MADISON, Wis. – At present, in recognition of World Elder Abuse Awareness Day on June 15, 2025, the Wisconsin Department of Financial Institutions (DFI) is elevating awareness concerning the devasting impact social isolation can have on older investors in Wisconsin.
Social isolation, whether or not voluntary or involuntary, considerably contributes to the monetary exploitation of older investors. Scammers typically goal seniors throughout susceptible occasions, akin to well being crises or after the demise of a cherished one, utilizing private particulars from obituaries and social media posts. Scammers might also exploit belief inside seniors’ social and help teams to turn into extra concerned of their lives.
“We’re dedicated to empowering older investors in Wisconsin and their family members with the instruments they should stop funding fraud. Data and vigilance are our greatest defenses towards scammers,” stated DFI Secretary-designee Wendy Okay. Baumann.
To guard older investors, the DFI’s Division of Securities stresses the significance of common contact with seniors to scale back isolation and vulnerability. Open conversations about fraud and scams inside households may also improve seniors’ safety and cut back their danger of monetary exploitation. The North American Securities Administrators Association (NASAA), of which DFI is a member, has developed sources on find out how to shield your self and your family members from funding scams. Discover NASAA’s investor advisories on its website, together with one on social isolation and the risk of investment fraud and share it along with your older relations, associates, and neighbors to make them conscious of the purple flags of fraud and customary scams, which stay constant over time.
Based on the Internet Crime Complaint Center (IC3), People sustained $16.6 billion in losses on account of fraud in 2024, a 33% improve from 2023. IC3 additional reported $9.3 billion in losses on account of cryptocurrency fraud, a 66% improve from 2023. Nationally, the biggest group impacted by cryptocurrency fraud are these within the 60+ age vary. In Wisconsin, individuals aged 60+ reported losses over $50 million, with cryptocurrency losses exceeding $26 million.
In Wisconsin, as in different states, the cryptocurrency losses have been typically the end result of monetary grooming scams, that are also referred to as “pig butchering” or romance scams. Based on DFI’s Investment Scam Tracker, the biggest loss claimed by one individual is $747,400. This Genoa Metropolis resident met a fraudster on a courting website. They messaged one another for months utilizing texts and Telegram. The sufferer was persuaded to switch funds to a crypto “node” investing service that illustrated giant earnings. Nevertheless, the sufferer was blocked from making any withdrawals until they paid extra taxes. In one other rip-off, “Bitcoin Bears” presupposed to function a web based crypto buying and selling platform. A 78-year-old man invested $32,600, and believed the account ballooned to $150,000 in only one month. He added one other $32,000 as instructed to be able to withdraw his earnings however finally misplaced entry to his account and all his funds.
“As soon as the scammer turns the dialog to investing, they prey on human nature through the use of data found through the relationship to set off the sufferer’s feelings, often worry of shedding cash or robust private emotions, making a heightened emotional state the place the investor is extra prone to miss the purple flags the scenario presents,” stated Wisconsin Securities Administrator and NASAA President Leslie Van Buskirk. “At all times bear in mind to pause earlier than committing to something. If one thing appears too good to be true, it most likely is. As soon as the cash is within the scammer’s palms, it’s often inconceivable to get it again, particularly with cryptocurrency investments. Name us with questions earlier than investing – the scammers have well-designed scripts to counter investor objections.”
The DFI’s Division of Securities investigates many instances of funding fraud yearly – from outright scams and Ponzi schemes to rogue monetary professionals who groom older adults to win their belief earlier than taking benefit. Senior monetary exploitation might be troublesome to establish and acknowledge. Study the common warning signs of senior financial exploitation to assist shield the seniors in your life. Anybody with suspicions of potential senior monetary exploitation ought to contact the Wisconsin Elder Abuse Hotline by calling (833) 586-0107 or visiting ReportElderAbuseWI.org, or contact the DFI’s Division of Securities by calling (608) 266-2139 or emailing DFISecurities@dfi.wisconsin.gov. To study extra about investing and stopping fraud, go to DFI’s Investor Education and Avoiding Fraud Against Seniors webpages.
