Anti-Financial Crime Briefing: FinCEN Advisory on Elder Financial Exploitation

FinCen Advisory on Elder Financial Exploitation

FinCEN's advisory highlights the alarming rise of Elder Financial Exploitation (EFE), affecting 10% of older adults annually in the US. With over $3 billion lost to fraud yearly, schemes involve theft by trusted individuals or scams. Analysts must flag suspicious activity tied to EFE, including common scams like government imposters and romance scams.

In support of World Elder Abuse Day, on June 15, 2022, the Financial Crimes Enforcement Network (FinCEN) released an advisory alerting financial institutions to “the rising trend of elder financial exploitation (EFE) targeting older adults”. According to the Department of Justice (DOJ), elder abuse, including EFE, affects at least 10% of older adults each year in the United States, with more than US$3 billion lost to financial fraud annually as of 2019. Though EFE is the most common form of elder abuse, most incidents go unidentified and unreported due to fear, embarrassment, and lack of resources.

Key Takeaways

  • Elder financial exploitation (EFE) has been increasing over the years, with schemes generally involving either theft of assets by a trusted person or scams involving transfers of money to unknown/imposter fraudsters.
  • Common elder scams include government imposter scams, romance scams, emergency/person-in-need scams, lottery/sweepstakes scams, and tech/customer support scams.
  • Red flag indicators can include both behavioral and transactional suspicious activity. It is important for analysts to report suspicious activity tied to EFE.

Log in to discover the key takeaways and access the full report.

You must be a member of ACAMS to see this content. Please login or join today for full access to and other exclusive member-only content.

Leave a Reply