FTC: Older Americans' reported fraud losses hit $3 billion in 2025

Americans aged 60 and older reported losing about $3 billion to fraud in 2025, a 25% increase from $2.4 billion in 2024, according to the Federal Trade Commission's annual report to Congress on fraud among older adults, released Monday. That figure is up 400% from the $600 million reported in 2020.

Big losses drive the total

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

Because many scams go unreported, the FTC estimates actual 2025 losses could range from $13.3 billion to $119.5 billion, up from an estimated $10.1 billion to $81.5 billion in 2024.

"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."

Investment scams cost the most

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 says these often begin with social media ads promoting investment opportunities or messages from people posing as financial advisors, and can lead victims to fraudulent trading platforms.

Government impersonation ranked second at $448 million in reported losses, followed by business impersonation at $422 million. Scammers increasingly pose as banks, businesses and government agencies, often inventing emergencies to convince victims to move money to "protect" their accounts. The FBI says artificial intelligence has made such scams easier to produce and harder to detect.

Tax rules and pending legislation

Congress is weighing legislation to help victims. The Tax Cuts and Jobs Act of 2017 temporarily restricted victims' ability to deduct certain fraud losses on their tax returns, and President Donald Trump's "big beautiful bill" made that restriction permanent last year.

Investment fraud losses may still be deductible under a March 2025 IRS memorandum, but money lost to other scams — such as some impersonator or romance scams — is not, experts said. Victims who tapped tax-deferred retirement accounts may also owe income taxes on the distribution, plus a 10% early-withdrawal penalty if they are under 59½.

"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 the House passed in September by 408-17 and referred to the Senate Finance Committee, would eliminate the deductibility restrictions and waive the 10% penalty. It is uncertain whether it will advance before this session ends. The Financial Exploitation Prevention Act, which cleared the House 414-2 in June, would let certain financial institutions temporarily delay transactions when they reasonably believe a customer is being exploited; it is with the Senate Banking Committee.

How to help

Marti DeLiema, an associate professor at the University of Minnesota, said people concerned about an older adult should start with an open, nonjudgmental approach. "You never say 'you're being scammed,' because they'll throw their guard up," she said, noting that scammers try to isolate victims. If the money is already gone, she said, it is important not to blame the victim.

Source: CNBC.