Are your finances at risk? New tools aim to stop financial fraud before it happens
- Replies 0
Financial fraud targeting older Americans is a growing crisis—one that’s quietly siphoning away billions of dollars from the most vulnerable citizens every year.
If you or someone you love is over 60, you know the digital world can be both a blessing and a minefield.
The good news? There’s a new line of defense on the horizon, and it’s designed to help banks, credit unions, and YOU keep seniors’ hard-earned money safe.
The Alarming Rise of Elder Financial Exploitation
First, the numbers: In 2023 alone, Americans aged 60 and older reported over 101,000 cases of financial scams, losing a staggering $3.4 billion.
That’s an average loss of nearly $34,000 per victim, according to the FBI’s Internet Crime Complaint Center (IC3). And the problem is only getting worse—complaints jumped 14% in just one year, with losses up 11%.
Why the spike? As more seniors embrace online banking, digital payments, and mobile apps, scammers are getting bolder and more sophisticated.
They use everything from phishing emails and fake tech support calls to romance scams and fraudulent investment pitches. Sometimes, the threat even comes from someone the victim knows and trusts.
Nacha Steps Up: New Tools for a New Era
Recognizing the urgency, Nacha—the organization that oversees the ACH Network (the backbone of electronic payments in the US)—has updated its toolkit to help financial institutions fight back.
Their Payments Innovation Alliance, through the Consumer Financial Exploitation Project Team, has rolled out two key resources:
1. An Eye-Opening Infographic
This isn’t just a pretty picture. It’s packed with up-to-date statistics and facts about elder financial exploitation, making it easier for banks, credit unions, and community groups to educate the public.
Knowledge is power, and the more we know about how these scams work, the better we can spot them.
2. A Practical Checklist for Financial Institutions
The Elder Financial Exploitation Awareness Financial Institution Checklist is a step-by-step guide for banks and credit unions. It helps them identify red flags, respond quickly to suspected fraud, and support customers who may have been targeted. Elder financial exploitation usually includes fraud that targets people aged 55 years and older, and is done through deception, intimidation, undue influence, or breach of fiduciary duty.
These resources were released in honor of World Elder Abuse Awareness Day (June 15), a global event created by the United Nations to shine a light on the many forms of elder abuse—including financial exploitation.
Also read: Is your personal information being misused? How stolen identities are costing taxpayers billions
What Does Elder Financial Exploitation Look Like?
It’s not always a shadowy hacker in a faraway land. Sometimes, it’s a trusted caregiver, a family member, or a persuasive stranger. The tactics can include:
- Deception: Fake charities, bogus sweepstakes, or 'urgent' calls from someone pretending to be a grandchild in trouble.
- Intimidation: Threats of arrest, lawsuits, or loss of benefits unless money is sent immediately.
- Undue Influence: Manipulating someone into changing their will, signing over property, or granting access to bank accounts.
- Breach of Trust: Misusing power of attorney or stealing funds meant for care.
Also read: Cancer-stricken senior targeted in alleged fraud; local woman faces charges
Why This Matters Now More Than Ever
America’s senior population is booming—73 million people aged 65 and older, the highest in history.
As Mary Gilmeister, CEO of PaymentsFirst and co-leader of Nacha’s project team, puts it, “By equipping financial institutions with these resources, we aim to strengthen their ability to safeguard their account holders and provide critical support to those affected by fraud.”
In December, five federal financial regulatory agencies—along with the Financial Crimes Enforcement Network (FinCEN) and state financial regulators—issued a joint statement highlighting examples of risk management strategies and other practices that banks, credit unions, and similar institutions can adopt to detect, prevent, and address elder financial exploitation.
Read next: Senior scammed out of $435K—protect your savings now!
Have you or someone you know been targeted by a scam? What steps do you take to stay safe online? Do you have tips or questions about protecting your finances in retirement? Share your stories, advice, or concerns in the comments below!
