Money & Finance › Fraud, scams & enforcement
Scams on individuals: impostors and elder fraud
· Fraud or scheme
Fact, law or dataA rule, statute, definition or measured number.
Frauds that trick people into sending money themselves, by impersonating officials, banks, loved ones or investment pros, often targeting older adults.
See it on the Money & Finance map →How it works
Most follow one script: a trusted-seeming contact (an 'IRS agent', the bank's fraud department, a grandchild in jail, an online romance), an urgent problem, a demand for secrecy, and payment by wire, gift cards, crypto or cash handed to a courier. Because victims authorize the payment, banks often need not refund it. Americans reported losing $12.5 billion to the FTC in 2024 and $16.6 billion to the FBI, including $4.9 billion lost by people 60 and older. Investment scams, often crypto, caused the largest losses.
Why it matters
Losses are often life savings and rarely recovered; rising totals are pushing banks, payment apps and regulators to rethink who bears the loss. A 2024 FTC rule lets it sue impersonators for refunds.
Facts, rules and data
The FTC's Consumer Sentinel data and the FBI Internet Crime Complaint Center (IC3) annual reports; both note only a fraction of victims report. Reports go to ReportFraud.ftc.gov and ic3.gov.
Debates and risks
True losses are far higher than reported: an FTC estimate adjusted for underreporting put 2023 fraud losses near $158 billion. Who should repay tricked victims is disputed.
Inside this (1)
Connections (7)
▸Payment rails: how money moves from account to account are exploited by Scams on individuals: impostors and elder fraudFact, law or data
The connection
Scammers push victims toward fast, final payments: wires, Zelle, instant transfers and crypto ATMs. Federal rules (Regulation E) make banks refund unauthorized transfers, but a payment the victim authorizes, even under deception, usually is not covered. Once money lands in a 'mule' account it can move on within minutes.
When and why
Nationwide, especially as instant payments spread with Zelle (2017) and FedNow (2023). Business email compromise, including fake wiring instructions at real estate closings, cost $2.8 billion in 2024 reports.
How we know
FBI IC3 reports break out losses by payment method; FTC data for 2024 show bank transfers and payments (about $2 billion) and crypto (about $1.4 billion) led reported losses.
Debates and risks
Whether banks should repay tricked customers, as the UK has required since 2024, and whether delaying first-time instant payments would cut fraud without slowing commerce.
▸Scams on individuals: impostors and elder fraud often impersonate Internal Revenue Service (IRS)Fact, law or data
The connection
Impostors claim to be IRS agents and threaten arrest, deportation or license loss unless a 'tax debt' is paid at once by gift card, wire or crypto. The real IRS first contacts people by mail, allows appeals, and never demands a specific payment method by phone. Fake refund and 'tax relief' offers are variants.
When and why
Nationwide; a surge began in 2013, much of it run from call centers in India. Indian police raided centers near Mumbai in 2016, and US prosecutions followed.
How we know
TIGTA, the IRS's inspector general, has logged millions of impostor reports since 2013 and helped convict US-based money handlers; the IRS lists such scams in its yearly 'Dirty Dozen'.
Debates and risks
Total losses are uncertain because many victims never report; AI voice cloning and spoofed caller ID make impersonation harder to spot.
▸Consumer Financial Protection Bureau (CFPB) takes complaints about banks' handling of Scams on individuals: impostors and elder fraudFact, law or data
The connection
The CFPB does not chase scammers; it takes complaints about financial companies. When a victim's bank or payment app refuses to refund or block a scam payment, the bureau forwards the complaint and the company must respond. Patterns in complaints have led to warnings and lawsuits over how banks handle fraud.
When and why
Nationwide, through consumerfinance.gov/complaint since 2011; in December 2024 it sued Zelle's operator and JPMorgan, Bank of America and Wells Fargo, then dropped the suit in March 2025.
How we know
The bureau's public complaint database shows fraud-related complaints by company; its court filings and 2025 dismissal notice.
Debates and risks
With the bureau cut back in 2025–26, whether complaints still lead to action is unclear; victims also report the scams themselves to the FTC and FBI.
▸Pig-butchering crypto romance scams is a leading loss category of Scams on individuals: impostors and elder fraudFact, law or data
The connection
It blends a romance scam with investment fraud, so losses run far larger than older impostor scams: victims are led to invest again and again, sometimes whole retirement accounts. Investment fraud, mostly crypto, is now the FBI's largest reported loss category.
When and why
Across the US since 2020; victims of all ages, with people over 60 reporting the largest losses.
How we know
FBI Internet Crime Complaint Center annual reports and FTC consumer complaint data.
Debates and risks
Underreporting is severe, so the true number of victims and losses is unknown.
▸Scams on individuals: impostors and elder fraud are tracked by Fraud enforcers: DOJ, FBI and the FTCFact, law or data
The connection
Victims' reports flow into the FTC's Consumer Sentinel database and the FBI's Internet Crime Complaint Center, which share them with thousands of police and prosecutors. Analysts link complaints to find networks, money mules and scam call centers. The FTC sues deceptive firms; the Justice Department prosecutes, with an Elder Justice Initiative focused on older victims.
When and why
Nationwide; the FBI center has taken complaints since 2000. In October 2025 the Justice Department moved to seize about $15 billion in bitcoin tied to Cambodia's Prince Group scam compounds.
How we know
FTC and FBI annual data reports; DOJ indictments and forfeiture filings; the National Elder Fraud Hotline (833-372-8311), run by the Justice Department.
Debates and risks
Most money sent to overseas scammers is never recovered, and scam compounds in Southeast Asia sit largely beyond US reach.
▸P2P apps: Zelle, Venmo, PayPal and Cash App are a favorite tool of Scams on individuals: impostors and elder fraudFact, law or data
The connection
Impostors posing as bank staff, utilities or online sellers persuade victims to 'send money to yourself' or pay for goods that never arrive. P2P apps are instant, need only a phone number, and, because the victim authorized the payment, banks usually need not refund it.
When and why
Across US users; the CFPB alleged customers of three big banks lost over $870 million on Zelle over seven years.
How we know
FTC Consumer Sentinel data, the CFPB's 2024 complaint, New York's 2025 suit, and banks' published reimbursement policies.
Debates and risks
Whether apps should refund all scam victims, which may invite carelessness, or few, leaving losses on victims, is unresolved.
▸Scams on individuals: impostors and elder fraud often use fake Cashier's checks, certified checks and money ordersFact, law or data
The connection
The fake check scam: a 'buyer', 'tenant' or new employer sends a counterfeit cashier's check for more than is owed and asks the victim to wire back the extra. The bank makes the funds available the next day, the victim sends money, and weeks later the check bounces. The victim owes the bank the full amount.
When and why
Nationwide; common in rental listings, online marketplaces, and mystery-shopper and work-from-home offers.
How we know
FTC consumer alerts and Consumer Sentinel complaint data, and bank and Better Business Bureau reports on fake check losses.
Debates and risks
Why availability rules still let victims spend unverified funds, and whether banks should hold large cashier's checks longer.