Financial scams targeting older Americans reached a devastating milestone in 2024, with reported losses soaring to $2.4 billion—a 26.3% increase from 2023 and a staggering 300% rise since 2020. According to a new Federal Trade Commission report, the surge is driven by high-value scams: individual losses of $100,000 or more accounted for $1.6 billion, or 68% of the total.

Because most fraud goes unreported, the FTC estimates actual losses among adults 60 and older could be as high as $81.5 billion, with investment scams being the primary culprit. “Some people have everything taken from them, and they’ll still say the emotional impact is the hardest,” said Kathy Stokes of the AARP Fraud Watch Network.

A Growing Threat Across All Ages

Financial fraud is rising broadly, reflecting deeper systemic vulnerabilities in consumer protection. Total reported losses across all ages reached $12.8 billion in 2024, up from $3.4 billion in 2020, with the FTC estimating the real figure could approach $195.9 billion. In response, banks and lawmakers are stepping up defenses. Many financial institutions now encourage clients to designate a “trusted contact” who can be alerted to suspicious activity, and proposed legislation—the Financial Exploitation Prevention Act—would allow delays on transactions suspected of being exploitative.

How Scammers Operate and How to Respond

Scammers leverage technology—emails, texts, social media, and online ads—to build trust before soliciting funds. “It can be very difficult to recover the money,” said the FTC’s Kathleen Daffan. “Scammers move really quickly to get it … often overseas.” Older adults are particularly vulnerable to tech support, lottery, romance, and government impersonation scams.

If fraud is suspected, experts urge immediate action: contact the bank, gift card issuer, or payment platform to request a hold. However, reversals are rare, especially with wire transfers, cryptocurrency, or gift cards. This highlights the critical need for proactive vigilance before funds are sent.

Talking to Victims with Empathy, Not Blame

Prevention starts with conversation. Families should discuss red flags—like unsolicited contact and urgency—and sign up for FTC scam alerts. If a loved one becomes a victim, avoid blame. “The AARP recommends talking to victims with empathy instead of derision,” Stokes emphasized. Scammers often isolate victims, instructing them not to tell anyone, making supportive, non-judgmental communication critical.

As financial fraud evolves in sophistication, the regulatory response must keep pace. Protecting vulnerable adults demands a blend of legislative action, institutional safeguards, and family awareness to prevent these life-altering losses.