As elder fraud evolves, here’s how to stay safe online and in life
Fraudsters increasingly exploit technology to swindle seniors out of their life savings. Use these tips to help protect yourself and your loved ones from financial threats.
AMERICANS 60 AND OLDER are the prime targets for fraud, especially by cybercriminals. Why do they view older people as easy marks? Seniors have savings to steal, and they may be more trusting and less familiar with technology than younger people.
In 2024, those 60 and older reported fraud totaling nearly $4.9 billion — a 43% increase from 2023 — according to the FBI’s Internet Crime Complaint Center.1 Actual losses, however, are likely much higher. “Very often, elder fraud goes unreported because seniors are embarrassed they fell for a scam, or they are afraid their financial independence will be taken away if they let a loved one know they’ve been swindled,” says Cynthia Hutchins, director of financial gerontology at Bank of America.
In fact, the Federal Trade Commission, adjusting its estimate for underreporting, says that seniors may have incurred as much as $61.5 billion in fraud losses in 2023.2 With the U.S. population aging, by 2050 the number of elders targeted for financial fraud could exceed 36 million and the number of actual victims will top 22 million, according to estimates from the Florida State University’s College of Criminology & Criminal Justice.
Whether you’re watching out for an older friend or relative or protecting your own finances, here’s what to know about today’s biggest risks and the steps you can take to fight back.
Top emerging cyber scams targeting seniors
These online schemes account for millions in financial losses each year. Here’s what watch for.
1. Tech support scams. A pop-up window alerts you that a virus has infected your computer or your online accounts have been hacked. Or you get an official-looking email from your bank reporting unauthorized account activity. Scammers posing as tech support will direct you to call a number so they can “fix” the pressing problem. Their real expertise, however, is to separate you from your savings by convincing you to transfer money out of your accounts to “protect” it. They may also install software on your computer that captures account logins and other personal information.
2. Government imposter scams. Employing authentic-looking caller ID or logos, scammers pose as government officials via texts, calls and emails. The IRS claims you owe back taxes; the Social Security Administration says your benefits are expiring; Medicare offers a free medical device if you verify your Medicare number. All are scammers, after money or sensitive personal information. A newer scam involves texts from your state’s Department of Motor Vehicles warning you to pay an overdue traffic ticket or unpaid toll or risk fines and the loss of your license. In another new one, criminals impersonating the local police claim you’ve missed jury duty and face arrest if you don’t pay a fine.
3. Romance scams. Scammers using fake identities target seniors on dating websites, social media platforms, messaging apps and online forums. Con artists will court their targets slowly — and never agree to meet in person — then ask for help with a financial crisis or other need, requesting money via cryptocurrency, wire transfer, gift cards or peer-to-peer payment apps. Victims’ funds are nearly impossible to recover.
4. AI fakes. Messages generated by artificial intelligence can be tailored to appear specifically for you. “A favorite scammer tactic is to ask, ‘Can you hear me?’ when you answer the phone,” says Hutchins. “As soon as you say ‘Yes,’ the criminals can clone your voice and use that voice print to call your financial institution,” impersonating you with the help of AI. Their ask: wire money out of your account. Or scammers use cloned voices to impersonate a family member who urgently needs money to cover emergency medical care. AI-generated deepfake videos and photos can pass for a friend or celebrity.
5. Investment scams. After building a personal or romantic relationship, a scammer presents a failsafe opportunity to invest — often in cryptocurrency. Seeing your investment grow (on a fake investment platform), you invest more, until the scammer steals it all. This scam costs seniors the most money; the FBI says losses to investment scams jumped from $990 million in 2022 to more than $1.8 billion in 2024, an 85% increase.1 “A scammer will tell you that your financial advisor can’t offer you this great investment deal,” says Hutchins. “That’s all the more reason to ask your advisor what he or she thinks about any opportunity.”
5 elder fraud scams to watch for offline
Seniors face fraud risks IRL (in real life) too, including these potentially costly ones:
Pros who aren’t legit: Con artists often advertise “foolproof” investments or claim special expertise in working with retirees or older clients. A California case involved a thief who gained a client’s trust with tax preparation services. The criminal then persuaded the victim to “invest” with her by promising no-risk, 10%-plus annual returns. The victim was scammed out of approximately $1 million in savings over seven years before the thief was finally caught and imprisoned.
Unscrupulous billing practices. Especially after natural disasters, con artists go door to door, offering to make repairs. They ask for payment upfront, then pretend to do the work or disappear. Similarly, auto mechanics may charge for work they never did.
False “friends.” Good friends are priceless, but those posing as friends can cost you dearly. A “friend” may offer to assist with chores and errands — and soon begin “helping” with financial transactions, gaining access to your accounts.
Family fraud. One of the most distressing forms of fraud involves family members. Problems may start innocently, with a relative helping to organize finances and pay bills. Sometimes, though, the temptation to dip into the funds becomes irresistible.
Not-so-free lunches. Older Americans are often targeted by opportunistic salespeople offering a free lunch or dinner in return for listening to a sales pitch. The target can find themselves being pressured into a dubious purchase before the “free” meal is over.
What you can do to protect yourself
Develop these habits and best practices for steering clear of fraud — and share them with friends and family.
Question the unexpected. Never click on a link in an unsolicited email, text or pop-up box. “Any email or text from a bank or legitimate company will ask you to log into your account to receive a message,” says Hutchins. If you are concerned, contact the company directly using the phone number listed on its website or a recent statement. Be equally suspicious of any call, text or email that ostensibly comes from the government. A government agency will contact you by mail if there is a problem.
Take your time. Hang up on anyone who insists you must urgently move money or share personal information. If that request appears to come from a child or grandchild in need of emergency funds, call a family member to verify the story. Come up with a code word or phrase that family members can use to prove that any call for help is real.
TIP:
Beware of friend requests on social media when you have no friends in common or the person has few friends, which can be a sign of a fake profile.
Employ tech to your benefit. Never give remote access to your computer to someone who contacts you unsolicited. Close pop-up boxes and restart your computer if they don’t disappear. Block unwanted calls and report suspicious texts as junk. Consider installing reputable anti-virus software or programs that can detect AI-generated videos and block scam texts, calls and websites.
TIP:
Program your phone with the names and numbers of your contacts — ask a child or grandchild to help. If you don’t recognize a caller’s name or number, don’t answer.
Guard your privacy, and your wallet. No government agency — or legitimate business — will require payment in the form of cash, cryptocurrency, gift cards or a wire transfer. Scammers use these methods because you have little chance of recovering your money.
TIP:
Scammers troll social media to find seniors who may be receptive to their overtures, so limit how much personal information lives online.
How to help an older friend or relative
Education can be a powerful tool. “Tell your parents you want to educate yourself and ask that they watch a webinar on scams with you,” says Hutchins. “By learning together, you aren’t sending the message that your parents can’t handle their financial affairs effectively. And if you know someone who got scammed, share the story so your parents know it can happen to anyone.”
Discuss the importance of having a Merrill Trusted Contact Person Form, which authorizes an advisor to reach out to a family member or friend if they spot unusual activity. “If your parent normally withdraws $500 a week from an ATM and suddenly he’s withdrawing $5,000 three times a week,” Hutchins says, “the advisor will give you a head’s up that your parent may be getting scammed or is exhibiting signs of cognitive decline.”
If your parent engages with a scammer, encourage them to report the crime. File a complaint at the FBI’s Internet Crime Complaint Center. Report suspicious calls or messages to the FTC (877-382-4357 or online) or local law enforcement. AARP’s Fraud Watch Network Helpline (877-908-3360) has specialists who can advise on next steps.
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