The National Adult Protective Services Association defines elder financial exploitation (EFE) as the “illegal or improper use of an older person’s or vulnerable adult’s funds, property, or assets.”1 EFE is one type of elder abuse, which includes physical, sexual, emotional or psychological, and financial abuse or exploitation, neglect, abandonment, and/or self-neglect.2 This article will explore EFE schemes, along with actions for financial institutions to consider.
EFE Schemes to Watch for
EFE includes: the use of deception, intimidation, or undue influence by a person or entity in a position of trust and confidence with an elderly person to obtain or use the property, income, resources, or trust funds of the elderly person for the benefit of a person or entity other than the elderly person; the breach of a fiduciary duty, including, but not limited to, the misuse of a power of attorney, trust, or a guardianship appointment, that results in the unauthorized appropriation, sale, or transfer of the property, income, resources, or trust funds of the elderly person for the benefit of a person or entity other that the elderly person; and obtaining or using an elderly person’s property, income, resources, or trust funds without lawful authority, by a person or entity who knows or clearly should know that the elderly person lacks the capacity to consent to the release of use of their property, income, resources, or trust funds.1
EFE schemes generally involve either elder theft (schemes involving the theft of an older adult’s assets, funds, or income by a trusted person; in many instances, an adult child or a close friend) or elder scams (scams involving the transfer of money to a stranger or imposter for a promised benefit or good that the older adult did not receive).3
Older Adults Losing More Money to Scams
The U.S. Census Bureau currently estimates total U.S. population at approximately 342.6 million persons (approximately 4.2% of the estimated world population).4 The National Council on Aging estimates that between 18% and 19% of the population is age 60 and over, and that group controls an estimated 70% of the nation’s invested wealth, making elderly adults prime targets for fraudsters.5 According to the National Money Laundering Risk Assessment, fraud remains the number one predicate crime in the U.S. today.6
In addition, in its most recent annual report to Congress on the agency’s actions to protect older adults, the Federal Trade Commission (FTC) reported that total fraud losses reported by older adults increased almost fourfold from 2020 to 2024 ($600 million to $2.4 billion), largely driven by reports of losses exceeding $100,000, often to investment scams, romance scams, or impersonations, e.g., government, business, family (grandparent), friends, et al.7 In 2024, older adults reported losing far more money to investment scams than to any other fraud type, often reporting that the scammers targeted them on social media. In April 2026, the FTC reported that social media scams produced far more in losses than any other contact method used by scammers to reach consumers.8 Reports show that in 2025, people reported losing more money to scams that started on Facebook than on any other social media platform. The data also show that all age groups, with the exception of those 80 and over, reported losing more money to scams that started on social media than any other contact method, and social media ranked second after phone calls for those 80 and over.
In its recent Internet Crime Report, the FBI’s Internet Crime Complaint Center (IC3) reported that 20% of the record 1.009 million complaints received in 2025 were from consumers age 60 and over, with that population suffering 37% of the total $20.877 billion reported losses.9
Practices for Institutions to Consider
The five financial regulatory agencies have provided examples of risk management and other practices for financial institutions that may help combat EFE, including:
- Train employees on recognizing and responding to EFE.
- Use transaction holds and disbursement delays, as appropriate, and consistent with applicable law.
- Establish a trusted contact designation process for account holders.
- Report suspected EFE to law enforcement, Adult Protective Services, and other appropriate entities.
- Engage with elder fraud prevention and response networks.
- File suspicious activity reports (SARs) in a timely manner.
- Increase awareness through consumer outreach.
Various government agencies provide tools and resources to help older clients either avoid becoming victims or recover when the fraud has occurred, including:
- The FTC publishes a variety of consumer alerts to raise awareness of the latest fraud techniques and maintains a plethora of “fact sheets” addressing fraud trends to help educate elderly clients as part of the FTC’s Pass It On education campaign.
- The U.S. Department of Justice maintains the Elder Justice Initiative with links to the various state agencies that can assist elderly victims and manages the National Elder Fraud Hotline (833.372.8311).
- The Consumer Financial Protection Bureau (CFPB) has developed materials to help a financial institution establish a “trusted contact” program.
How Forvis Mazars Can Help
With 7.9% of SARs filed in the first quarter of 2026 referencing EFE, it is important that financial institutions adopt policies and procedures to help protect their elderly clients from being exploited financially.10 Our ProBank Education Services team at Forvis Mazars can help your institution navigate regulatory compliance. If you have any questions or need assistance, please reach out to one of our professionals. For more information, please also refer to our on-demand webinar, “Elder Financial Exploitation (EFE) – Updated Fincen Guidance.”
- 1“Elder Financial Exploitation Awareness,” nacha.org, 2025.
- 2“Advisory on Elder Financial Exploitation,” fincen.gov, June 15, 2022.
- 3“Financial Trend Analysis,” fincen.gov, April 2024.
- 4“U.S. and World Population Clock,” census.gov, June 18, 2026.
- 5“Elder Financial Exploitation Awareness,” nacha.org, 2024.
- 6“2026 National Money Laundering Risk Assessment,” home.treasury.gov, March 2026.
- 7“FTC Issues Annual Report to Congress on Agency’s Actions to Protect Older Adults,” ftc.gov, December 1, 2025.
- 8“Reported losses to scams on social media eight times higher than in 2020,” ftc.gov, April 27, 2026.
- 9“Federal Bureau of Investigation Internet Crime Report 2025,” ic3.gov, 2025.
- 10“SAR Stats,” fincen.gov, updated May 31, 2026.