Elder Fraud Losses Surge to $3B: FTC Report and Prevention Tips

Financial scammers are increasingly targeting older Americans, using deceptive online platforms, high-pressure phone pitches, and complex impersonation schemes to drain hard-earned savings. While older consumers are more likely to report suspicious solicitations, those who get caught in these elaborate operations face catastrophic financial consequences. As digital payment systems and online networks evolve, organized criminal rings are extracting record amounts of capital from people preparing for or living in retirement.

On October 19, 2026, the Federal Trade Commission (FTC) submitted its annual report to Congress, Protecting Older Consumers 2025–2026, detailing the rapid escalation of this trend. The report revealed that fraud losses reported by adults aged 60 and older reached approximately $3 billion in 2025, a fivefold increase from the $600 million reported in 2020. Since most victims do not report fraud to government agencies, the FTC estimates actual losses for older adults in 2025 ranged between $13.3 billion and $119.5 billion.

How Fraud Schemes Target Older Adults

The sharp rise in elder fraud is largely propelled by a surge in massive, individual six-figure losses. Combined losses from older adults who lost $100,000 or more increased nearly sevenfold between 2020 and 2025. While these severe losses represented only 6% of loss reports filed by older adults in 2025, they accounted for 70% of the entire $3 billion total.

Analysis of consumer reports reveals that these catastrophic losses were concentrated in these specific scam categories:

Investment Scams Promoted on Social Media

Investment fraud was the costliest category for older consumers in 2025, with $1.06 billion in reported losses, a 42% jump. Scammers use social media to pitch fake crypto, stock, or automated trading platforms, directing targets to fraudulent sites displaying falsified account balances. When victims request withdrawals, operators demand bogus “taxes” or “administrative fees” before freezing accounts.

Government and Business Impersonation Schemes

Government and business impersonators drew $870 million in losses ($448M government, $422M business). Government imposters claim bank accounts are tied to crime, while business imposters pose as bank or tech support fraud departments. Both fabricate urgent crises, coercing victims to transfer money to “protective custodial accounts” or government “lockboxes.”

Romance Scams That Exploit Trust

Romance scams caused $384 million in reported losses among older adults in 2025 (up 17%). Fraudsters build trust over weeks or months via social media or dating apps before fabricating urgent emergencies—like medical bills or foreign travel issues—to request repeated money transfers.

Prize, Sweepstakes, and Lottery Schemes

Prize and lottery scams cost older adults $143 million in 2025. Scammers contact targets via phone, mail, or online, claiming major prize wins from known brands but requiring upfront processing fees or taxes to release funds.

Tech Support Deception

Older consumers were over four times (324%) more likely than younger adults to report losing money to tech support scams. Alarming browser pop-ups prompt calls to fake technicians who gain remote access to computers and charge high fees for unneeded services.

Irreversible Payment Methods That Fuel the Losses

While credit cards were the payment method most frequently used by older adults (accounting for 28% of loss reports), payment channels that cannot be easily recalled accounted for the largest aggregate dollar amounts. Bank transfers and payments accounted for over $1.03 billion in reported losses, while cryptocurrency transfers totaled $603 million. In impersonation and sweepstakes scams, criminals also routinely demand payment through retail gift cards, direct bank wires, physical cash sent via couriers, or cash deposits into automated Bitcoin kiosks.

The table below details the top six fraud categories ranked by total reported dollars lost by older adults (ages 60 and older) in 2025, alongside the year-over-year percentage change compared to calendar year 2024.

Warning Signs of Elder Scams

Federal agencies participating in the nationwide Never Ever campaign, led by the FTC, the Department of Justice (DOJ), and the Department of Health and Human Services (HHS), have identified clear warning signs that expose fraudulent communications.

• Demands to transfer money to “protect” it: Legitimate banks and government agencies never tell you to move your funds into a separate account, a crypto kiosk, or a temporary vault to keep it safe from fraud.
• Insistence on specific, unusual payment methods: Demands to pay using retail gift cards, cryptocurrency, money-transfer apps, bank wires, or envelopes of cash collected by a courier are red flags that you may be dealing with a scam.
• Demands for complete secrecy: Fraudsters often order you to stay on the line, instruct you not to speak with family members, and supply fake cover stories to recite to bank tellers during cash withdrawals.

