Elder fraud has surged over the past five years, with reported losses steadily climbing. Between 2022 and 2023 alone, incidents rose by 11 percent, according to the Federal Bureau of Investigation (FBI). Tech support scams remained the most common, while investment and cryptocurrency scams continued to rise. Also common among older victims are non-delivery, romance, grandparent, and government imposter scams. New and emerging threats include sweepstakes, lottery, and inheritance scams, as well as impersonation scams involving Medicare, utility companies, and law enforcement. Knowing these scams are a growing threat is the first step to protecting yourself and those you care about.
Older Americans and caregivers, there's an alarming trend to be aware of: Rates of elder fraud are continuing to rise.
Scammers stole more than $3.4 billion from Americans over 60 in 2023, according to the Federal Bureau of Investigation's (FBI). Hundreds of thousands of older adults were targeted, losing an average of nearly $34,000 each.
And these are only the cases that were reported. With scammers becoming more sophisticated and relentless, it’s more important than ever to stay up to date on the latest schemes.
Common scams targeting older adults
Criminals run all kinds of ploys against people of all ages in hopes of pocketing money (aka committing financial fraud) or stealing and using people’s personal information (known as identity theft or identity fraud).
But older adults are often prime targets for several reasons. Many have built up more equity, savings, or retirement funds, making them especially attractive to scammers looking for a big payday. Some may be more trusting or less familiar with fast-changing technology. In other cases, cognitive decline or social isolation can make it harder to spot red flags.
That said, anyone—regardless of age, tech-savviness, or background—can fall for a scam. Today’s fraudsters are smart, sophisticated, and constantly changing their tactics. So, if you’ve ever been scammed or almost scammed, you’re not alone and it’s nothing to be ashamed of.
With help from the FBI’s latest data, we’re breaking down the scams most commonly aimed at older adults, so you can stay informed and better protect yourself or your loved ones.
Tech support scams
In 2023, older adults filed more than 17,600 complaints of tech support crimes, putting this scam at the top of the charts by a landslide.
In these schemes, a scammer typically reaches out by phone to alert you of a “software update” that your phone, computer, or other device needs, or of a “software problem” that they can help resolve.
The caller impersonates a representative from a tech company and may even use spoofing technology to have caller ID on your phone support their claim.
Throughout the call, they may ask for your personal information, like email log-in credentials or your Social Security number (SSN). They may demand payment for their services outright, often by way of peer-to-peer payment apps (like Zelle, Venmo, or Cash App), wire transfer, or cryptocurrency—all modes of payment that are harder to recover from fraud than credit card payments.
You could even be instructed to download software to fix the “problem”, but it contains spyware or malware that tracks your computer activity or records your keystrokes.
Red flags of tech support scams
Unsolicited outreach. Software companies will not initiate conversations with you or offer support services that you didn’t request.
Pop-up web pages saying that your computer is in danger. This is another way in which tech support scams are run: You may suddenly see a pop-up page with a shocking message like “your computer is infected.” The pop-up prompts you to call a certain number for help, which leads you directly to a scammer.
Pressure to give away sensitive information. A tech support service would not require you to divulge sensitive information or pay on the spot.
Investment and cryptocurrency scams
Investment fraud targeting older adults surged by over 218 percent between 2021 and 2023, fueled by a rise in cryptocurrency scams.
There are a host of different investment scams including pyramid schemes, Ponzi schemes, market manipulation fraud, and phony real estate investing scams.
These often start with the scammer initiating contact online. Over time, they build a rapport and establish trust, then convince victims to make a fake “low-risk, high-yield” investment.
The person who actually pockets the investment? The scammer, of course.
Red flags of investment scams
Out-of-the-blue messages. The majority of investment scams are trust-based, typically established online through social media and text messages. Be cautious of messages from strangers online even if they sound friendly, kind, or believable.
Low-risk, unusually high-yield investments. If you’re pitched an investment opportunity that is “guaranteed,” “no-risk,” or that promises remarkable returns, it’s likely a scam.
Pressure to invest. Legitimate investment advisors or investment-savvy friends will not pressure you to invest your savings.
Unsolicited cryptocurrency investment opportunities. Though some cryptocurrency investing is legitimate, the rates of cryptocurrency scams are skyrocketing. Do not proceed with any random and unexpected investment opportunities involving cryptocurrency.
Romance and grandparent scams
One encouraging update: Rates of romance and grandparent scams— both often referred to as “confidence scams”—fell slightly between 2022 and 2023. Still, they impacted thousands of older Americans.
Both of these scams pull at the heartstrings of victims and rely on a phony sense of trust.
Romance scams typically originate on social media, dating apps, or elsewhere online. A seasoned bad actor will initiate a conversation and foster an online relationship. After establishing that bond, suddenly they need money for an emergency.
In a “grandparent scheme”, a scammer calls an older adult out of the blue and pretends to be a family member— often a grandchild—in trouble.
