Older Americans Report $3B Lost to Fraud in 2025 as Six-Figure Loss Reports Climb, FTC Says

Americans aged 60 and older reported approximately $3 billion (approximately £2.24 billion) in fraud losses in 2025, the Federal Trade Commission said in a report released on Monday, 19 October. The figures show a sharp rise in reports involving losses of at least $100,000 (£74,769.15), with a relatively small number accounting for most of the money reported stolen.

Older Americans reported losses of about $2.4 billion (approximately £1.79 billion) in 2024 and $600 million (approximately £448.61 million) in 2020. The latest figure represents a 25 per cent annual increase and a fivefold rise over five years, according to the FTC's annual report to Congress.

Only 6 per cent of fraud-loss reports from older adults involved amounts of $100,000 (£74,769.15) or more in 2025, but those reports represented 70 per cent of their total reported losses. The number of six-figure loss reports rose from 1,136 in 2020 to 6,769 in 2025, an increase of approximately 496 per cent.

These are reported losses, not a complete accounting of fraud. Using different methods to estimate unreported incidents, the FTC placed the possible overall cost to older adults in 2025 between $13.3 billion (approximately £9.94 billion) and $119.5 billion (approximately £89.35 billion). The estimates underline the uncertainty surrounding unreported fraud.

'The numbers and the increases are staggering,' Bob Blancato, national coordinator for the Elder Justice Coalition, told CNBC.

Investment Scams Dominate Older Americans' Losses

Investment scams produced more than $1 billion (approximately £747.69 million) in reported losses among older Americans in 2025, a 42 per cent increase on the previous year. Government impersonation scams followed at $448 million (approximately £334.97 million), with business impersonation scams accounting for $422 million (approximately £315.53 million).

The FTC said consumers often described being approached on social media and directed to fraudulent cryptocurrency investment platforms. Other reports involved people posing as bank employees or government officials who claimed that money was at risk.

In some impersonation schemes, callers instructed consumers to transfer savings, mail cash or use cryptocurrency ATMs to protect their accounts. The money instead went to the scammers. The FTC also noted that some operations impersonated more than one organisation during the same deception.

The Federal Bureau of Investigation has warned that artificial intelligence can help criminals create convincing messages, voices and other deceptive material. The FTC's figures, however, do not establish how much AI contributed to the rise in losses.

Tax Rules Add Pain After Fraud Losses

For some victims, losing their savings can be followed by difficult tax questions. A 2017 law restricted deductions for many personal theft losses, and legislation enacted in 2025 made that restriction permanent. Some losses connected to profit-seeking transactions may still qualify.

An Internal Revenue Service memorandum released in March 2025 explained that eligibility depends on the circumstances, including whether the conduct constitutes theft under applicable law, the purpose of the transaction and prospects of recovering the money. A romance scam does not automatically qualify for the same treatment as a fraudulent investment.

Victims who withdraw money from tax-deferred retirement accounts may also owe income tax on taxable distributions, even if scammers subsequently take the funds. An additional 10 per cent early withdrawal tax generally applies only before age 59½, making it less relevant to the FTC's 60-and-over population.

Congress Weighs New Protections for Fraud Victims

Two bills passed by the House would offer different forms of protection. The Tax Relief for Fraud Victims Act passed on 15 September by 408 votes to 17. It proposes broader relief for qualifying theft losses and special rules for certain fraud-related retirement withdrawals. It remains before the Senate Finance Committee.

The Financial Exploitation Prevention Act passed the House on 25 June by 414 votes to two. It would permit specified investment companies and transfer agents to delay certain securities redemptions if they reasonably suspect exploitation. The measure is before the Senate Banking Committee; it would not authorise every bank to freeze any transaction.

Existing safeguards include trusted-contact arrangements at brokerage firms. Under Financial Industry Regulatory Authority rules, member firms must make reasonable efforts to obtain a customer's trusted-contact details, although customers may decline. A trusted contact can help flag concerns but cannot control the account merely by being nominated.

Neither bill has become law. Marti DeLiema, an associate professor at the University of Minnesota, told CNBC families should begin suspected-scam conversations with 'an open, nonjudgmental, compassionate approach,' rather than blaming victims.