Published on Feb 6, 2026 • Updated on Aug 29, 2026
This article was written by Adem Tumerkan
Content Editor, Dunham | 2025 ThinkAdvisor Luminary Award Winner | 2026 Wealthies Finalist — Thought Leader of the Year | Macroeconomics, markets, geopolitics & global trends
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Financial scams targeting retirees surged to record highs in 2023, costing seniors over $3.4 billion.
The most damaging scams include investment fraud, phishing, impersonation, romance scams, Medicare scams, and grandparent scams.
Scammers increasingly use AI-generated voices and fake identities to manipulate victims.
Financial advisors can help spot behavioral changes, educate clients, and verify suspicious requests.
Consistent communication and scam awareness remain important defenses against financial exploitation.
In Part 1 - Why Baby Boomers Are Prime Targets for Cyber Scams and Financial Fraud - we examined the rising trend of Baby Boomers being targeted by cyber scams and financial fraud.
The threats can come through an email, a phone call, a text message, social media, or even a new relationship. Common examples include phishing emails, fake investment opportunities, government impersonators, and romance scams.
For clients, the financial damage can be severe. The emotional damage can last even longer.
For financial advisors, understanding how these scams work can help protect clients before a bad decision becomes a permanent loss.
As covered in Part I, reported losses among older Americans have risen sharply. In 2023, seniors lost more than $3.4 billion to financial scams, a 600% increase from 2018.
And taking a closer look at the FBI’s Elder Fraud Report1, we can see the type of scams that the elderly were most likely to fall for.
Here are some of the big ones you need to be aware of. . .
Investment fraud is one of the most financially damaging scams targeting retirees. It cost older Americans more than $1.2 billion in 2023, or roughly half of all reported fraud losses among seniors that year.
Scammers often promise high returns with little or no risk. They may pitch a private deal, cryptocurrency opportunity, trading strategy, real estate investment, or other “exclusive” opportunity.
Many schemes rely on the same playbook. The scammer builds trust, shows supposed investment gains, and pressures the victim to invest more. In a Ponzi scheme, early investors may receive payments funded by money from new investors rather than legitimate investment profits.
Retirees can be especially vulnerable because they may have accumulated savings and worry about whether their money will last through retirement. That concern is understandable, especially given the reported 1,700% gap between what retirees have and what they believe they need to retire comfortably.
Phishing is relentless. These scammers will send emails that mimic legitimate sources – like banks, government agencies, or security sites - demanding personal information. Phishing and email scams often top the list, targeting older adults who may be less familiar with digital security. For instance, in 2023, tech support scams (which are most often from phishing) alone resulted in nearly 18,000 reported victims aged 60 and older - causing a whopping $600 million in reported losses4.
Impersonation scams work by posing as a trusted authority. The scammer may claim to be an IRS agent, police officer, debt collector, bank employee, government official, or technology-support representative.
The caller often demands immediate payment and may threaten arrest, account closure, fines, or legal action. The goal is to create enough fear that the person sends money before checking the situtation.
These scams have become harder to spot as criminals use more convincing language, fake phone numbers, realistic emails, and AI tools.
A useful rule for clients: legitimate organizations do not demand immediate payment through gift cards, cryptocurrency, cash, or an unexpected wire transfer.
Romance scams strike at the heart of retirees - not just their wallets. These criminals prey on the trust and affection of unsuspecting elders – who only want someone to care about - as they weave lies of love and whisper sweet nothings before demanding money to fix some invented crisis. In 2022, these scams drained over $730 million from victims, each losing an average of $4,400. As loneliness deepens, so does the cost of these ruthless betrayals5.
Medicare scams take advantage of the complexity of health care and insurance. A scammer may pretend to represent Medicare, an insurance company, or a health care provider.
They may ask for a Medicare number, Social Security number, banking information, or other personal data. Others offer fake medical equipment, tests, or services.
The financial loss matters, but so does the risk of identity theft and misuse of medical information.
Clients should be cautious when someone contacts them unexpectedly about Medicare benefits, coverage changes, or free services.
This scam pulls at the heartstrings. Scammers call, pretending to be a grandchild in trouble (sometimes using A.I. to mimic their voices), and say that they need money urgently6.
For example, the imposter-grandchild often claims they've been in an accident or arrested. They beg the grandparent, "Please, don't tell Mom and Dad." Then, they pass the phone to someone pretending to be a lawyer, demanding money right away. Retirees, driven by love for their grandkids, send money quickly, only to realize too late it was a cruel trick.
Scammers are getting clever – adapting just as fast as being discovered. They’re using AI to create lifelike impersonations and scouring social media to gather personal details that make their scams more convincing. It’s like a digital jungle, and retirees are their targets.
But remember, these targets are our parents, our grandparents, our older family friends - those who spent their lives working so that they can retire. Now, in their most vulnerable years, they find themselves under attack from faceless criminals - preying on their trust and robbing them of the security they’ve earned.
The stakes are heartbreakingly personal.
In late 2023, an 84-year-old woman on the West Coast became the victim of a fraudulent scheme.
A real estate agent and her husband - posing as a financial advisor - gained her trust. Over months, they gradually took control of her accounts and withdrew money in small amounts.
By the time her family intervened, $3,000 had already vanished. Though the sum seemed small, the emotional toll was far greater.
The victim - already facing cognitive decline - became paranoid, believing the scammer was still entering her home.
Lesson: Elder fraud’s deepest wounds aren’t financial - they’re emotional and psychological. Once trust is broken, recovery is rare.
Financial advisors often have a close view of a client’s financial habits, goals, and behavior. That relationship can help advisors notice warning signs before a client sends money or makes an irreversible decision.
Watch for:
Best Practices for Advisors:
Scams targeting retirees aren’t just growing - they’re evolving.
Today’s criminals leverage technology, psychology, and even AI to exploit vulnerability. But with proactive advisors, informed clients, and open communication, these crimes can be prevented.
Protecting retirees isn’t just about compliance — it’s about compassion.
It’s about ensuring those who built their wealth in good faith don’t lose it to bad actors.
And that’s where great advisors make all the difference.
This communication is general in nature and provided for educational and informational purposes only. It should not be considered or relied upon as legal, tax or investment advice or an investment recommendation, or as a substitute for legal or tax counsel. Any investment products or services named herein are for illustrative purposes only and should not be considered an offer to buy or sell, or an investment recommendation for, any specific security, strategy or investment product or service. Always consult a qualified professional or your own independent financial professional for personalized advice or investment recommendations tailored to your specific goals, individual situation, and risk tolerance. All examples are hypothetical and are for illustrative purposes only.
Information contained in the materials included is believed to be from reliable sources, but no representations or guarantees are made as to the accuracy or completeness of information. This document is provided for information purposes only and should not be considered as investment advice.
Dunham & Associates Investment Counsel, Inc. is a Registered Investment Adviser and Broker/Dealer. Member FINRA/SIPC. Advisory services and securities offered through Dunham & Associates Investment Counsel, Inc.
