Older Americans Reported $3 Billion in Fraud Losses in 2025

Fraud losses reported by older Americans jumped in 2025, driven largely by an increase in victims losing sums of at least six figures, according to a new report from the Federal Trade Commission.

Americans ages 60 and older reported losing about $3 billion to fraud last year, a 25% increase from $2.4 billion in 2024, according to the FTC’s annual report to Congress, released Monday, on fraud among older adults. That figure is up 400% from $600 million reported lost in 2020.

Just 6% of older fraud victims reported losing $100,000 or more last year, but those losses accounted for 70% of the age group’s total reported losses. The number reporting losses of that magnitude rose nearly sixfold to 6,769 in 2025 from 1,136 in 2020.

Additionally, because many scams go unreported, the FTC estimates actual losses in 2025 could have been anywhere from $13.3 billion to $119.5 billion. In 2024, the estimated range was from $10.1 billion to $81.5 billion.

“The numbers and the increases are staggering,” said Bob Blancato, national coordinator for the Elder Justice Coalition, an advocacy group for ending elder abuse. “Part of it is that the perpetrators are always ahead. They seem to be one step ahead of everybody.”

The rising losses come as scammers increasingly target Americans’ life savings by impersonating banks, businesses and government agencies, according to an August 2025 analysis by the FTC. The schemes often involve fabricated emergencies that convince victims to transfer money to supposedly protect their accounts from being compromised.

The volume of scams has increased with the use of artificial intelligence. AI-generated scams are also increasingly difficult to detect and easier to produce, according to the FBI.

In many impersonation schemes, criminals pose as representatives of banks or government agencies and falsely warn that a consumer’s money is in danger of being stolen. Victims are then instructed to transfer funds, mail cash or deposit money into crypto ATMs, supposedly to protect their assets.

However, investment scams were the costliest fraud type reported by older Americans last year, with losses exceeding $1 billion, a 42% jump from 2024, the FTC’s new report shows. These scams often begin with social media ads promoting investment opportunities or messages from people posing as financial advisors, according to the FTC. Victims may then be directed to fraudulent trading platforms.

Government impersonation scams ranked second in total reported losses among older consumers of $448 million, followed by business impersonation scams, which resulted in $422 million in reported losses.

The growing financial toll comes as Congress considers legislation intended to provide additional protections and relief for people who lose money to scams.

The Tax Cuts and Jobs Act of 2017 temporarily restricted victims’ ability to claim their fraud losses in certain cases. as a deduction on their tax return. Prior to that legislation, fraud losses were generally deductible. The provision was scheduled to expire in 2025, but President Donald Trump’s “big beautiful bill” law enacted last year made that change permanent.

While investment fraud losses may be deductible, according to an IRS memorandum issued in March 2025, money lost to other scams — such as some impersonator or romance scams — is not, experts said.

In addition, if the victim tapped a tax-deferred retirement account such as a traditional 401(k) or individual retirement account as part of the fraud, income taxes may be due on the distribution. And if the victim is younger than age 59½, an early-withdrawal penalty of 10% may be imposed.

“You get scammed out of $100,000 and then you’re paying taxes on that $100,000,” Blancato said. “That’s crazy.”

The bipartisan Tax Relief for Fraud Victims Act, which was passed by the House in September in a 408-17 vote, would eliminate the deductibility restrictions and waive the 10% penalty if it applies, among other provisions. The bill was referred to the Senate Finance Committee. It’s uncertain whether it will gain traction in the upper chamber before this session of Congress is over.

Separately, the Financial Exploitation Prevention Act, which cleared the House in June by a vote of 414-2, would allow certain financial institutions such as mutual fund companies to temporarily delay transactions when they reasonably believe a customer is being financially exploited. It was referred to the Senate Banking Committee; whether it will get a floor vote is unknown.

Already, many banks and other financial institutions ask accountholders for a “trusted contact,” which is someone who can be contacted in certain circumstances, including when financial exploitation is suspected. That person may be able to intervene to prevent the fraud by reaching out to the accountholder. The Financial Industry Regulatory Authority, or FINRA, requires brokerages to make a reasonable effort to add a trusted contact to accounts, although investors are not required to provide one.