The Big Problem
Imagine getting a call from your 86-year-old grandmother, her voice fraught with worry. Embarrassed and scared, she tells you, “My bank account is empty. It’s all gone. I thought it was someone from my bank asking for account details, but it must have been a scammer. What am I going to do?”
Unfortunately, your grandmother is but one of millions of seniors who have fallen victim to financial fraud. In 2024 alone, Nasdaq’s Global Financial Crime Report revealed that $77.7 billion of global fraud was linked to elderly victims.1 As seniors are typically less comfortable using digital platforms and may hold substantial savings due to their age, they make prime targets for scammers, which is why they often experience higher fraud losses than other age groups.
Despite the investments that financial institutions have put into artificial intelligence (AI) fraud detection, the issue persists. If banks are working hard to develop advanced systems to protect their customers, why is the problem growing? That’s because financial fraud isn’t just a tech issue—it’s a behavioral one. Scammers are successful not because they can exploit systems, but because they exploit people, preying on those who may not be aware of sophisticated scams. By understanding the psychological reasons that make seniors susceptible to financial fraud, we can design interventions to support elders and safeguard them from financial and emotional trauma.