If you or someone you love is over 60, you know the digital world can be both a blessing and a minefield.
The good news? There’s a new line of defense on the horizon, and it’s designed to help banks, credit unions, and YOU keep seniors’ hard-earned money safe.
The Alarming Rise of Elder Financial Exploitation
First, the numbers: In 2023 alone, Americans aged 60 and older reported over 101,000 cases of financial scams, losing a staggering $3.4 billion.
That’s an average loss of nearly $34,000 per victim, according to the FBI’s Internet Crime Complaint Center (IC3). And the problem is only getting worse—complaints jumped 14% in just one year, with losses up 11%.
Why the spike? As more seniors embrace online banking, digital payments, and mobile apps, scammers are getting bolder and more sophisticated.
They use everything from phishing emails and fake tech support calls to romance scams and fraudulent investment pitches. Sometimes, the threat even comes from someone the victim knows and trusts.
Nacha’s Payments Innovation Alliance has updated its tools to help financial institutions protect older Americans from financial fraud, releasing new resources like an infographic and an awareness checklist. Image source: Linoleum Creative Collective / Unsplash.
Nacha Steps Up: New Tools for a New Era
Recognizing the urgency, Nacha—the organization that oversees the ACH Network (the backbone of electronic payments in the US)—has updated its toolkit to help financial institutions fight back.
Their Payments Innovation Alliance, through the Consumer Financial Exploitation Project Team, has rolled out two key resources:
1. An Eye-Opening Infographic
This isn’t just a pretty picture. It’s packed with up-to-date statistics and facts about elder financial exploitation, making it easier for banks, credit unions, and community groups to educate the public.
Knowledge is power, and the more we know about how these scams work, the better we can spot them.
2. A Practical Checklist for Financial Institutions
The Elder Financial Exploitation Awareness Financial Institution Checklist is a step-by-step guide for banks and credit unions. It helps them identify red flags, respond quickly to suspected fraud, and support customers who may have been targeted. Elder financial exploitation usually includes fraud that targets people aged 55 years and older, and is done through deception, intimidation, undue influence, or breach of fiduciary duty.
These resources were released in honor of World Elder Abuse Awareness Day (June 15), a global event created by the United Nations to shine a light on the many forms of elder abuse—including financial exploitation.
Also read: Is your personal information being misused? How stolen identities are costing taxpayers billions
What Does Elder Financial Exploitation Look Like?
It’s not always a shadowy hacker in a faraway land. Sometimes, it’s a trusted caregiver, a family member, or a persuasive stranger. The tactics can include:
- Deception: Fake charities, bogus sweepstakes, or 'urgent' calls from someone pretending to be a grandchild in trouble.
- Intimidation: Threats of arrest, lawsuits, or loss of benefits unless money is sent immediately.
- Undue Influence: Manipulating someone into changing their will, signing over property, or granting access to bank accounts.
- Breach of Trust: Misusing power of attorney or stealing funds meant for care.
Also read: Cancer-stricken senior targeted in alleged fraud; local woman faces charges
Why This Matters Now More Than Ever
America’s senior population is booming—73 million people aged 65 and older, the highest in history.
As Mary Gilmeister, CEO of PaymentsFirst and co-leader of Nacha’s project team, puts it, “By equipping financial institutions with these resources, we aim to strengthen their ability to safeguard their account holders and provide critical support to those affected by fraud.”
In December, five federal financial regulatory agencies—along with the Financial Crimes Enforcement Network (FinCEN) and state financial regulators—issued a joint statement highlighting examples of risk management strategies and other practices that banks, credit unions, and similar institutions can adopt to detect, prevent, and address elder financial exploitation.
Read next: Senior scammed out of $435K—protect your savings now!
Have you or someone you know been targeted by a scam? What steps do you take to stay safe online? Do you have tips or questions about protecting your finances in retirement? Share your stories, advice, or concerns in the comments below!
