Fraud Doesn’t Retire: Why Cybersecurity Belongs in Your Estate Plan

Estate planning has always been about preparing for the future—wills, trusts, and making sure assets are passed on smoothly. But in today’s digital world, it is also about something less obvious: protecting yourself and loved ones from cybercrime. Scammers are getting smarter, and older adults are often their prime targets. This means that estate planning must evolve, too.

In 2023, Americans aged 60 and older reported more than $3.4 billion in losses to fraudulent scams, with the average victim losing nearly $34,000.¹ These are not isolated incidents but unfortunately are part of a growing trend. Fraudsters employ tactics designed to create panic and urgency, making people act before they think. A phone call claiming to be from the IRS, a pop-up warning that your computer is infected, or even a message from someone pretending to be a loved one in trouble are all common starting points for fraud.²

How Scammers Operate

Scammers often target older adults because they tend to have accumulated savings, own property, and may be less familiar with digital security practices. The schemes vary, but the goal is always the same: separate victims from their money. Some of the most common scams include³:

• Tech support scams: A pop-up or caller insists your computer has a virus and persuades you to pay for “repairs” or grant remote access.
• Government impersonation scams: Someone claims to be from the IRS or Social Security, threatening arrest or loss of benefits unless you pay immediately, often via gift cards or wire transfers.
• Romance scams: Criminals build trust through dating sites or social media, then invent emergencies that require money.
• “Grandparent” scams: Criminals build trust by pretending to be a relative in distress, then request urgent financial help.
• Investment or cryptocurrency schemes: Offers of unusually high returns with little risk, only for the money to vanish.
• Phishing emails: Emails or text messages that trick recipients into sharing login credentials or clicking malicious links.

Where Estate Planning Fits In

Estate planning can be a powerful tool in the fight against fraud. Traditionally, it has focused on asset distribution and tax efficiency, but it can also provide safeguards that protect vulnerable individuals.

For example, a durable power of attorney allows a trusted person to step in and manage finances if someone becomes incapacitated, reducing the risk of unauthorized transactions. Similarly, revocable living trusts can be created to include co-trustees, often adult children or advisors, who monitor financial activity and flag anything suspicious. If cognitive decline becomes a concern, the trust can be made irrevocable, further limiting access⁴.

Another often-overlooked area is digital asset planning. Including the accounts you use day-to-day such as email, online banking, cloud storage, and more in your estate plan, along with instructions for access, ensures that someone trustworthy can manage or close them, reducing the risk of identity theft. And finally, consider building in regular oversight of your digital assets and online accounts. A second set of eyes can make all the difference in catching fraud early, so consider incorporating periodic financial reviews by family members or professionals into your estate plan⁵.

Education Is Key

Legal tools are important, but education is just as critical. Encourage loved ones to be skeptical of unsolicited calls, emails, or pop-ups. Remind them never to send money or share personal information without first verifying the source. Strong, unique passwords and multi-factor authentication can go a long way, as does keeping your device’s antivirus software up to date.

Many scams succeed because victims believe they’re helping protect their identity, assisting law enforcement, or saving a family member from embarrassment. Open conversations with your loved ones can break that cycle. Try to create an environment where it’s okay to ask questions and double check suspicious inquiries.

A Family Conversation

At the end of the day, estate planning isn’t just a legal process, it is a family conversation. By involving loved ones in planning and cybersecurity education, you create a network of support that helps protect against isolation and exploitation. Whether it’s setting up shared passwords, appointing financial guardians, or simply checking in regularly, small steps can make a big difference.

As elder fraud continues to rise, integrating cybersecurity into estate planning is no longer optional, it’s essential. If you haven’t reviewed your estate plan recently, now is a great time to make sure it includes protection against digital threats. And if you have questions or want to explore strategies for safeguarding your assets and your family, reach out to your advisor.

Sources:

1. FBI Elder Fraud Report, 2023: https://www.fbi.gov/news/stories/elder-fraud-in-focus
2. Federal Trade Commission: False Alarm, Real Scam: https://www.ftc.gov/news-events/data-visualizations/data-spotlight/2025/08/false-alarm-real-scam-how-scammers-are-stealing-older-adults-life-savings
3. How To Avoid Imposter Scams, 2023: https://consumer.ftc.gov/features/how-avoid-imposter-scams
4. Curran Estate & Elder Law: Asset Protection Strategies: https://curraneelaw.com/asset-protection-planning-strategies-to-protect-seniors-from-financial-scams/
5. ElderCareMatters.com: Avoiding Scams: https://eldercarematters.com/avoiding-scams-protecting-seniors-from-fraud

Disclosures:

Apella Capital, LLC (“Apella”), DBA Apella Wealth is an investment advisory firm registered with the Securities and Exchange Commission. The firm only transacts business in states where it is properly registered or excluded or exempt from registration requirements. Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. Apella Wealth provides this communication as a matter of general information. Any data or statistics quoted are from sources believed to be reliable but cannot be guaranteed or warranted.