Older Americans reported losing more than $1.9 billion to fraud in 2023, but since most fraud isn’t reported, the actual figure could be as high as $61.5 billion, the Federal Trade Commission said in its annual report to Congress on protecting older consumers.
The FTC estimated the overall losses, adjusted for underreporting, was $158.3 billion for consumers of all ages. The agency collects and analyzes consumer report information through its Consumer Sentinel Network, which received than 5.5 million reports from consumers about problems they experienced in the market. More than 2.6 million reports were about fraud while more than one million were about identity theft.
Adults ages 60 and older were less likely to report fraud than younger age groups, FTC said. However, median losses for older adults were higher than those for other age groups, with people ages 60-69 reporting a median loss of $500, 70-79 reporting a median loss of $806 and ages 80 and older reporting a median loss of $1,450. Fraud reports from older consumers indicated that bank transfers and cryptocurrency payments were the costliest payment mechanisms, with investment scams leading to the largest losses, the agency said.
Older adults were five times more likely than younger people to report losing money on a tech support scam, according to the FTC. They were nearly three times as likely to report a loss on a prize, sweepstakes or lottery scam; 53% more likely to report a loss on a family or friend impersonation scam; and 41% more likely to report a loss on a government impersonation scam.
The American Bankers Association maintains a webpage with resources for protecting older adults from fraud, including the ABA Foundation’s Safe Banking for Seniors campaign.
