Older Adults Reported $3 Billion in Fraud Losses: A Family Protection Plan

Your mother calls to say someone from her bank told her to move her savings to a “safe account.” You know that is a classic scam warning. But how do you protect her money without treating her like a child?

That question matters to millions of families. In its October 2026 report to Congress, the Federal Trade Commission said adults 60 and older reported about $3 billion in fraud losses during 2025—roughly five times the $600 million reported in 2020. The increase reflects, in large part, some extraordinarily costly individual losses. It does not mean older adults reported losing money more often than younger consumers; the FTC found the opposite overall.

The point of knowing those numbers is not to frighten your parents into surrendering control. It is to build practical guardrails before someone uses fear, affection or a promised investment return to get close to their savings.

Quick Answer

The best family protection plan starts with the older adult’s consent. Agree on a no-rush rule for unexpected requests to move money, enable account alerts, review credit-freeze options, consider a brokerage trusted contact, and create a one-page emergency contact plan. If suspected fraud occurs, call the financial institution using an independently verified number immediately, preserve records and report what happened. Support independent decisions; do not assume a trusted contact has authority to withdraw or trade.

Knowledge Snapshot

• Older adults reported about $3 billion in fraud losses in 2025, up fivefold from 2020, according to the FTC.
• Investment-scam losses reported by older adults exceeded $1 billion in 2025, rising 42% over the prior year.
• Older adults were generally less likely than younger adults to report losing money to fraud, but they reported larger losses when victimized.
• A trusted contact can help a brokerage respond to suspected exploitation; the designation does not give that person trading or withdrawal authority.
• A household scam plan works best when it combines permission, alerts, verified phone numbers and an agreed response to urgent money requests.

What the FTC’s $3 billion figure actually tells us

The FTC’s older-consumer findings draw from reports submitted to its Consumer Sentinel Network. They describe reported losses, not a complete census of every scam. Many victims never report what happened, and the reported dollar totals do not measure how often every age group encounters fraud.

The FTC found that the rise in total losses was driven heavily by large individual cases. Older adults’ reported investment-scam losses climbed 42% in 2025 to more than $1 billion. And among adults age 80 and older who reported a fraud loss, the median loss was $2,000. Those distinctions matter: a practical family plan must address both the everyday suspicious call and the rare, devastating transfer that wipes out years of savings.

Readers can examine the figures in the FTC’s annual older-consumer findings and compare the pattern with its consumer guidance. Statistics should guide prevention—not become a reason to stereotype older people as gullible or incapable.

Start with permission, not surveillance

Think about how you would feel if your adult children announced that they were going to monitor your bank statements. Even if they meant well, you might resist. Start with a question instead: “If someone pressured either of us to move money urgently, what would be a useful way for us to double-check before acting?”

You may discover that your parent wants help setting up alerts but does not want you to read every transaction. That can still be meaningful progress. Another family may prefer a monthly account review together. A third may use an independent adviser or trusted friend rather than a relative.

For example, imagine that Denise, 74, manages her own accounts and resents being lectured about scams. Her daughter proposes a simple agreement: each will call the other before sending more than $1,000 to an unfamiliar recipient. They choose a verification phrase and agree not to act under pressure. The numbers and routine are illustrative. The safeguard works because Denise helped design it.

Turn on alerts that catch unusual activity early

With the account owner’s permission, set alerts for large withdrawals, new payees, international transfers or other available account events. Alerts are useful only if someone checks them and knows what action to take.

A low alert threshold can create constant noise. A threshold so high that it misses concerning activity can provide false reassurance. Let the account owner choose an amount that reflects normal spending. Test a sample alert if the institution permits it, and write down the number to call if a message appears.

Beware of fake “fraud alert” texts containing urgent links. If a message claims a transfer occurred, open the bank’s official app or call the number printed on the account statement. Do not use the phone number embedded in the suspicious message.

Consider a brokerage trusted contact—but understand the limits

A trusted contact may sound like giving someone power over an investment account. It is not. According to the SEC’s updated trusted-contact investor bulletin, a brokerage can use this designated person’s information in certain circumstances, including concerns about exploitation or difficulty contacting the customer. Naming a contact does not authorize that person to trade, withdraw assets, or make decisions on behalf of the account holder.

That is exactly why the designation can be valuable. It may provide an additional verification channel while leaving financial control with the investor. The investor can usually change the contact information later. A power of attorney, guardianship or other legal authority is a separate decision with much more significant consequences and deserves individualized professional advice when relevant.

A helpful question is: “If your brokerage couldn’t reach you about suspicious activity, who would you want them to contact?” The answer might be a daughter, friend, attorney or another trusted person—not necessarily the person who raised the question.

Decide whether a free credit freeze makes sense

A credit freeze can prevent many lenders from accessing a credit report for a new credit application, making it harder for an identity thief to open certain accounts. The FTC explains that freezes are free to place and lift and generally must be arranged separately with Equifax, Experian and TransUnion.

