Americans lost $16.6 billion to scams in 2024—a 33% increase from the previous year. Behind every statistic is a real person whose trust was betrayed, sometimes losing everything they worked a lifetime to build. The average loss for someone over 60 was $83,000.
I've sat across the table from people who have lost hundreds of thousands of dollars to these schemes, often with little to no recourse for recovery. These aren't careless people—they're intelligent, successful individuals who encountered sophisticated criminals operating from international fraud factories. What strikes me most is how dramatically these losses reshape retirement plans. Someone who expected a comfortable retirement suddenly faces the prospect of returning to work in their 70s, downsizing their home, or depending on family members for support.
Retirees are prime targets for a reason: they've accumulated savings over a lifetime, they're often home during the day to answer calls, and they may be less familiar with evolving digital threats. Scammers know this and design their schemes accordingly. This guide covers the most prevalent scams today and provides practical steps to protect yourself and your loved ones.
Phishing and Smishing Attacks
"Smishing"—scam text messages—has exploded in recent years. You've likely received texts claiming you owe money for unpaid tolls, have a package that can't be delivered, or need to verify your bank account. These messages create urgency and include links that capture your personal information or install malware on your device. Similar attacks arrive via email or social media claiming to be from government agencies, banks, or companies you do business with.
Government agencies will never initiate contact via text message, email, or social media to request payment or personal information. The IRS, Social Security Administration, and other agencies send official correspondence through postal mail, and legitimate letters will never demand immediate payment via gift cards or cryptocurrency.
If you receive a suspicious message, do not click any links. Delete it immediately and, if concerned about a legitimate issue, contact the organization directly through their official website or a phone number you know is correct.
Government Impersonator Scams
Scammers posing as government employees call, email, or even show up at your door demanding immediate payment. They may claim to be from the IRS, Social Security Administration, Medicare, or law enforcement, threatening arrest, benefit suspension, or deportation.
Government impersonation scams resulted in $789 million in losses in 2024—up from $171 million just the year before. These criminals are convincing, often spoofing caller ID to display official-looking phone numbers.
Remember: government agencies don't threaten you with arrest over the phone, demand payment via gift cards or cryptocurrency, or call without first sending written notice. If someone calls claiming to be from a government agency and demands immediate payment, hang up.
Romance and Relationship Scams
Romance scams cost Americans $1.14 billion in 2023 alone. Someone creates a fake profile on a dating site or social media platform, claiming to be a successful professional or military member deployed overseas. They invest weeks or months building an emotional connection before requesting money for a medical emergency, legal problem, or travel costs to finally meet in person.
These criminals are experts at manipulation, maintaining detailed journals about their targets and using scripts refined through thousands of successful scams.
The "Pig Butchering" Variation
One devastating variant combines romance scams with fake investment opportunities. Your new online "friend" mentions cryptocurrency investing and their impressive returns, guiding you to a professional-looking website that shows your "investments" growing rapidly.
The platforms are completely fabricated. Every number is fake. When you try to withdraw funds, you're told you must pay taxes or fees first. More obstacles appear until you realize there never were any investments—your money went straight to criminals.
In October 2025, the Department of Justice announced its largest-ever forfeiture action: $15 billion in cryptocurrency seized from a pig butchering operation running forced labor camps in Cambodia, with facilities staffing over a thousand phones controlling tens of thousands of fake social media accounts.
Warning signs include: they can never meet in person or avoid video calls, the relationship moves very quickly toward expressions of love, they have a glamorous job but always have financial emergencies, and they ask you to keep the relationship secret.
The "Grandparent" and Family Emergency Scam
This scam targets seniors by exploiting their love for family members. You receive a call from someone claiming to be your grandchild (or their attorney, or a police officer). They're in trouble—arrested, in an accident, stranded abroad—and need money immediately. They beg you not to tell other family members because they're embarrassed or there's a "gag order."
What makes this scam particularly insidious is the use of artificial intelligence to clone voices. Scammers can replicate a grandchild's voice with frightening accuracy using just a few seconds of audio pulled from social media. A victim hears what sounds exactly like their loved one in distress.
Twenty-five Canadians were recently indicted for running grandparent scam call centers that defrauded Americans of over $21 million across 40 states. Victims who provided substantial amounts of money were referred to as "whales" in the scammers' internal communications.
