A Vulnerable Population

In a recent triumph against elder financial fraud, KeyBank has retrieved $2 million that was stolen from some of its older clients—reminding us that timely action and oversight can make a significant difference. According to the FBI’s Cleveland office, all victims in this case have been compensated fully.

Guidance for Banks

The proactive strategy employed by KeyBank highlights how vigilance and early intervention can safeguard vulnerable customers and recover stolen funds. This serves as a model for other financial institutions to educate and protect their clients proactively.

First and foremost, when dealing with scam victims, empathy should be the primary focus,” stated Suzanne Sando, Lead Analyst of Fraud Management at Javelin Strategy & Research. Banks must view the victim as a victim rather than a burden to the institution. Demonstrating empathy and compassion can help reduce the emotional stress faced by scam victims after such incidents, which is often a key reason why many do not report their crimes.

Banks should also set clear expectations for the victim during the resolution process,” she added. How long will it take? Who can they contact with questions or follow-up information? What steps will be taken next? Providing transparency about the process helps alleviate stress and frustration in an already difficult situation.”

Elder financial abuse continues to be a pervasive issue. The FBI’s Internet Crime Complaint Center reported a more than 40% increase in complaints from people over 60 in 2024. American adults in this age group lose approximately $38.5 billion annually, with average losses reaching $83,000.