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Scams are causing increasing financial harm to older adults. An FTC report shows that fraud losses among people aged 60+ rose from $600 million to $2.4 billion between 2020 and 2024, largely driven by investment, romance and impersonation scams, which can be very sophisticated. The amount of money stolen by scammers is also rising, with the number of people reporting losses over $100,000 increasing rapidly.
Why does this happen? Scammers aggressively target older people because it is cost-effective. When a scammer invests time to build a credible scheme, they want a high return on investment. It comes down to how much they can steal and how quickly they can do it.
Here is why targeting older adults is lucrative for scammers:
1. Access to funds
Older adults are usually close to retirement or already retired, with money saved in pensions or home equity. If a scammer can gain their trust, they can potentially steal a large sum from a single person.
2. Cognitive changes
Just as physical health changes with age, cognitive functions can slow down. This varies by person and can be worsened by conditions like dementia. Even without a specific diagnosis, aging can affect how fast we process information. It might take longer to make decisions or spot confusing schemes. Because many older adults were highly capable professionals, they may feel ashamed of these slow cognitive changes and hide them from loved ones, making them more vulnerable to manipulation.
3. Online habits
Older people might not be as active on the social media platforms where scam prevention tips and current warnings are widely shared.
4. Isolation and loneliness
Someone who is bereaved or living far from family has a harder time talking things over to get a second opinion. While loneliness increases scam susceptibility across all age groups, it compounds the other risk factors older adults face. Scammers exploit this isolation because they don't have to work as hard to keep the victim away from people who could intervene.
5. Generational factors
Many older adults were raised with different social norms. For example, they were expected to be polite and to trust authority figures like bank managers, police officers, or government agents. Additionally, saying no may have been considered rude. Scammers heavily abuse this early in the scam lifecycle. By impersonating a helpful authority figure, the scammer establishes control. Because the victim feels obligated to be polite and comply with an official request, they are drawn further into the scam before any red flags are raised.
Here is what you can do to protect yourself:
1. Allow time for information processing
Take your time, especially if a situation feels complicated. Make it a strict rule to verify information independently with a bank or financial advisor before making financial decisions. This rule acts as a buffer when scammers try to create a false sense of urgency.
2. Build a sounding board
Have a trusted network of friends or family you can call for advice. Even if you don't follow their advice, hearing another perspective introduces a healthy dose of doubt, which may be all you need to avoid a scam situation.
3. Be aware of how you feel
Humans often make decisions that are out of character when feeling overly excited, stressed, anxious, or fearful. This is precisely why scammers try to trigger these states. When combined with persuasion techniques like urgency or authority, these emotions can push us to act quickly, either to ease the discomfort or to grab an appealing offer (e.g., a prize, an enticing investment etc.).
Being aware of your emotional state can help you spot when something feels off and signals that extra caution is needed. These feelings are usually temporary. Allowing time between the emotion and your decision helps you return to a more rational state of mind, where you can evaluate all the facts more clearly.
As always, stay safe.
