Financial scams targeting older Americans continue to grow, and recent data confirms it. IRS Criminal Investigation opened 97 new elder fraud investigations in fiscal year 2025, with 64 more already underway this year. Since 2021, the agency has pursued 255 such cases involving nearly $886 million in alleged losses, and more than 80% of that total is tied to cases opened within just the last two years.
Common Elder Fraud Schemes
The tactics used by scammers vary, but the underlying strategy is consistent: create urgency, isolate the victim, and demand fast payment before anyone has time to verify what's happening. Common schemes include:
- Government impersonation scams, in which criminals pose as IRS or other officials and threaten arrest unless payment is made immediately
- Emergency scams, where fraudsters claim a loved one is in danger and urgently needs financial help
- Lottery and sweepstakes fraud, where victims are told they've won a prize but must first pay taxes or fees
- Investment fraud, including Ponzi schemes and cryptocurrency scams promising unrealistic, low-risk returns
- Charity scams, involving fake nonprofits that solicit donations, often following major disasters
While the schemes themselves differ, they tend to share certain warning signs, including pressure to act immediately or keep the matter secret, requests for payment through gift cards, wire transfers, or cryptocurrency, unsolicited calls or messages, requests for sensitive personal information, and threats of arrest or legal action. Recognizing these patterns early is often the best defense.
Protecting Yourself and Your Family
A few simple habits can go a long way toward avoiding these schemes. If someone claiming to represent a government agency demands payment or personal information, hang up and contact that agency directly using verified information from its official site. Scammers rely on urgency to prevent careful thinking, so it's worth slowing down, verifying unexpected requests, and involving a trusted family member or advisor before making major financial decisions.
Families can play a meaningful role as well, by:
- Discussing common scams openly before a problem arises
- Establishing trusted contacts with financial institutions
- Watching for unusual withdrawals, sudden secrecy, or new online "friends"
- Considering power of attorney arrangements in cases of cognitive decline
If You or a Loved One Has Been Targeted
Falling victim to a scam is nothing to be embarrassed about. These schemes have become increasingly sophisticated, and even careful, financially savvy individuals can be deceived. If you suspect fraud has occurred, consider taking the following steps:
- Cease all contact with the scammer immediately
- Notify your financial institution if any money or account information was shared
- Report the incident to local law enforcement or your nearest IRS-CI field office
- Preserve all related records, including emails, screenshots, and phone numbers
Planning Ahead
Elder financial fraud can create emotional, financial, and legal challenges for victims and their families alike, and prevention often starts with awareness and open communication. Whether you're looking to put safeguards in place for yourself, a parent, or another loved one, having a trusted advisor in your corner can make all the difference.
If you have questions about protecting your finances or a family member's assets from fraud, contact your ShindelRock team for assistance.
Written by: ShindelRock
