FTC: Social media drives 42% jump in investment scams, seniors lose record $3B
The FTC reports that adults 60 and over lost far more to investment fraud than any other scheme, with total losses jumping fivefold since 2020.
Key points
- Adults 60 and over reported losing $3 billion to fraud in 2025, five times the 2020 total.
- Investment scam losses jumped 42% in 2025 to over $1 billion, driven by social media outreach.
- The FTC highlights that government agencies never demand payment via gift cards or crypto.
Attackers gained access to $3 billion from US adults aged 60 and over in 2025, according to the Federal Trade Commission. This sum represents the total amount victims reported losing to fraud. To obtain these funds, scammers primarily exploited the trust of older adults through investment schemes. The FTC’s annual report to Congress indicates that investment fraud generated more losses than any other type of scam for this demographic in 2025.
In plain English
The financial damage to seniors has accelerated significantly. In 2020, reported losses stood at $600 million. By 2025, that figure reached $3 billion. This fivefold increase was largely driven by a higher volume of extraordinarily large individual losses. While younger people also face fraud, older adults continue to report much higher individual dollar losses. People aged 80 and over fared the worst, with a median reported loss of $2,000 per incident.
The background
Investment scams saw a sharp rise in 2025. Losses from this specific category jumped 42% to surpass $1 billion. Consumers reported that scammers often reached them via social media platforms. Beyond investments, older adults are more likely to lose money to tech support scams, prize or lottery fraud, romance scams, and government impersonation. Scammers also impersonate friends or family members to extract funds from vulnerable targets.
What changes now
The FTC is coordinating with law enforcement and connecting victims with resources like the Department of Justice’s National Elder Fraud Hotline. The agency is promoting its "Never Ever" campaign to educate seniors. This initiative highlights three red flags: legitimate officials will never ask you to transfer money to protect it, threaten to suspend benefits without immediate payment, or demand payment via money apps, cryptocurrency, wire transfers, or gift cards.
What made it possible
The vulnerability exploited here is psychological rather than technical. Attackers rely on the authority bias and urgency tactics that bypass critical thinking. For security teams, this underscores the need to monitor for social engineering attempts that mimic trusted entities. Teams usually focus on technical controls, but this incident highlights that user education is the primary defense against impersonation and romance scams. Check whether your organization’s awareness training covers the specific red flags identified by the FTC, such as demands for unconventional payment methods like gift cards or cryptocurrency.
What to do and how to stay safe: FTC
- Verify the identity of anyone requesting money transfers by contacting them through a known, trusted channel.
- Refuse any demand for payment via gift cards, cryptocurrency, or wire transfers, as legitimate agencies do not use these methods.
- Monitor bank accounts and credit reports regularly for unauthorized transactions or signs of financial distress.
- Encourage family members to discuss financial decisions openly to reduce the isolation that scammers exploit.
General security guidance from the RedTeam Monitor newsroom. It is not confirmed advice from the organisations named in this story.
Frequently asked questions
How much did seniors lose to fraud in 2025?
Adults 60 and over reported losing $3 billion to fraud in 2025, according to the FTC.
What type of scam caused the most losses?
Investment scams caused the most losses, with over $1 billion reported in 2025.
How did scammers often contact victims?
Consumers reported that scammers often reached them on social media platforms.
