Senior Americans will report $3 billion in fraud losses in 2025

The amount of fraud reported by seniors in the United States skyrocketed in 2025, according to a new report from the Federal Trade Commission. This is mainly due to an increase in the number of victims who have suffered losses of at least six figures.

Americans 60 and older reported losing nearly $3 billion to fraud last year, a 25% increase from $2.4 billion in 2024, according to the FTC’s annual report to Congress on senior fraud released Monday. This figure is a 400% increase from the $600 million in losses reported in 2020.

Last year, only 6% of older fraud victims reported losses of $100,000 or more, but these losses accounted for 70% of the total losses reported by that age group. The number of cases reporting losses of this size increased almost sixfold, from 1,136 in 2020 to 6,769 in 2025.

Additionally, because many frauds go unreported, the FTC estimates that actual losses in 2025 could be between $13.3 billion and $119.5 billion. Estimates for 2024 range from $10.1 billion to $81.5 billion.

“The numbers and the growth are staggering,” said Bob Brancato, national coordinator for the Elder Justice Coalition, an advocacy group to end elder abuse. “Part of the reason is that the perpetrators are always ahead of the curve. They seem to be one step ahead of everyone.”

An August 2025 analysis by the FTC found that fraudsters are increasingly targeting Americans’ savings by impersonating banks, businesses, and government agencies, resulting in rising losses. This plan often involves a fabricated emergency situation to convince the victim to send money to prevent their account from being compromised.

The amount of fraud is increasing due to the use of artificial intelligence. According to the FBI, AI-generated fraud is also becoming increasingly difficult to detect and easier to create.

In many identity theft schemes, criminals pose as representatives of banks or government agencies and falsely warn consumers that their money is at risk of being stolen. Victims are then instructed to transfer funds, mail cash, or deposit money into virtual currency ATMs, purporting to protect their assets.

But investment fraud was the most costly type of fraud reported by senior Americans last year, with losses exceeding $1 billion and a 42% increase from 2024, a new FTC report shows. According to the FTC, these scams often begin with social media ads promoting investment opportunities or messages from people posing as financial advisors. Victims may then be directed to fraudulent trading platforms.

Government impersonation fraud ranks second in total reported losses among seniors with $448 million, followed by corporate impersonation fraud with $422 million in reported losses.

The economic toll is mounting as Congress considers legislation aimed at providing additional protections and relief to people who have lost money to fraud.

The Tax Cuts and Jobs Act of 2017 temporarily limited victims’ ability to claim fraud damages in certain cases. as a deduction on your tax return. Prior to the enactment of this law, losses from fraud were generally deductible. That provision was scheduled to expire in 2025, but President Donald Trump’s “Big, Beautiful Bill” law enacted last year made the change permanent.

Losses from investment fraud may be deductible, according to an IRS memo issued in March 2025, but experts say losses from other frauds, such as some identity frauds and romance scams, are not.

Additionally, if the victim uses a tax-deferred retirement account, such as a traditional 401(k) or individual retirement account, as part of the fraud, the distribution may be subject to income tax. Additionally, if the victim is under 59 1/2 years of age, a 10% early withdrawal penalty may be assessed.

“You were scammed out of $100,000 and you end up paying taxes on that $100,000,” Brancato said. “That’s strange.”

The bipartisan Fraud Victims Tax Relief Act, which passed the House on a 408-17 vote in September, eliminates deduction limits and waives the 10% penalty where applicable, among other provisions. The bill was referred to the Senate Finance Committee. It is unclear whether it will gain traction in the Senate by the end of this legislative session.

Separately, the Financial Exploitation Prevention Act, which passed the House of Representatives by a vote of 414-2 in June, allows certain financial institutions, such as mutual fund companies, to temporarily delay transactions if they reasonably believe that a customer is being financially exploited. The proposal was referred to the Senate Banking Committee. It is unclear whether it will get a floor vote.

Many banks and other financial institutions already require account holders to have a “trusted contact,” someone they can contact in certain situations, such as when financial exploitation is suspected. That person may be able to intervene to prevent fraud by contacting the account owner. Although the Financial Industry Regulatory Authority (FINRA) requires brokerages to make reasonable efforts to add trusted contacts to accounts, investors are not required to provide trusted contacts.

Experts say if you suspect an elderly loved one is being victimized, it’s important to approach the situation with caution.

“It’s usually best to start with an open, nonjudgmental, and compassionate approach,” said Marty de Lima, an associate professor at the University of Minnesota and associate director of education for the school’s Center for Healthy Aging and Innovation.

“Never say, ‘I’m being scammed,’ because that will let their guard down,” de Lima says. “Scammers will intentionally try to isolate their targets from potential interlopers. They’ll tell you not to tell anyone about our relationship, or not to tell anyone that you won the lottery.”

De Lima said it’s important not to blame the victim if the money is already gone. “We do things like that all the time to trick the victim. We say, ‘What were you thinking? How could you be so stupid?'” she said.

“We really need to move away from shame, because that’s what they’re already doing to us,” De Lima said. “They’re already pointing their fingers inward.”