Financial elder abuse is a pervasive issue, characterized by the exploitation of older adults' assets through deceit, coercion, or outright theft. This abuse often originates from individuals close to the victim, such as family members or caregivers, but increasingly, it involves online scams that prey on seniors' trust or unfamiliarity with technology. The psychological effects of financial elder abuse can be as severe as the monetary losses, leaving individuals struggling with anxiety, depression, and a diminished sense of independence.
To promote awareness and actionable solutions, the Family Service Agency hosted a virtual conference entitled “Imagine the World without Elder Abuse” on May 15, 2025, focusing on financial protection for older adults during Older Americans Month in May. The event featured Dr. Bonnie Olsen of the Keck School of Medicine of USC and Laurel Sykes, EVP and Chief Risk Officer for American Riviera Bank. Dr. Olsen spoke to strategies for supporting caregivers and suggestions for engaging with victims who may be reluctant to come forward, while Laurel offered insights into recognizing red flags for elder financial abuse and implementing protective strategies. The conference emphasized the importance of community education and collaboration, urging attendees to remain vigilant and proactive. Throughout this article, we will share key takeaways from the conference to protect yourself and loved ones from becoming victims of these horrendous crimes.
In an interagency statement published jointly by federal bank regulatory agencies in 2024, it was noted that a recent study estimates annual losses from elder financial exploitation in the U.S. at $28.3 billion. The U.S. Department of the Treasury’s 2024 National Money Laundering Risk Assessment also described elder financial exploitation as a growing money laundering threat, linked to over $3 billion in reported financial losses annually, yet experts suggest that underreporting may significantly inflate the true impact.
Cybercrime, in particular, is on the rise, and older adults are among the most vulnerable targets. According to the FBI’s 2024 Internet Crime Complaint Center (IC3) report, Americans over the age of 60 collectively reported nearly $5 billion in losses to cyber-enabled crimes. These crimes often target older adults due to perceived technological inexperience or isolation, making it crucial to understand the risks and preventative measures.
These losses are often linked to schemes like investment fraud, romance scams, and “pig butchering” scams—where criminals build emotional connections to coerce victims into transferring cryptocurrency. The financial toll is immense, but the emotional toll can be devastating. Victims often describe feelings of shame, guilt, and betrayal, with some even requiring suicide prevention interventions, as noted by the FBI’s Operation Level Up initiative launched in 2024 to address the growing issue of cryptocurrency investment fraud. According to the IC3 report, out of 4,323 victims of cryptocurrency investment fraud that were notified by Operation Level Up, 42 victims were referred to an FBI victim specialist for suicide prevention.
With losses reported by victims to the IC3 continuing to surge, one of the largest contributors to losses stems from illegal scam centers as discussed during the virtual conference. Several organized criminal groups, mostly originating from China, are operating cyber scam centers across Southeast Asia in states such as Cambodia, Laos, and Myanmar.
Another significant factor contributing to the rise in reported losses is the growing sophistication of scams, which often employ complex, multi-layered strategies involving impersonation of banks or law enforcement agencies. In fact, the FTC has cited “bank impersonation” scams as the #1 most reported scam occurring through text messages in 2022.
Victims are also targeted through text messages offering “work at home” opportunities. Once the victim responds to the text, the criminal then begins a conversation that leads to an “opportunity to invest” or a job working from home where they are asked to use their bank account to deposit checks and transfer the funds as part of a bookkeeping job, or use the funds to buy gift cards as part of a mystery shopping job.
In some cases, as noted by the FBI in a recent alert, the job involves cryptocurrency investing. Participants in the virtual conference shared personal stories about how they had also been victims of these types of crimes.
Other common fraud typologies discussed during the conference include tech support Scams or romance scams. Romance scams continue to be a devastating form of financial and emotional exploitation, often originating from unsolicited messages sent via social media or "wrong number" texts. These schemes typically involve criminals building trust and affection over time, manipulating victims into sending money through real-time payment systems or purchasing gift cards. A hallmark of such scams includes perpetrators persuading victims to lie about the purpose of their financial transactions, heightening both the financial and emotional toll.
The FBI has identified these schemes as a significant contributor to losses, with over $389 million in losses reported to the IC3 in 2024. In an innovative effort to raise awareness about these scams, the Anatomy of a Romance Scam is now available for streaming on Hulu and Disney platforms.
According to the FBI’s report, the two categories of call center fraud reported to the IC3 are tech/customer support scams and government impersonations. Tech support scams were among the top 3 largest contributors to reported losses, totaling $1,464,755,976 in 2024 alone. A video was shared during the virtual conference featuring a victim of a customer support scam produced by the Ventura County District Attorney’s office. In a subsequent meeting of the Central Coast Stop Scams Against Seniors and Vulnerable Adults group, victims and adult children of victims shared personal accounts of their experiences with these crimes, including Lynn Knox who was featured in the video. The emotional impact on victims of these financial crimes is devastating. During the meeting, Lynn expressed feeling deeply violated, likening the experience to emotional assault.
Established in 2018, the FBI also manages the IC3 Recovery Asset Team (RAT) to assist in the freezing of funds for victims of fraudulent domestic and international transactions via the “Financial Fraud Kill Chain”. Most Financial Fraud Kill Chain incidents initiated by the IC3 RAT are Business Email Compromise (BEC).
The Financial Fraud Kill Chain can also be initiated for Tech Support Fraud, Romance Scams, and Data Breaches. It is important to report quickly! Many criminals involved in business email compromise request payments in crypto or wires. The FBI’s Asset Recovery Team was able to freeze $848M in stolen cryptocurrency in 2024—but after 24-72 hours the likelihood of recovery dwindles.
While there were other types of crimes discussed during the conference, there are common trends amongst them all, including an increased sense of urgency or a warning to keep the communication “private”. Other red flags include:
Remember, banks will never ask for your credentials or one-time code sent to your phone or email.
Groups like Operation Shamrock also provide resources to support victims following a crime. Familiarize yourself with their recommended steps for filing reports to ensure you have the necessary details to facilitate an investigation, or contact the National Elder Fraud Hotline online or by phone for assistance in filing reports. Victims of financial elder fraud can also contact AARPs Helpline for assistance:
You'll first speak with a Helpline Agent who will field your call and assist with basic reports and general questions. If you need further assistance, they will put you in touch with a Fraud Specialist. This QR code can also put the hotline in your phone contacts. The following resources may also be of assistance.
Financial elder abuse stemming from cybercrime is a serious threat, but with awareness and proactive measures, older adults can protect themselves and recover from incidents. Staying informed is the first step toward empowerment.
Previous: SBA AI Insights & Resources