The Hidden Cost of Scams: Older Americans Lost an Estimated $13.3 Billion to $119.5 Billion in 2025

Financial scams targeting older adults continue to rise at an alarming rate, and the latest findings from the Federal Trade Commission (FTC) paint a troubling picture. According to the FTC's Protecting Older Consumers 2025-2026 report, Americans age 60 and older may have lost between $13.3 billion and $119.5 billion to fraud and scams in 2025 alone. While reported losses totaled approximately $3 billion, the FTC estimates the true financial impact is much higher because many scams go unreported. 

Why Are Older Adults Being Targeted?

Scammers often view older adults as attractive targets because they may have accumulated retirement savings, home equity, or investment assets over a lifetime. Criminals increasingly use sophisticated techniques, including social media outreach, impersonation, artificial intelligence-generated communications, and fake investment opportunities to gain victims' trust. 

Unfortunately, the scams are becoming more convincing than ever. Fraudsters can mimic government agencies, financial institutions, family members, and even trusted businesses, making it difficult for anyone to recognize a scam before it's too late. 

The Most Costly Scams

According to the FTC report, investment scams caused the largest financial losses among older adults, exceeding $1 billion in reported losses in 2025 and increasing by 42% from the previous year. Many victims reported being lured into fraudulent cryptocurrency and investment platforms after being contacted through social media.

Other common scams included:

• Government impersonation scams
• Bank and financial institution impersonation scams
• Tech support scams
• Romance scams
• Lottery and prize scams

In many cases, scammers convince victims that their money is in danger and direct them to move funds into supposedly "safe" accounts, send cash, or deposit money into cryptocurrency kiosks. Once the funds are transferred, they are often impossible to recover. [cnbc.com]

The Real Losses May Be Much Higher

One of the most alarming findings is the gap between reported and estimated losses. While older adults reported roughly $3 billion in fraud losses, the FTC believes the actual amount lost could range from $13.3 billion to $119.5 billion because so many victims never report what happened. Some feel embarrassed, while others may not know where to report the crime or believe nothing can be done.

This underreporting means the true scope of elder financial exploitation remains largely hidden.

What Families Can Do

Protecting older loved ones requires ongoing conversations about fraud prevention. Families should encourage seniors to:

• Verify unexpected calls, emails, or text messages independently.
• Be skeptical of requests involving urgent financial action.
• Never send money to someone they have not met in person without thorough verification.
• Consult trusted family members or advisors before making large financial transfers.
• Monitor financial accounts regularly for unusual activity.
• Report suspected scams immediately. 

Estate Planning and Financial Protection Go Hand in Hand

As elder fraud continues to escalate, proactive planning is more important than ever. Legal tools such as powers of attorney, trusts, and carefully selected fiduciaries can provide an additional layer of protection when managed appropriately. While no plan can eliminate the risk of fraud entirely, having trusted individuals involved in financial decision-making can help spot red flags before devastating losses occur.

Final Thoughts

The FTC's findings serve as a powerful reminder that scams are not just a nuisance; they are a significant threat to the financial security and independence of older Americans. Whether the true losses were $13.3 billion or as much as $119.5 billion, the impact on victims and their families is profound. Awareness, education, and proactive planning remain our best defenses against an increasingly sophisticated wave of financial fraud. Please stay vigilant and do not be embarrassed to ask for help immediately if you need it!