Anyone can fall victim to a scam, but adults over 60 are especially vulnerable—and often face more substantial financial losses.
A report from the U.S. Federal Trade Commission (FTC) found that reported fraud losses among older adults spiked last year, with seniors reporting approximately $3 billion in losses. That represents a 25% year-over-year increase and four times the amount reported just six years ago.
Although only about 6% of older elder fraud victims reported losing $100,000 or more, the number of such high-value losses is soaring.
“The sharp increase in large individual losses is particularly concerning,” said Jennifer Pitt, Senior Fraud Management Analyst at Javelin Strategy & Research. “Older adults often have more accumulated wealth, and criminals running investment scams might specifically target them because of it. Losing $100,000 or more might wipe out someone’s retirement savings, forcing them to return to work or rely on family members or government assistance to make ends meet.”
“The consequences might extend beyond the victim, affecting younger generations who end up helping financially,” she said. “Financial institutions, particularly wealth management teams, are in a position to recognize unusual withdrawals or investment liquidations and intervene before those savings end up in the hands of criminals.”
Manufacturing a Response
Investment scams were the costliest type of fraud reported to the FTC, accounting for more than $1 billion in losses—a year-over-year increase of more than 42%. Many of these schemes originated with social media ads or direct messages purporting to come from financial advisors, which directed victims to fraudulent trading platforms.
Investment scams are just one example of how criminals exploit trust to manipulate victims. Impostor scams have also become increasingly convincing as AI tools grow more sophisticated, allowing bad actors to impersonate banks, businesses, and government agencies with alarming realism.
These schemes often rely on manufactured emergencies to pressure victims into transferring money. For example, a criminal might pose as a bank representative and claim that a customer’s account has been compromised. The victim is then urged to act immediately and transfer funds to protect their assets.
Encouraging Victims to Speak Up
The rising effectiveness of scams is driving efforts to prevent them from evolving. Along with consumer education, new solutions aim to predict potential scams by analyzing data and behavioral patterns in real time, helping identify at-risk consumers before a loss occurs.
However, prevention is only a facet of a comprehensive fraud program. Financial institutions must also make it easier for victims to report scams, seek assistance, and understand their options after an incident, especially among older customers, who may be reluctant to come forward.
“When it comes to helping victims, we need to start treating fraud like the crime it is instead of blaming the people who were victimized,” Pitt said. “I continue to hear people, including professionals, ask, ‘How could someone possibly fall for that scam?’ Statements like that only perpetuate the problem. If an older adult has a choice between a criminal who seems kind and reassuring and someone making them feel stupid for being deceived, who are they more likely to trust? We need victims to know we’re there to help them, not judge them.”
Underreporting makes the scale of the problem difficult to measure. The FTC estimated that actual fraud losses among older adults last year could have ranged from $13.3 billion to $119.5 billion, underscoring the importance of both prevention and accessible support for victims.
“The FTC reports approximately $3 billion in fraud losses among older adults in 2025, while the FBI’s 2025 Internet Crime Report shows $7.75 billion,” Pitt said. “Both agencies accept reports involving scams, and victims might report the same incident to both. With multiple reporting systems and no way to determine how many reports overlap, we don’t even know the total reported elder fraud losses, much less the actual losses.”
