FTC Reports Threefold Increase in Older Adults Losing $100,000 to Fraud Since 2020

Number of older adults who lost $100,000 to fraud tripled since 2020: FTC

Protecting Your Finances: A Call to Action Against Fraud Targeting Older Americans

As a member of the Extreme Investor Network community, you appreciate the importance of financial security, especially in your golden years. Unfortunately, a troubling trend has emerged that threatens the financial wellbeing of older Americans: fraud. Reports from the Federal Trade Commission (FTC) reveal a startling increase in the number of older adults losing substantial amounts of money to scams. In fact, between 2020 and 2023, the number of adults aged 60 and older who reported losing more than $100,000 to fraud has tripled, painting a grim picture of the current financial landscape.

The Numbers Don’t Lie

In a recent October report, the FTC disclosed that in 2023 alone, around 4,600 older adults reported losing six-figure sums. This is a marked increase from merely 1,300 victims in 2020. Such staggering financial losses can profoundly affect the quality of life for older Americans—many of whom have limited opportunities to recoup what they’ve lost.

John Breyault from the National Consumers League puts it bluntly: "It’s life altering." Along with the severe financial repercussions, victims face emotional distress, often concluding that they must spend the rest of their lives in diminished circumstances.

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The Rising Tide of Financial Fraud

In total, consumers lost $10 billion to scams in 2023—an all-time high and a staggering $1 billion increase from the previous year. Among older adults alone, reported losses were over $1.9 billion, which likely underrepresents the true figure, estimated to be around $62 billion when considering unreported cases.

Older adults were found to be 60% more likely to report losses exceeding $100,000 compared to their younger counterparts. Common scams that plague this demographic include romance frauds, investment scams, and imposter schemes—where criminals pose as trusted entities like family members, tech firms, or government agencies.

Recognizing Scams: Knowledge is Your Best Weapon

As scammers become increasingly sophisticated, being aware of common tactics can empower you to protect yourself and your loved ones. Here are three prevalent red flags:

1. Sense of Urgency

Con artists will often instill an artificial sense of urgency, pressuring potential victims to act hastily. Phrases like “This offer is only available for a limited time” or “You need to pay right now to avoid serious consequences” are designed to cloud your judgment. Always take a moment to reflect or consult with someone you trust before acting.

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2. Social Isolation

Scammers thrive on isolation. They may directly ask you to keep the “deal” a secret, discouraging you from discussing it with family or friends. If you feel uncertain about a situation, reach out for a second opinion. A simple conversation can often reveal inconsistencies or suspicious elements that may escape your attention.

3. Unusual Payment Methods

Be wary of payment requests via gift cards, wire transfers, or unfamiliar methods like cryptocurrency transactions. For instance, if a “relative” asks you to send money through a Bitcoin ATM, this should raise immediate red flags. Always opt for payment methods that provide recourse in cases of fraud—major credit cards typically offer better consumer protections than peer-to-peer payment apps.

Steps to Take Now

  1. Educate Those You Love: Share this information with family members, especially older relatives. The more aware they are of potential scams, the less likely they are to fall victim.

  2. Regularly Review Financial Accounts: Encourage frequent monitoring of bank statements and investment accounts. Look for anything suspicious, no matter how minor it may seem.

  3. Report Fraud: If you or someone you know has been targeted, report the scam to the FTC. This helps build awareness and can assist in tracking fraudulent activities.

  4. Create a Support System: Establish a network of trusted individuals with whom you can discuss financial decisions, large purchases, or any unusual requests for money.
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At Extreme Investor Network, we believe in empowering our community with the knowledge and resources they need to protect their financial futures. Understanding the intricate and ever-evolving landscape of financial fraud is the first step toward safeguarding your hard-earned wealth. Stay informed, stay vigilant, and remember—when in doubt, reach out. Your financial security depends on it!