In 2025, 3 million consumer fraud reports were made to the Federal Trade Commission, claiming nearly $16 billion in losses‡. The median loss for age group 70-79 was $1,000 per event. The loss for 80+ was $2,000 per event. It’s clear that financial scams are causing elderly Americans to lose money every year. Bad actors often target older internet users, hoping they aren’t tech savvy. According to the AARP‡, new spins on old schemes are emerging online.
Sophisticated social engineers use manipulative tactics, including impersonating others and acting under a false sense of urgency. Here we review and discuss the scams targeting seniors and share tips for protecting yourself and loved ones from elder financial fraud.
Avoid unknown social media interactions
Of the top scams reported in 2025 by the FTC‡, many of them began on social media. Fraudsters use social media to begin their engagements with their targets, to start romance scams, investment schemes, and even shopping scams. Scammers can pose as celebrities, including movie stars, musicians, and even wealthy entrepreneurs, using their name recognition to “hook” their targets into believing they are forming a relationship.
Many investment scams also begin on social media, where a flashy social media “influencer” or self-claimed entrepreneur contacts their target offering a once-in-a-lifetime investment opportunity. In 2025 alone, consumers reported more than $7.9 billion in losses to investment scams.
Scammers can also overtake a known contact’s social media profile, through malware or other intrusion methods, and pose as someone you know. If you get an unusual message from a known contact, still use caution and confirm any payment requests with that person by a known phone number. The best practice is to always ensure you know who you are engaging with on social media. If you receive anything out of the ordinary through your messages, take a moment to step back and verify.
Verify phone calls
Alongside social media, phone calls are a very common method scammers use to reach out to their targets. A scammer may call and pose as a grandchild in need of money in an emergency, or call you pretending to be your local law enforcement agency telling you there is an arrest warrant in your name or a ticket you need to pay. Before transferring funds or gathering cash for a “payment kiosk,” confirm that what you’ve been told is accurate: call your family member, or contact the law enforcement agency at its non-emergency line.
A scammer might also try to pose as a financial institution in a phone call or text message. If this happens, call your bank or financial partner first to confirm that they sent a message. You should not have to verify your identity or provide sensitive information in call that is made to you.
Even if the scammer says not to tell anyone else, or if a member of your family claims to be in danger, double check using a trusted phone number before withdrawing or transferring any money. In fact, being asked to keep the situation “secret” can be a big red flag, alerting you to a potential scam.
Stay current with technology
With the speed of innovation, we know it’s difficult to stay aware of new trends in technology, digital banking and new digital currencies like cryptocurrency – a digital payment system that uses blockchain technology to send, receive and store currency not related to any bank or government. In short, cryptocurrency is a new way to pay for goods and services. The downside is that many scammers leverage digital payment systems like these in their schemes to defraud individuals.
Cryptocurrencies are also connected to kiosks that look very similar to ATMs, both of which are commonly found in grocery and convenience stores, as well as gas stations. Criminals take advantage of Americans who may not know the difference between ATMs and crypto kiosks (or they hope their victims don’t notice the difference on sight). In 2025, the FBI reported‡ that scammers used these crypto kiosks to steal more than $333 million in various schemes. To help prevent this type of fraud, consider subscribing to newsletters like those offered by the AARP‡, which can alert you to new or trending scams.
Manage your physical financial footprint
Another effective way to protect against financial fraud is to reduce the opportunities for someone to access your information. You may receive special offers and other marketing materials in the mail, in addition to account statements, bills, and more. This paperwork can be an entryway for scammers who may gain access through recycling or trash. Whenever possible, establish paperless billing or statements, and shred all other paperwork before throwing it away.
As technology and fraudsters’ schemes continue to evolve, it can be challenging to stay one step ahead, which is why it’s important to have a trusted financial partner. Ask your bank or financial advisor whether they’re up to date on fraud prevention training and what specific measures they take to protect the elderly. A little extra education and vigilance can go a long way in helping keep our elderly friends and family from becoming victims of financial fraud.
Preventing elder financial fraud
To learn more about identifying and preventing elder fraud, take our Preventing Elder Financial Abuse course in our Financial Education Center.
Explore tips for protecting your financial future through the Protecting Health and Wealth playlist on the UMB Financial Education Center.
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