New York Securities Fraud Lawyers Blog
Elder financial exploitation, or “EFE,” has been on a rise in recent years. According to a June 2024 press release published by the FBI, “[i]n 2023, a total of $3.4 billion losses were reported, and elder fraud complaints increased by 14% from the year prior.” Then, in its 2025 press release, the FBI indicated that “[a]ccording to 2024 data from the FBI’s Internet Crime Complaint Center (IC3), there was a total of $4.885 billion in losses from 147,127 complaints. This is a 46% increase in complaints from 2023, as well as a 43% increase in losses.”
Based on the FBI’s 2024 Internet Crime Report, investment-related EFE was ranked number five for the amount of complaints filed (9,448), but it was ranked number one in overall losses incurred ($1,834,242,515). If you or your elder family member’s investment accounts have declined in value and it may be the subject of an EFE scheme, you need to consult with an EFE law firm like Malecki Law in New York.
EFE can be caused by a random scammer located elsewhere, a stranger that tries to get to know you and eventually obtains your trust through social media (i.e., pig butchering or romance scams), or someone close to you with access to your accounts (i.e., an adult child or caregiver). The last category can also include your trusted financial professionals.
Unfortunately, according to a 2022 FinCEN report:
“Perpetrators of elder theft are often family members and non-family caregivers who abuse their relationship and position of trust…Trusted persons who commit elder theft can also include familiar associates and acquaintances such as neighbors, friends, financial services providers, other business associates, or those in routine close proximity to the victims. Instances of elder theft often follow a similar methodology in which trusted persons may use deception, intimidation, and coercion against older adults in order to access, control, and misuse their finances… This can take many forms, including the exploitation of legal guardianships and power of attorney arrangements…” (FIN-2022-A002 (June 15, 2022)).
If someone close to you has requested access to your accounts for their benefit solely, you might be a victim of an EFE crime. You can schedule a free consultation with the attorneys at Malecki Law in New York to see if you have a case.
You should be very careful if and when you choose power of attorney (POA). The FDIC even warns the public of this: “Be careful with powers of attorney. At some point, you may want to have a power of attorney, a legal document that authorizes another person to transact business on your behalf. While powers of attorney can be very helpful, be careful who you name as your representative.” It is also useful to have co-POAs, people working together (another family member, a trusted CPA and/or lawyer), for checks and balances, as well as accountability.
To prevent EFE, even after choosing a POA, you should try to remain active in your financial affairs for as long as you can – review account statements, attend annual reviews, and maintain contact with your financial advisor. If you feel as though you are being shut out of any account related activities and have noticed substantial losses, you should contact an EFE lawyer in New York, like the lawyers at Malecki Law, to further discuss your situation.
The medical field has even weighed in on the psychological impacts of EFE. Samantha Farro, PhD and director of Behavioral Health and Integrated Programs for the Division of Geriatrics at the University of Colorado School of Medicine has stated that she has “seen firsthand the detrimental psychological impact this can have on a patient…” Further, that she is “definitely seeing it more frequently in clinic with our older-adult population.” There is an element of embarrassment or shock on part of EFE victims. Generally, EFE victims cannot fathom this has happened to them. It is highly likely the number of EFE instances are even larger than we know due to EFE instances that have gone unreported.
If you have securities accounts at broker-dealers, you can name someone as a “Trusted Contact Person” (TCP). FINRA Rule 4512(a)(1)(F) allows for this by requiring member firms to obtain the following information for each account, if applicable: “name of and contact information for a trusted contact person age 18 or older who may be contacted about the customer’s account…” If your broker-dealer or financial advisor only speaks to your POA or TCP rather than you, you may need to have an EFE law firm in New York, like Malecki Law, review your accounts and relevant documents carefully.
Jacqueline N. Candella, Associate at Malecki Law