How to Protect Yourself and Older Relatives

You do not need to be a technical expert to guard against these schemes. Following five straightforward habits can help protect household savings from scams:

1. Hang up and call a number you know is real. If you get a call or text claiming your bank account, credit card, or Social Security number is in danger, hang up immediately. Do not press any buttons or call back the number that contacted you. Pick up your physical debit card, credit card, or an official paper statement, and call the customer service phone number printed on the back.
2. Talk to a family member or friend before you pay. Scammers rely on panic to make you act before you have time to think. Make it a personal rule to discuss any unexpected financial request, sudden investment tip, or prize notification with a trusted relative, neighbor, or bank employee before you authorize any transfer.
3. Refuse all requests to buy gift cards or use Bitcoin machines. If anyone on the phone tells you to go to a retail store to buy gift cards, or asks you to deposit cash into a Bitcoin ATM to clear a bill or protect your savings, stop. Legitimate businesses and government offices do not accept payment through these methods.
4. Restart your computer if an alarming warning screen appears. If your screen suddenly freezes with loud alarms or an urgent warning saying you are hacked, never call the phone number shown. Press and hold your computer’s power button until everything turns completely off, wait 30 seconds, and turn it back on. When you reopen your internet browser, click “Cancel” or the “X” if it asks to restore your previous pages.
5. Let unfamiliar phone calls go to voicemail. Scammers can alter the name and phone number that appear on your phone screen to look like a local courthouse, police department, or bank. Let calls from numbers you do not recognize go to voicemail. If a matter is truly legitimate, the organization will leave a message and send official mail.

What to Do If You Have Already Been Targeted

When money has been sent or sensitive personal details have been disclosed, acting promptly improves the chances of limiting damage and recovering funds:

• Cut off all communication: Discontinue every phone call, text exchange, and email thread with the scammer. Never send additional money to “release” previously transferred funds or pay supposed “withdrawal fees.”
• Contact your financial institutions immediately: Call your bank, credit union, or credit card company. Request an immediate recall on any recent wire transfers, flag fraudulent debit or credit charges, and ask the bank to secure your accounts.
• Request the Financial Fraud Kill Chain for wire transfers: If you sent a significant bank wire within the last 72 hours, submit a report immediately to the FBI Internet Crime Complaint Center. The FBI’s Recovery Asset Team works directly with domestic and international financial networks to freeze fraudulent wire transfers before they settle. In 2025, this process helped freeze $679 million in stolen funds.
• Contact the National Elder Fraud Hotline: Call the DOJ’s free hotline at 1-833-372-8311. Staffed by the Office for Victims of Crime, case managers provide direct support, help you organize reporting documentation, and connect you with local and federal resources.
• Place a security freeze on your credit reports: Restrict identity thieves from opening new lines of credit by freezing your credit files directly with the three national credit bureaus: Equifax, Experian, and TransUnion.
• Report identity exposure: If you provided your Social Security number, banking details, or driver’s license number, go to IdentityTheft.gov to receive a customized recovery plan.
• Preserve all records: Save written notes, phone numbers, text messages, emails, bank transfer confirmations, and cryptocurrency wallet transaction receipts to share with investigators.

How to Report Elder Fraud

Reporting scam attempts provides law enforcement agencies with the evidence required to identify criminal syndicates, freeze illicit assets, and bring enforcement actions. In fiscal year 2026, FTC enforcement actions resulted in more than $513 million returned to consumers of all ages.

Submit incident details through these official reporting portals:

• Federal Trade Commission: Submit reports through the FTC Fraud Reporting Portal, which feeds directly into the secure Consumer Sentinel Network used by thousands of law enforcement agencies nationwide.
• FBI Internet Crime Complaint Center: Report internet fraud, cryptocurrency theft, and wire transfers to the FBI Internet Crime Complaint Center.
• Federal Communications Commission: Report phone number spoofing and unlawful automated calls to the FCC Consumer Complaint Center.
• Local Police or Sheriff’s Department: File a formal police report with your local law enforcement agency. Banks frequently require a copy of an official police report to process fraud disputes.
• Specific Government Agencies: Report calls from Social Security imposters directly to the Social Security Administration Office of the Inspector General, and report tax-related scams to the Treasury Inspector General for Tax Administration.

Federal enforcement actions continue to target the infrastructure that enables these operations. In fiscal year 2026, the FTC secured a settlement requiring payment processor Nuvei to turn over $4.85 million for processing transactions for an overseas tech-support scheme that impersonated major US brands. The FTC also took action against operations like American Tax Service, requiring defendants to surrender nearly $10 million in cash and assets for running deceptive tax-debt telemarketing targeting older adults. Staying informed, hanging up on unsolicited calls, and checking in with loved ones remain the most dependable defenses against these escalating threats.

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