Investment scams targeting older Americans are on a sharp and troubling rise, with fraudsters deploying increasingly sophisticated methods to steal billions of dollars annually. According to the FBI, Americans age 60 and older lost $4.8 billion to scammers in 2024 – a 41% increase from $3.4 billion in losses reported in 2023. While older adults are a primary target, no demographic is immune. These are well-organized and evolving scams that can affect anyone, regardless of age, experience, or background. Understanding how these scams operate — and the warning signs to watch for — is the first line of defense in protecting yourself and your loved ones. 

CLICK TO ENLARGE.  Chart describes complaint counts and losses over a 5-year period. Source: FBI IC3 2024 Report and Elder Fraud Report

The Four Most Common Types of Scams

1. Relationship Investment Scams

One of the fastest-growing categories of scams is the relationship investment scam. In this type of scam, criminals spend weeks or months building trust through fake friendships or romantic connections before introducing fraudulent investment opportunities. These scams often play out gradually, over weeks or months, and rely on psychological manipulation to create an emotional connection before asking for money.  

There are four primary forms of relationship investment scams:  

• Romance scams: Scammers will pretend to seek a romantic relationship, often through dating apps or social media, before pivoting to financial or investment-related requests.  
• Cryptocurrency (“crypto”) investment scams: Scammers will often pose as experts, promising guaranteed returns in cryptocurrency investments. Many times, they will show fake dashboards or ‘profits’ in order to get the individual to send more money.
• Financial grooming scams: Scammers will use long-term manipulation in these types of scams, gradually earning trust over time, often under the guise of mentorship or friendship.
• Pig butchering scams: These are a sophisticated hybrid of romance and crypto scams, where scammers build emotional trust and showcase fake investment profits — often through phony trading platforms — before stealing victims’ funds in one large sweep. The term “pig butchering” refers to the scammers’ strategy of “fattening up” their targets before the financial “slaughter.” Pig butchering scams are one of the fastest-growing forms of fraud, growing nearly 40% year over year. According to the University of Texas, Americans lost over $75 billion to pig butchering schemes between 2020 and 2024.

With any of these relationship investment scam types, criminals typically initiate contact through text messages, social media, dating apps or platforms, or even “wrong number” texts. Once a response is received, the scammer starts to execute a calculated strategy designed to build trust and an emotional connection over time.  

2. Cryptocurrency (or “Crypto”) Investment Fraud

While many crypto scams overlap with relationship scams, crypto scams can also operate independently. Crypto scams occur when fraudsters impersonate credible investment platforms and convince victims to deposit funds into seemingly legitimate platforms or apps. Victims are led to believe their investments are growing by being shown false platforms or statements, until they try to withdraw their funds and realize they are locked out and unable to access their money.  

Warning signs to look out for with these types of scams:  

• Unsolicited investment opportunities in cryptocurrency
• Promises of guaranteed returns, often displayed through professionally designed dashboards that show fictitious returns
• Pressure to act quickly before “missing the opportunity”
• Websites with suspicious URLs or spelling errors

In response to the rising threat of cryptocurrency investment fraud, the FBI launched Operation Level Up in January 2024 – an initiative aimed at identifying and notifying victims, investigating crypto-related scams, and dismantling the networks behind them.   
 
Read more about Operation Level Up and steps the FBI is taking to tackle elder fraud.  

3. Tech Support Criminal Schemes

Tech support scams typically begin with an unsolicited call, email, text, or pop-up message claiming there is a problem with your device or that your accounts have been hacked. Scammers impersonate tech support companies and bring in other imposters to pose as bank or government officials. 

 The goal of these scams is to gain remote access to your device, often leading to the theft of personal information and fraudulent charges for fake services.  

