MADISON, Wis. – Today, in recognition of World Elder Abuse Awareness Day on June 15, 2025, the Wisconsin Department of Financial Institutions (DFI) is raising awareness about the devasting impact social isolation can have on older investors in Wisconsin.
Social isolation, whether voluntary or involuntary, significantly contributes to the financial exploitation of older investors. Scammers often target seniors during vulnerable times, such as health crises or after the death of a loved one, using personal details from obituaries and social media posts. Scammers may also exploit trust within seniors’ social and support groups to become more involved in their lives.
“We are committed to empowering older investors in Wisconsin and their loved ones with the tools they need to prevent investment fraud. Knowledge and vigilance are our best defenses against scammers,” said DFI Secretary-designee Wendy K. Baumann.
To protect older investors, the DFI’s Division of Securities stresses the importance of regular contact with seniors to reduce isolation and vulnerability. Open conversations about fraud and scams within families can also enhance seniors’ security and reduce their risk of financial exploitation. The North American Securities Administrators Association (NASAA), of which DFI is a member, has developed resources on how to protect yourself and your loved ones from investment scams. Find NASAA’s investor advisories on its website, including one on social isolation and the risk of investment fraud and share it with your older family members, friends, and neighbors to make them aware of the red flags of fraud and common scams, which remain consistent over time.
According to the Internet Crime Complaint Center (IC3), Americans sustained $16.6 billion in losses due to fraud in 2024, a 33% increase from 2023. IC3 further reported $9.3 billion in losses due to cryptocurrency fraud, a 66% increase from 2023. Nationally, the largest group impacted by cryptocurrency fraud are those in the 60+ age range. In Wisconsin, people aged 60+ reported losses over $50 million, with cryptocurrency losses exceeding $26 million.
In Wisconsin, as in other states, the cryptocurrency losses were often the result of financial grooming scams, which are also known as “pig butchering” or romance scams. According to DFI’s Investment Scam Tracker, the largest loss claimed by one person is $747,400. This Genoa City resident met a fraudster on a dating site. They messaged each other for months using texts and Telegram. The victim was persuaded to transfer funds to a crypto “node” investing service that illustrated large profits. However, the victim was blocked from making any withdrawals unless they paid additional taxes. In another scam, “Bitcoin Bears” purported to operate an online crypto trading platform. A 78-year-old man invested $32,600, and believed the account ballooned to $150,000 in just one month. He added another $32,000 as instructed in order to withdraw his profits but ultimately lost access to his account and all his funds.
“Once the scammer turns the conversation to investing, they prey on human nature by using information discovered during the relationship to trigger the victim’s emotions, usually fear of losing money or strong personal feelings, creating a heightened emotional state where the investor is more likely to miss the red flags the situation presents,” said Wisconsin Securities Administrator and NASAA President Leslie Van Buskirk. “Always remember to pause before committing to anything. If something seems too good to be true, it probably is. Once the money is in the scammer’s hands, it is usually impossible to get it back, especially with cryptocurrency investments. Call us with questions before investing – the scammers have well-designed scripts to counter investor objections.”
The DFI’s Division of Securities investigates many cases of investment fraud every year – from outright scams and Ponzi schemes to rogue financial professionals who groom older adults to win their trust before taking advantage. Senior financial exploitation can be difficult to identify and recognize. Learn the common warning signs of senior financial exploitation to help protect the seniors in your life. Anyone with suspicions of possible senior financial exploitation should contact the Wisconsin Elder Abuse Hotline by calling (833) 586-0107 or visiting ReportElderAbuseWI.org, or contact the DFI’s Division of Securities by calling (608) 266-2139 or emailing DFISecurities@dfi.wisconsin.gov. To learn more about investing and preventing fraud, visit DFI’s Investor Education and Avoiding Fraud Against Seniors webpages.
