In its latest report to Congress released Monday, the FTC says older adults reported $3 billion in fraud losses last year, a 25% rise from 2024. Versus 2020, the tally is up fourfold from $600 million.
A small slice of cases caused most of the damage. Only 6% of older victims reported losing at least $100,000, yet those cases accounted for 70% of the group's total reported losses. In 2025, 6,769 people reported six-figure losses, compared with 1,136 in 2020.
Investment scams were the most expensive category, topping $1 billion in losses for older Americans, a 42% increase from 2024. The FTC also estimates the real dollar impact was far larger because of underreporting, with a 2025 range of $13.3 billion to $119.5 billion versus $10.1 billion to $81.5 billion in 2024.
An FTC analysis from August 2025 flagged more criminals posing as banks, businesses or government agencies to target life savings. These schemes often stage a fake emergency and tell targets to move money to keep it safe.
In many impersonation cases, fraudsters warn a consumer that funds are about to be stolen and then direct them to transfer money, mail cash or use crypto ATMs, supposedly to protect their accounts. Government impersonation scams produced $448 million in reported losses among older consumers last year, and business impersonators racked up $422 million.
Investment scams often start with social media ads touting opportunities or with outreach from people claiming to be financial advisors, and victims may be funneled to phony trading platforms, according to the FTC. The FBI says AI use has increased scam volume, and AI generated scams are getting harder to spot and easier to produce. "The numbers and the increases are staggering," said Bob Blancato, the Elder Justice Coalition's national coordinator.
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Under the Tax Cuts and Jobs Act of 2017, taxpayers could claim fraud loss write-offs only in limited circumstances. That limit was set to expire in 2025, but a law enacted last year that President Donald Trump called his "big beautiful bill" made the restriction permanent.
According to an IRS memorandum released in March 2025, investment fraud losses can sometimes be deducted, but experts add that losses from other schemes, including certain impersonation and romance scams, cannot. If a victim pulled money from a tax deferred account like a traditional 401(k) or IRA during the fraud, that distribution can trigger income taxes, and if they are under 59½, a 10% early withdrawal penalty may also apply. "You get scammed out of $100,000 and then you're paying taxes on that $100,000," Blancato said. "That's crazy."
Congress is weighing changes. The bipartisan Tax Relief for Fraud Victims Act passed the House in September on a 408-17 vote and, among other changes, would eliminate the deductibility restrictions and, where applicable, waive the 10% penalty. It was referred to the Senate Finance Committee, and its path is uncertain. Separately, the Financial Exploitation Prevention Act cleared the House in June by 414-2 to let certain firms, including mutual fund companies, temporarily delay transactions when they reasonably suspect exploitation; it is now with the Senate Banking Committee, with no guaranteed floor vote.
Many banks and investment firms already ask you to add a trusted contact, someone they can reach if they suspect financial exploitation. Brokerages are required by FINRA to make a reasonable effort to obtain one, though investors do not have to provide it.
If you think an older adult is being targeted, approach carefully. University of Minnesota associate professor Marti DeLiema, who also serves as associate director of education at the school's Center for Healthy Aging and Innovation, said, "It's usually best to start with an open, nonjudgmental, compassionate approach." She cautions against saying "you're being scammed," noting that fraudsters often tell targets not to tell anyone about the relationship or supposed windfall. DeLiema also warns against blame: "We really need to move away from the shame," she said.
The bottom line: losses reported by older Americans spiked, a handful of six figure cases dominated the totals, and Congress is debating tax relief and transaction holds that could shape recoveries and firm workflows. For your portfolio, that points to tighter controls on how and where you move money, plus attention to policies that could change how institutions respond to red flags.
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