Can Advisors Do More to Combat Elder Financial Abuse? 

Elder financial abuse is a big problem. Just how big is up for debate. 

The FBI reported for 2025 a total of $7.7 billion in losses from more than 201,000 complaints, which the agency admitted was likely an underestimate due to its reliance on self-reported data. Back in 2023, AARP estimated victims of elder financial abuse lose more than $28 billion annually. These figures have almost certainly grown in the time since, and lawmakers and financial services professionals are taking note, as evidenced at a recent hearing held by the US Senate Special Committee on Aging. In a rare show of bipartisan agreement, senators from both sides of the aisle voiced concern about elder financial exploitation, and they asked witnesses how government and industry can work together to stem the tide. 

The consensus was that proactive and consistent public education about the risk of elder abuse is essential. Likewise, witnesses said, lawmakers should empower financial advisors and bankers who suspect clients are falling victim to fraud or abuse to take action, including by slowing or pausing suspicious transactions. Elders themselves must also play a role, including by letting trusted family members have a better view of their finances and not being embarrassed to report victimization. 

A Patchwork of Protection 

More than half of US states have established rules that allow financial professionals to pause suspicious transactions requested by elder clients, and momentum is building for the development of national standards. Such policies must be balanced against seniors’ rights for unfettered access to their accounts, lawmakers and witnesses agreed, but the growing threat of AI-powered scams means inaction is unacceptable. 

The typical amount lost by seniors to fraud isn’t trivial: 

• The median cost of elder financial abuse reported to the Treasury Department’s Financial Crimes Enforcement Network in 2023 was $33,000. 
• The mean amount was $129,000, showing some unfortunate seniors lose far more. 

“Congress should consider legislation that empowers financial professionals to hold transactions when they suspect elder financial exploitation,” said Sam Kunjukunju, vice president of consumer education at the American Bankers Association Foundation. “Establishing a uniform national framework would eliminate inconsistencies among state laws and enable more decisive action.”

One lesson learned in states that already have such rules in place, Kunjukunju said, is that educating seniors about them is critical. “When an older adult doesn’t realize they’re falling for a scam, but the banker suspects it, the older adult can be put off,” he warned. “We need to get ahead of all that.” 

What to Watch For. The good news is that spotting abuse isn’t exactly rocket science. As a baseline, advisors should be on the lookout for sudden changes in client behaviors, alterations in appearance or demeanor, and unexpected transactions. For example, if a client who has never used wire transfers before suddenly wants to send $15,000 to a foreign bank account, that’s a major red flag.