Elder Abuse and Financial Fraud

Incidents of elder financial abuse are becoming increasingly common, with new forms of exploitation arising alongside the digital economy. At Harrison, we have long represented victims of elder abuse, particularly in cases where financial advisors or trusted individuals engage in deceptive practices to strip elderly persons of their finances. One of the more disturbing trends involves scammers who use sophisticated methods to exploit seniors’ trust, often leaving them financially devastated.

“Pig Butchering” Scams Targeting Vulnerable Seniors

A new form of abuse related to “Pig Butchering” has arisen in which scammers target vulnerable adults by posing as government officials or representatives of financial institutions, gaining their trust, and claiming that the senior citizens’ financial accounts are under attack and need to be converted through bank wire transfers into cryptocurrency as a means of purportedly securing those assets.

Through intricately scripted and fast-moving mechanisms, the scammers dupe the senior citizens into wiring large sums of money from their banking and investment accounts to cryptocurrency exchange accounts and private cryptocurrency wallets managed by the scammers, who then abscond with those funds. The effects of such abuse are oftentimes far-reaching, affecting not only the direct victims of the abuse but also the intended beneficiaries designated in the victim’s estate planning documents like wills and trusts.

Common Elder Financial Abuse Scams

Many clients have come to Harrison with tales of elder abuse similar to the following:

False Financial Alerts: A senior citizen received a false warning either on their computer or in the mail alerting them of a purported threat to the security of their financial assets.
Urgent Action Required: The supposed threat urged the vulnerable senior to act quickly lest the senior’s assets be stolen if the senior hesitated to take action.
Fake Government Officials: The scammer -- typically using a fake name, fake job title, and falsely claimed affiliation with a known government agency like the IRS or the Social Security Administration -- instructed the senior to request multiple wire transfers over the course of a few short days or weeks designed to transfer the senior’s finances from a bank or investment brokerage to a cryptocurrency site where they would purportedly be safe and anonymous from attackers.
Secretive Instructions: The scammer advised the senior to not share information of the alleged threat with any family members or other trusted advisors, as such people could deter the senior from acting quickly enough to protect their assets.
Financial Loss: After following all instructions provided by the scammer, the senior citizen came to learn that the entire scheme was a ruse and that all of the assets transferred have been lost.

Harrison is ever-vigilant against elder fraud and passionately upholds elder abuse laws to protect vulnerable adults. In our efforts to unwind the harm wrongfully inflicted upon victimized seniors, we explore claims against all potentially culpable parties, including not just the scammers but also the financial institutions who improperly authorized, and the cryptocurrency exchanges that received, any of the transferred funds.

How Financial Institutions Fail to Prevent Elder Fraud

Banks and other financial institutions have mechanisms in place to closely scrutinize circumstances that amount to elder financial abuse, though those mechanisms often break down or are outright ignored. Among the hallmarks of such scams committed upon senior citizens that banks should, but many times do not, prevent are:

Unusual Transactions: Large or out-of-character wire transfer requests from senior customers.
Multiple Transfers: Several wire transfers in quick succession from an elderly account holder.
Entire Account Depletion: Requests to transfer the entirety of a senior’s bank account funds.
Cryptocurrency Transactions: Transfers to cryptocurrency exchanges, especially from customers who have never engaged in such transactions.
Foreign Recipients: Transfers to overseas recipients with no apparent connection to the senior.

Cryptocurrency Exchange Responsibilities in Elder Fraud Cases

Cryptocurrency exchanges are also required to prevent fraud by adhering to Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols. However, failures in these systems allow scammers to exploit seniors. Key indicators of fraud include:

Sudden Large Deposits: Large amounts of cash deposited by new, elderly customers without clear financial goals.
Quick Withdrawals: Rapid deposits and withdrawals from new accounts.
Suspicious Transfers: Transfers to known scam-associated wallets or off-site cryptocurrency addresses.

Preying upon senior citizens and their families’ financial well-being is as repulsive as it is prevalent in our electronic culture. If you fear you or an elderly loved one might be the victim of elder fraud, please contact Harrison to discuss what legal rights and options are available.

How Harrison Can Help Victims of Elder Fraud

Elder financial abuse and fraud have long-lasting impacts not just on the direct victims but also on their families. At Harrison, we passionately uphold elder abuse laws and seek justice for those victimized by scammers and irresponsible financial institutions. If you or a loved one suspects elder financial fraud, it is crucial to act quickly to explore legal options.

Contact Us for Elder Financial Fraud Representation

If you believe you or a family member has fallen victim to elder financial fraud, including cryptocurrency scams, contact Harrison today. We are dedicated to protecting vulnerable seniors and holding all responsible parties accountable, including the scammers, banks, and cryptocurrency exchanges.

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