WASHINGTON–There has been a more than four-fold increase since 2020 in reports from older adults who say they lost $10,000 or more—sometimes their entire life savings—to scammers who impersonate trusted government agencies or businesses, according to the FTC’s latest Consumer Protection Data Spotlight.
Most notably, combined losses reported by older adults who lost more than $100,000 increased eight-fold, from $55 million in 2020 to $445 million in 2024, according to the FTC.
While younger consumers also have reported these scams, older adults were much more likely to report these extraordinarily high losses, the FTC added.
“The scams generally involve someone contacting consumers to alert them to a fake and urgent problem and then proceeding to try to persuade them to transfer their money to ‘keep it safe’ or for some other false reason,” the FTC said.
Four Lies
For credit unions seeking to warn their members about the scam, the FTC said they are typically based on “four lies”:
- Lie #1: Someone is using your accounts: “The scammers claim to be from your bank or a well-known company like Amazon and are contacting you to flag suspicious activity on your account.”
- Lie #2: Your information is being used to commit crimes: “Scammers claim to be a government officer warning that your Social Security number or some other information is being used to commit a crime such as drug smuggling or money laundering”
- Lie #3: There’s a security problem with your computer: “These scams often start with a fake on-screen security alert that looks like it’s from Microsoft or Apple with a number to call. If you call, they say your online accounts have been hacked.
- Lie #4: Ironically, some scammers even pretend to be with the FTC. In this scam, the fraudsters tell people to transfer money out of their accounts, deposit cash into Bitcoin ATMS, and even hand off stacks of cash or gold to couriers—”actions the FTC would never ask people to do. Regardless of the fake story, the goal is generally the same: to get your money.”
Four Steps to Take
To avoid such scams, the FTC recommends:
- Don’t move money to “protect it.” Never transfer or send money to anyone, no matter who they say they are, in response to an unexpected call or message.
- Hang up and verify. If you are contacted by someone claiming to be from a government agency or business, contact the company or agency using a phone number or website you know is real. Don’t trust the phone number or name they provide.
- Block unwanted calls. Learn about call blocking options to stop many of these scammers before they reach you.
