The number of older Americans getting scammed out of their savings has exploded over the last four years.
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A new report from the Federal Trade Commission (FTC) details how scams targeting adults 60 and older have proliferated, with that demographic being three times as likely to incur losses of more than $100,000.
“Some people 60-plus have reported emptying their bank accounts and even clearing out their 401(k)s,” the FTC’s Division of Consumer Response and Operations wrote. “While younger people report losing money to these impostors, too, reports of losses in the tens and hundreds of thousands of dollars are much more likely to be filed by older adults, and those numbers have soared.”
Last year, 8,269 older adults reported a loss of $10,000 or more, which is more than four times the number the FTC received in the same category in 2020. In 2024, older adults who lost $100,000 or more through a scam reported combined losses of more than $445 million, up from $55 million in 2020.
Most of the scammers take a similar approach, reaching out to unsuspecting victims about a fake, time-sensitive problem that can only be resolved if they transfer money—which ultimately lands in the hands of these unscrupulous strangers. Those requests can be dressed up in a variety of ways, but they often rely on a phone call to kick things off, reeling the victim in with false urgency and keeping them chatting while setting up the scam.
Last year, 41% of older adults who lost more than $10,000 through scams impersonating businesses or the government were ensnared with a phone call as the initial contact method. An online ad or pop-up ad, often imitating a security alert, was the first point of contact for 15% of these victims, while 13% reported an email as the initial method of contact.
“Even when they don’t start with a call, reports show the goal is to get you on the phone,” the FTC wrote. “A call is still the best way to dial up the fear and the urgency so it’s harder for you to think clearly and check things out.”
Scams evolve constantly, but there are some consistent themes across high-loss scams that the new report highlights and says to watch out for.
First, scammers often impersonate banks or major companies, such as Amazon, and claim that your account is linked to suspicious activity. Second, they might claim to be a government official and warn you that your Social Security number or another form of official identification has been used for illegal activity, like drug smuggling or money laundering.
The third common approach is when fraudsters impersonate a company, like Apple or Microsoft, sending an on-screen security alert that your account has been hacked. In those attacks, the scammers provide a number for you to call, and they move the scam along after getting you on the phone.
The FTC also notes that scammers often pretend to be the government agency itself, requesting that victims transfer money, put cash into Bitcoin ATMs, or even complete in-person cash handoffs. “Regardless of the fake story, the goal is generally the same: to get your money,” the FTC report said.
The FTC report didn’t explore the forces behind the scams, but most signs point to technology as an accelerant.
AI is still a relatively new technology, but it’s already a powerful tool for scammers seeking to fool victims into handing over cash or personal information. With AI, scammers can smoothly impersonate the voice and even the appearance of someone you know, establishing trust easily. In one targeted attack, a Hong Kong-based finance employee transferred $25 million to scammers who posed as his company’s CFO by using a deepfake video.
Beyond AI, cryptocurrency remains such a major vector for fraud that the FBI launched an operation last year to reach potential victims early—before they empty their savings into fake investments. “Some victims have reported that—prior to being notified by the FBI about the scam—they were in the process of liquidating their 401(k), selling their home, or obtaining a sizable loan,” according to the FBI.
In a recent FBI report on internet crime, the agency detailed how the attack surface for online scams has grown “exponentially” as the internet has become woven into every aspect of our lives. “Scammers are increasingly using the internet to steal Americans’ hard-earned savings,” wrote B. Chad Yarbrough, operations director of the FBI’s Criminal and Cyber Division. “And with today’s technology, it can take mere taps on a keyboard to hijack networks, cripple water systems, or even rob virtual exchanges.”
To steer clear of scams online, you can follow a few basic rules that go a long way toward keeping your money in the bank. Blocking unwanted and spam calls can help screen out some of this communication to begin with. Never send money to anyone in response to a surprise message, call, or alert—acting with a sense of urgency is always to the scammer’s benefit. If you get a call out of the blue that sounds fishy, hang up and verify the source by directly contacting the person or company through official channels, not via the phone number the person provided.
This post originally appeared at fastcompany.com
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