Firm Takes Aim Against Elder Financial Abuse in Cryptocurrency Scams

See complaint here.

Kronenberger Rosenfeld, LLP has filed a groundbreaking complaint in San Francisco Superior Court, highlighting the growing epidemic of elder financial abuse in America, particularly in the realm of cryptocurrency and new financial technologies. The elder abuse lawsuit, filed against Crypto.com, First Republic Bank, and a financial advisor, alleges these defendants failed to prevent, and actually enabled, a cryptocurrency scam targeting the plaintiff’s elderly husband.

Elder financial abuse has reached alarming levels in recent years, with technology-driven fraud becoming increasingly prevalent. Elder abuse scams have skyrocketed with the advent of new financial technology, with cryptocurrency exchanges often lacking adequate safeguards to protect vulnerable older adults.

The scale of this problem is staggering. As the complaint explains, the cryptocurrency-enabled crime wave is estimated to have a volume of $75 billion in recent years.1 This figure underscores the urgent need for action to protect older Americans from financial exploitation.

Cryptocurrency exchanges, despite possessing advanced blockchain technology that could provide unparalleled transaction monitoring, often fail to make reasonable investments in compliance and consumer safety. The complaint alleges that major exchanges have the capability to trace and monitor transaction activity with exacting precision and in real time, yet they often fall short in utilizing these tools to fight fraud and financial exploitation of older Americans.

Traditional financial institutions are not exempt from blame. The complaint points out that banks have acted as entry points for fraudsters by permitting transfers to cryptocurrency exchanges without proper due diligence. This failure in the traditional banking sector has exacerbated the vulnerability of older adults to financial scams.

The lawsuit alleges that both Crypto.com and First Republic Bank ignored numerous red flags and failed in their duties as mandated elder abuse reporters. This highlights a critical issue in the financial industry: the responsibility of institutions to protect vulnerable customers and report suspected abuse.

As attorneys dedicated to protecting consumers in the digital age, we at Kronenberger Rosenfeld believe this case represents a crucial step in addressing the critical issue of elder financial abuse. By holding these financial institutions accountable, we hope to encourage both traditional and crypto-based financial entities to take their responsibilities to protect vulnerable customers more seriously.

The complaint serves as a wake-up call to the financial industry, emphasizing that the technological advancements that have made cryptocurrency transactions possible should also be leveraged to enhance security and prevent fraud. It underscores the need for stricter compliance measures, improved due diligence processes, and a renewed commitment to protecting older Americans from financial exploitation.

Kronenberger Rosenfeld remains committed to fighting for the rights of victims of elder financial abuse and pushing for greater accountability in the financial sector. If you or a family member are the victim of elder financial abuse, we would be happy to talk to you. You may contact us at 415-955-1155, ext. 120 or through our online case submission form.