Wisconsin Bankers Unite to Protect Aging Population from Fraud

By Elizabeth Fenton, WBA Communications Coordinator

In small-town Wisconsin, a woman quietly withdrew more than $140,000 — money she believed would prevent legal trouble and protect her family. Across the state, a widower spent months wiring money to someone he thought cared about him. These scammers used social engineering in different ways, yet both roads led to the same devastating end: the loss of hundreds of thousands of dollars that were impossible to recover. These stories are not one-off tragedies — they’re happening to our own grandparents, neighbors, and bank customers.

Financial exploitation targeting older adults is accelerating across Wisconsin, and the strategies behind these schemes are becoming increasingly sophisticated and emotionally manipulative. Bad actors weaponize romance and crypto kiosks to swindle funds from unsuspecting and well-intentioned elderly people — and banks around the state often serve as the final line of defense between older customers and devastating financial loss. Policymakers and financial institutions alike are committed to identifying these ever-evolving crime patterns by establishing stronger frameworks to reduce harm and empower frontline staff to intervene when they suspect fraud is afoot.

Members across our industry have followed with interest the work of the Speaker’s Task Force on Elder Services — a group consisting of people from both sides of the aisle. The Task Force seeks to identify vulnerabilities facing older Wisconsin residents, particularly in areas regarding safety, financial exploitation, housing, and access to services. Several months of hearings are complete and new legislation is slated for 2026 — so banks may soon see policy changes affecting how crooked transactions involving seniors are handled.

An Urgent Need for Intervention

Representative Pat Snyder, chairman of the Task Force and legislator for Wisconsin’s 85th Assembly District, recounted a wave of alarming reports from local law enforcement regarding staggeringly-high-dollar loss cases among seniors. Crypto kiosks — machines allowing cash to be converted into digital currency — were repeatedly cited as enabling fraud situations that banks could not stop once a customer had withdrawn funds from their account.

“When someone receives a text saying they’ve missed jury duty and will be arrested unless they pay immediately, they panic,” Snyder explained. “People walk into their bank, withdraw $5,000 or $10,000, and then go straight to a kiosk to deposit it — sometimes while still on the phone with the scammer.”

What’s worse: These victims rarely disclose the situation to their family members. Pride and embarrassment often bar these older adults from admitting a fraudster manipulated them, even when bank employees or law enforcement finally intervene.

These fraud situations have devastating impacts that extend far beyond the financial. “In some cases, we’re seeing people withdraw life savings, then experience shame so severe that it affects their mental and physical health,” Snyder shared.

By 2035, Snyder said, Wisconsin will have more residents over the age of 65 than under 18. These patterns — paired with our state’s aging population — contribute to a significant need to create safeguards for seniors.

Legislation in the Pipeline

The Task Force has held hearings in Madison, Wausau, and LaCrosse, with plans to conclude its work in early 2026. Snyder anticipates recommending five or six legislative bills focusing on both physical safety and financial protection of elders.

One priority under consideration involves granting banks greater authority to place temporary holds on large or unusual transactions involving vulnerable adults.

“We’re not talking about stopping everyday activity,” Snyder explained. “But when a customer suddenly requests thousands of dollars while on the phone with someone telling them what to say, we need a way to pause that money from going out the door.”

Solutions being explored include:

• A mandatory hold period when transactions significantly deviate from a customer’s normal pattern
• Formal guidelines protecting banks when intervening
• Coordination with law enforcement and social services during active fraud attempts

Other potential proposals may address:

• Daily caps on cryptocurrency kiosk transactions
• Requirements for convenience store operators hosting the machines
• Awareness programs for caregivers and community service professionals
• Pilot funding for in-home safety programs

Snyder emphasized the importance of bipartisan support, noting that a 4-4 committee composition increases the likelihood that the Governor will consider signing final recommendations into law.

Elder Fraud as Seen by Wisconsin Banks

Bad actors continue to tailor their techniques and leverage AI for increasingly sophisticated attacks — but certain techniques remain consistent, according to Ken Schweiger, SVP/COO at Community First Bank and chair of WBA’s Financial Crimes Committee.

“Romance or companionship scams are among the most common we encounter at our bank,” Schweiger said. “In our recent experience, however, ‘grandchild’ schemes have resulted in the largest financial losses.”

