Older Adults Lost Billions to Investment Scams in 2024 as Fraud Soars

Adults aged 60 and older reported losing $2.4 billion to fraud in 2024, with investment scams accounting for the largest portion of these losses, according to the Federal Trade Commission's annual report to Congress. The 26.3% increase from 2023 reflects what investigators describe as increasingly sophisticated schemes targeting retirement savings, with many victims losing more than $100,000 each.

The scale of financial exploitation revealed in the December 1 report likely represents only a fraction of the actual losses. FTC researchers estimate that once underreporting is accounted for, the true cost to older Americans could range from $10.1 billion to $81.5 billion annually.

Background and Context

Financial fraud against older adults has accelerated dramatically since 2020, when reported losses totaled approximately $600 million. The FTC's data reveals a particularly troubling trend: investment scams now generate more losses for older consumers than any other category of fraud, with many schemes originating through social media platforms and fake cryptocurrency trading sites.

What makes these crimes especially damaging is their disproportionate impact on retirement savings. According to the FTC, roughly two-thirds of reported losses—about $1.6 billion—involved cases where victims lost more than $100,000, often representing their life savings. Unlike younger victims who may recover financially over time, older adults typically have fewer years to rebuild their retirement funds.

Key Figures and Entities

The FTC report identifies several recurring actors and facilitators in these schemes. Criminal networks increasingly impersonate trusted institutions, with one case detailed by Troy Police involving fraudsters claiming to represent the FTC itself. In October 2024, an 85-year-old man was instructed to withdraw cash from his bank, place it in a shoebox, and await courier pickup—part of an elaborate impersonation scheme.

State authorities have also responded to emerging threats. Michigan Attorney General Dana Nessel issued a consumer alert in April 2025 warning about Bitcoin ATM scams, noting that "money sent through bitcoin ATMs is nearly impossible to recover and these machines lack oversight and regulation." Industry experts like Mark Fetterhoff from the AARP Fraud Watch Network report that criminals have developed increasingly convincing narratives around cryptocurrency investments and gold purchases.

Legal and Financial Mechanisms

Modern elder fraud schemes typically employ multi-stage deceptions designed to overcome natural skepticism. The FTC identified a particularly effective mechanism called "task scams," which drove a 300% increase in job-related fraud losses among older adults in 2024. Victims receive initial small payouts for completing simple online tasks, building trust before being required to deposit their own money to unlock supposed earnings.

Impersonation scams have evolved to blur the lines between government and business entities, with criminals often posing as multiple agencies during a single scheme. These cons frequently culminate in instructions to convert traditional savings into either cryptocurrency through Bitcoin ATMs or physical gold bars—both difficult to trace once transferred. In one case documented by AARP, a New York woman lost her entire retirement nest egg through a scam that began as a computer security alert and evolved into gold bar purchases delivered to unknown couriers.

International Implications and Policy Response

The cross-border nature of cryptocurrency and gold-based scams creates significant enforcement challenges for U.S. authorities. According to the FTC, many fraudulent investment platforms operate offshore, making recovery nearly impossible once funds are transferred. This jurisdictional complexity has prompted calls for increased international cooperation in combating elder financial exploitation.

Policy responses have focused on both enforcement and prevention. The FTC's Consumer Response Center aggregates fraud reports for law enforcement partners, while financial institutions have implemented enhanced protections for vulnerable customers. However, experts note that the most effective defense may be increased awareness—particularly regarding the red flags of unsolicited investment opportunities, guaranteed high returns, and pressure to act quickly.

Sources

This report draws on the Federal Trade Commission's annual report to Congress, law enforcement case files from Troy Police Department, consumer alerts from the Michigan Attorney General's Office, and expert analysis from the AARP Fraud Watch Network. The FTC maintains a reporting portal for fraud victims at ReportFraud.ftc.gov and can be reached by phone at 877-382-4357.