Imposter Scams Cost Older Adults $700M in 2024, FTC Reports

Rising Threat of Imposter Scams Among Older Americans

The Federal Trade Commission (FTC) has reported a significant increase in imposter scams targeting Americans aged 60 and older. These scams have led to devastating financial losses, with some victims losing their entire life savings. The FTC warns that criminals are increasingly using these tactics to steal retirement and other financial accounts from older adults.

Imposter scams typically involve scammers creating a fake crisis and posing as trustworthy sources. They may pretend to be representatives from banks, companies like Amazon, Apple, or Microsoft, or even workers from federal agencies such as the Social Security Administration or the FTC itself. Their goal is to gain the victim’s trust and convince them to transfer money under the guise of "keeping it safe" or for another fraudulent reason.

In 2024, the FTC received 8,269 reports from adults over 60 who claimed to have lost at least $10,000 to an imposter scam. This represents a 362% increase from 1,790 reports in 2020. Total losses among older Americans reached $700 million in 2024, which is more than five times the $122 million reported in 2020. In some cases, the losses have wiped out entire bank accounts and even 401(k) retirement funds.

Losses exceeding $100,000 have also seen a sharp rise. According to the FTC, losses from those who lost at least $100,000 increased to $445 million in 2024, up from $55 million in 2020. This represents a 700% increase over the same period.

These trends align with a broader rise in elder fraud reported by the Federal Bureau of Investigation (FBI). In 2024, internet crime resulted in $4.9 billion in losses from 147,127 consumer complaints. This marks a 43% increase in losses and a 46% jump in complaints compared to 2023, according to the FBI's Internet Crime Complaint Center.

The FBI notes that the actual losses may be much higher because many older Americans do not report fraud due to a lack of awareness, embarrassment, or not recognizing they have been scammed. Additionally, individuals aged 60 and older are three times more likely to report losses over $100,000 compared to younger households.

How to Protect Yourself from Imposter Scams

To avoid falling victim to imposter scams, the FTC recommends several key steps:

• Do not move money to "protect" it: Never send money, cryptocurrency, or gold to someone you don’t know, regardless of who they claim to be. This is often a sign of a scam.

• Avoid quick transfers: If someone tells you to move your money quickly to "protect" it, this is a red flag. Scammers often use urgency to pressure victims into making hasty decisions.

• Hang up and verify: Even if a scam starts online, it usually involves a phone call. Always contact the company or agency using a verified phone number, website, or email address. Do not use numbers provided in pop-ups, texts, or emails.

• Block unwanted calls: Learn about call-blocking options through your phone carrier to prevent scammers from reaching you in the first place.

By staying informed and taking these precautions, older Americans can better protect themselves from the growing threat of imposter scams. Awareness and vigilance are essential in combating these sophisticated fraud schemes.