Elder Fraud: Scams Targeting Seniors and How to Report Them

Elder fraud is any scam or financial theft aimed at an older adult. Federal law defines an "elder" as someone 60 or older, and defines "exploitation" broadly enough to cover a stranger on the phone and a caregiver or agent with access to the accounts (42 U.S.C. § 1397j). The losses are large and rising: people 60 and older reported $7.748 billion in losses to the FBI's Internet Crime Complaint Center (IC3) in 2025, up 59% from 2024.

If it is happening now or just happened: stop sending money, call the fraud line of the bank, card issuer, payment app or wire company that moved it (using a number you look up yourself), and then call the Department of Justice's National Elder Fraud Hotline at 833-FRAUD-11 (833-372-8311). If someone is in immediate danger, call 911.

Information last verified on October 2, 2026. This article has not been reviewed by a licensed lawyer.

Jurisdiction scope: This guide covers US federal law and federal agency guidance on elder fraud and financial exploitation: the Elder Justice Act definitions (42 U.S.C. § 1397j), the Senior Safe Act (12 U.S.C. § 3423), FINRA Rules 2165 and 4512 for brokerage accounts, the 2024 Interagency Statement on Elder Financial Exploitation, and FBI, FTC, DOJ, CFPB, FinCEN and Administration for Community Living resources. State law controls Adult Protective Services, bank transaction holds, powers of attorney and whether financial exploitation is a crime, and it differs from state to state; this page does not cover individual states. Refund rights by payment method are covered in our separate guide to getting money back after a scam.

What counts as elder fraud

There is no single crime called "elder fraud." The phrase covers two different problems that call for different responses, and federal agencies split them clearly.

The Financial Crimes Enforcement Network (FinCEN), the Treasury bureau that collects suspicious-activity reports from banks, draws the line this way in its June 2022 advisory (FIN-2022-A002):

"Elder Theft: Schemes involving the theft of an older adult's assets, funds, or income by a trusted person. Elder Scams: Scams involving the transfer of money to a stranger or imposter for a promised benefit or good that the older adult did not receive."

That distinction matters to a family. A scam by a stranger is usually reported to the payment company, the FBI or FTC, and the hotline. Theft by a relative, caregiver or agent under a power of attorney is usually a matter for Adult Protective Services and the police as well.

The federal definition of exploitation

The Elder Justice Act's definitions section supplies the federal vocabulary. An elder is "an individual age 60 or older" (42 U.S.C. § 1397j). Exploitation is defined in § 1397j(8):

"The term “exploitation” means the fraudulent or otherwise illegal, unauthorized, or improper act or process of an individual, including a caregiver or fiduciary, that uses the resources of an elder for monetary or personal benefit, profit, or gain..."

Note the words "including a caregiver or fiduciary." The federal definition expressly reaches people the older adult trusted, not only strangers. The same section describes adult protective services as including "receiving reports of adult abuse, neglect, or exploitation."

These are definitions, not a criminal offense. Whether financial exploitation is a crime, and what it is called, depends on state law (see the state law section below).

The age line depends on which rule you are reading

How much older adults lose to fraud

Two federal datasets track elder fraud, and they measure different things. They should be read separately and never added together.

FBI IC3, 2025. The FBI's 2025 Internet Crime Report counts complaints from people 60 and older about internet and cyber-enabled crime:

• 201,266 complaints, up 37% from 2024
• $7.748 billion in reported losses, up 59% from 2024
• An average loss of $38,500
• 12,444 complainants who each lost more than $100,000

By type of crime, the largest reported 60+ losses in 2025 were investment fraud ($3,519,296,354), tech and customer support scams ($1,040,730,043) and confidence or romance scams ($584,032,745). The report also tags complaints by descriptor across crime types: 60+ complaints involving cryptocurrency reported $4,347,081,557 in losses, and complaints tagged as AI-related reported $352,496,231. Those descriptor figures overlap the crime-type figures, so they are not additional losses.

FTC Consumer Sentinel, 2024. The FTC's report to Congress, Protecting Older Consumers 2024-2025, issued in December 2025, uses 2024 reports to the FTC. The FTC says that "Total fraud losses reported by older adults (ages 60 and over) increased about fourfold from 2020 to 2024, skyrocketing from about $600 million in 2020 to $2.4 billion in 2024."

