Identity Theft Among Wealthy Individuals Is Too Common, Especially for Those Over 60. Here’s How To Protect Yourself

Wealth Can Make You a Target for Fraudsters

Identity theft among wealthy individuals happens more than we’d like to admit. Unfortunately, both high-net-worth individuals and those in the later stages of life are frequently targeted by criminals. That makes it doubly important to take steps to protect yourself. 

A recent study in the UK found that 40% of wealthy individuals had been victims of scams, with many cases occurring within the last six months. Multi-family office structures and trusted wealth advisors can provide an extra layer of protection, especially if they offer security and auditing expertise.

Sadly, the cognitive decline that comes with age can also make people more vulnerable to criminals. Those with Alzheimer’s or dementia may find it harder to spot manipulation, making them more susceptible to fraud. Data from the FTC shows that 36% of financial crime reports in 2024 came from individuals aged 60 and above, resulting in nearly $2.4 billion in losses.

Awareness Is the First Defense

One of the best shields anyone can have against potential fraud is awareness. It may, for example, make people more cautious about clicking on links in emails or giving away private information to individuals over the phone. Boost your cybersecurity by using multi-factor authentication (a combination of a password and a fingerprint or code sent to a second device) and hard-to-hack passwords.

Even so, as social engineering scams become increasingly sophisticated, vigilance is essential. Criminals collect information, such as family names, habits, and trusted companies. They may then pose as a loved one in crisis or a financial service employee to try to trick you out of your money. 

Fraud and identity theft can also take place closer to home. As such, if you have a team of people involved in your household and business finances, it’s important to get the right balance of trust and oversight. Regular reporting systems and internal controls can help you catch potential problems early.

Plan Ahead To Protect Your Wealth

Whether you’re protecting yourself against identity theft or concerned about failing physical or mental capabilities, advance planning can be crucial. At a practical level, it may be worth pulling together a list of key contacts, documents, and instructions. 

At a legal level, there are several different types of power of attorney, as well as ways to control the transfer of power. Those legal documents will speak for you, but it is also important to talk to your trusted inner circle. That way, you can tell people what you want as well as build safeguards against external threats.

At Griffin Asset Management, we aim to develop customized solutions for every client. That includes estate planning, custodian setup, and regular reports. If you’re worried about the impact cognitive decline could have on your wealth, talk to one of our advisors today.

Sources:

ABA: A Guide to Safeguarding Seniors from Cyber Threats

UBS: Estate planning and cognitive aging

AARP: AARP Report: $28.3 Billion a Year Stolen from Adults 60+

Professional Adviser: One in eight HNWs fell victim to financial crime in last six months

FTC: Consumer Sentinel Network Data Book 2024

USC: Falling for financial scams? It may signal early Alzheimer’s disease