Elder Fraud Losses Reach $3 Billion, Surge in Investment Scams

Significant Increase in Fraud Losses

Reports of elder fraud to the Federal Trade Commission (FTC) skyrocketed to approximately $3 billion in 2025, marking an alarming increase that is five times higher than the figures recorded in 2020. Within that total, investment scams inflicted more than $1 billion in losses on individuals aged 60 and older. The FTC's latest annual report outlines these growing concerns and the need for heightened vigilance among older consumers.

The FTC’s Protecting Older Consumers report, now in its ninth year, reveals a significant rise from $2.4 billion in losses reported in 2024. As many victims do not report scams, the agency estimates the actual cost of fraud to older Americans may be as high as $119.5 billion when considering underreporting.

“The FTC is dedicated to safeguarding older Americans from fraudulent schemes, taking necessary action to dismantle these operations,” stated Christopher Mufarrige, Director of the Bureau of Consumer Protection.

High-Value Losses Dominate Reports

In 2025, a small fraction (6%) of fraud reports from older adults indicated losses exceeding $100,000, yet these cases accounted for a staggering 70% of the total losses. Reports of six-figure losses surged from 1,136 in 2020 to 6,769, indicating a concerning trend. When adjusted for population, older adults are over twice as likely to report substantial monetary losses compared to their younger counterparts.

The median loss for individuals aged 60 and over remained around $900, while those 80 and older reported a median loss of $2,000—an increase of 21% from 2024 and the highest among all age groups. The FTC indicates that older individuals show resilience; 74% of fraud reports they receive report no financial loss. Interestingly, older Americans are 14% less likely to report any loss when compared to those aged 18 to 59, but when they do fall victim, the amounts lost tend to be larger.

Types of Fraud: Investment Scams Lead the Pack

Investment scams have emerged as the leading cause of financial loss among older adults, with victims facing reported losses of $1.06 billion—an increase of 42%. Scammers frequently lure victims into fake cryptocurrency trading platforms, initiated through social media interactions.

Government impostor scams ranked second, inflicting losses totaling $448 million, a 20% rise. These scams often feature fraudsters impersonating agencies like the FTC, Social Security Administration, and even the FBI. Business impostors, predominantly posing as banks, accounted for $422 million in losses.

Romance scams also claimed a significant share, costing older victims $384 million, which represents a 17% increase. The likelihood of older individuals falling victim to romance scams is notably higher, with them being 48% more vulnerable than younger demographics. Older adults were even more susceptible to tech-support scams, reporting losses at a rate 324% higher than younger adults, and 112% more likely for prize and sweepstakes scams.

The Role of Communication Channels in Fraud

In 2025, social media emerged as the most common channel for scams targeting older adults, leading to $750 million in reported losses—an astonishing increase from 2020 figures. Investment scams accounted for 56% of these losses, while romance scams made up 23%.

Phone scams generated lower overall losses compared to social media but were more costly on a per-victim basis, with a median loss of $3,000 for phone scams, compared to just $599 for social media scams. Additionally, losses from text-message scams saw a significant rise, increasing by 61%.

The vast majority of these fraudulent transactions utilized bank transfers, resulting in $1.03 billion in reported losses, while cryptocurrency transactions accounted for $603 million. Bank transfer losses have surged more than tenfold since 2020, with crypto losses expanding over 27 times in the same period.

Efforts to Combat Elder Fraud

To combat these alarming trends, the FTC reported that its enforcement actions returned over $513 million to consumers across all age groups during fiscal 2026. The agency also referred 680 high-loss cases to the FBI's Internet Crime Complaint Center in 2025, resulting in successful action on 200 cases that recouped $18.7 million. Additionally, banks managed to freeze more than $10.8 million tied to these scams.

In response to the rising number of fraud cases, the FTC has begun referring older fraud victims to the Justice Department’s National Elder Fraud Hotline, successfully connecting more than 320 individuals. However, challenges remain, as the FTC's powers are limited. The agency continues to advocate for Congressional support to regain its ability to seek monetary relief under Section 13(b) of the FTC Act, which was restricted by the Supreme Court in 2021.