False alarm, real scam: how scammers are stealing older adults’ life savings

Reports to the FTC show a growing wave of scams aimed squarely at retirees’ life savings. These scammers pretend to be from known and trusted government agencies and businesses. And, in an ironic twist, recent scams use fake security alerts and other false alarms to prey on older adults’ vigilance about protecting their money and identity to steal from them.^[1] Some people 60+ have reported emptying their bank accounts and even clearing out their 401ks.

While younger people report losing money to these imposters too, reports of losses in the tens and hundreds of thousands of dollars are much more likely to be filed by older adults,^[2] and those numbers have soared. From 2020 to 2024, the number of reports from older adults who lost $10,000 or more to these scams increased more than fourfold.^[3] When older adults reported losing more than $100,000, the trend was even more striking: during the same period, the number of reports increased nearly sevenfold, and the combined reported losses went up eightfold.

These high-loss scams typically start with a (fake) story that gets your attention with one or a combination of these lies:

• Lie #1: Someone is using your accounts.   This lie might start with someone pretending to be your bank, flagging so-called suspicious activity, or pretending to be Amazon with a message about an unauthorized purchase;
• Lie #2: Your information is being used to commit crimes.   This lie may come from a supposed government officer or agent, warning that your Social Security number is linked to a crime like drug smuggling, money laundering, or even child pornography; or
• Lie #3: There’s a security problem with your computer.   This lie often starts with a fake on-screen security alert that looks like it’s from Microsoft or Apple with a number to call. If you call, they say your online accounts have been hacked.

These scammers say the only way out of the (fake) crisis is to follow their instructions – which will include sending money to the scammers. They may say this will keep your money safe, secure your identity, clear your name, or help catch the criminals. There may be layers of complexity to the story, but it’s all a lie aimed at draining your accounts. Reports show that when people think they are fixing a problem rather than sending a stranger money, their losses are often limited only by their available funds.

Lots of scams are now carried out online, but these scams still depend on a phone call. Even when they don’t start with a call, reports show the goal is to get you on the phone.^[4] A call is still the best way to dial up the fear and the urgency so it’s harder for you to think clearly and check things out. Keeping you on the phone is also designed to keep you from talking to anyone who could help – a friend or family member in a calmer state of mind who might see through the lies.

In another layer of irony, these scammers often pretend to be the FTC, the nation’s consumer protection agency, sometimes impersonating real staff. Reports show these scammers have told people to transfer money out of their accounts, deposit cash into Bitcoin ATMs, and even hand off stacks of cash or gold to couriers^[5] – all things the real FTC will never do. Scammers also pretend to be other businesses and agencies, including banks, Microsoft, and the Social Security Administration. Often, they tag team you: maybe starting with a pop-up security alert impersonating Microsoft and then transferring you to someone pretending to be from the FTC for “help” with a fake identity theft problem. 

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The security of your accounts, along with the risk of identity theft, are real concerns that real companies might call you about. So how can you stay vigilant and steer clear of these scams?

• Don’t move money to “protect it.”  Never transfer or send money to anyone, no matter who they say they are, in response to an unexpected call or message. Even if they say it’s to “protect it.”
• Hang up and verify.  Hang up the phone and call the company or agency directly using a phone number or website you know is real. Don’t trust what an unexpected caller says, and never use the phone number in a computer security pop-up or an unexpected text or email.
• Block unwanted calls.  Learn about your call blocking options to stop many of these scammers before they reach you.

Learn more about imposter scams. To spot and avoid scams – and learn how to recover money if you paid a scammer – visit ftc.gov/scams. Report scams to the FTC at ReportFraud.ftc.gov.