Although Veterans Day is behind us, it’s still the perfect time to honor the service and sacrifices made by those who wore our nation's uniform. Yet for many aging veterans, the threat they now face comes not from a foreign adversary, but from scammers and abusers here at home. Elder fraud is a growing concern across the country, and older veterans are increasingly among its victims.

Elder fraud involves the illegal or improper use of an older adult’s assets, property or income, often through deceit or manipulation. While definitions vary, most states define an older adult as someone aged 60 or older, or an individual with cognitive or physical impairments.

According to the Federal Trade Commission (FTC), veterans lost an estimated $419 million to fraud in 2024. These crimes not only drain retirement accounts but also destroy trust, independence and quality of life. For older adults with limited time or resources to recover, the consequences can be life-altering.

Veterans are at higher risk of elder fraud with multiple overlapping factors making them more vulnerable to fraud as they age:

1. Higher Income, Lower Savings

Veterans often have higher household incomes due to pensions or benefits. However, according to the National Council on Aging (NCOA), many individuals have less in long-term savings, which increases the financial damage when fraud occurs.

2. Education Doesn’t Offer Immunity

Sixty percent of older veterans have some college education, much higher than the civilian average. But scammers don’t only target the uninformed. Many educated, financially aware individuals fall victim to scams, especially when trust or urgency is manipulated.

3. Greater Exposure to Health Challenges

Older veterans face higher rates of PTSD, chronic illnesses and cognitive decline, often stemming from their time in service. These conditions increase reliance on others for care, thereby raising the risk of financial exploitation by those in a position of trust.

4. Abuse From Known Individuals

Family members or caregivers may pressure veterans into financial decisions, misuse access to accounts, or isolate them from others. When elder fraud is committed by someone close, the emotional toll can be even more severe.

Fraudsters Are Evolving

Scam models continue to shift, and fraudsters often tailor their schemes to exploit veterans’ military experience or access to benefits. Common and emerging tactics include:

• VA benefit scams: Impersonators claim they can help access or upgrade veterans’ benefits in exchange for fees or personal information.
• Fake military charities: Fraudsters set up bogus organizations to solicit donations from or in the name of veterans.
• Military investment scams: Exclusive or high-return opportunities “only available” to veterans are pitched with a patriotic appeal.
• Tech support fraud: Criminals impersonate defense contractors or VA tech support and pressure veterans into granting access to devices or bank credentials.
• Online romance scams: Isolated veterans are targeted with emotional manipulation, eventually leading to financial requests.

Each of these scams leverages trust, emotion or identity, key tactics in elder fraud cases.

Red Flags of Elder Fraud

The Financial Crimes Enforcement Network (FinCEN) has issued guidance to help financial institutions identify elder fraud. Be alert to:

• Sudden, large account withdrawals
• New individuals becoming involved in financial decisions
• Unexpected changes to wills or power of attorney
• Customers showing fear, confusion or reluctance to speak
• Unexplained asset transfers or missing funds
• Frequent visits accompanied by a new “friend” or caregiver

Whether you’re a financial professional, family member or friend, early detection is key.

What Financial Institutions Should Do Now

Community banks and credit unions are uniquely positioned to help prevent elder fraud, especially in veteran-heavy communities. Institutions should take the following steps now:

1. Enhance Transaction Monitoring

Utilize fraud typologies that focus on elder fraud patterns, especially among customers aged 60 and above. Monitoring scenarios should flag:

• Large or repeated wire transfers
• Unusual online or mobile banking behavior
• Sudden balance depletion or new third-party activity
• Transfers involving military pensions or VA benefit accounts

2. Train Frontline Staff

Tellers, loan officers and customer support teams should be trained to recognize behavioral red flags and know how to escalate concerns. Training should cover scam models, emotional cues and reporting protocols to ensure effective detection and response.

3. Collaborate with Local Partners

Build relationships with veteran service organizations, senior centers and Adult Protective Services to raise awareness and share resources.

What Families and Communities Can Do

Elder fraud prevention is a shared responsibility. Here’s how individuals can help protect the veterans in their lives:

• Talk about fraud risks. Open conversations reduce stigma and raise awareness.
• Check in often. Isolation is a significant factor in elder fraud cases.
• Encourage safe practices, like reviewing accounts monthly and setting up alerts.
• Report suspicious behavior to authorities or local elder abuse hotlines.

Protecting Those Who Protected Us

Veterans have given so much in service to our nation. As they grow older, they shouldn’t have to fight another battle to protect their hard-earned financial stability.

Elder fraud is rising, and it often hides in plain sight. However, through proactive monitoring, community engagement and education, we can effectively counter these efforts. Financial institutions, families and communities all play a role.

After recognizing Veterans Day, let’s go beyond saying “thank you.” Let’s protect our heroes from the fraud they should never have to face.