Rising Threats: Identifying and Reporting Elder Fraud & Sexploitation Schemes

Elder abuse and sextortion are two of the fastest-growing fraud threats facing financial institutions today - crimes that succeed not through victim ignorance, but through sophisticated psychological manipulation, and where strong outcomes depend on equally strong public-private collaboration.

Moderator Joe McNamara was joined by panelists Dan Callahan (HSI) and Melissa Donovan (First Financial Bank) to explore how AI has dramatically amplified the effectiveness of these schemes, enabling fraudsters to clone voices, craft convincing personas, and target victims with personalized detail pulled from social media.

The conversation covered key behavioral red flags for financial institutions to watch for, including unusual cash withdrawals, gift card purchases, and out-of-character requests involving cryptocurrency. The session also explored how proactive communication between law enforcement and financial institutions leads to faster, more effective outcomes for victims. The panel closed with a unified call for education as the primary defense - stressing that outreach must be tailored to reach each vulnerable audience where they are.