A freeze does not stop charges on an existing account, block bank transfers, or protect a phone number from being transferred to another carrier. And the account owner may need to lift it temporarily to apply for credit. Talk through that practical inconvenience before making the decision together.

For additional peace of mind, review reports through AnnualCreditReport.com and watch for unfamiliar accounts or inquiries. A report review is not proof that all financial activity is safe, but it can reveal certain problems early.

Make a one-page emergency plan you can actually use

A useful family plan can fit on a sheet of paper or a secure shared note. Include the bank and brokerage fraud-team numbers taken from official sources, the account owner’s preferred trusted contact, the type of transaction that triggers a pause, instructions for securing compromised passwords and the reporting websites.

Build it around a five-step response: STOP the conversation; VERIFY the institution independently; CONTACT the bank or brokerage promptly if funds or credentials were exposed; PRESERVE messages, receipts and transaction details; REPORT the incident through the appropriate government channels. The point is not to memorize scam names. It’s to know what to do when you feel rushed.

In a second hypothetical scenario, a retired couple receives a text promising to recover $8,000 lost to an earlier investment scam in exchange for a $250 processing charge. Their written rule is to pay no recovery fees on an unexpected message and to call the bank before moving money. They do not have to decide whether the message looks convincing. The rule makes the next action clear.

What to do in the first 24 hours after suspected fraud

First identify the exposure. Was it a card number, bank password, brokerage login, wire, payment-app transfer, check, Social Security number or something else? The order of recovery steps depends on the exposure.

If money was sent, contact the financial institution through its independently verified fraud channel immediately. Describe the transaction accurately and ask whether it can be stopped, recalled or disputed. Fast action can matter, but recovery is not guaranteed. If credentials were shared, secure the account and revoke access. If identity data was exposed, begin a tailored recovery plan at IdentityTheft.gov and consider additional credit protections.

Keep a short incident log: what happened, when it happened, amounts, recipient details, case numbers and people contacted. Submit a fraud report through ReportFraud.ftc.gov. For investment-related schemes, the SEC also explains how to identify and report suspicious investment activity. Don’t pay a second person who promises guaranteed recovery for an upfront fee.

Three family boundaries that protect dignity and money

First, never equate age with incompetence. Some older adults are highly experienced investors; some younger adults fall for scams. Ask what help is wanted rather than taking over.

Second, decide on assistance before a crisis. Once someone is frightened, emotionally attached to a scammer, or told a secret deadline is approaching, a calm agreement made months earlier can be more useful than a lecture.

Third, preserve a path to professional help. If there are serious concerns about financial exploitation, diminished capacity, legal authority or repeated large transfers, consult appropriate independent professionals or local protective services as circumstances warrant. Do not assume a family member automatically has permission to access accounts.

The strongest protection is a plan the account owner accepts

A good scam-prevention plan helps a parent or older relative keep making their own financial decisions with better information and a reliable second opinion when the stakes are high. Ask permission, choose alerts that make sense, designate trusted contacts appropriately and agree on a straightforward emergency response. Protection that preserves independence is more likely to be used when it matters.

Frequently Asked Questions

Are older adults more likely than younger adults to lose money to fraud?

Not overall in FTC reports. Older adults generally reported losing money at lower rates than younger consumers, but their reported losses were often larger when they did lose money.

How much did older adults report losing to fraud in 2025?

Adults age 60 and older reported about $3 billion in fraud losses in 2025, according to the FTC’s October 2026 annual report to Congress.

Why are investment scams such a concern for older adults?

The FTC reported more than $1 billion in investment-scam losses among older adults in 2025, a 42% increase from the previous year. Large individual losses were a major part of the overall increase.

Can a trusted contact withdraw money from a brokerage account?

No. Naming someone as a trusted contact does not itself authorize withdrawals, trades, or account decisions. It is different from granting power of attorney.

Does a credit freeze hurt a credit score?

No. The FTC says placing or lifting a credit freeze does not affect your credit score. Freezes may need to be lifted temporarily for legitimate new-credit applications.

Will a credit freeze stop all identity theft?

No. It helps prevent some fraudulent new-credit accounts, but does not secure existing account logins or stop all types of financial fraud.

Should adult children have access to their parents’ bank accounts?

Not automatically. The account owner should choose what access or help is appropriate. Start with permission, alerts, trusted contacts and a discussion of any legal authorization that might be needed.

What should I do first if my parent sent money to a scammer?

Contact the bank, payment provider or brokerage through an official number immediately and ask about stopping or recovering the transaction. Preserve records, secure compromised accounts and report the fraud.

Can fraud losses always be recovered if reported quickly?

No. Recovery depends on the type of payment, timing and facts. Reporting promptly may improve options, but no government agency or recovery service can guarantee reimbursement.

Where can older adults report fraud or identity theft?

Use ReportFraud.ftc.gov for fraud reports and IdentityTheft.gov for identity-theft recovery steps. Investment-fraud concerns may also warrant reporting to relevant securities authorities.

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