Older adults lost a reported $1.9 billion to fraud last year, according to a new report to Congress from the Federal Trade Commission.
The figure is a low estimate, as most frauds go unreported, according to the FTC. The agency estimates the overall loss to older consumers in 2023 may have been as high as $61.5 billion.
“Through our cases, rulemaking and outreach, we’re taking every step we can to stop scams targeting older adults and help them protect themselves,” said Samuel Levine, director of the FTC Bureau of Consumer Protection. “This report highlights that work and the key actions of the working group formed under the Stop Senior Scams Act.”
Adults aged 60 or more years are less likely to report losing money to fraud than are younger people, but when they did, the sums often were substantially larger than losses among other groups. According to the FTC, older adults were more than five times more likely than younger groups to report losing money to a tech support scam; almost three times as likely to report a loss to a prize, lottery or sweepstakes scam; and 53% more likely to report losing money to a friend or family impersonation scam.
There was a 34% increase from 2022 to 2023 in older adults falling victim to investment scams caused than any other type of fraud. Business imposter scams and romance scams each increased by 16% year over year. Cryptocurrency, artificial intelligence and social media scams continued to play a significant role in fraud and attempted fraud. Gift cards continued to be the most frequently reported payment method for several common fraud types.
The FTC advisory group’s committees beefed up efforts last year in creating multiple consumer education pilot programs, new materials, partnerships and communication channels to provide more effective education on scams to older adults. The agency said it expects to continue those efforts.
“The FTC is also committed to innovating and seeking new ways to prevent consumer harm through its ongoing collaboration with a variety of stakeholders, as it works to protect older adults from future scams,” the agency said.
Last month, the Senate Special Committee on Aging released the group’s ninth annual fraud book, “Fighting Fraud: Scams to Watch Out For,” capturing the most common scams targeting older adults and resources to protect against fraud reported to various sources.
“The scams that are perpetrated against older adults today seem similar to scams that have been around for a number of years,” said Sen. Bob Casey (D-PA), the committee’s chairman. He added that scammers have become “increasingly sophisticated” in how they contact and prey on older adults.
“We need to continue to educate older adults about the scams they may be targeted with, and we need to work together across all levels of government to identify and root out these bad actors,” he said.
