According to the FTC, older Americans are losing more than $80 billion every year to scams and fraud
That amounts to more than $1 billion every week. And with the surge in use of AI by criminals, those numbers will sadly rise.
Older Americans are a now a top target for cyber criminals and fraudsters and are losing billions of dollars every year to scams. Often their entire life savings.
That was before the arrival of AI. Scammers using AI have triggered a surge of scams against the elderly that’s already increase the number of victims and the size of the losses. Some experts have suggested that these scams have become so sophisticated, many victims will be helpless to spot and stop them.
And it’s not only emptying their life savings but also doing so much harm to their lives. When the elderly fall victim to a scam, and especially a big or costly one, they don’t bounce back so easily.
They often feel guilty and ashamed, less trusting, and can retreat back and away from others including loved ones. The impact on their mental and physical health can be devastating, and often life shortening.
The numbers are staggering. According to the Federal Trade Commission:
- Financial fraud cost seniors more than $80 billion in 2024.
- Between 2020 and 2024 scams against seniors increased sevenfold.
- Adults over the age of 60 are more likely than any other age group to report losses of $100,000 or more.
We believe that the best way to protect this vulnerable population is to simply get there first. Get to them with the simple tips and advice that will work for them at exactly the moment they need it. Right before they fall for the scam.
And one of our best assets might be the army of real estate agents across the country who live and work in almost every community.
A SCAM EPIDEMIC
Because most fraud goes unreported, the FTC estimates that the true cost of scams and frauds on older adults is far higher than previous estimates.
A NATIONAL RESPONSE
In an effort to combat the growing losses, the AARP recently partnered with Walmart, Google, Amazon and others to launch the National Elder Fraud Coordination Center (NEFCC).
MORE THAN MONEY
In spite of the often devastating financial losses, the emotional impact can be far worse.
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ROMANCE SCAMS
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INVESTMENT SCAMS
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CRYPTO SCAMS
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TECH SUPPORT
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FAMILY IMPERSONATION
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BANK IMPERSONATION
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LOTTERY SCAMS
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GOVERNMENT IMPERSONATION
SENIOR SCAMS IN PERSPECTIVE
Financial fraud cost older adults up to $81.5 billion in 2024.
Adults age 60 and older are more likely to report losses of $100,000 or more due to financial fraud.
Between 2020 and 2024 the number of seniors reporting losses to scams increased sevenfold.
Those in their 70s reported losing a median of $20,000 to investment scams, compared to the median of $1,551 stolen from victims in their 20s.
Scams are more than just financial losses and can impact mental and physical health, reduce trust and self confidence, increase isolation and loneliness, and even shorten lives.
Traditional scams targeting retirees and other older persons are increasingly powered by artificial intelligence, raising the risk of those targeted becoming victims to financial losses and identity theft.
