The number of older adults who have lost $100,000 or more to fraud has increased threefold since 2020, according to the FTC.

• Since 2020, the number of Americans aged 60 and above who have lost $100,000 or more to fraud has more than tripled, according to the Federal Trade Commission.
• The FTC stated that older adults are most likely to fall victim to investment scams, particularly those involving cryptocurrency, as well as romance and imposter scams.
• Experts advised that consumers should be aware of three warning signs: social detachment, a sense of urgency, and unusual payment methods.

Since 2020, the number of older Americans who have lost more than $100,000 to fraud has tripled, according to the Federal Trade Commission, posing a growing threat to their financial security, experts warn.

The number of adults aged 60 and above who were defrauded of a six-figure sum increased from approximately 1,300 in 2020 to about 4,600 in 2023, according to a report issued by the FTC in October.

Experts noted that older adults are particularly vulnerable to theft, as they may not have the same opportunities to recover lost funds, which can significantly affect their quality of life in old age.

John Breyault, vice president of public policy, telecommunications and fraud at the National Consumers League, stated that it's life altering.

Victims not only face a financial blow but also experience emotional trauma from knowing they will live the rest of their lives in poverty, according to Breyault.

Common scams targeting older Americans

In 2023, the FTC reported that consumers lost a record high of $10 billion to scams.

Although the number of fraud reports in 2022 was approximately 2.6 million, the FTC reported a fraud loss of $1 billion more than in 2022.

Breyault stated that scammers are becoming increasingly skilled and using advanced technology to target victims with greater accuracy.

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In 2023, seniors aged 60 and above lost over $1.9 billion to fraud, an increase from the $1.6 billion reported in 2022, according to the FTC.

The FTC estimated that the true scope of losses by older adults in 2023 was around $62 billion, after accounting for underreporting. A 2023 Gallup News poll found that many Americans may not report these crimes to the police or other sources due to embarrassment or the belief that nothing could be done.

Last year, older adults were 60% more likely to report losses exceeding $100,000 compared to younger ones, according to the FTC. The FTC stated that criminals often steal such large sums from older adults through romance scams, investment frauds, and imposter scams.

Fraudsters frequently use impersonation to carry out imposter scams, posing as friends, family members, or representatives from technology companies, sweepstakes and lottery organizations, financial institutions, and government agencies like the Social Security Administration and FTC.

In recent years, there has been a significant rise in internet fraud targeting older Americans, with the average victim losing over $34,000 in 2023, according to the FBI.

In 2023, older adults reported the largest losses from investment scams, with fake cryptocurrency opportunities accounting for $538 million in losses, a 34% increase from the previous year, according to the FTC.

3 common red flags of a scam

"The National Council of Aging stated that while we all believe we can detect online scams easily, con artists and cybercriminals are becoming increasingly skilled and cunning daily."

Breyault stated that scammers use three common tactics that potential victims can recognize to protect themselves.

1. Sense of urgency

Breyault stated that criminals frequently aim to induce a "heightened state of emotional urgency."

According to NCOA, this psychological tactic compels victims to act impulsively, causing them to make decisions or disclose sensitive information without careful consideration.

NCOA stated that fraudsters may claim an offer is only valid for a limited time, a product is almost out of stock, or that immediate payment is necessary to avoid unfavorable outcomes.

2. Social isolation

Scammers attempt to hinder consumers from disclosing information to a third party, such as saying "Do not reveal this to anyone. Do not contact the authorities. This is an unknown investment, so do not share it. It's our private matter," as Breyault stated.

"Before making any decisions, it's best to seek advice from a trusted friend or family member if you're uncertain about the person you're communicating with or the information being shared. A quick screenshot or discussing the situation with someone you trust can provide clarity."

3. Unusual ways to pay

Breyault stated that criminals frequently request victims to make payments through buying gift cards, wiring money, visiting a bitcoin ATM, or using a peer-to-peer transaction on platforms such as Zelle or Venmo, for example.

In such circumstances, consumers usually do not have the option to receive a refund, according to him.

Breyault stated that while there are legitimate uses for payment methods like bitcoin ATMs, they often seem suspicious in the context of fraud. For instance, why would a loved one who claims to need cash ask you to send money through a bitcoin ATM?

"It is recommended to use a payment option that offers reimbursement for authorized payments when purchasing products online, as using a direct payment method, such as a payment app, is equivalent to sending cash and may not allow for a refund."