FTC Survey Shows Older Americans Are Losing Billions to Scams (How to Spot One)

Scams are hammering Americans from coast to coast and putting their financial fitness in jeopardy.

Fraud losses reported by Americans 60 and older quadrupled from $600 million in 2020 to $2.4 billion in 2024, according to the Federal Trade Commission's (FTC) annual report to Congress. That is a 300% surge.

In a report from late last year, the FTC noted that the true toll of fraud likely is far higher, since most fraud goes unreported.

The FTC estimated that in 2024, real fraud losses likely ranged from $10.1 billion to $81.5 billion.

The scale of the problem

When fraud occurs, it puts your personal information and finances at risk.

An AARP survey found 41% of adults 50 and older report having had money or sensitive information stolen through fraud. Overall, 38% of adults of all ages report being victims of such crimes.

Through the years, older Americans often have faced steeper losses than their younger counterparts. The FTC notes that in 2024, adults in their 70s reported a median individual loss of $1,000, more than double the $417 for victims in their 20s.

That same year, adults who were 80 or older had median losses of $1,650.

Older people probably suffer larger losses because after a lifetime of saving, they have more to lose. Because these losses are larger and seniors have less time to recover from them, the losses can be especially damaging after 50.

The types of scams that cause the most damage

Investment scams are now the most financially destructive category of fraud for older adults, accounting for approximately $744 million in reported losses in 2024.

Such scams frequently involve fake cryptocurrency platforms pushed through social media.

Government imposter scams grew to $789 million across all ages. Romance scams are also widespread, costing older adults $329 million.

Other widespread scams

Tech support scams also commonly rob older Americans of their money. Such losses among older adults totaled about $159 million in 2024.

Meanwhile, prize, sweepstakes, and lottery fraud cost older adults $145 million.

Some scams appear benign on the surface but actually mask something dangerous.

For example, older adults often fall victim to brushing scams, in which they unexpectedly receive a package of goods from a retailer such as Amazon or Walmart.

The scammers then create reviews on the retailer site in the victim's name in an attempt to make the product appear more legitimate.

It sounds harmless, but it can result in identity theft and even unauthorized charges on your credit card.

The states that rank highest for scams

Seniors in some specific states are at higher risk of falling victim to scams than in other places. These are the states that rank highest for fraud reports per capita:

• Florida: 2,163 total fraud and other reports per 100,000 population
• Georgia: 2,108
• Delaware: 1,876
• Nevada: 1,867
• Maryland: 1,799

The states that rank lowest for scams

By contrast, some states represent safe havens for those hoping to lower their risk of fraud. These are the states that rank lowest for fraud reports per capita:

• South Dakota: 676
• North Dakota: 696
• Iowa: 715
• West Virginia: 836
• Kansas: 848

Red flags common to many scams

Knowing the warning signs of a scam is one of your best tools for avoiding falling victim to fraudsters. AARP's Fraud Watch Network says there are some red flags that are associated with almost all scams.

For example, be wary if someone contacts you out of the blue and claims to be from an organization you recognize. Unsolicited contact is a red flag.

Scammers are also likely to stress that you must act urgently. This should be a major warning sign that you are speaking to a fraudster.

Another sign of likely fraud is when the person who contacts you asks for payment and insists you use a particular payment method.

What to do if you are a victim of a scam

Scammers prey upon your emotions to get you to quickly react to their demands.

If someone unexpectedly contacts you, AARP recommends taking an "active pause" so you can gather your wits and process what is going on.

Ask yourself whether the request really makes sense and try to think about whether you have heard about scams that match the caller's approach and behavior.

If you suspect that someone is trying to scam you, hang up and report the fraud to the FTC on the agency's website at ReportFraud.ftc.gov.

Some experts believe that less than 10% of victims report fraud to law enforcement, and this underreporting is part of why the problem grows.

Bottom line

Unfortunately, the incidence of scams has exploded in recent years. Older Americans especially are at high risk of falling victim to these crimes.

The more you are aware of these scams, the better equipped you are to keep more of your money out of the hands of criminals. Consider taking steps to protect yourself, such as:

• Blocking unsolicited and unwanted calls and texts
• Refusing to give out personal information to those who contact you
• Talking to someone you trust when you are suspicious about a call

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