Common tactics of tech support scams include:

• Fake security warnings that prompt you to call a fraudulent support number 
• Claims of viruses or data breaches that don’t exist 
• Requests to install protective software or grant remote access to your computer — when in reality, it’s malware designed to steal passwords and financial data  
• Requests for payment in gift cards, wire transfers, or cryptocurrency for services supposedly rendered to your device  

CLICK TO ENLARGE. Chart describes count and loss trends for those 60+ from 2018 to 2024. Source: FBI IC3 2024 Report and Elder Fraud Report

According to the FBI, tech support scams generated approximately $1.3 billion in losses in 2023, with older adults ages 60+ being targeted more than any other age groups combined.

Read this infographic from the American Bankers Association and the FBI to learn more about tech support scams and how to protect yourself.  

4. Money Mule Scams

Money mule scams involve tricking individuals into moving illegally obtained funds on behalf of criminals — often without realizing they’re participating in a crime. These schemes are designed to obscure the criminal’s money trail and avoid law enforcement detection. 

Scammers typically recruit money mules through:

• Fake job opportunities: Posting legitimate-looking “work from home” positions that involve “processing payments,” “financial coordination,” or “payment processing representative” roles
• Romance connections: Building relationships on dating sites before asking for “temporary” financial help with business transactions or claiming they need someone trustworthy to handle money transfers
• Fake business partnerships: Offering victims opportunities to earn money by letting scammers use their accounts for “international business transactions” or “helping overseas clients

In this type of scam, criminals manipulate victims into: 

• Opening new bank accounts  
• Purchasing cryptocurrency with stolen funds 
• Transferring money internationally under false pretenses  

While anyone can be a potential target, scammers tend to prey on elders, students, job seekers, and individuals on dating websites, according to the American Bankers Association. Even if participation is unintentional, victims can still face serious consequences — including frozen bank accounts, damaged credit, or legal action — which is why education and early detection are critically important.  

How to Protect Yourself

The FBI reports alarming increases in all four of the types of scams mentioned above, with elder fraud cases continuing to rise year over year. Scammers often target older adults because of perceived financial stability or a greater willingness to trust others — making awareness and education especially important in this demographic. With schemes on the rise, it is vital to recognize the warning signs and stay alert.

Watch for Red Flags in Communication 

Scammers use specific communication tactics to build trust while avoiding detection. Suspicious communication patterns include:  

• Unsolicited contact through any digital platform 
• Requests to move conversations to private messaging apps like WhatsApp or Telegram 
• Avoiding video calls or in-person meetings  
• Stories and details that change or don’t add up over time 
• Professions of love or friendship very quickly 

Identify Fraudulent Investment Tactics

Legitimate investments never guarantee returns without risk. Be wary of these practices: 

• Promises of guaranteed returns or “risk-free” investments 
• Urgent pressure to invest immediately before opportunities disappear 
• Requests for personal financial information early on in conversations 
• Emphasis on keeping investments secret from family or financial advisors 
• Claims of insider information or exclusive opportunities 

Avoid Unusual Payment Requests

Many scams rely on payment methods that are hard to trace or undo — which is why unusual requests for cryptocurrency, wire transfers, or gift cards should always raise a red flag. Never agree to these payment requirements:  

• Cryptocurrency payments only 
• Wire transfers to unfamiliar accounts or foreign banks 
• Gift cards as investment payments 
• Requests to open new accounts for investment purposes 
• Instructions to lie to bank employees about transaction purposes 

Stay Informed

Criminal tactics are constantly evolving. Staying up to date on the latest scam techniques and threats is your first line of defense.  

Sign up for alerts: AARP sends out free alerts twice a month about the latest scams trending across the country, and how you can spot and avoid them. To get alerts by text, simply text “FWN” to 50757. For the email version, sign up at www.aarp.org/watchdogalerts. 

Tip: If you sign up for the text alert option, consider adding AARP’s number as a saved contact in your phone, so as not to confuse their texts with a potential scammer.

Appoint a Trusted Contact

A trusted contact is someone your financial advisor can reach out to if there are concerns about fraud or financial exploitation. A trusted contact does not have access to your money or accounts – they simply serve as a point of contact or reference if something seems amiss. 