Other findings from the same FTC report:

• Big losses drive the total. Reports of losses over $100,000 "were relatively rare at 5% of older adults' loss reports in 2024," but "they accounted for 68% of their aggregate reported losses." The number of $100,000-plus reports rose from 1,136 in 2020 to 5,125 in 2024.
• Median losses rise with age. The median reported loss for people 60 and older was $900 in 2024, up from $650 in 2023. For people 80 and older it was $1,650.
• Older adults do not lose money more often. The FTC says older adults reported losing money to fraud at a lower rate than younger adults. Controlling for population size, they were nearly twice as likely as younger adults to report a six-figure loss.
• Investment scams lead. Investment scams were the top loss category for older adults in 2024, and older adults reported $159 million in losses to tech support scams.

The FTC's underreporting estimate. Most fraud is never reported, so the FTC also models what the true figure might be. In the report's words, "the estimated 2024 overall loss, adjusted to account for underreporting, was $195.9 billion, with an estimated $81.5 billion lost by older adults." That figure is the high end of the FTC's range: depending on the method, the FTC estimates older adults' 2024 losses at between $10.1 billion and $81.5 billion. Both ends are estimates built on assumptions about how often people report, not a count of reports.

How older adults are told to pay

The FTC found that "Gift cards were once again the most frequent payment method reported by older adults on several common fraud types, including government impersonation scams, tech support scams, romance scams, and family and friend impersonation scams." Bank transfers and cryptocurrency were "the most costly payment mechanisms in terms of aggregate reported losses."

The practical lesson: a request to pay by gift card, wire, cryptocurrency or cash is a reason to stop and check with someone before paying.

The scams that hit older adults hardest

The grandparent scam gets the headlines, but the IC3 and FTC figures show that most of the money goes elsewhere. These are the patterns to know.

Investment and crypto scams

Investment fraud was the largest 60+ loss category in the IC3's 2025 data and the top loss category for older adults in the FTC's 2024 data. The Social Security Administration warns that scammers "Build a relationship (friendship or love) over time before eventually offering to help trade or invest money" (SSA). See our guide to crypto and investment scams.

Tech support scams

Tech and customer support scams were the second-largest 60+ loss category reported to the IC3 in 2025. See tech support and fake invoice scams.

Romance scams

Confidence and romance scams were the third-largest 60+ loss category in the IC3's 2025 data, and the FTC found gift cards were the most frequently reported payment method for older adults in romance scams. The same relationship-first approach often leads into the investment scams described above.

Government impersonation scams

Scammers pose as Social Security or another government agency, and the SSA says they even spoof the phone numbers of local police departments. Its list of tactics includes threats to "suspend your Social Security number or account," telling people to "move your money to a protected bank account to keep it safe," and arranging to "Meet you in-person to pick up cash, gold bars, or other assets". See government impersonation scams.

Phishing, texts and fake calls

Many losses start with a message that looks like it comes from a bank or a company the person uses. See phishing, smishing and vishing.

Grandparent and family-emergency scams, including AI voice clones

In a family-emergency scam, a caller claims to be a grandchild or other relative in trouble, often in jail, in an accident, or stranded abroad, and needs money right away. The FTC describes the script: "The scammer will say it's urgent and that you're the only one who can help," and "might tell you it's important to keep it secret" (FTC).

Three features make these calls convincing:

• A second voice with authority. The FTC warns that scammers "might pretend to be an 'authority figure,' like a fake lawyer, police officer, or doctor working with your family member."
• A cloned voice. "Some scammers use artificial intelligence (AI) to clone your loved one's voice. With a short audio clip... a scammer could call you and sound just like your family member." Our guide to AI voice scam calls covers how voice cloning works and what the law says about it.
• A courier at the door. In a variant the FTC flagged in 2021, "the scammer tells you someone will come to your door to pick up cash. Once you hand it over, your money is gone" (FTC). The FBI's San Diego field office warned in 2023 that scammers use "social engineering and artificial intelligence to convince the older adult victim they are talking to a family member," after which "A fake attorney is then introduced and will coordinate ride share services to pick up cash in-person" (FBI San Diego).

The payment request gives it away. The FTC says these callers "always say you have to pay right away by wiring money through a company like Western Union or MoneyGram, sending cryptocurrency, using a payment app, or by putting money on a gift card and then giving them the numbers on the back."

How to check a family-emergency call

The FTC's steps work whether the voice sounds right or not:

1. Slow down. "Resist the pressure to react and send money immediately." The FTC says to hang up, or tell the caller you will call right back.
2. Ask something only the real person would know. The FTC suggests "asking a question only the real person would know the answer to."
3. Call your family member yourself. "Use a phone number you know is right to call or message the family member." Its 2023 voice-cloning alert puts it bluntly: "Don't trust the voice" (FTC).
4. Tell someone anyway. "Call someone else in your family or circle of friends, even if the caller said to keep it a secret."

