FTC Report: Seniors Lost Billions To Scams—Key Insights And Prevention Tips
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MoneyPersonal FinanceFTC Report: Seniors Lost Billions To Scams—Key Insights And Prevention TipsBySteve Weisman,Contributor.Forbes contributors publish independent expert analyses and insights. Steve Weisman writes about white-collar crime.Follow AuthorDec 16, 2025, 04:59pm ESTThe headquarters of the US Federal Trade Commission (FTC) in Washington, DC, November 18, 2024. (Photo by ROBERTO SCHMIDT / AFP) (Photo by ROBERTO SCHMIDT/AFP via Getty Images)AFP via Getty ImagesRecently the Federal Trade Commission issued its annual report to Congress on protecting older adults from scams and its findings were quite disturbing. Total fraud losses by Americans over the age of 60 increased by 400% between 2020 and 2024 to $2.4 billion in 2024 and this amount is considerably less than the true figure because many people who have been scammed fail to report their victimization.According to the report, the scam that affected seniors the most by far was investment scams, followed by imposter scams, romance scams, tech support scams and lottery scams. According to the FTC, the contact method accounting for the biggest fraud losses was social media.Why are seniors so much more likely to be targeted for scams? To some extent it may reflect the thinking exemplified by the infamous bank robber Willie Sutton who when asked why he robbed banks responded, “because that is where the money is.” So it is with many seniors who may have a lifetime of accumulated savings that provide a tempting target for scammers. It has been thought that seniors might be more susceptible to scams due to being more trusting and two studies support a physiological basis for that opinion. A study by researchers at Cornell University published in the Journals of Gerontology concluded that naturally occurring changes in the brains of older people makes them vulnerable to financial exploitation. The changes noted were in a part of the brain that alerts us when facing a risky situation as well as another part of the brain that controls the ability to read social cues. An earlier study done by researchers at the University of Iowa also found naturally occurring changes in the prefrontal cortex of the brain in the elderly that make older people less skeptical and therefore more likely to be victimized by a scam. HOW DO YOU PROTECT YOURSELF FROM INVESTMENT SCAMS?Anyone considering an investment should first investigate the person offering you the investment with the Securities and Exchange Commission's Central Registration Depository. This will tell you if the broker is licensed and if there have been disciplinary procedures against him or her. Anyone considering an investment should first investigate the person offering you the investment with the Securities and Exchange Commission's Central Registration Depository which is administered by the Financial Industry Regulatory Authority (FINRA) ), a private regulatory organization for the investment industry Here you will find if the broker is licensed and if there have been disciplinary procedures against him or her. You can also check with your own state's securities regulation office for similar information. Many investment advisers are not required to register with the SEC but are required to register with your individual state's securities regulators. You can find your state's agency by going to the website of the North American Securities Administrators Association. MORE FOR YOUIt is also important to remember that you should never invest in something that you do not completely understand. This was a mistake that many of Bernie Madoff’s victims made. You may want to check out the SEC’s investor education website.Having the same person advise the investment and control the investment is a common thread among Ponzi schemers because it enables them to falsify documents to make the investment look profitable. Generally, for additional security a good rule to follow is to have a separate broker-dealer act as custodian for investments chosen by any investment adviser you may use.Finally, FINRA has two specific rules to protect elderly customers from scams. Rule 4512 requires brokers to ask their customers for a trusted contact person who can be contacted when there is a suspicion of fraud or of the customer having diminished capacity while Rule 2165 allows investment firms to put temporary holds of up to 15 business days on disbursements if they reasonable suspect exploitation of someone 65 years or older. Editorial StandardsReprints & PermissionsLOADING VIDEO PLAYER...FORBES’ FEATURED Video