Older adults at elevated risk of financial exploitation, AARP report indicates

by Adam Healy

Older adults’ risk of being financially exploited underscores the need for tools to help them and their caregivers keep their money safe, according to a new report published by AARP.

“Over the past decade, criminals have become increasingly sophisticated, posing new risks to the hard-earned savings of American adults,” Jilenne Gunther, the national director of AARP’s BankSafe initiative, said in a statement. “Our data shows that older adults find age-friendly banking services and a highly skilled workforce substantially more appealing than they did ten years ago.”

AARP surveyed 2,014 US adults, of which half were between the ages of 18 and 49 and half were over 50. Among all respondents, 48% reported that they have been a victim or intended victim of financial exploitation, such as scams or fraud. Older adults were more likely to lose a substantial amount of money; 22% of victims over 50 years old indicated that they have lost more than $5,000 as a result of financial exploitation, compared to 13% of victims under 50.

AARP’s report builds on previous research it conducted in 2014. Increasingly many seniors are using online banking tools, highlighting the need for new tools to combat scams and fraud, according to AARP.

For older adults, the need for secure and accessible financial resources is crucial, according to AARP. More than 90% of respondents over 50 indicated that they want highly-trained employees at financial institutions to help prevent exploitation, extra monitoring for unauthorized withdrawals and notifications for unusual account activity. 

Caregivers also play a part in keeping older adults’ finances safe. Among the respondents 50 years and older, three quarters called for special services that allow caregivers to provide better financial assistance. The most popular services, favored by more than 80% of older adults surveyed, included phone calls, emails and text alerts for caregivers when suspicious account activity or large withdrawals are reported by an aging loved one’s financial institution.

This story originally appeared in McKnight’s Home Care. 

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Older adults at elevated risk of financial exploitation, AARP report indicates