Anyone can fall victim to a scam, but older Americans can be an especially attractive target for criminals seeking access to accumulated savings. In 2025, people aged 60 and older filed more than 201,000 complaints with the FBI’s Internet Crime Complaint Center (IC3) and reported $7.75 billion in losses, a 59% increase from 2024. The average reported loss was $38,500, and more than 12,000 complainants lost over $100,000.
Technology gives criminals sophisticated ways to appear legitimate. Artificial intelligence (AI) can create convincing messages, images, and voices, while spoofed phone numbers, fake websites, and cryptocurrency make fraud harder to detect. The first step toward safeguarding retirement savings is learning to recognize these tactics.
Why Scams Work
Fraud succeeds because scammers exploit normal human emotions and behaviors. They create fear, urgency, trust, affection, or excitement to push people into acting before they have time to question what is happening. Here are a few ways fraudsters use emotions to gain access to personal information or money.
- A caller may claim a bank account has been compromised.
- A new online acquaintance may introduce an investment opportunity.
- Someone impersonating a government official may threaten arrest or financial consequences.
The stories vary, but the objective is similar: create enough pressure to bypass careful decision-making.
Scammers may also try to isolate their targets. Requests to keep a transaction secret, avoid speaking with family members or financial professionals, or remain on the phone while moving money should raise immediate concern.
Scams to Watch in 2026
Investment schemes caused some of the largest financial losses among older Americans in 2025. These scams can be especially damaging because victims may commit substantial savings before realizing the opportunity is fraudulent. According to the FBI, people over 60 reported losing more than $3.5 billion to investment fraud.
These scams may start on social media, dating sites, networking platforms, or through text messages. After developing trust, the scammer introduces an investment and may direct the victim to a professional-looking but fraudulent website or app.
Cryptocurrency has also become a common tool in financial scams. Fraudsters may persuade victims to invest in fake crypto opportunities or transfer money through cryptocurrency as part of impersonation, romance, tech-support, and other schemes.
Impersonation scams are another major threat. Fraudsters pose as banks, technology companies, government agencies, law enforcement officers, or other trusted organizations. A common variation begins with a fake security alert claiming that an account or identity has been compromised. The perpetrator then instructs the victim to transfer money to “protect” it.
Romance and confidence scams use relationships to build trust. Criminals may spend weeks or months developing an emotional connection with their target. Once they gain that person’s trust, they may ask for money or introduce an investment. AI and deepfake technology can make fabricated identities increasingly convincing.
Know the Red Flags
Although scams continue to evolve, several warning signs remain:
- Requests for payment through cryptocurrency, wire transfer, gift card, cash, or a Bitcoin ATM.
- Attempts to obtain passwords, account credentials, Social Security numbers, or remote access to a computer or phone.
- Instructions to move money to a “safe” account.
- Promises of unusually high investment returns with little or no risk.
- Strange links, attachments, or requests to download software.
- Appeals for payment or financial help from someone known only online.
- Pressure to act immediately or keep the situation secret.
Any unexpected financial request deserves verification, especially when the person making it discourages questions or outside consultation.
How to Protect Yourself
A healthy dose of skepticism can prevent a convincing scam from becoming a costly mistake.
When an unexpected call, text, email, or investment opportunity involves money or personal information, individuals should verify the source independently by contacting the organization through its official website or a known phone number. Individuals should not rely on information from the sender.
Online security deserves equal attention. Strong, unique passwords and multifactor authentication make accounts harder to access, while updated security software can help protect computers and mobile devices. Individuals should never disclose passwords or verification codes, download software at a stranger’s request, or give an unfamiliar person remote access to a device.
Financial transactions warrant their own safeguards. Individuals can research unfamiliar companies and investments, verify charities before donating, and consult a trusted family member or financial professional before sending a substantial amount of money to a new recipient. Investors can also contact the financial institution holding their assets when a transaction seems unusual.
Finally, individuals should resist pressure to make hasty decisions. Legitimate organizations will allow time to verify a request, ask questions, and seek advice before money changes hands.
If Fraud Occurs
When fraud occurs, embarrassment should not prevent a victim from reporting the crime. Prompt reporting may help stop a fraudulent transaction or recover lost funds. It also provides law enforcement with information to identify and investigate larger schemes. Individuals who suspect a scam can contact the relevant financial institution, the Federal Trade Commission at ReportFraud.ftc.gov, or, for internet-related crimes, the FBI’s IC3.
Protecting a Retirement Built Over Decades
Fraud can threaten decades of savings, making scam awareness and protection part of a sound retirement plan. At SHP Financial, our advisors help clients preserve their assets while coordinating the five worlds of retirement planning: income, investment, tax, healthcare, and legacy. Our clients know to contact us before acting on an unfamiliar request, investment opportunity, or large financial transaction. If you’re looking for a financial partner to help protect and coordinate every aspect of your retirement plan, contact SHP Financial today for a complimentary review.
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