For older Americans, financial fraud can be a very costly mishap.
Last year, scams reported to the Federal Trade Commission by adults age 60 and older reached $2.4 billion, up 26.3% from $1.9 billion in 2023 and 300% from $600 million in 2020, according to the FTC’s annual report to Congress, released earlier this month. The increase is driven by scams that involve individual losses of $100,000 or more, accounting for $1.6 billion, or 68%, of the total amount.
However, because most fraud goes unreported, the agency estimates the real losses experienced by older adults in 2024 may be as much as $81.5 billion. The bulk of money lost was due to investment scams.
These significant losses can contribute to financial insecurity at a time when many consumers are already struggling to keep up with rising costs and are worried about running out of money in retirement.
“This crime is not just financial,” said Kathy Stokes, director of fraud prevention programs at the AARP Fraud Watch Network. “Some people have everything taken from them, and they’ll still say the emotional impact is the hardest.”
