A new analysis from the Federal Trade Commission points to a sharp rise in reports of older adults losing significant sums to impersonation scams, with losses sometimes reaching into the hundreds of thousands of dollars.
The new data highlight a more than four-fold increase since 2020 in reports from Americans aged 60 and older who say they lost $10,000 or more to scammers posing as trusted government agencies or businesses.
The combined losses among those who lost more than $100,000 soared from $55 million in 2020 to $445 million in 2024, according to the FTC report, emphasizing a greater-than-ever risk of retirees losing their life savings.
The latest Internet Crime Report from the Federal Bureau of Investigation points in a similar direction, noting that reported losses among individuals aged 60 and up soared 43% last year to hit $4.88 billion.
While younger consumers have also been targeted, the FTC notes that older adults are much more vulnerable as they're more likely to report these high-dollar losses.
The scams typically begin with a call, email, or pop-up message warning of a supposed urgent problem – such as suspicious activity on a bank account, alleged criminal use of a Social Security number, or a fabricated security issue with a computer. The fraudsters then urge victims to transfer funds, often under the pretense of keeping their money safe.
The FTC’s latest Consumer Protection Data Spotlight describes how these scams exploit the vigilance of older adults who are trying to protect their finances and identities. Some victims have reported emptying their bank accounts and retirement savings, believing they were following legitimate instructions to avoid further harm .
The tactics used by scammers are varied but share common threads. According to the FTC, the lies typically fall into three categories: claims that someone has hijacked the victim’s accounts, warnings that their information is being used to commit crimes, or alerts about supposed security problems with their computers.
In some cases, scammers even impersonate the FTC itself, instructing victims to withdraw cash, use Bitcoin ATMs, or hand over gold to couriers – actions the agency stressed it would never request.
Reports show that when people believe they are fixing a problem rather than simply sending money to a stranger, their losses are often limited only by the amount of money they can access. In 2024, 41% of older adults who lost $10,000 or more to these scams said the initial contact was a phone call, while others reported being targeted through online ads, pop-ups, or email .
The payment methods requested by scammers have also evolved. Thirty-three percent of older adults who lost $10,000 or more reported using cryptocurrency, followed by bank transfers and cash. For losses exceeding $100,000, bank transfers were the most frequently reported method.
For financial advisors, the message is clear: vigilance and education are critical. FINRA cautions that imposter scams often rely on source credibility, with many using the names of real investment professionals or firms to build trust.
To help protect their clients, advisors are encouraged to remind them to independently verify any unexpected requests for money or personal information, and to be wary of high-pressure tactics, guarantees, or requests for payment via cryptocurrency or wire transfer .
For its part, the FTC recommends that consumers never move money to “protect it” in response to an unexpected call or message, and to always verify the identity of anyone requesting funds by contacting the company or agency directly using a trusted phone number or website. Blocking unwanted calls and learning to spot the red flags of fraud can also help reduce risk.
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