FDIC-Insured - Backed by the full faith and credit of the U.S. GovernmentFalse Alarms, Real Scams: How Imposters Are Draining Older Adults’ Life Savings
Scammers are increasingly targeting older adults by pretending to help them protect their money. According to the Federal Trade Commission, a growing number of fraud reports show that criminals are using fake security alerts and false emergency warnings to steal retirees’ life savings. These scams often involve impersonators claiming to be from trusted banks, well‑known companies, or government agencies, and the resulting financial losses can be devastating.
While people of all ages fall victim to these types of scams, reports show that older adults are far more likely to experience losses in the tens or even hundreds of thousands of dollars. Many victims report emptying their bank accounts or draining retirement funds because they believed they were responding to a real crisis.
How these scams begin
These scams usually start with a message or alert designed to trigger fear and urgency. The reports show that scammers typically rely on one of three false claims to convince someone that immediate action is required.
One common lie is that someone is using your accounts. The scammer may pretend to be from a bank or a well‑known retailer such as Amazon, contacting you about suspicious activity or unauthorized purchases. These messages often sound professional and appear urgent to pressure you into responding quickly.
Another version claims that your personal information is connected to a serious crime. In these cases, scammers pose as government officials or law enforcement and claim your Social Security number is linked to criminal activity like money laundering or drug trafficking. The threat of legal trouble is used to keep victims from questioning the story.
A third approach involves fake computer security alerts. These often appear as pop‑up warnings that look like messages from Microsoft or Apple, claiming your device has been hacked. The alert urges you to call a phone number for assistance, which routes you directly to the scammer.
What happens after contact is made
Once scammers convince someone that a crisis is real, they claim that the only solution is to follow very specific instructions. These instructions always involve moving money. Victims may be told to transfer funds, withdraw cash, purchase gift cards, or move money into accounts the scammer claims are safe. In reality, these steps send money directly to the scammer and are nearly impossible to reverse. Whenever victims of this scam believe they are preventing fraud or fixing a problem, their losses are often limited only by how much money they have available. This is why scammers focus their efforts on creating panic and keeping victims engaged without outside input.
Why older adults are hit hardest
FTC data shows that reports from adults ages 60 and older involving losses of $10,000 or more increased more than fourfold between 2020 and 2024. Reports involving losses above $100,000 rose nearly sevenfold during the same period, with total reported losses increasing eight times over.
These scams often succeed because they exploit trust in familiar institutions and a desire to protect hard‑earned savings. Scammers also try to isolate victims by keeping them on the phone and discouraging them from talking to family members or financial professionals who might recognize the scam.
How to protect yourself and loved ones
It is recommended that you should be taking several important steps to avoid business and government impersonator scams. Never move or send money in response to an unexpected call, text, email, or pop‑up message, even if the person claims it is necessary to protect your funds. Legitimate organizations do not ask consumers to transfer money, buy gift cards, or hand over cash to resolve issues.
If a message claims to come from a government agency or company you know, take time to verify it. Use phone numbers or websites you look up independently rather than the contact information provided in the message. Speaking with a trusted friend, family member, or advisor before acting can also help prevent costly mistakes.
What to do if you suspect a scam
Anyone who receives a suspicious message or believes they have encountered a scam should report it to the Federal Trade Commission at ReportFraud.ftc.gov. Reporting helps investigators identify patterns, warn others, and work to stop scammers from targeting more victims.
Staying informed is one of the most effective ways to protect your finances and your identity. Recognizing common warning signs and taking a pause before reacting to alarming messages can help ensure false alarms do not turn into real losses.