With so many new scams targeting seniors and retirees, there are likely many Americans who worry about their parents or grandparents getting scammed out of large amounts of money.
Take Greg, for example. Greg, who has an 85-year-old grandmother, knows firsthand just how elaborate and predatory scammers can be when targeting seniors.
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After receiving a call from someone claiming to be from her bank, Greg’s grandmother was told she owed $50,000 due to a fraudulent charge. The caller then connected her with someone posing as a Federal Trade Commission (FTC) official, who pressured Greg’s grandmother into purchasing prepaid debit cards to pay off the balance.
She believed the call was legitimate and was headed out the door to purchase the prepaid debit cards when, thankfully, Greg showed up and stopped her before it was too late.
Fraud losses for seniors have soared in recent years, with losses of $10,000 or more for older adults quadrupling between 2020 and 2024, according to the FTC [1]. Fraud losses of $100,000 or more for older adults also increased sevenfold during that period.
Scammers often target seniors and use fear and panic to push them into paying quickly. What’s worse, these schemes can mimic legitimate institutions so closely that even savvy people can get caught up in the fear.
How imposter scams work
These scams often start with a phone call, text message or email about “suspicious activity.” Victims are then directed to a fake call center or website, where fraudsters claim the victims owe large sums of money and may “connect” them to someone posing as an FTC, IRS, or Social Security official.
Then, the scammers demand payment through untraceable methods like cryptocurrency, gift cards, prepaid debit cards or, in extreme cases, gold bars [2].
Seniors are especially vulnerable to this type of fraud because scammers often use the threat of legal trouble to instill fear, while health issues, cognitive decline and isolation can make it harder for older adults to spot the red flags.
Common fraud scheme red flags to watch out for include:
- Unexpected contact from a “bank” or “government agency”: The FTC, IRS or Social Security Administration will never call to demand money, nor will your bank
- Requests for unusual payment methods: Gift cards, prepaid debit cards and cryptocurrency are standard payment methods requested by scammers. An official government institution will never request payment in any of these forms
- Pressure to act immediately: Urgency is a manipulation tactic. Real banks or government institutions give time and written notice
- Secrecy: Scammers don’t want victims talking to family or trusted advisors, so they often insist that the victim does not tell anyone about what is going on
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How to protect yourself and loved ones
A recent FTC report shows fraud losses are climbing at an alarming rate.
In 2024, Americans lost more than $12.5 billion to fraud schemes — a 25% increase from the year prior. And while you might assume that spike was due to an increase in fraud reports, it was actually due to a double-digit increase in the percentage of Americans who reported losing money to a scam or fraud [3].
That means scammers are getting better at what they do, using more convincing scripts, realistic websites and aggressive deception tactics. Here are some steps that can help combat these fraud attempts and protect you and your loved ones:
Simplify and monitor finances
Reducing your number of banking accounts and granting read-only access to trusted family members can make unusual activity easier to spot. Many banks and credit unions also allow you to set up text or email notifications for transactions. This can also help you spot fraud quickly.
Normalize talking about scams
Shame often keeps many older scam victims silent [4]. Encourage open discussions with your senior loved ones and run through common scam scenarios — such as fake bank calls — so that the older adults in your life can quickly recognize the signs of a scam.
Use stronger account protections
Where available, enable two-factor authentication and use a password manager. This makes it harder for scammers to break into your accounts, even if some of your information is compromised. You should also change your passwords if you’re notified of a data breach.
Use call-blocking tools
Apps such as Nomorobo, Hiya or even built-in phone features can block known scam numbers. Seniors who regularly use landlines can also add call-blocking devices to screen unwanted calls [5]. However, keep in mind that some scammers spoof the caller ID to make it appear as though the call is coming from a trusted agency, so this step isn’t foolproof [6].
Create a “pause plan”
Agree on a trusted contact — such as a grandson, daughter or close friend — who should be called before your senior loved one makes any large financial transactions. Even a quick conversation with someone trustworthy can stop a scam in its tracks.
Staying informed and connected is the best defense against fraud. With open conversations, smart safeguards and a plan to pause before paying, families can outsmart scammers and keep their loved ones safe.
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Article sources
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[1]. Federal Trade Commision. “False alarm, real scam: how scammers are stealing older adults’ life savings”
[2]. WGME. “Gift cards, crypto, & gold: Payment methods scammers don’t want you to question”
[3]. Federal Trade Commission. “New FTC Data Show a Big Jump in Reported Losses to Fraud to $12.5 Billion in 2024”
[4]. Federal Bureau of investigations. “Elder Fraud”
[5]. Federal Communications Commission. “Call Blocking Tools and Resources”
[6]. Federal Communications Commission. “Caller ID Spoofing”
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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