2020 to 17,810 in 2022. Losses increased more than 400%, with $587,831,698 reported lost in 2022.1


Cryptocurrency/Cryptocurrency Wallet

Though the number of older Americans falling prey to cryptocurrency scams didn't increase much between 2020 and 2022, the losses certainly did. Victims 60 and older reported losing a combined total of $55,056,901 in 2020 — and an incredible $1,088,330,051 in 2022.1


Confidence/Romance

Going beyond online dating, confidence/romance scams involve a fraudster striking up a relationship with a victim under a false identity on any number of digital channels, building trust and then leveraging that relationship for financial gain. More than 7,000 victims 60 years and older reported falling victim to this crime in 2022, losing a total of $419,768,142 — an almost 50% increase from 2022.1


Government Impersonation

This relatively less common crime against older victims is notable for its sudden growth, with losses increasing nearly 200% from 2020 to 2022.1 In this scam, a fraudster pretends to be a government agency in order to collect money from victims.


Protective Actions Underway

The 2023 congressional report from the U.S. Attorney General had a clear message: The DOJ is taking elder fraud and abuse seriously and is taking action.5 Between July 1, 2022 and June 30, 2023, the DOJ the department pursued nearly 300 criminal and civil actions against over 650 defendants responsible for more than $1.5 billion in losses from over 2.4 million victims.

Magnifying glass icon
Between 2021 and 2022, total losses among financial fraud victims 60 and older reported to the FBI increased by 84%.

These enforcement actions were part of the DOJ's Elder Justice Initiative, which also includes support for older victims, enhanced state and local justice efforts and raising public awareness about elder abuse and financial fraud.10


Elder Fraud Resources

Whether or not Americans 60 and older consider themselves elders, there's plenty individuals can do to protect themselves, as well as actions their family members can take to prevent financial fraud and abuse against their loved ones.

Elder Fraud Prevention Education:

  • Educational resources: Both the DOJ and the FTC have publicly accessible educational resources on elder abuse for individual use or to use in community presentations.11,12
  • The National Clearinghouse on Abuse in Later Life (NCALL) This nonprofit provides educational resources for senior citizens who have experienced all kinds of abuse.13
  • Consumer Financial Protection Bureau's (CFPB's) Preventing Elder Financial Abuse Guide: This guide is designed for the family and friends of seniors living in nursing homes and assisted living communities.14

Elder Fraud Reporting Resources:

  • DOJ's Financial Exploitation Guide: Through stories and a series of questions, users can identify if they have experienced financial exploitation and how to report it.15
  • DOJ's National Elder Fraud Hotline: Call 1-833-FRAUD-11 for non-life-threatening emergencies related to elder fraud and abuse.16

Supportive Services for Victims of Elder Fraud:

Just as they've changed every other aspect of society and culture, aging Baby Boomers are sharply increasing the number of seniors in the U.S., placing new focus on the long-running issue of elder financial fraud. As cybercrime and other types of financial fraud continue to evolve and more seniors become increasingly reliant on technology, the risk will only continue to increase. But with the right resources and awareness older consumers and their loved ones can help prevent elder financial fraud and lessen the impact when it occurs.

Important disclosure information

Asset allocation and diversifications do not ensure against loss. This content is general in nature and does not constitute legal, tax, accounting, financial or investment advice. You are encouraged to consult with competent legal, tax, accounting, financial or investment professionals based on your specific circumstances. We do not make any warranties as to accuracy or completeness of this information, do not endorse any third-party companies, products, or services described here, and take no liability for your use of this information.

  1. Internet Crime Complaint Center, "Elder Fraud Report 2022," Federal Bureau of Investigation, accessed April 26, 2024. Back
  2. Clare Ansberry, "America Has Never Had So Many 65-Year-Olds. They’re Redefining the Milestone." The Wall Street Journal, published February 6, 2024, accessed April 26, 2024. Back
  3. National Cybersecurity Alliance, "Oh, Behave! The Annual Cybersecurity Attitudes and Behaviors Report 2023," published October 2, 2023, accessed April 26, 2024. Back
  4. Rachel E. Morgan and Susannah N. Tapp, "Examining Financial Fraud Against Older Adults," U.S. Department of Justice, National Institute of Justice, published March 20, 2024, accessed April 26, 2024. Back
  5. Office of the Attorney General, "Annual Report to Congress on Department of Justice Activities to Combat Elder Fraud and Abuse," U.S. Department of Justice, published October 18, 2023, accessed April 26, 2024. Back
  6. Melissa Mecija, "AI voice scheme nearly tricks San Diego woman in high-tech “grandparent scam" ABC 10 News San Diego, published November 07, 2023, accessed April 26, 2024. Back
  7. Federal Communications Commission, "'Grandparent' Scams Get More Sophisticated," published February 1, 2024, accessed April 26, 2024. Back
  8. United States Senators Robert P. Casey, Jr., Richard Blumenthal, Kirsten Gillibrand, John Fetterman, Letter to The Honorable Lina M. Khan Chair Federal Trade Commission, published December 5, 2023, accessed April 26, 2024. Back
  9. Office of the Comptroller of the Currency, "Types of Consumer Fraud," accessed May 6, 2024. Back
  10. U.S. Department of Justice, "Elder Justice Initiative (EJI)," accessed April 26, 2024. Back
  11. U.S. Department of Justice, "Get Involved, Get Safe Community Presentations," accessed April 26, 2024. Back
  12. Consumer Advice, "Grandkid and Family Scams," Federal Trade Commission, accessed April 26, 2024. Back
  13. National Clearinghouse on Abuse in Later Life, "Resources," accessed April 26, 2024. Back
  14. Consumer Financial Protection Bureau, "Preventing elder financial abuse: Guide for family and friends of people living in nursing homes and assisted living communities," published November 2021, accessed April 26, 2024. Back
  15. U.S. Department of Justice, "Financial Exploitation," accessed April 26, 2024. Back
  16. U.S. Department of Justice, "Find Help or Report Abuse," accessed April 26, 2024. Back
  17. U.S. Department of Justice, "Elder Justice Neighborhood Resources," accessed April 26, 2024. Back
  18. Office for Victims of Crime, "Directory of Crime Victim Services," U.S. Department of Justice, accessed April 26, 2024. Back
  19. The National Academy of Elder Law Attorneys, "Find a Lawyer," accessed April 26, 2024. Back