A request to keep a family emergency secret from the rest of the family is itself a warning sign.

Warning signs a family can notice

No single sign proves fraud, and most older adults manage their own money well. These are signs worth a calm conversation. FinCEN's 2022 advisory lists red flags that banks watch for, and several are things a family can see too:

• Panic about an emergency payment. An older person "is agitated or frenzied about the need to send money immediately in the face of a purported emergency of a loved one," and the money is going to an unrelated business or person.
• Taking instructions on the phone. The person "appears to be taking direction from someone with whom they are speaking on a cell phone," and seems "nervous, leery, or unwilling to hang up."
• Someone who will not let them speak. A caregiver or other individual "shows excessive interest in the older customer's finances or assets, does not allow the older customer to speak for himself or herself."
• A new helper with no paperwork. "A new caretaker, relative, or friend suddenly begins conducting financial transactions on behalf of an older customer without proper documentation."

The CFPB's guide for friends and family adds signs that point to someone close, not a stranger (CFPB guide):

• Someone pressures the older person to make a financial decision, or to change a will, deed or trust, or to sign a document "now."
• A certain person often interrupts or speaks for them.
• The person is not able to make their own decisions but signs a new power of attorney, will or other legal document.
• Credit or debit card charges appear for things they did not buy.
• Someone claims to be their financial caregiver but has no written proof, such as a power of attorney document.

Other practical signs include new secrecy about money, packages or couriers arriving, unusual cash withdrawals, gift card purchases, and a sudden new online friend or investment opportunity. Treat these as reasons to ask, not as conclusions.

How to help without taking over

An older adult who has been scammed is a crime victim, not a person who has lost the right to run their own life. The FBI's San Diego office observed that "someone has had their entire life savings stolen and they're embarrassed to speak out about it." Shame keeps many people quiet, and a family's reaction decides whether they speak up next time.

The CFPB's guide for friends and family offers this approach:

• Talk privately. "Talk with your loved one separately from the person you suspect may be financially abusing them."
• Expect reluctance. "Your loved one may not want to admit what is going on due to shame, fear of retaliation, or sympathy for the perpetrator."
• Ask, do not accuse. "it can be helpful to ask open-ended questions."
• Keep notes. "Write down all warning signs you observe. Try to include the dates, times, locations, and details of any incidents."
• Help clear out the bait. Consider helping them "review and shred scam mail or delete scam emails and text messages."
• Do not assume decline. The guide reminds readers "it is important not to assume all older adults experience these challenges."

Beyond conversation, a few tools let an older adult add a safety net while keeping full control of their accounts.

Name a trusted contact person

For brokerage accounts, FINRA Rule 4512 requires member firms to make reasonable efforts to obtain the "name of and contact information for a trusted contact person age 18 or older who may be contacted about the customer's account" (FINRA Rule 4512). Naming one is optional for the customer: the rule says the absence of a trusted contact "shall not prevent a member from opening or maintaining an account."

A trusted contact is not a co-owner or an agent. The federal banking and financial regulators' 2024 Interagency Statement on Elder Financial Exploitation explains that "Unless separately authorized by the account holder, a third-party trusted contact typically would not have authority to view account information or execute transactions" (Interagency Statement). It is a person the firm can call if something looks wrong, which makes it a light-touch way for an adult child to help.

Temporary holds on suspicious payouts

Brokerage accounts. FINRA Rule 2165 lets a member firm place a temporary hold on a disbursement of funds or securities, or on a securities transaction, from the account of a "Specified Adult" when it reasonably believes financial exploitation has occurred, is occurring or has been attempted (FINRA Rule 2165). A Specified Adult is:

"(A) a natural person age 65 and older; or (B) a natural person age 18 and older who the member reasonably believes has a mental or physical impairment that renders the individual unable to protect his or her own interests."

The hold "will expire not later than 15 business days" after it starts. The firm may extend it "for no longer than 10 business days," and in some cases, including where the matter has been reported to a state regulator or agency, for "no longer than 30 business days" more, for a possible total of 55 business days. The rule also sets a two-business-day deadline for notice of the hold.

The rule is permissive. Its supplementary material says it "does not require members to place temporary holds." It also applies only to FINRA member broker-dealers, not to banks.