The defense requires discipline: before sending any money, hang up and call your grandchild directly using a phone number you know is correct—not any number provided by the caller. Create a family code word that can verify identity in emergencies. Legitimate emergencies rarely require immediate wire transfers or gift card purchases.
Check Overpayment Scams
A "buyer" sends you a check for more than the agreed amount, claiming it was an accident. They ask you to deposit the check and wire back the difference. The check looks legitimate, and your bank makes the funds available. But weeks later, the check bounces. By then, you've wired real money to the scammer, and your bank holds you responsible for the entire fraudulent amount.
The rule is absolute: if someone sends you more than expected and asks you to send any of it back, it's a scam. Period. Banks must make deposited funds available within days, but that doesn't mean the check has actually cleared—that can take weeks.
Money Mule Recruitment
"Money mules" transfer money on behalf of criminals, often thinking they're doing legitimate work. Recruitment happens through fake job postings for "payment processors" with vague responsibilities and promises of easy money working from home.
In reality, you're laundering stolen funds. Money mules can face prosecution for money laundering, wire fraud, and bank fraud—even if they didn't realize what they were doing. Romance scam victims are frequently recruited as money mules after trust has been established.
Red flags include any job involving receiving and sending money elsewhere, being asked to open bank accounts for someone else's use, and anyone asking you to purchase cryptocurrency or gift cards on their behalf.
Tech Support Scams
A popup appears: "Your computer is infected! Call this number immediately!" Or you receive a call from "Microsoft" warning that hackers have compromised your device. These scams cost Americans over $1.4 billion in 2024.
The "phantom hacker" variant is particularly destructive. It begins with a tech support call, then escalates: scammers claiming to be from your bank warn that hackers have accessed your accounts and convince you to move your money to a "safe" account—which belongs to the criminals.
Legitimate tech companies don't cold-call customers about computer problems or request remote access to your computer. If you receive such a contact, hang up or close the popup.
Cryptocurrency Payment Demands
Cryptocurrency ATMs have become a preferred tool for scammers because transactions are difficult to trace and nearly impossible to reverse. The scam: you receive a call claiming you owe money to the IRS or a utility company. The caller directs you to a cryptocurrency ATM to convert cash to bitcoin and send it to their wallet.
No legitimate government agency or business demands immediate payment via cryptocurrency. If someone is directing you to a bitcoin ATM to resolve a debt, stop. It's a scam.
Disaster and Contractor Fraud
After natural disasters, fraudulent contractors appear at damaged properties offering quick repairs. They request large upfront payments, then disappear or perform substandard work. This pattern repeats after every major storm, flood, or fire.
Before hiring any contractor, verify their license through your state's contractor licensing board. Get multiple written estimates. Never pay the full amount upfront—a reasonable down payment is acceptable, but final payment should come only after you've verified the completed work. Similarly, fake charities emerge after disasters, so verify any organization through the IRS's tax-exempt organization search before donating.
What To Do If You've Been Scammed
Act immediately. Contact your bank to freeze accounts and potentially reverse transactions. File a complaint with the FBI's Internet Crime Complaint Center at ic3.gov and the Federal Trade Commission at reportfraud.ftc.gov.
Don't be embarrassed to report—many scams go unreported because victims feel ashamed. Even if reporting doesn't recover your specific losses, your report helps authorities identify patterns and potentially shut down operations before they victimize others. The information you provide might protect future victims from the same scheme that targeted you.
How Desert Rose Tax & Accounting Can Help
The aftermath of scams often creates complicated tax situations. Victims may face questions about stolen funds, fraudulent transactions made in their name, or tax implications of attempting to recover losses. At Desert Rose Tax & Accounting, we help clients navigate these complex situations and ensure their tax returns accurately reflect their circumstances.
We can also help you spot red flags before you become a victim. If you receive a suspicious communication claiming to involve your taxes, we're happy to verify whether it's legitimate. Our clients know they can call us before responding to any tax-related contact that seems unusual. Protecting your financial wellbeing means staying informed about the threats you face.
Edward Ethington, CPA, CFP®, MBA
Desert Rose Tax & Accounting
Protecting Your Financial Future
(520) 747-4964
www.desertrosetax.com
This blog provides general information about common scams and fraud prevention strategies. While we can help with tax-related questions and situations arising from fraud, victims should report scams to appropriate law enforcement agencies and may need to consult with attorneys for legal matters related to fraud recovery. Please contact Desert Rose Tax & Accounting for guidance specific to your tax situation.
