Key facts
- Elder financial exploitation costs victims over 60 more than $28 billion annually, according to a 2023 AARP report.
- Financial fraud and abuse against seniors is typically tied to someone the victim knows.
- Pension benefit filing scams illegally charge veterans fees for services that should be free.
- Pension advance scams offer a lump sum buyout of future payments, often with hidden fees.
- Investment fraud schemes include Ponzi schemes, affinity fraud, and unsuitable annuities.
- Financial institutions report suspicious activity under the Bank Secrecy Act to help detect fraud.
Federal financial regulators are urging seniors and their caregivers to take practical steps to protect their money from increasingly sophisticated fraudsters. The FDIC and CFPB held a webinar on Wednesday as part of their "Money Smart for Older Adults" educational curriculum. Officials highlighted common threats facing seniors, including elder financial exploitation, pension benefit filing scams, pension advance scams, and investment fraud. The AARP reported in 2023 that victims over 60 lost more than $28 billion annually to financial fraud and abuse, often perpetrated by someone they know. Tips for seniors include keeping device software updated, securing home Wi-Fi, avoiding sensitive transactions on public Wi-Fi, using multifactor authentication, and being cautious of suspicious emails and pop-ups. The Bank Secrecy Act helps financial institutions report suspicious activity to detect fraud.