FTC warns senior fraud costs could hit $119.5B as investment scams drive record losses
Investment scams and impersonation schemes drive record losses for Americans over 60, with unreported costs potentially exceeding $100 billion.
Key points
- Reported fraud losses for seniors rose from $600 million in 2020 to $3 billion in 2025.
- Investment scams, government impersonation, and business impersonation are the most common fraud types.
- The FTC estimates total 2025 costs could reach $119.5 billion due to significant underreporting.
The Federal Trade Commission released new data showing that reported fraud losses for Americans aged 60 and older reached $3 billion in 2025. This figure represents a fivefold increase from the $600 million reported in 2020. The report, mandated by the Elder Abuse Prevention and Prosecution Act of 2017, highlights a worsening trend in financial exploitation targeting older adults.
The risk
Scammers are increasingly using social media to initiate contact, though phone calls result in higher median individual losses. According to the FTC report, older adults are 324% more likely than younger demographics to report losses from tech support scams. Lottery and sweepstakes frauds also disproportionately affect this group. Romance scams remain prevalent, with older individuals 48% more likely to report losses in this category compared to younger people.
Who is exposed
Americans aged 60 and older face the highest individual losses, correlating with wealth distribution patterns. Baby Boomers, aged 62 to 80, hold approximately 51% of national wealth, making them primary targets. However, the Silent Generation, those over 80, reported the largest individual losses despite holding only 11% of wealth. The median reported loss for those 80 and older was $2,000.
Cost and compliance
The FTC notes that the $3 billion figure likely underestimates the true scale, as most fraud goes unreported. Estimates for total 2025 costs range from $13.5 billion to $119.5 billion, depending on methodology. This represents a potential 47% increase over 2024 figures. From 2020 to 2025, combined losses for seniors reporting over $100,000 increased nearly sevenfold. These high-value reports accounted for 70% of aggregate reported losses.
What to watch
Security teams and business owners should monitor for spikes in support requests related to investment verification or government agency impersonation. Unusual outbound transfer requests from older account holders, particularly those initiated via social media or phone, require immediate secondary verification.
Signals worth monitoring
Teams usually detect this activity through anomalies in user behavior, such as sudden changes in password settings or emergency contact updates. Check whether users are communicating with unknown external entities about urgent financial matters. Look for signs of screen-sharing sessions with unauthorized third parties. Verify any requests for gift cards, cryptocurrency, or wire transfers through a separate, known communication channel. Ensure that multi-factor authentication remains active and cannot be bypassed by social engineering.
Background: Tech support scams
Attackers contact you via pop-ups or calls, claim your device is infected, and demand remote access. They rely on your fear to bypass skepticism. Interrupt the process by refusing remote control and ending the contact immediately.
Read the full guide: How Tech Support Scams Work: The Step-by-Step Breakdown
What to do and how to stay safe: FTC
- Establish a strict verification protocol for any financial requests initiated via phone or social media, requiring callback to a known number.
- Educate staff and family members on common impersonation tactics, including fake tech support and government agency scams.
- Monitor account activity for unusual login locations or rapid succession of password changes that may indicate compromise.
- Review and update privacy settings on social media accounts to limit the personal information visible to potential scammers.
Step-by-step guide: Security Awareness Training: 6 Misunderstandings That Waste Your Budget
General security guidance from the SecOps Signal newsroom. It is not confirmed advice from the organisations named in this story.
Frequently asked questions
How much did senior fraud losses increase from 2020 to 2025?
Reported losses jumped from $600 million in 2020 to $3 billion in 2025, a fivefold increase.
What are the most common types of fraud targeting older adults?
The most common types are investment scams, impersonation of government officials, and business-impersonation scams.
How does the FTC estimate the true cost of fraud?
The FTC estimates total 2025 costs could be between $13.5 billion and $119.5 billion due to underreporting.
