By Khalil Garriott
Total fraud losses reported by adults 60 and over exploded from $600 million in 2020 to $2.4 billion in 2024. It’s a pressing problem that affects banks, customers and the economy, and the challenge is immense.
ABA Foundation’s Elder Fraud Prevention Summit aimed to address the increasing threats to seniors. Chantelle Smith, a consultant with the Department of Justice Elder Justice Initiative, covered the nuances of spotting elder financial exploitation. With the numbers going up, not down, so are the red flags and the real risks.
“You [bankers] don’t have to prove exploitation; you just have to interrupt it,” she said.
Smith, who develops training and resources for financial institutions, prosecutors and law enforcement, shared the obvious indicators — and the subtle ones that appear on the radar long before the others. She also explained how patterns reveal risk and shared three cases from the field.
“Financial institutions are our No. 1 partner; we cannot do this without financial institutions,” said Smith, offering detection cues and tips such as verifying credentials and delaying disbursements.
By taking initiative to speak up when something sounds their internal alarm, would-be victims can save themselves a lot of headaches and heartache.
“Sadly, victims can feel complicit in their own victimization, leaving them not only financially drained but also emotionally scarred,” ABA SVP Heather Trew told ABA Risk and Compliance magazine.
“It takes a lot of gumption,” Smith said. “We are not a society that likes to confront. We underestimate how much gumption it takes to stand up for ourselves. People, in my experience, will endure so much to maintain independence.”
Bankers offered anecdotes of red flags they have experienced with customers, which resonated in the room. Multiple attendees shook their heads during the sharing of real-world scenarios — not in disbelief, but because they know the examples are all too common.
Regarding fraud, bankers need to document everything. But one aspect that doesn’t always show up on paper is the psychological toll felt by scams that strike at a personal level. It even led some bankers to note that they “weren’t trained for this.”
“It has turned all of us into social workers,” Smith said with a laugh, “and we don’t have that skill set.”
Older consumers reported $159 million in losses to tech support scams in 2024. They are much more prone than younger adults to report losing money on tech support scams, prize, sweepstakes and lottery scams, romance scams and government impersonation scams.
Educating older people about these scam types is a core tenet of ABA Foundation’s Safe Banking for Seniors program, which protects older Americans from fraud and financial exploitation. Through Safe Banking for Seniors (aba.com/OlderAmericans), bankers can access free resources covering training, consumer outreach and awareness, partnerships with law enforcement and adult protective services and leveraging technology for good.
The antidote, for the future, always comes back to community. “It’s got to be in the community, addressing ageism issues and empowering older people,” said Smith, noting that every case starts the same way: with a shift in mind control.
A recent FTC report, discussed on the ABA Fraudcast, revealed a substantial increase in older adults reporting high-dollar fraud losses. In response, ABA is promoting updated scam prevention resources and campaigns for banks to better protect customers.
“I sympathize with you,” Smith told bankers at the summit. “It’s hard, and a lot is put on you.”
The expansion of elder fraud continues to impact an increasing number of people. Issued on December 1, 2025, Protecting Older Consumers, 2024-2025, A Report of the Federal Trade Commission reveals a significant uptick in the number of older adults reporting losses of over $100,000, often to investment scams, romance scams or impersonations.
“The FTC’s latest report details the agency’s commitment to protecting older Americans from scams that rob them of their hard-earned money,” said Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection. “The FTC is doing everything possible to protect older adults and shut down illegal scams.”
In 2024, older adults reported losing far more money to investment scams than to any other fraud type, often reporting that scammers targeted them on social media. People 80 and over experienced a median reported loss north of $1,600.
“Banks are in a difficult position,” Trew said. “They can see what is happening, they want to help their customers and provide access to financial services, but they also can’t be seen as complicit by failing to act.”
It’s an emotional issue that often hits too close to home. For many people, it’s much easier to report fraud than it is to report financial exploitation by a family member.
“You want to know where your biggest danger is?” Smith asked. “Look around the Thanksgiving table.”
ABA offers resources to help banks prevent, identify, measure and report fraud, and to serve and protect customers and their financial data. ABA’s scam prevention campaigns #BanksNeverAskThat and #PracticeSafeChecks are newly updated as well.