Bank accounts. For banks and credit unions, holds come from state law, not a federal rule. The Interagency Statement notes that "Some state laws permit supervised institutions to temporarily hold a transaction or delay a disbursement of funds when they suspect any type of financial exploitation," and that "These statutes generally provide timelines for transaction holds, and some provide immunity." The statement is guidance only: it "does not impose new regulatory requirements or establish new supervisory expectations."

The Senior Safe Act: protection for employees who speak up

Bank and brokerage staff are often the first to see a scam in progress. The Senior Safe Act (12 U.S.C. § 3423) removes one reason they might stay quiet, the fear of being sued:

"An individual who has received the training described in subsection (b) shall not be liable, including in any civil or administrative proceeding, for disclosing the suspected exploitation of a senior citizen to a covered agency if the individual..."

The protection has conditions. The employee must have received the training the Act describes, must work in one of the roles the Act lists (such as supervisory, compliance or legal staff), and must make the disclosure "in good faith" and "with reasonable care." The disclosure must go to a covered agency, which includes law enforcement, state securities regulators, the SEC and "a State or local agency responsible for administering adult protective service laws." The institution itself shares the immunity only if every employee in the listed roles received the training before the disclosure.

Two limits matter. The Act protects reports about a "senior citizen," defined as someone "not younger than 65 years of age," not 60. And it grants immunity; it does not require a bank or broker to report suspected exploitation or to stop a payment. Some state laws do require certain institutions to report: the Interagency Statement says "Some state laws require certain supervised institutions to report suspected elder financial exploitation to APS, local law enforcement, and/or regulatory authorities." It also says the privacy provisions of the Gramm-Leach-Bliley Act "generally do not prevent financial institutions from reporting elder financial exploitation to appropriate local, state, or federal agencies."

Powers of attorney and when the helper is the problem

A power of attorney lets a chosen agent handle money for someone else, and the agent takes on legal duties. The CFPB lists the people who "have a legal duty to manage someone else's money," including "agents under a power of attorney, trustees, guardians and conservators, Social Security representative payees and Veterans Affairs (VA) fiduciaries." The CFPB has also published plain-language guides for people managing someone else's money, including agents under a power of attorney (CFPB).

The same CFPB guide is frank that "Sometimes, the people taking advantage of older adults can be trusted people who are managing money for their parent, relative or friend." That is the "elder theft" category in FinCEN's split, and the federal definition of exploitation covers it by naming caregivers and fiduciaries.

Signs that a power of attorney is being misused overlap with the warning signs above: a new power of attorney signed by someone who can no longer make their own decisions, a person acting as "financial caregiver" without written proof, and transactions by a new helper without proper documentation. Powers of attorney, the duties of agents and the remedies for misuse are governed by state law, so a family that suspects misuse should report to Adult Protective Services and the police and consider talking to a lawyer licensed in the state. Our guide on when a lawyer helps after a scam explains when a lawyer can help.

How to report elder fraud, step by step

Reporting and getting money back run on separate tracks. Work through them in this order.

1. Call the payment company first. If money moved, contact the bank, card issuer, payment app, wire company, gift card issuer or crypto exchange right away and ask it to stop or reverse the payment. Your legal rights depend on how the money was paid; see how to get money back after a scam, and if the bank says no, what to do when a bank refuses a scam refund.
2. Call 911 if anyone is in danger. The Administration for Community Living (ACL) says: "If someone is in immediate danger, call 9-1-1 or the local police."
3. Call the National Elder Fraud Hotline. The DOJ's Office for Victims of Crime runs it at 833-FRAUD-11 (833-372-8311), Monday through Friday from 10:00 a.m. to 6:00 p.m. eastern time, with services for speakers of English, Spanish and other languages. "Callers will be assigned a case manager," who "will assist you with reporting the crime and connect you with other resources as needed" (OVC).
4. Report to Adult Protective Services. The ACL tells people to "contact the Adult Protective Services (APS) agency in the state where the older adult resides" (ACL). Find the number through the Eldercare Locator or by calling 800-677-1116, Monday through Friday, 9 a.m. to 8 p.m. Eastern Time.
5. Report to local police. The CFPB guide says "If you suspect financial abuse, contact APS and law enforcement first to file a report."
6. File with the FBI and FTC. For online and phone scams, file with the FBI's IC3. Its 2025 report says: "Regardless of the amount lost, file a complaint at www.ic3.gov." The FTC tells people to report family-emergency scams "to the FTC at ReportFraud.ftc.gov and to your state attorney general." The FTC's Spanish-language reporting site is ReporteFraude.ftc.gov.

For the full list of federal reporting channels and what each agency does with a report, see where to report a scam.

