As part of ESI’s ongoing efforts to keep you informed, we wanted to highlight the continued rise in senior financial exploitation and the important role you play in identifying and preventing it.
Older clients remain one of the most targeted groups for financial fraud. According to the FBI’s Internet Crime Complaint Center (IC3), individuals age 60 and older reported approximately $7.75 billion in losses in 2025, the highest of any age group. Overall cybercrime losses exceeded $20.8 billion in 2025, reflecting a significant increase from prior years. In comparison, seniors reported approximately $4.8–$4.9 billion in losses in 2024, representing a 43% year-over-year increase.
The most common scams include cryptocurrency and investment fraud schemes promising guaranteed returns, romance scams, impersonation scams and an increasing number of “recovery scams,” where fraudsters target victims a second time by offering to recover previously lost funds for a fee. Investment and crypto-related scams continue to account for the largest dollar losses, totaling approximately $8.6 billion in 2025 according to the FBI’s Internet Crime Complaint Center (IC3).
From a practical standpoint, there are several key red flags to be mindful of in your day-to-day interactions with clients. These include sudden or uncharacteristic withdrawals, increased interest in cryptocurrency or unfamiliar platforms, requests to send funds to third parties, heightened urgency or secrecy, and the introduction of new individuals influencing financial decisions.
As Financial Professionals, you are often the first line of defense. If something does not feel right, it is important to pause and ask additional questions. Engage the client, encourage them to verify information independently, and, when appropriate, involve a trusted contact. Most importantly, escalate concerns to Compliance promptly, do not wait for confirmation that fraud has occurred.
Please also remember the tools available, including the use of Trusted Contact Persons (FINRA Rule 4512) and the ability to place temporary holds under FINRA Rule 2165 in cases of suspected financial exploitation.
Senior exploitation is not always obvious, but timely intervention can make a significant difference. Your awareness and action can help protect clients from substantial financial loss.
If you have any questions or encounter a situation you would like to discuss, please reach out to Ben Zarzycki, CAMS – ESI Principal Compliance Analyst – AML at 802-229-3659.
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