Learn more about what a trusted contact is and how to name one here: What Does It Mean to Designate a Trusted Contact or a Client Advocate?  

Curious how a trusted contact compares to a power of attorney? Learn more in Who Can Help With Your Accounts (and How): Trusted Contacts, Privacy Waivers, and Powers of Attorney.

How to Help Family Members or Friends

If you’re concerned that someone close to you might be targeted by a scam, it’s important to approach the situation with care, empathy, sensitivity, and patience. 

Start Gentle Conversations

• Ask open-ended questions about their online activity or new acquaintances 
• Share general information about common scam trends without directly accusing 
• Offer to be a sounding board for any financial decisions they may be considering, or suggest they consult their financial advisor as a second opinion 

Watch for Subtle Warning Signs

• Sudden secrecy about phone calls, messages, or financial decisions 
• Unexplained urgency about investment opportunities 
• New “friends” or romantic interests who avoid video or in-person meetings 
• Defensiveness or discomfort when financial topics are raised 

Offer Support Without Judgement

• Position yourself as a resource, not an investigator 
• Suggest they run decisions by multiple trusted people before acting, such as other family members, financial advisors, etc. 
• Offer to attend financial meetings or review investment opportunities together 
• Help them designate a trusted contact with their financial institution(s) 
• Recommend they meet with their Estate Planning attorney to make sure Powers of Attorney are up to date

What To Do if You’re Being Targeted

• Trust your instincts. If something feels wrong, it probably is. These criminals are skilled manipulators, but your intuition is a powerful protective tool. 
• Cease all contact. Stop all communication immediately and do not send any money or personal information. 
• Document everything. Save text messages, emails, and screenshots of any sort of communication or documents shared.  
• Report it quickly. The sooner criminal activity is reported, the better the chances of preventing additional victims and potentially recovering stolen funds. Reporting suspicious activity—even if you haven’t lost money—provides valuable intelligence to law enforcement agencies working to shut down criminal networks. 

How to Report Fraud

If you or someone you know may be the target of a scam, it’s important to act quickly. Below are trusted federal agencies where you can report suspicious activity and access additional resources.

Internet Crime Complaint Center (IC3)

• This is the FBI’s Federal repository for all cybercrime reports 
• Direct pipeline to law enforcement investigations
• Website: https://www.ic3.gov/ 

U.S. Secret Service Cyber Investigations 

• Federal agency with successful track record in recovering stolen cryptocurrency 
• Specialized units focused on financial crimes and fraud networks 
• Email: cryptofraud@secretservice.gov 
• Website: https://www.secretservice.gov/investigations/cyber  

Securities and Exchange Commission (SEC) 

• Federal agency regulating investment crimes 
• Report Here: SEC Investment Fraud Complaint Form 

Additional Resources & Support

Educational Resources 

• Investor.gov: Federal Guide to Investment Fraud Protection
• SEC Additional Resources: https://www.investor.gov/additional-resources  

Victim Support Services 

• AARP Fraud Watch Network: Comprehensive support and recovery resources 
• Toll-free helpline: 877-908-3360
• National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311) 

We Are Here to Help

At Cassaday & Company, protecting your wealth goes beyond portfolio management — it includes helping you stay informed and prepared in an increasingly complex financial landscape. As scams grow more sophisticated, the best defense is knowledge, vigilance, and a strong support system. 

If something doesn’t sit right — whether it’s an unexpected outreach, a too-good-to-be-true offer, or a subtle request for personal information — don’t hesitate to reach out. We’re here to serve as a sounding board and resource whenever questions arise. 

You never have to navigate financial decisions or concerns alone. Our team is here to help you feel confident, informed, and protected — every step of the way. 

Disclosures: The information provided above was obtained from the FBI, SEC, and ABA websites. Facts presented have been obtained from sources believed to be reliable. Cassaday & Company, Inc., however, cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source.