Why speed matters

Fast reports can sometimes stop money before it disappears. According to the 2025 IC3 report, the FBI's fund-freezing process was started on 3,900 incidents in 2025. Of those, 642 involved victims 60 and older, with $65,367,648 in reported losses, and the process helped freeze $32,865,655 of those funds. Those are incidents the FBI acted on, not the odds for every victim. Money sent as cash, gift cards or cryptocurrency is much harder to recover.

Watch for a second scam

After a loss, be wary of anyone who contacts you offering to recover the money, especially for a fee. Our where to report a scam guide explains how to spot these recovery scams.

State law varies

Much of elder fraud law is state law. The Department of Justice states that "Financial exploitation is a criminal offense in many, but not all, states. States vary in how they define financial exploitation and what penalties are associated with the offense" (DOJ Elder Justice Initiative). The DOJ page hosts state-by-state charts of APS reporting laws and civil financial-exploitation statutes.

States also differ on who APS serves. The CFPB explains that "In some states, APS will investigate reports of abuse of adults ages 18 and older who are considered 'vulnerable'... In other states, APS investigates when the adult is over a certain age--such as 60 or 65--whether or not they have a disability." And the ACL notes that "In states whose statutes make elder abuse a crime, there may be a requirement to report suspected abuse to a law enforcement agency."

Bank hold laws, mandatory reporting by financial institutions, and the rules for powers of attorney all come from the state where the older adult lives. Our state-by-state guides to scam and fraud laws are in preparation.

Related guides

• Scams and fraud: your rights and where to get help
• How to get money back after a scam
• Where to report a scam
• Government impersonation scams
• Crypto and investment scams
• Tech support and fake invoice scams
• AI voice scam calls
• How to report identity theft
• Grandparent Scams and Family Emergency Scams
• Medicare and Health Insurance Scams
• Home Repair and Contractor Scams

Last updated: October 2, 2026.

Disclaimer: This article provides general legal information about US federal law and federal agency guidance on elder fraud and financial exploitation as of October 2, 2026. It is not legal advice. Hotline hours, agency procedures and state laws change; confirm them with the agency named. For a specific situation, contact the payment company, Adult Protective Services, the National Elder Fraud Hotline, or a lawyer licensed in your state.

Frequently Asked Questions

What is elder fraud?

Elder fraud is a scam or financial theft aimed at an older adult. Federal law defines an elder as someone 60 or older and defines exploitation to include misuse of an elder's resources by anyone, including a caregiver or fiduciary (42 U.S.C. § 1397j).

How much money do seniors lose to scams?

People 60 and older reported $7.748 billion in losses to the FBI's IC3 in 2025. The FTC counted $2.4 billion in reported losses by older adults in 2024 and estimates the true 2024 figure, adjusted for underreporting, at between $10.1 billion and $81.5 billion, depending on the method used. These are separate datasets and should not be added together.

What is the grandparent scam?

A caller pretends to be a grandchild or other relative in an emergency, sometimes with an AI-cloned voice or a fake lawyer or police officer, and asks for money right away, often in secret. The FTC says to hang up and call your family member on a number you know is right.

My elderly parent was scammed. What should I do first?

Help them call the bank or payment company to stop or reverse the payment, then call the National Elder Fraud Hotline at 833-372-8311 (Monday to Friday, 10 a.m. to 6 p.m. ET). Report to Adult Protective Services, local police and the FBI's IC3 as well.

How do I find Adult Protective Services?

Use the Eldercare Locator at eldercare.acl.gov or call 800-677-1116, Monday through Friday, 9 a.m. to 8 p.m. ET. Report to the APS agency in the state where the older adult lives.

Can a bank stop an elderly person from sending money to a scammer?

Some state laws let banks temporarily hold a suspicious transaction. For brokerage accounts, FINRA Rule 2165 lets firms hold a payout from someone 65 or older for up to 15 business days, with extensions, but does not require them to.

What is a trusted contact person?

A person, 18 or older, whom a brokerage firm may contact about your account if it has concerns (FINRA Rule 4512). A trusted contact typically cannot see the account or make transactions unless you separately authorize it.

Does the Senior Safe Act require banks to report elder abuse?

No. The Senior Safe Act (12 U.S.C. § 3423) protects trained employees from liability when they report suspected exploitation of someone 65 or older in good faith. Some state laws separately require certain institutions to report.

Is financial elder abuse a crime?

In many states, yes, but not all. The Department of Justice says states vary in how they define financial exploitation and in the penalties that apply.