Protecting Seniors From Financial Exploitation: What You Need to Know About the Senior Safe Act

Jun 11, 2025

Martha Jenkins, 83, was sipping her morning coffee when the phone rang. The caller ID read “IRS – Washington, DC”, and her heart started racing as she wondered why they could be calling. The polite, official-sounding man knew her name, her address, and even the last four digits of her Social Security number. He told her she owed thousands of dollars in back taxes and warned that if she didn’t pay immediately, the sheriff would be at her door within the hour.

Panicked, Martha rushed to her local bank and requested a wire transfer of $20,000. The teller hesitated. Something about the situation didn’t feel right, but unsure of what they were allowed to say or do, they processed the transaction. By the time Martha’s son found out, it was too late. The money had already been transferred through multiple accounts before vanishing.

While Martha isn’t real, the tactics used against her are, and the consequences for real people can be devastating. These scams are becoming more sophisticated as criminals increasingly use AI to craft elaborate cover stories and manipulate their victims. In 2023 alone, Americans over the age of 60 lost an estimated $3.4 billion to scams, which represents an alarming 11% increase from the year before. Investment scams alone accounted for more than $1.2 billion of those losses. On average, victims lost nearly $34,000, with thousands reporting losses exceeding $100,000. According to the FBI, over 101,000 of these complaints filed in 2023 by individuals over 60.¹

As financial advisors, these numbers represent the real risks facing many of our clients, whether they are retirees themselves or caring for aging parents. That is why we see it as our duty to help safeguard not just your assets but also your peace of mind. The Senior Safe Act plays a key role in that protection.

What is the Senior Safe Act?

Passed in 2018, the Senior Safe Act empowers financial professionals to take action when they suspect a client is being exploited. Critically, it offers legal immunity to advisors, banks, and other financial institutions that report suspected elder financial abuse, provided they have completed the proper training and make the report in good faith to the appropriate authorities.

This protection is essential. Without it, financial professionals may hesitate to raise concerns, uncertain whether speaking up could violate client privacy or expose them to legal risk. The Senior Safe Act removes that uncertainty and encourages professionals to take action when something appears wrong. In many cases, that intervention can help prevent serious financial harm.

Why this matters

Many people believe they are too savvy to fall for scams, but research shows that scam compliance and resulting financial losses are far more common than most realize. A McAfee survey revealed that 45% of individuals who engage with a scam message ultimately comply, leading to financial loss.² The numbers highlight a troubling reality: awareness alone isn’t enough. As scams become increasingly sophisticated, protecting older adults increasingly depends on timely intervention from those in a position to identify red flags, especially financial professionals.

The Senior Safe Act helps foster a culture of protection across the financial industry. As your advisors, it empowers us to take action when something seems off. Whether it’s unusual withdrawals, sudden changes to account information, or unfamiliar individuals becoming involved, we’re trained, and legally supported, to recognize red flags and respond. Because we’re familiar with your accounts and financial goals, we’re often in a position to notice when something doesn’t align. This allows us to act quickly and thoughtfully to help safeguard your finances. After all, our responsibility isn’t just to help grow your wealth, but to protect it when it matters most.

What we do — and what you can do

We take pride in knowing our clients — not just their portfolios, but their values, habits, and concerns. That familiarity puts us in a strong position to notice when something doesn’t feel right. And when it does, we don’t ignore it. When we spot something concerning, we follow a clear protocol, whether that means escalating it internally to our compliance team or reporting it to adult protective services when appropriate. Whether it’s raising a question internally or having a conversation with you directly, our focus is always the same: looking out for your best interest. The Senior Safe Act ensures we can do so with the confidence that we’re protected legally and ethically.³

But protection is most potent when it’s a partnership. Here’s how you can take an active role:

Designate a trusted contact: This is someone your advisor can reach out to if something doesn’t seem right. It doesn’t give them access to your accounts — it simply creates a safety net.
Stay involved: Regularly review your accounts, question any unfamiliar transactions, and don’t hesitate to speak up.
Communicate often: If you receive a suspicious call, email, or request, consult with your advisor. A quick conversation could stop a scam in its tracks.

Is It a Scam? A checklist for spotting red flags

Even if a call seems official, these signs could indicate that it’s a scam:

🚩 Something feels off — even if the caller sounds real

The voice sounds slightly unnatural, too perfect, or overly scripted, possibly indicating an AI-generated source.
You feel confused, anxious, or rushed during the call — scammers use pressure to cloud judgment.
You weren’t expecting the call and it catches you off guard.

🚩 The call plays on urgency or secrecy

You’re told to act immediately or face legal action, account closure, or arrest.
You’re advised not to discuss the situation with your bank, advisor, or family.
The caller insists this is “confidential” or under investigation.

🚩 The call seems official, but only on the surface

The caller ID shows a trusted name, but the person won’t let you hang up and call the organization directly.
They offer a “call-back number” that doesn’t match the public contact info.
They let you speak with a second person or “supervisor,” but they provide equally vague information or use the same call script.

🚩 They ask for things legitimate organizations never do

They want payment via gift cards, crypto, wire transfer, or a payment app.
They ask for remote access to your computer or device.
They ask you to verify your full personal details, such as your social security number, banking information, or passwords.

🔍 Gut Check: Three simple rules

Was the call unexpected?
Do you feel pressure to act now?
Are they requesting private information or payment in unusual ways?

💡 When in doubt: Hang up and call back
Always trust your instincts. If something feels off, it probably is. Hang up and contact the organization directly using a known, official number, or reach out to us. We’re here to help.

Peace of mind through partnership

Financial safety goes beyond spotting scams. It means working with someone who knows your goals, notices when something feels off, and can proactively step in to avoid a financial loss. The Senior Safe Act helps make that possible, giving financial advisors the clarity and legal support to take action when it matters most.

Scammers work hard to fool even the most careful individuals. But with a trained advisor on your side, you have a stronger line of defense. If you have questions about the Senior Safe Act or want to confirm a trusted contact is in place, we’re here to help.

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Resources

Federal Trade Commission (FTC). FTC issues annual report to Congress on agency’s actions to protect older adults. October 2024. https://www.ftc.gov/news-events/news/press-releases/2024/10/ftc-issues-annual-report-congress-agencys-actions-protect-older-adults
Federal Bureau of Investigation (FBI), Internet Crime Complaint Center (IC3). Elder fraud report 2023. Released in 2024. https://www.fbi.gov
Investor.gov. Senior Safe Act investor bulletin. https://www.investor.gov
NASAA. Celebrating the five-year anniversary of the Senior Safe Act. https://www.nasaa.org