Fraudsters have a long history of targeting older folks, but the problem appears to be getting worse.
The number of adults age 60 and older who reported losing six figures or more to fraud has tripled in a span of just three years, according to a recent Federal Trade Commission report to Congress.
In 2023 alone, older adults lost more than $1.9 billion to fraud. However, the FTC says that the vast majority of such crimes are not reported and that the real toll on seniors’ finances may be as high as $61.5 billion.
Here are the types of scams to which older adults report losing the most money.
1. Investment scams
How much older adults reported losing to this type of fraud in 2023: $538 million (a 34% increase from the prior year)
Investment scams prey on our desire to get rich. The FTC says many of these scams encourage folks to invest in financial markets, cryptocurrency, real estate or precious metals and coins.
The scammers may offer free training or seminars before gradually introducing additional training at higher fees.
You should be wary of any investment “opportunities” that promise big money at little risk and with little to no time or effort involved, the FTC says. High-pressure sales tactics and pledges to reveal “secret” methods of making cash are additional red flags.
2. Business imposter scams
How much older adults reported losing to this type of fraud in 2023: $311 million (a 16% increase from the prior year)
Business imposter scams often begin with phone call in which you are informed about a potential issue, such as phony charges on a retailer account or a virus on your computer, the FTC says. The scammer may then claim you are at risk of being tied to serious crimes or that a court plans to seize your assets.
At that point, the scammer might connect you with someone they allege is from the government. In truth, you are being patched into another fraudster who will trick you into removing money from a bank or retirement account so you can give it to someone else.
These scammers can be sophisticated, possibly even faking a number that will appear as legitimate on your caller ID. But the bottom line is that no one who actually works for the government should ever ask you to give money to someone else.
Also be on alert if the caller asks you to keep the call secret.
3. Romance scams
How much older adults reported losing to this type of fraud in 2023: $277 million (a 16% increase from the prior year)
If you use dating websites or apps, you need to be on guard for romance scams.
Someone you connect with on one of these sites might be a crook who asks you to call or message them off the platform. Perhaps they will explain that they live far away and need money to fly to meet you. Or, they may say they need cash for something like emergency surgery.
These scams are powerful because they build on the trust and affection you have developed for another person. Romance scams often involve requests for money sent through gift cards. Requests for cryptocurrency payments tend to be the most expensive form of this scam, however, according to the FTC.
The agency warns you to never send money or gifts to anyone you have not met in person. Also, lean on close family and friends in these situations. Share the story of your new love and ask those close to you if they think it sounds legitimate.
You might also type the person’s name into a search engine along with the word “scammer” and see if anything pops up, the FTC says.
For more on avoiding fraudsters, check out “This Type of Social Security Scam Is ‘Particularly Heinous’.”
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