Financial fraud of the elderly is growing

An elderly credit union member recently received a phone call saying that her personal computer was locked, and she would need to wire a payment to regain control.

"She wired $200,000 because she believed that she did not have access to her computer. That was a shocking lesson," said Cynthia Hagan, compliance and fraud risk director at the $7 billion-asset Vizo Financial Corporate Credit Union in Greensboro, North Carolina.

Such cases of financial abuse of the elderly are a growing concern for credit unions and other financial institutions. Elder fraud is responsible for more than $3 billion in losses each year, according to the Federal Bureau of Investigation. 

The most common financial crimes with victims over 60 years of age last year involved “tech support” scams. There were nearly 14,000 cases reported nationwide in 2021, the FBI said.