News Release

For Immediate Release: June 12, 2024

On World Elder Abuse Awareness Day, Be Informed! Don’t be the Next Victim of a Crypto Investment Scam

MADISON, Wis. – Today, in recognition of World Elder Abuse Awareness Day on June 15, 2024, the Wisconsin Department of Financial Institutions (DFI) reminds financial professionals and the people of Wisconsin to be on the lookout for signs of elder abuse and financial exploitation. Elder abuse encompasses a range of behaviors including physical abuse, emotional abuse, sexual abuse, neglect, unreasonable confinement or restraint, and financial exploitation.

“While we are concerned with all forms of elder abuse, we are particularly focused on halting the growing trend of financial exploitation of our older adults in Wisconsin,” said DFI Secretary Cheryll Olson-Collins. “Senior financial exploitation is a growing problem. Many in our elderly population are vulnerable due to social isolation and distance from family, caregivers, and other support networks. Taking time to understand the warning signs and the steps that can be taken to report financial abuse are key to helping those who cannot help themselves.”

In 2023, Dane County Adult Protective Services staff investigated 408 reports of elder abuse in Dane County alone, 63% of which were substantiated. Of those reports, in 2023, financial exploitation was the highest category of reported elder abuse, with Dane County residents losing over $1 million to financial exploitation. Statewide, the DFI’s Division of Securities opened approximately 115 new investigations in 2022 and issued 22 administrative orders against 43 perpetrators of investment fraud, with approximately $20,812,565 in restitution and disgorgement ordered returned to investors. Senior victims can be found in at least half of those cases – a demographic often considered least likely to adopt new technologies. Yet, the Wisconsin data confirms older investors are just as vulnerable as the rest of us to cryptocurrency and internet/social media scams, which the DFI expects to continue as a top threat in 2024.

The DFI’s Division of Securities has seen a deluge of financial scams with a focus on cryptocurrency investments. These cases, frequently called “pig-butchering” or “financial grooming” due to the amount of time the perpetrators are willing to invest in gaining the investor’s trust, are devastating – since March 2023, the DFI has received 22 complaints from persons who describe losing over $2.3 million through financial grooming crypto scams. It is important to remember anyone can be the victim of fraud – the perpetrators target a wide range from blue collar workers to professionals.

To protect yourself and your hard-earned savings, learn to identify the following red flags of a romance or financial grooming scam:

  • The scammer reaches out first in an unsolicited text or on social media platforms such as Instagram, LinkedIn, or dating applications;
  • The scammer asks to move the conversation to encrypted messaging services such as WhatsApp, Telegram or Signal;
  • The scammer uses terms of endearment early on in the relationship;
  • The scammer pressures you to open a bank/crypto account;
  • The scammer brags about their successful investments and encourages you to invest; and
  • The scammer works remotely and is never available to meet in person.

It is important to recognize these red flags because scammers are hard to resist. In Wisconsin, one scammer threatened to kill herself unless the target invested more money in her scheme. Other scammers simply overwhelm you with promises of easy money. Make it a rule not to respond to random wrong texts. Don’t mix romantic relationships with your investments. No matter how long you’ve been speaking to someone online and how much you trust them, never send them any money, or allow them access to your bank account or digital wallet. Do not transfer money on their behalf, invest your own money on their advice, or take out a loan for them. If you follow these rules, you are less likely to be a victim of a cryptocurrency investment scam.

To learn more about how these scams work and what to do if you or someone you love is being targeted, read this article written by the DFI’s Division of Securities Attorney Supervisor Robin Jacobs. If you or a loved one believe you have been a victim of investment fraud, please report it to the DFI’s Division of Securities right away by emailing DFISecurities@dfi.wisconsin.gov or calling (608) 266-2139. Do not be ashamed – scam artists are very persuasive and prey on emotions, so everyone is vulnerable.

For more information, visit the DFI’s investor resources​ webpage. You can also find elder abuse resources at your local Aging and Disability Resource Center and Legal Action of Wisconsin. The DFI partners with these agencies along with the Wisconsin Department of Health Services, the Wisconsin Department of Justice, the Greater Wisconsin Agency on Aging Resources, Inc., and Dane County Adult Protective Services in the fight to end elder abuse in Wisconsin.

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Media Contact Email: DFICommunications@dfi.wisconsin.gov​