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Financial First Aid for Elder Fraud Victims: Helping Your Senior Overcome an Economic Crime

Financial scams targeting seniors are becoming more common and harder to recognize. The Federal Trade Commission (FTC)1 reported that, in 2022, older people (60-plus) reported losing more than $1.6 billion to fraud. This is a significant increase from the $1 billion lost by older adults the previous year.

In 2022, two of the most damaging scams involved fraudsters pretending to be from companies like Amazon or engaging in fake online romances. Seniors also were over six times more likely to report losing money to scams that offered to fix their computers compared to younger people.1

The FTC also found that older adults lost around $404 million to investment scams in 2022. Many of these scams promised large returns on cryptocurrency investments and targeted seniors on social media.1 Criminals now use AI-generated voices to commit phone scams, too.

If a senior you know has fallen victim to a financial scam, you might wonder how to help them recover. This guide offers financial first aid with steps to address their immediate financial issues and support their emotional recovery. 


Why Seniors Are Often Targets of Financial Fraud

Scammers look for people who have a lot to lose but are easy to trick. They understand that the seniors might have a lot of savings and valuables they collected from many years of hard work. But seniors may also have age-related changes in the brain that can affect memory and decision-making, making them prime targets for scams. Not being comfortable or familiar with digital tools also makes them easier marks for fraudsters.

Scammers also count on the fact that older individuals are usually more courteous and less inclined to hang up on a caller. That's especially true if they think they're reaching out about a grandchild2 or another relative who needs help.


How to Help a Senior Targeted by Financial Fraud

When a senior is tricked by a financial scam, the impact goes beyond just losing money. It breaks their trust and can hurt them emotionally. Here are some useful tips on how you can help them get through this tough time.


Understand and Support Them

Before talking to your loved one about the scam, it's important to be in the right mindset. You want them to share everything about what happened so you can help them recover, both emotionally and financially. Approach them calmly, show that you understand and believe their story and reassure them that they did nothing wrong — the criminals did.

Thank them for having the courage to tell you what happened and reassure them you're there to support them. Show your interest by asking questions that don't have a simple “yes" or “no" answer to learn more about how the scammer tricked them.

Avoid blaming or accusing them of being at fault for the scam, since they're likely worried about losing their independence. Making them feel judged might scare them into thinking you want to limit their freedom.

Also, try not to call them “vulnerable," "elderly" or "victim," since these terms might make them feel weak or embarrassed. Make sure they know being scammed doesn't mean they're not smart or capable. Tell them they don't have to be nice to people who try to trick them out of their money and it's OK to ignore scammers' future attempts to contact them. To soften it more, explain that scams and fraud can happen to anyone, of any age. 


Take Immediate Steps to Reduce Harm

Quickly take action to lessen the financial damage. Involve your senior in the process as much as possible but be ready to handle things if they're overwhelmed. Start by encouraging them to change their passwords and check their credit reports for signs of fraud. After they've done both these things, get them enrolled in identity fraud or protection programs

Shield with dollar sign icon
Certain rules let seniors 65 and older and those with cognitive issues block unauthorized transactions or withdrawals from financial accounts.

When you've completed the steps above, here are some other things you can do to help protect your older adult from further harm.

  • Report it to the police immediately after you hear about it. This is especially if the fraudsters made threats of any kind to your senior.
  • Contact bank or credit card companies. Try to get themto stop or reverse any fraudulent transactions. If money was sent to scammers, attempt to get it back fast.
  • Inform their financial advisor to secure their accounts. For seniors older than 65 or those with cognitive issues, certain rules let them block3 unauthorized transactions or withdrawals.
  • Secure their credit reports. Consumers can place a freeze on their credit reports at Equifax,4 Experian5 and TransUnion6. That can secure their credit reports so no on can use them to open credit accounts. Your senior will have to unfreeze each credit report to apply for new credit. Also, place fraud alerts7 on your senior's credit reports. These should be a no cost processes. You are not required to subscribe to or purchase any other services to place a freeze or fraud alert on your senior's credit report.
  • Secure their personal information. Work with your senior to secure their social media, email, banking and social security administration accounts.8 One important way to do that is by setting up two-factor authentication9 on those accounts. They should do this on every account online they can. That means taking an extra measure at login. But it helps prevent just anyone from getting into their accounts. Also, use strong passwords on all online accounts. Try not to make it too hard for your loved one to get access to their accounts when you set these protections up.
  • Explain some of the tactics bad actors use. Education is key. So it might not be a bad idea to show your loved ones the differences between some of the more trendy methods scammers use, like phishing (fradulent emails that ask you to divulge information), vishing (attempts by threat actors to get you to share your information by phone) and smishing (fake texts that try to lure you into sharing information in a response.)
  • Report the crimes to federal agencies. Offer help with any paperwork and reporting the scam to authorities like the FTC.10 If it's on online scam, report it to the FBI's Internet Crime Complaint Center11 or to your local FBI field office.12 Also file complaints with the FCC13 about unwanted calls and spoofing.14

