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

I am so glad I found you! Wow! I appreciate your help, concern and guidance.

RB

LATEST NEWS AND ARTICLES

October 9, 2025
Former Merrill Lynch Advisors Fight Allegations of Corporate Raid

A dozen former Merrill Lynch advisors who launched their own firm, OpenArc Corporate Advisory, in Atlanta are pushing back against accusations that they orchestrated a “pre-meditated corporate raid.”

October 8, 2025
Northern Trust Sues Former Advisor for Alleged Fraud and Breach of Fiduciary Duty

According to ThinkAdvisor, Northern Trust Company has filed suit against former wealth management relationship advisor Christopher Walters, alleging that he engaged in “blatant fraud” and breached his fiduciary duty to both the firm and a longtime client.

 

October 7, 2025
Tricolor Bankruptcy Sparks DOJ Probe and Distress in Subprime Auto Loan Market

Tricolor Holdings, a subprime auto lender that combined used-car sales with high-interest financing for borrowers with limited or no credit history, has collapsed into bankruptcy amid a federal investigation into alleged fraud.