How to Recognize and Prevent Financial Scams Targeting Your Aging Parent

This is one of those topics that’s easy to underestimate until it happens to someone you know, and the numbers make clear it’s happening far more, and for far more money, than most families realize. According to the Federal Trade Commission’s most recent report to Congress, fraud losses reported by older adults quadrupled in just four years, from about $600 million in 2020 to $2.4 billion in 2024. Adults over 80 reported median individual losses exceeding $1,600 (notably higher than younger age groups) and much of the recent increase comes from high-value losses over $100,000, often tied to investment scams, romance scams, or impersonation schemes. This isn’t a niche problem; it’s one of the fastest-growing financial risks older adults face, and being informed is genuinely one of the most protective things a family can do.

The scam types actually targeting older adults right now

The FTC identifies several categories responsible for the largest reported losses among older adults:

Investment scams currently generate the highest reported losses of any category. These often start with an unsolicited contact: frequently through social media, which the FTC notes is now the most common way these scams make first contact across all age groups: promising unusually high, guaranteed returns on cryptocurrency, forex trading, or other investment opportunities that don’t hold up to scrutiny.

Tech support scams cost older adults $159 million in reported losses in 2024 alone. These typically involve a pop-up warning, a phone call, or an email claiming a computer has a virus or has been hacked, directing the victim to call a number or install remote-access software: which then gives the scammer direct access to accounts and devices.

Romance scams involve a scammer building a long-distance emotional relationship, often over months, before eventually requesting money for a fabricated emergency, travel costs to finally meet in person, or an “investment opportunity” they claim to be sharing out of care for the relationship.

Prize, sweepstakes, and lottery scams tell the victim they’ve won something but need to pay a fee, tax, or shipping cost upfront to claim it: a request that’s always the sign of a scam, since legitimate prizes never require payment to receive.

Government impersonation scams involve someone posing as the IRS, Social Security Administration, or a law enforcement agency, typically claiming an urgent problem (unpaid taxes, a suspended Social Security number, a legal violation) that requires immediate payment, often through gift cards, wire transfers, or cryptocurrency: none of which any real government agency would ever request.

Warning signs that apply across almost every scam type

Regardless of the specific scheme, certain patterns show up again and again: pressure to act immediately, before there’s time to think it over or discuss it with family; requests for payment through gift cards, wire transfers, or cryptocurrency, since these are difficult or impossible to reverse once sent; contact that starts unexpectedly, whether by phone, text, email, or social media, from someone your parent doesn’t already know; and a request to keep the situation secret, particularly from family members: this specific pattern is one of the strongest red flags, since legitimate businesses and government agencies never ask anyone to keep a transaction confidential from their own family.

How to talk to your parent about this without it feeling like an accusation

This conversation goes better when it’s framed around the scam, not around your parent’s judgment or capability. Sharing news stories or the statistics above as a starting point (“I read that scams against older adults have gotten a lot more sophisticated lately: has anything like this come up for you?”) tends to open the door more naturally than a direct warning that can feel patronizing. Setting up a standing agreement in advance: “if anyone ever asks you to pay with gift cards or wire money urgently, will you call me first before doing anything?”: gives your parent a concrete, easy-to-remember rule rather than a vague sense of “be careful,” and removes the awkwardness of having to decide in the moment whether a specific situation is worth a call.

Practical steps that reduce risk

A few structural changes make a real difference beyond just conversation: registering your parent’s phone number on the National Do Not Call Registry, and helping set up call-blocking or spam-filtering features already built into most smartphones, reduces the volume of scam contact reaching them in the first place. Reviewing bank and credit card statements together periodically (framed as a helpful habit rather than surveillance) makes unusual activity easier to catch early. Setting up account alerts for large transactions, if your parent’s bank offers this, provides an early warning without anyone needing to actively monitor accounts constantly. And simply knowing the common warning signs above, and sharing them with your parent directly, is itself one of the most effective protections there is, since so many scams succeed specifically because the pressure and urgency built into them prevent the victim from stopping to think it through.

If something has already happened

If your parent has already sent money or shared financial information as part of a scam, acting quickly matters. Contact the bank or financial institution immediately to report the transaction and ask about reversal options, though success varies significantly depending on the payment method used. Report the scam to the FTC directly at ReportFraud.ftc.gov, which feeds into the Consumer Sentinel Network used by law enforcement to track and pursue scam operations. And just as importantly, approach the conversation with your parent without blame: scammers are professionals who specifically target intelligent, capable people using well-tested psychological pressure tactics, and shame or embarrassment on your parent’s part often prevents future reporting or open conversation, which makes them more vulnerable, not less.

Sources and further reading

• Annual Report to Congress on Protecting Older Adults (Federal Trade Commission)
• Beware of Scams Targeting Older Adults (National Institute on Aging)
• Pass It On: Scams Against Older Adults (Federal Trade Commission)
• How To Avoid a Scam (Federal Trade Commission)

Related Reading

• Advance Directives and Living Wills: The Conversation Most Families Put Off Too Long
• VA Aid & Attendance: The Veteran Benefit Many Families Don’t Know to Apply For
• How to Get Power of Attorney for an Aging Parent
• Guardianship vs. Power of Attorney: What’s the Actual Difference, and Which Does Your Family Need?