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

January 22, 2026
EC Zeroes In on Persistent Marketing Rule Failures With New Staff FAQs

The Securities and Exchange Commission (SEC) has sharpened its scrutiny of investment adviser marketing practices, signaling continued frustration with recurring compliance failures despite years of guidance and enforcement. As reported by Financial Advisor News, new staff FAQs published in January follow a December risk alert that deta...

January 21, 2026
New Investor Losses as Yieldstreet Rebrands to Willow Wealth

Yieldstreet, now operating under the name Willow Wealth, continues to report significant losses to investor clients despite a high-profile rebrand.

January 20, 2026
SEC Charges Three Advisors in Alleged Sale of Unregistered Oil and Gas Securities

The Securities and Exchange Commission (SEC) has charged three advisors and agents with selling millions of dollars in unregistered oil and gas securities to retail investors while failing to disclose conflicts of interest.