Acting quickly can stop more losses and start fixing their financial situation, which is a big part of their recovery.


Seek Legal Advice

Talk to a lawyer who knows about elder law to explore ways to get back the lost money, like suing. But make sure your senior knows their health and happiness are more important to you than a stressful legal action. That's important if your elder doesn't want to go to court.

Consider getting a financial power of attorney to help manage their finances more easily. Explain that this isn't about taking control but helping them stay in charge of their money. This also makes it easier to fend off scammers and protect against dishonest people, including deceitful family members and caregivers.


Find Help for Emotional and Financial Healing

Offer resources that can help your older adult feel more in control and move past the scam. Keep talking to them about their finances to help them stay independent and make their own decisions.

Look for counseling, support groups, or helplines where they can talk about their experience and find comfort. If they're open to it, go with them to their first meetings for support. The AARP's Fraud Watch Network Helpline15 is another effective resource for nonjudgemental advice and support without in-person meetings.

To boost their confidence, educate them about common scams. Regularly check in and offer emotional support to help them feel safe as they recover.


Prevent Future Scams

Educate your senior about scams and the importance of being cautious with unexpected offers. The Consumer Financial Protection Bureau16 has free resources for educating seniors on fraud prevention.

Encourage them to monitor their financial statements and credit reports. Sign them up for services that monitor for fraud and identity theft. They alert you to any suspicious activity. Also, make yourself a trusted contact at their financial institutions, but with their permission, so you're always respecting their independence.

Adding their phone number to the Do Not Call Registry17 can help them avoid calls from telemarketers. Adding caller ID to a landline can help them resist answering the phone when an unknown number is calling. Just be sure to set them up with an answering machine (rather than just voicemail) so they can hear if it's really a call they want to accept.

By taking these steps and working together, you can help protect your senior from future scams and help them regain confidence and control over their financial life.

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. Federal Trade Commission, “Fighting fraud against older adults." Published October 18, 2023, accessed January 30, 2024. Back
  2. Federal Trade Commission, “'Grandparent' Scams Get More Sophisticated." Published March 9, 2023, accessed January 31, 2023. Back
  3. FINRA, “Protecting Seniors From Financial Exploitation." Published March 17, 2022, accessed January 30, 2024. Back
  4. Equifax, “Security Freeze." n.d., accessed February 20. 2024. Back
  5. Experian, “Freeze your credit file for free." n.d., accessed February 20, 2024. Back
  6. TransUnion, “Freeze Support Center." n.d., accessed February 20, 2024. Back
  7. Susan Doktor, “How to Place or Remove a Fraud Alert on Your Credit Report." Published September 13, 2023, accessed February 20, 2024. Back
  8. Social Security Administration, “Security and Protection." n.d., accessed February 20, 2024. Back
  9. Erica Manfred, “How to Set Up 2 Factor Authentication." February 1, 2021, accessed February 20, 2024. Back
  10. Federal Trade Commission, “Why Report Fraud?" n.d., accessed January 31, 2024. Back
  11. Federal Bureau of Investigation, “Internet Crime Complaint Center (IC3): File a Complaint." n.d., accessed January 31, 2024. Back
  12. Federal Bureau of Investigation, “Field Offices." n.d., accessed January 31, 2024. Back
  13. Federal Communications Commission, “Consumer Inquiries and Complaints Center."n.d., accessed January 31, 2024. Back
  14. Federal Communications Commission, “Caller ID Spoofing."n.d., accessed January 31, 2024. Back

  15. AARP, “AARP Fraud Watch Network Helpline: 877-908-3360." n.d., accessed January 31, 2024.

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  16. Consumer Financial Protection Bureau, “CFPB Bulk Publications." n.d., accessed January 31, 2024. Back

  17. Federal Trade Commission, “National Do Not Call Registry," n.d., accessed January 31, 2024.

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