Surge in Elderly-Targeted Cryptocurrency Scams

Posted on June 22nd, 2023 at 11:26 AM
Surge in Elderly-Targeted Cryptocurrency Scams

From the desk of Jim Eccleston at Eccleston Law 

According to U.S. Department of Justice research, over 3,000 senior citizens were victims of investment cryptocurrency scams. The Federal Bureau of Investigation (FBI) has reported that senior citizens lost over $1 billion from cryptocurrency scams just last year.

According to Emily Sherlock's report shared by WealthManagement.com, there are five warning signs of potential cryptocurrency-related elder fraud which estate planners and financial advisors should be vigilant about. They are:

1. An elderly client opens an account at a crypto asset exchange (and begins making transfers to an associated crypto wallet), despite demonstrating minimal or no knowledge of cryptocurrency. 
2. An elderly client starts using his or her debit or credit card to make frequent or high-value purchases of crypto assets.
3. An elderly client funds their purchase of crypto assets with substantial savings from a retirement account.
4. An elderly client starts making large cash withdrawals from a bank account and indicates that he or she intends to deposit the funds at a Bitcoin ATM. 
5. A caregiver of an elderly client starts trading crypto assets in inexplicably large amounts that appear to be beyond the caregiver's own means.

To safeguard elderly clients, proactive estate planners and financial advisors can play a crucial role in advising them to exercise skepticism towards unsolicited crypto
investment opportunities that appear too good to be true. Additionally, educating clients about the common tactics employed by these scams can contribute to their protection.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next

That is just fantastic! Thank you very much!

Julie N.

LATEST NEWS AND ARTICLES

January 7, 2026
FINRA Releases 2026 Regulatory Oversight Report, Spotlighting Private Placement Compliance Risks

The Financial Industry Regulatory Authority (FINRA) released its 2026 Annual Regulatory Oversight Report, responding directly to member feedback and reinforcing its stated mission to protect investors and promote market integrity.

January 6, 2026
SEC Halts Review of Ultra-Leveraged ETFs, Citing Risk Limits

The U.S. Securities and Exchange Commission (SEC) has stepped in to curb the expansion of ultra-leveraged exchange-traded funds, issuing a series of warning letters that effectively block proposed products designed to deliver three- and five-times the daily returns of stocks, commodities, and cryptocurrencies.

January 5, 2026
FINRA Suspends Former UBS Broker Over Personal Credit Card Transfers

The Financial Industry Regulatory Authority (FINRA) has sanctioned a former UBS Wealth Management USA broker, Timothy R. Jones.