The most effective protections are simple: slow down, verify independently, and never move money under pressure. Many scams rely on urgency and secrecy. Hanging up and calling a number you know is legitimate, designating a trusted contact with your financial firm, and talking to someone you trust before acting can stop many schemes before any money changes hands.
The stakes are real. In 2025, Americans age 60 and older filed 201,266 complaints with the FBI’s Internet Crime Complaint Center (IC3) and reported approximately $7.75 billion in losses — a 59% increase from 2024. The average reported loss was $38,500. These figures reflect reported internet-related crimes, not every scam affecting older Americans.
Retirees aren’t targeted because they’re less savvy. Criminals use sophisticated tactics to exploit trust, fear, and urgency. When substantial savings are involved, the financial consequences can be especially significant.
The Scams Retirees See Most Often
According to the FBI’s 2025 IC3 data, investment scams accounted for the largest reported losses among adults age 60 and older, followed by tech support scams. Common schemes include:
● Investment scams. Pitches promising guaranteed or unusually high returns, often involving cryptocurrency. Many begin with a friendly text, social media message, or online ad and build trust over weeks or months.
● Tech support scams. A pop-up or phone call claims your computer has been hacked, followed by a request for remote access or payment to fix it.
● Government and bank impersonation. Someone posing as Social Security, Medicare, law enforcement, or your bank’s fraud department insists that your money must be moved to a “safe” account.
● Family emergency scams. A caller claims to be a grandchild or relative in trouble and asks for money immediately, sometimes using AI to imitate a familiar voice. They may insist that you keep the situation secret.
● Romance scams. An online relationship develops over time and eventually leads to requests for money, often involving an emergency, travel expenses, or an investment opportunity.
Warning Signs to Watch For
Scams take many forms, but most share a few red flags:
● Pressure to act immediately or threats of consequences if you don’t
● Requests to keep the conversation secret, even from family or your bank
● Demands for payment by gift card, wire transfer, cryptocurrency, or cash handed to a courier
● Unsolicited requests for account numbers, passwords, or your Social Security number
● Returns or opportunities that sound too good to be true
● Instructions to withdraw cash, transfer investments, or move money to protect it from supposed fraud
A major red flag is someone claiming you must transfer money to a so-called “safe” account. Be equally cautious of anyone demanding gift cards, cryptocurrency, or secrecy as a condition of resolving an alleged problem.
Simple Safeguards That Make a Difference
● Pause and verify. If a call, text, or email asks for money or personal information, stop and independently contact the organization using a phone number or website you already know is legitimate. Don’t rely on caller ID or contact details supplied by the person reaching out.
● Name a trusted contact. Many financial firms allow you to designate someone they may contact if they suspect possible financial exploitation, have difficulty reaching you, or have other permitted concerns. A trusted contact does not gain authority to access or transact in your accounts simply by being named.
● Set up account alerts. Notifications for withdrawals, transfers, and login attempts can help you spot suspicious activity quickly.
● Use a family code word. Agree on a word or phrase that family members can use to verify an emergency request. If someone calls claiming to be a relative in trouble, hang up and call that person directly using a number you already have.
● Keep your estate planning documents current. A properly prepared power of attorney for property can authorize someone you trust to help manage your finances if needed. Choose your agent carefully and review the document periodically with a qualified attorney.
● Talk before you act. Before making an unusual or substantial transaction at someone else’s urging, consult a family member, your financial advisor, or another trusted professional. An independent perspective can help you recognize warning signs you may have missed.
What to Do If You Think You’ve Been Targeted
Act quickly. The sooner you respond, the better your chance of limiting further losses.
● Contact your bank or financial institution immediately. Report the suspected fraud and ask whether a transfer can be stopped, recalled, or reversed. If investment accounts are involved, contact the relevant custodian or financial firm as well.
● Report internet-related fraud to the FBI. File a complaint at ic3.gov. Include relevant emails, messages, transaction details, and other records.
● Report suspected financial exploitation in Illinois. Call the statewide, 24-hour Adult Protective Services Hotline at 1-866-800-1409 if you suspect abuse, neglect, or financial exploitation involving an adult age 60 or older, or an adult age 18–59 with a disability who is covered by the program.
● Secure your accounts and personal information. Change compromised passwords, enable multifactor authentication, and contact the major credit bureaus about a fraud alert or credit freeze if your identifying information may have been exposed.
● Let your financial advisor know. Your advisor may be able to help identify unusual account activity, coordinate with the custodian, and take appropriate steps to protect your accounts.
Most importantly, don’t let embarrassment get in the way of reporting what happened. Scams are designed to fool people, including those who are intelligent, careful, and financially experienced. Prompt action can help limit the damage and may help prevent others from being victimized.
Frequently Asked Questions
Why are retirees targeted by scammers?
Criminals may target older adults because they have accumulated savings, retirement accounts, or home equity. Sophisticated schemes can exploit trust, fear, or a sense of urgency. Being targeted says nothing about a person’s intelligence or financial judgment.
What is a trusted contact person?
A trusted contact is someone your financial firm may reach if it suspects possible financial exploitation, has difficulty contacting you, or has other permitted concerns. Naming a trusted contact does not, by itself, give that person authority to access or transact in your accounts.
Will my bank or the government ever ask me to move my money to keep it safe?
A request to transfer money to a so-called “safe” account is a major warning sign. Be suspicious of anyone claiming to represent a bank or government agency who pressures you to move money, pay with gift cards, or send cryptocurrency to resolve an alleged problem. Independently contact the organization using verified contact information.
Where can I report a scam in Illinois?
For internet-related fraud, file a complaint with the FBI’s Internet Crime Complaint Center at ic3.gov. To report suspected abuse or financial exploitation of an older adult or an eligible adult with a disability, call the Illinois Adult Protective Services Hotline at 1-866-800-1409, available 24 hours a day. You can also contact the U.S. Department of Justice’s National Elder Fraud Hotline at 1-833-372-8311, Monday through Friday, 10 a.m. to 6 p.m. Eastern Time, for assistance with reporting suspected elder fraud.
This article is provided for informational and educational purposes only and should not be construed as individualized investment, legal, or tax advice. Consult qualified professionals regarding your specific circumstances.