Elder Financial Exploitation Drives Billions in Losses for Older Americans

Financial exploitation of older adults continues to result in substantial losses across the United States, with both reported and estimated figures indicating a widespread issue. Regulatory agencies and industry groups have documented increasing losses and expanded efforts to address the problem.

According to the Federal Trade Commission, older Americans lost between $10.1 billion and $81.5 billion to financial fraud in 2024. The same year, reported fraud losses among adults aged 60 and older reached approximately $2.4 billion, which is a significant increase from the $600 million reported in 2020.

Industry data shows that one in five seniors is estimated to experience financial exploitation, with the average loss per victim reaching $120,000. Losses among individuals aged 60 and older rose by 84 percent between 2021 and 2022, highlighting a growing trend in financial harm to this population.

Banks and credit unions have responded by implementing various prevention strategies. Nearly all banks now provide training for customer service representatives to identify and report elder financial exploitation. Many institutions also host educational events, flag accounts for monitoring, and assist customers in managing their accounts when fraud is suspected.

What the numbers show

• Older Americans lost between $10.1 billion and $81.5 billion to fraud in 2024
• Reported fraud losses for adults 60+ totaled about $2.4 billion in 2024
• The average loss per older fraud victim was $33,915 in 2023
• One in five seniors is estimated to be a victim of financial exploitation

Financial institutions are adopting new technologies to strengthen their response. Some community banks use artificial intelligence and machine learning to detect unusual activity in senior accounts and train staff to recognize patterns associated with elder fraud. Other banks use tools such as affidavits and behavioral monitoring to help prevent unauthorized transactions.

AARP’s BankSafe initiative has trained employees at banks and credit unions to spot warning signs of exploitation. Since 2019, these trained employees have helped prevent nearly $300 million from being stolen from older adults’ accounts. The BankSafe platform is widely used to educate frontline staff on intervention techniques.

Legislative measures have also been introduced to support prevention efforts. A federal law enacted in 2025 permits bank employees to report suspected elder financial abuse to police and Adult Protective Services. In Texas, state law allows banks to place a 10-day hold on suspicious transactions when exploitation is suspected, providing time for further investigation.

Industry reaction

The American Bankers Association stated that 99 percent of banks offer training to staff on detecting and reporting elder financial exploitation. The association also reported that nearly half of banks hold community education events, and a majority take steps such as reporting to Adult Protective Services and monitoring accounts for suspicious activity.

AARP confirmed that its BankSafe training platform is being used by banks and credit unions to help employees identify and intervene in cases of suspected exploitation. The organization stated that these efforts have contributed to the prevention of substantial financial losses among older adults.

* This article is based on publicly available information at the time of writing.