Retirement in the Age of Cyber Scams: How To Protect Your Next Chapter

Senior phone fraud concept. Mature woman distrusting phone call

(Image credit: Getty Images)

The 2025 bipartisan report, Age of Fraud: Scams Facing Our Nation’s Seniors (PDF), spotlights the growing financial threats that older people face.

In 2024 alone, fraud and scams cost seniors a staggering $4.8 billion, with those ages 50 to 59 losing an additional $2.5 billion.

Melanie McGovern, director of public relations at the Better Business Bureau, shares that the BBB’s 2024 Scam Tracker Risk Report (PDF) shows that investment and cryptocurrency scams continue to be the riskiest for individuals 55 and older.

From just $107.88 $24.99 for Kiplinger Personal Finance

Become a smarter, better informed investor. Subscribe from just ~~$107.88~~ $24.99, plus get up to 4 Special Issues

CLICK FOR FREE ISSUE

https://cdn.mos.cms.futurecdn.net/flexiimages/y99mlvgqmn1763972420.png

Sign up for Kiplinger’s Free Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Employment scams were the second riskiest for consumers ages 55 to 64, alongside romance scams. For those 65 and older, romance scams were the second most common, followed by home improvement scams.

These scams don’t just erode trust, confidence and emotional well-being — they drain savings. Here’s a guide to navigating this new reality and practical steps to stay safe.

Why scammers target seniors

Unfortunately, older people often become easy targets for scammers.

Generally, it’s because that age group is more likely to be polite, trusting and financially stable.

Some older people aren't familiar with the latest digital technologies, making them especially susceptible to a fraudster’s elaborate tactics, which can include AI-generated deepfakes, phishing emails or fake tech support calls.

Social isolation and cognitive decline can lead to vulnerability and embarrassment, which often prevent victims from reporting losses to family, friends or authorities.

Phishing: Fake emails, texts or messages that look real but trick you into sharing your personal information, such as passwords or bank details. This also includes clicking on malicious links that appear to be from trusted sources, such as banks or friends.

Deepfakes: AI-made audio, videos or images that mimic real people to fool you into sending money or revealing sensitive information.

The emotional toll

The financial implications of such scams can be huge, such as if a person were to lose some or all their retirement savings.

Scams can also take a heavy emotional toll. Victims often feel anger (55.6%), irritation (68.5%) or embarrassment (15.7%), with some even experiencing physical health declines (6.2%), according to Feedzai, an AI-native fraud and financial crime-prevention platform.

Add in the fear of being judged by family members and losing independence, and the pain can worsen, making it even more challenging to seek help.

For retirees on fixed incomes, the loss of some or all of their nest egg can mean relying on family or withdrawing funds early from work-related accounts, such as 401(k)s and IRAs. Losing your savings can turn a time of anticipated freedom into a time of survival.

Matthew Stern, a certified artificial intelligence and investigations expert with CNC Intelligence, stresses: “Scammers prey on politeness and emotion. They try to catch us off guard and push for fast decisions. But if something feels off, it probably is.”

Common scams targeting retirees

Among others, the FBI lists these common scams that generally target older people.

Medicare and health care scams: Con artists pose as Medicare representatives to steal your personal information or bill you for nonexistent services, resulting in $80.5 million in confirmed losses in 2024, according to the National Council on Aging (NCOA).
Imposter scams: Fraudsters pose as government officials, bank representatives or even grandchildren claiming to be in financial need, demanding immediate payments. In 2024, these scams led to $789 million in losses.
Sweepstakes, charity or lottery scam: Scammers claim you’ve won a lottery or sweepstakes, which you can collect for a “fee.” Or they claim to work for legitimate charitable organizations to gain your trust while asking for money, usually in the form of a credit card or bank card number.
Tech support scams: Criminals impersonate tech companies, claiming your device has a virus and tricking you into granting remote access or paying for fake services, according to the FBI.
Romance scams: Scammers build trust through fake online relationships, later requesting money or sharing fraudulent investment tips. A retired New York attorney lost $468,000 in just 75 days to such a scam, according to a CBS report.
Investment scams: Fraudsters promise high returns on fake opportunities, like cryptocurrency or timeshares, costing victims more than $1.2 billion in 2023.
Government impersonation scam: Criminals pose as government employees and threaten to arrest or prosecute you unless you agree to make a payment owed or settle a debt.
Bank scams: Darius Kingsley, managing director, head of consumer banking practices at Chase Bank, has seen a notable increase in bank impersonation scams toward older consumers lately. These scams involve fraudsters pretending to be bank representatives to trick individuals into providing personal information or money.

The rise of cyber and AI-driven scams

Stern understands how devastating scams can be for older people, not just financially but emotionally.

”One of the biggest concerns right now is voice cloning. Just because someone sounds like your grandchild doesn’t mean it’s really them. I always tell people: If you get a call asking for money, hang up and call the person back on a number you already know. That simple act of verification can be the difference between safety and financial ruin."

He has witnessed this first-hand. “I received a Facebook message from a relative, but I immediately knew it wasn’t them. The way the scammer wrote the message wasn’t right, and my relative and I never talk on Facebook.

"Now imagine if the scammer had called and used AI to sound exactly like my relative. I probably would’ve answered differently.”

Action steps to protect yourself

First, verify: Never act impulsively under pressure. If contacted unexpectedly, hang up and call back using a verified number from the organization’s official website. This includes calls from so-called police or fire department associations, banks and other institutions.
Use strong security: Keep your devices updated with antivirus software and if possible, install a firewall. Avoid clicking unknown links or downloading software. Many community centers offer free cybersecurity workshops for older people. In addition, you can always reach out to family or friends for assistance.
Create a family password: The FBI advises families to establish a secret phrase that only trusted family members know to verify requests for help, especially in grandparent scams. If you get a call, ask for that password. If they can’t respond correctly, hang up.
Limit personal information: Be careful about sharing details online or with unsolicited callers. This includes banking information, your Social Security number and other sensitive information. Check your privacy settings on social media to minimize the risk of your contact information being shared without your consent.
Report scams immediately: Contact the FTC at reportfraud.ftc.gov, the FBI’s Internet Crime Complaint Center at ic3.gov, or call the AARP Fraud Watch Network Helpline at 877-908-3360. Reporting helps protect others and might help in recovering your loss.
Seek support: If you’re a victim, don’t let embarrassment stop you. You’re not alone when it comes to scamming seniors. Talk to family, friends or Adult Protective Services (PDF) (1-800-677-1116).

A 'secure' path forward

Wouldn’t it be great to approach retirement with joy, not fear?

By staying vigilant, operating technology with caution and leaning on family and friends, you can protect your savings and maintain your peace of mind.

Stern’s story is a reminder that anyone can be targeted, but it’s also a call to action: Empower yourself with knowledge, ask for verification, connect with others and reclaim your retirement.

For the past 18+ years, Kathryn has highlighted the humanity in personal finance by shaping stories that identify the opportunities and obstacles in managing a person's finances. All the same, she’ll jump on other equally important topics if needed. Kathryn graduated with a degree in Journalism and lives in Duluth, Minnesota. She joined Kiplinger in 2023 as a contributor.