In the latter, attackers pose as family members who are faced with urgent harm — claiming to need bail money or to pay off emergency medical care. Scammers lean into highly emotional or formidable narratives to drum up a sense of urgency. This feeling of immediate importance prevents customers from verifying identities or contacting other family members.

Schweiger noted that another growing threat involves computer-support pop-up messages. These alerts claim a device has been compromised and instruct the user to call a customer service line, often using logos and language that resemble reputable tech companies. Scammers then persuade victims to allow remote access to their computer, log into their bank accounts, provide multi-factor authentication codes verbally, or install hidden monitoring software.

“This is particularly dangerous,” Schweiger explained, “because the fraudster bypasses security procedures in real time by simply asking the victim to read the authentication codes.”

In more insidious cases, attackers remain connected to a victim’s computer for months or longer, monitoring emails or recording keystrokes.

Schweiger also attributes vulnerability to cultural norms and Midwest politeness.

“A lot of older individuals are uncomfortable hanging up on someone, even when the situation feels wrong,” he explained. “They tend to assume honesty in others, especially when the request comes wrapped in urgency or fear.

We live in an era where vast volumes of personal information are publicly accessible on the internet, such as family names, birthdays, hometowns, and workplaces. Fraudsters can easily fabricate a believable story without conducting deep reconnaissance. The

Future of Fraud

The era of cartoonishly-obvious scams — outlandish requests from foreign princes and messages riddled with mangled grammar — has long since faded.

“In the past, misspelled words were telltale signs of fraud,” Schweiger explained. “AI eliminates many of those indicators and allows criminals to personalize messages with real-time data.”

Deepfake audio, which is already used commercially, is especially concerning. Bad actors can create audio that perfectly mimics the voice of your boss, granddaughter, or spouse with only a 10-second clip of their voice. Older adults who have diminished hearing capacity or declining memory are especially susceptible to these phishing attempts.

How Banks Can Intervene

Fraud attempts can end at the teller line. As Snyder described, banks often serve as the “last line of defense” before permanent financial loss occurs. Bank employees may identify that a customer has arrived under emotional pressure, often while still receiving instruction from a scammer through texts or phone call. These frontline staff are placed in the awkward position of feeling responsible to intervene, while also honoring the customer’s autonomy.

Both Snyder and Schweiger argue that legislative authority to pause transactions is a critical next step so the gray area of identifying fraud is not fully shouldered by bank employees.

As Schweiger explains, the majority of customers who proceed with suspicious transactions against a bank’s better advice later regret their decision. “They come to the realization within 24 hours that they have been scammed and want us to reverse the transaction,” he explained. “It’s heartbreaking to see the stress this causes for the customer and their families.”

Therein lies the paradox for banks: Institutions may have full faith that a transaction is fraudulent, yet their legal authority to act remains limited. Fraudsters, meanwhile, weaponize speed and urgency, pressuring victims to make irreversible transactions before a meaningful review can occur.

Schweiger believes that even a short delay could significantly change these bad outcomes. “Fraudsters are well aware that urgency is one of their primary motivators and if we could slow things down temporarily, many customers would think the situation through and the result would be different.”

The proposed legislation being discussed by the Speaker’s Task Force would give banks the ability to pause suspicious activity long enough for questions to be asked or law enforcement to intervene. For many older adults, especially those acting in isolation, this breathing room could save them from being tricked out of their life savings.

WBA Expands Resources to Strengthen Fraud Prevention

WBA continues to help prepare members to combat fraud through educational programs. The highly attended Fraud Summit last June inspired the launch of a new, multi-session fraud learning series starting in early 2026.

Unlike single-event webinars, the series is structured to allow bank-wide participation. Topics will include cybersecurity and digital fraud defense, frontline fraud detection, elder fraud exploitation (with real case studies), and internal fraud and employee misconduct. These sessions will be led by subject matter experts and will highlight emerging risks.

Wisconsin’s aging population represents decades of savings and community investment. Protecting their financial well-being and legacy requires coordinated action from policymakers and banks alike.

For banks serving Wisconsin’s older population, the months ahead will bring opportunities to contribute to these timely advocacy efforts and take advantage of resources designed to shield vulnerable populations from fraud.