OLYMPIA – The Washington State Department of Financial Institutions (DFI) urges Washingtonians of all ages to be aware of the signs of elder financial abuse as we recognize World Elder Abuse Awareness Day.
Each year, Americans lose millions of dollars to fraud, and those over the age of 60 lose even more than others. The Federal Trade Commission data indicates 202,000 people between the ages of 60 and 69 reported losing $836 million in 2022 nationally. For those aged 70-79, 137,615 people reported losses of $570 million nationally. The United State Attorney’s Office Western District of Washington notes that only an estimated 15 percent of the nation's fraud victims report their crimes to law enforcement – making those reported numbers even more frightening.
People who are scammed out of their hard-earned money often cite shame or embarrassment as reasons for not reporting. Some say they are afraid they could be deemed incompetent and have their independence taken away. This is why DFI provides financial education information to people of all ages throughout the state — and urges those who call Washington “home” to take a stand, watch out for loved ones, have conversations about money and the warning signs of potential financial fraud and to report it if they see it.
“Given the data, Washingtonians need to be informed and on high alert for financial fraud, and I encourage friends and loved ones to help their older family members spot scams,” DFI Director Charlie Clark added. “With technology at our fingertips – criminals are potentially in our lives at any time. It’s more important than ever to know how to spot potential financial fraud to avoid it and report it if it happens to you or someone you love.”
One method to add an extra layer of security is for senior investors to provide their investment professionals with a trusted contact — someone they trust as a secondary point of contact in the event their financial firm identifies a problem.
A trusted contact is a person authorized by the investor to allow financial firms, in limited circumstances, to contact them when there are concerns about activity in an account and the firm has been unable to get in touch with the investor directly. A trusted contact may be a family member, attorney, accountant or another third party that respects the investor’s privacy and knows how to handle the responsibility.
A trusted contact is a person authorized by the investor to allow financial firms, in limited circumstances, to contact them when there are concerns about activity in an account and the firm has been unable to get in touch with the investor directly. A trusted contact may be a family member, attorney, accountant or another third party that respects the investor’s privacy and knows how to handle the responsibility.
The North American Securities Administrators Association (NASAA), of which Washington's DFI is a member, has developed resources on what is a trusted contact, why they are important and how they help investors to protect themselves. You can find the NASAA's trusted contact videos on its YouTube page. There are also fact sheets and links to other helpful information on trusted contacts on NASAA's Investor Education page. U.S. regulators fielded 1,320 tips and complaints, opened 605 investigations, and filed 304 enforcement actions related to senior fraud in 2021. Read more in NASAA's 2022 Enforcement Report.
To learn more about the types of potentially fraudulent activity in Washington State reported to DFI, read the agency's Consumer Alerts.