A record surge in elder financial abuse has renewed calls for financial institutions to designate a trusted contact person for vulnerable clients, following a staggering $704 million in reported losses to scams in 2025, according to the Canadian Anti-Fraud Centre.
Record Losses Highlight Growing Crisis
Canadians reported being scammed out of more than $704 million last year, surpassing the previous record of $645 million in 2024. The data, released by the Canadian Anti-Fraud Centre, underscores a troubling trend that disproportionately affects older adults. Advocates argue that mandatory trusted contact persons could help prevent such losses by giving financial institutions a direct line to a family member or friend when suspicious activity is detected.
How Trusted Contact Persons Work
A trusted contact person is an individual designated by a client to be contacted by their financial institution if there are concerns about financial exploitation, unusual transactions, or diminished capacity. Unlike a power of attorney, this designation does not grant authority over accounts but serves as an early warning system. Several provinces have already introduced legislation to require banks and credit unions to offer this option, but advocates say a national standard is needed.
Impact on Seniors
Elder financial abuse often goes unreported due to shame or lack of awareness. Victims may lose life savings, forcing them to rely on social programs or family support. The Canadian Anti-Fraud Centre notes that romance scams, investment fraud, and emergency scams are among the most common tactics targeting older Canadians. The recent spike has prompted urgent calls for action from consumer protection groups and senior advocacy organizations.
Legislative Responses
In response to the crisis, several provinces are considering or have passed laws requiring financial institutions to implement trusted contact person protocols. Federal regulators are also reviewing guidelines to strengthen safeguards. However, critics argue that more needs to be done to educate seniors about the risks and to ensure consistent enforcement across the country.
Prevention Tips
- Never share personal or financial information with unsolicited callers.
- Verify any urgent requests for money by contacting family members directly.
- Consider setting up a trusted contact person with your bank or credit union.
- Report suspected scams to the Canadian Anti-Fraud Centre.
The growing financial toll of elder abuse underscores the urgent need for systemic changes to protect vulnerable Canadians. As the population ages, experts warn that without intervention, losses will continue to climb.
