WASHINGTON, D.C. — The Federal Trade Commission (FTC) has released its latest report to Congress, highlighting the agency’s ongoing efforts to safeguard older adults from fraud. The report, titled “Protecting Older Consumers, 2023-2024,” presents a comprehensive overview of the financial impact fraud has had on seniors, along with the multi-faceted approach the FTC is employing to tackle this pervasive issue.
According to the report, older adults reported losses exceeding $1.9 billion to fraudulent schemes in 2023. However, the FTC estimates that the true economic burden could reach as high as $61.5 billion, considering that the majority of fraud incidents remain unreported. The data reveals that individuals aged 60 and older, while less likely to report fraud than younger adults, tend to suffer more substantial financial losses when they do fall victim.
A striking pattern emerged from the analysis: seniors are particularly susceptible to certain types of scams. They are over five times more likely than younger adults to fall prey to tech support scams and nearly three times as likely to be deceived by prize, lottery, or sweepstakes frauds. Investment scams led to the most significant financial losses among seniors, totaling $538 million in 2023, marking a substantial 34% increase from the previous year.
The FTC’s efforts to combat these issues are spearheaded by the Scams Against Older Adults Advisory Group, established under the Stop Senior Scams Act of 2022. The group, comprising federal and state agency representatives, has developed guidelines to effectively disrupt scams targeting older adults and has published research on the challenges of delivering effective consumer education to this demographic.
FTC Director Samuel Levine emphasized the agency’s commitment to protecting seniors, stating, “Through our cases, rulemaking, and outreach, we’re taking every step we can to stop scams targeting older adults and help them protect themselves.”
The report also highlights the FTC’s strategic initiatives, including law enforcement actions, rulemaking, and educational campaigns like the Pass it On program. These efforts are designed to empower older adults with the knowledge and tools to recognize and avoid fraudulent schemes, as well as to encourage them to share these resources within their communities.
Furthermore, the FTC continues to advocate for legislative changes that would enhance its ability to secure financial restitution for victims. The agency is urging Congress to amend Section 13(b) of the FTC Act following the Supreme Court’s AMG Capital Management decision, to restore its capacity to seek equitable monetary remedies.
The report also provides insight into the advisory group’s accomplishments, such as implementing consumer education pilots, refining industry training practices, and exploring technological solutions to aid in fund recovery and prevent fraud in various systems.
By spotlighting these efforts, the FTC aims to foster greater awareness and resilience among older consumers, ultimately reducing the prevalence and impact of fraud in this vulnerable population.
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