Peak 65 brings peak risk: Preventing elder financial fraud

NAIFA recently held one of its most important webinars to date, “Elder Financial Abuse: Protecting Seniors from Financial Predators,” featuring insight from John Schwartz, the founder and president of the Center for Combating Elder Financial Abuse. It was an eye-opening conversation.

As the United States approaches Peak 65, the point at which more Americans will reach retirement age than at any time in history, we must prepare for the mounting risks facing our aging population. By 2030, it is estimated that more than 70 million Americans will be age 65 or older, up from 60 million today. This dramatic demographic shift brings with it not only increased demand for retirement and health care planning but also an urgent need to safeguard seniors from financial exploitation.

According to the AARP, more than $28.3 billion is stolen annually from adults over the age of 60. That number is staggering and it is growing. Behind every dollar lost is a person, a family and often a legacy that took a lifetime to build.

During the webinar, John shared heartbreaking case studies such as stories of victims who were deceived, isolated and emotionally manipulated by predators who knew exactly how to target their vulnerabilities. One of the most striking examples was Richard Bruhn, a 75-year-old Navy veteran from Virginia who lost $800,000 in a tech support scam over the course of only five months. Another tragic case involved an 82-year-old man who took his own life after falling prey to an elaborate online romance scam.

John’s perspective as a former FBI agent brought valuable insights. What makes his approach unique is that he studies these crimes by viewing them through the eyes of the predator. He understands how scammers operate, and how they exploit loneliness, grief and confusion to gain control. He made it clear that family members and even trusted acquaintances are sometimes the perpetrators.

But the most sobering takeaway is this: Once the money is gone, it is rarely recovered. That is why prevention, not just reaction, is everything.

This is where financial professionals come in.

Whether they are financial advisors, insurance agents or retirement planners, professionals in our industry are often the first line of defense for clients who may be vulnerable. We are in a unique position of trust, and with that comes a responsibility to spot red flags, ask the right questions and help clients protect what they have worked a lifetime to earn.

John offered several strategies that clients and advisors can implement immediately to help "harden the target," his term for making oneself more resistant to scams. From slowing down new relationships to avoiding cryptocurrency kiosks and educating seniors on phishing techniques, these are practical, proactive steps that can save families from devastating financial and emotional harm.

He also introduced a valuable tool: the Financial Vulnerability Survey created by Wayne State University’s Institute of Gerontology. This 17-question self-assessment helps seniors and their families evaluate their risk levels and build a protection plan. You can access the survey and many other resources at ENDEFA.org, a free nonprofit website designed specifically to educate and empower America’s seniors.

This webinar serves as a reminder that our role as financial professionals goes beyond education and advocacy. We are protectors. We are trusted voices. As the number of aging Americans increases, the role we play in shielding them from exploitation becomes even more critical.

I want to thank John Schwartz for his tireless work and for joining us to share this vital information. I also want to thank the many NAIFA members who participated and asked thoughtful, important questions. Your commitment to your clients and to this profession is what sets you apart.

If you missed the webinar, I encourage you to watch the full replay and share it with your colleagues and clients. Talk to your clients about fraud risks. Include protection planning in your reviews. And above all, stay alert. As John put it, “All you have to do is harden the target just a little bit to potentially protect your entire life savings.”

Kevin Mayeux, CAE, is chief executive officer of the National Association of Insurance and Financial Advisors