They use scare tactics and demand that money be transferred immediately to help. By using generative artificial intelligence (AI), some criminals are even able to clone the voice of a loved one, exacerbating the risk and believability of these scams.
In a similar vein, some scammers use fake kidnapping scams—calling to claim they’ve kidnapped a loved one and demanding immediate ransom. These terrifying scams are designed to provoke panic and fast action without verifying the story.
How to avoid romance and grandparent scams
Know that they’re a threat. Knowledge is power when it comes to confidence scams. Knowing that these threats exist will help sound alarm bells should you or a loved one be targeted by one.
Never send money to strangers, especially someone you haven’t met in person or someone who calls out of the blue (especially via a payment method that’s not protected from fraud).
Verify the story. If someone claims to be a relative in trouble, hang up and call that relative or another family member directly. In romance scams, do a reverse image search of their profile photo or ask specific questions that only a real acquaintance would know.
Government impersonation scams
Imagine your phone rings, showing that it’s the “IRS” calling. When you answer, an agent is on the line and says you’re delinquent on your tax payment from last year.
Luckily, they can easily help you resolve the issue and avoid accruing additional penalties—all they need is your Social Security number to verify your account and your bank account routing number to submit your payment.
But it’s not the IRS: It’s a scammer.
These schemes can happen via phone call, email, or text, and can involve all sorts of “government agencies,” from the Social Security Administration and Medicare to local or state municipal offices. Scammers may even pose as law enforcement offers, claiming there’s a warrant out for your arrest or an unpaid fine you need to pay to avoid jail time.
In the case of Medicare scams, fake representatives may offer bogus medical services, free genetic testing, or new ID cards, all a ruse to collect personal information.
The key thing to remember: Government agencies typically contact you through official mail sent by the U.S. Postal Service.
How to avoid government scams
Hang up or don’t reply if you receive outreach from someone claiming to be with the government. Then, contact the agency directly using the official number found on their website to inquire if the issue was legitimate.
Make it a general rule to never provide your personal or banking information to someone who reaches out unsolicited, even if they claim to be with a government organization.
Non-delivery scams
With the rise of online shopping and social media has come an influx of non-delivery scams.
These schemes are fairly straightforward: Scammers advertise fake products or services online, accept your payment, and then don’t deliver what was purchased (or send a poorly made knockoff instead).
They often use social media ads, pop-up websites, or third-party sellers on marketplace platforms to lure in victims with flashy images, fake reviews, and promises of steep discounts. Some even spoof popular brand names or imitate real websites to seem more legitimate.
In some cases, scammers may follow up with a fake shipping confirmation to delay suspicion, only for the product to never arrive. Attempts to contact the seller afterward are usually ignored or met with further deception.
They’re also, unfortunately, quite effective, with close to 7,000 incidents of non-delivery fraud reported to the FBI from seniors alone in 2023.
How to avoid non-delivery scams
Be wary of hot bargains. If a deal seems too good to be true, it likely is—especially if it’s heavily discounted luxury goods or in-demand tech.
Know how to tell if a website is legitimate. Before buying from somewhere new, make sure to check if the website is safe and secure. Look for spelling errors in the URL, check for HTTPS (not just HTTP), and see if the site lists clear contact information or return policies.
Search for reviews. Look up the seller or site name with terms like “scam” or “complaints.” Legitimate businesses tend to have a digital footprint—fake ones often vanish quickly.
Lottery and sweepstakes scams
Another rising threat? Lottery and sweepstakes scams, which are increasingly targeting older adults with promises of life-changing winnings.
In these schemes, you’ll get a phone call, email, or letter claiming you’ve won a major prize—like a sweepstakes, lottery, or international lottery drawing. But there’s a catch: Before you can claim your “winnings,” you’re told you need to pay taxes, processing fees, or customs charges upfront.
In reality, there is no prize. Only a scammer on the other end hoping to cash in.
These scams often come with official-looking documents or use the names of real contests to seem legitimate. Some scammers will even follow up repeatedly, claiming you’re getting closer to receiving your payout—if only you send one more fee.
How to avoid lottery and sweepstakes scams
You can’t win a contest you didn’t enter. Be highly skeptical of any message saying you’ve won something if you never entered a sweepstakes or lottery in the first place.
You should never pay to claim a prize. Legitimate contests do not ask winners to pay upfront for taxes, shipping, or processing fees.
Do your research. Search the name of the contest or organization online with the words “scam” or “complaint” to see if others have flagged it as fraudulent.
What to do if you’ve been scammed
If you suspect that you or an older loved one has fallen victim to a scam, take a deep breath. You’re not alone, and there are proactive steps you can take.
If you’re a member of Allstate Identity Protection, call us as soon as possible. Our specialists are on hand 24/7 to talk you through next steps. If your identity is compromised, they can start the restoration process immediately.
Though these scams are currently the most common and impactful among seniors, there are others that pose a threat. Remember to keep tabs on our alerts and visit our Elder Fraud Center or Content Hub to stay in the loop on the latest scams and identity threats, no matter your age.
