The FBI calls it a “distress scam.” It is also known as a grandparent scam. The scam works by making an older adult believe a grandchild is in serious trouble and needs money right away, often before a court date or legal deadline. Victims reported more than $5 million in losses to this type of fraud in 2025. The FBI’s Internet Crime Complaint Center also noted that reported losses likely show only part of what scammers actually stole.
The Federal Trade Commission found in August 2025 that some of the fastest-growing scams targeting older adults use fear and urgency to override good judgment. A caller may claim your bank account was hacked and say you need to move your money immediately to protect it. However, the money does not move to safety. It goes straight to the scammer.
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AI voice-cloning tools have made these scams even more convincing. Scammers can use a birthday video, voicemail or social media clip to mimic a grandchild’s voice. Then they place the call. The voice sounds familiar, the emergency feels real and the request for bail money seems urgent. The FBI counted $352 million in AI-related scam losses among victims 60 and older this past year.
The same three pieces of data are required for identity verification at most banks, brokerages, pension recordkeepers, and Medicare: date of birth, last four digits of a Social Security number, and a current mailing address. For most people in their sixties and seventies, all of those accounts are open.
Those three fields have turned up in breach after breach. The Conduent Business Services breach pulled names, SSNs, dates of birth, and home addresses for more than 25 million Americans from systems that process Medicaid records and employer health plans. Texas Attorney General Ken Paxton called it the largest data breach in U.S. history in February 2026.
Americans between 65 and 74 held a median net worth of $409,900 in 2022, according to the Federal Reserve’s Survey of Consumer Finances, more than ten times the median for adults under 35. The FBI found average losses of approximately $38,500 per victim among Americans 60 and older in 2025, nearly double the figure for younger filers.
Older adults reported $2.4 billion in fraud losses to the Federal Trade Commission in 2024. However, the FTC’s December 2025 report to Congress estimated that real losses may have reached $81.5 billion that year. Most cases likely went unreported.
That gap makes identity theft harder to stop. A fraudulent wire from a pension account may never alert a bank. A new credit account opened with stolen information may not reach the victim until it appears on a credit report. By then, weeks may have passed since the application was approved.
Scammers move fast, so it helps to set up account protections before anything goes wrong. These steps can give banks, brokerage firms and family members more ways to spot trouble early.
Brokerage accounts have a protection option many account holders never activate: a trusted contact designation. Under FINRA Rule 4512, brokerage firms must ask for a trusted contact when you open or update an account. A trusted contact can be a family member, attorney or accountant. The firm can contact that person if it suspects financial exploitation or cannot reach you. However, that person cannot trade, withdraw funds or view your account balances. FINRA, the SEC and the North American Securities Administrators Association asked investors in August 2025 to contact their firm and add one. You can name more than one trusted contact. You can also change the designation at any time.
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Under FINRA Rule 2165, brokerage firms can place a temporary hold on disbursements when they reasonably believe financial exploitation may be happening. That hold can last up to 55 business days. In January 2026, FINRA proposed extending the window to 145 business days. Ask any firm holding a pension, brokerage or annuity account about its policy on disbursements after an address change.
When a caller claims a grandchild is in trouble or a federal agent needs immediate action, hang up. Then call back using a number you already have, not the number in the message. The FTC found that 41% of older adults who reported losing $10,000 or more to impersonation scams in 2024 said a phone call was the initial point of contact. That makes one simple habit especially important: verify the story before you act.
Social Security lets you block electronic and automated telephone access to your account record. Once blocked, no one can change your direct deposit information or mailing address online or through the automated phone system. After that, any changes must go through a live SSA representative at 1-800-772-1213 or a field office visit. FINRA also operates a free Securities Helpline for Seniors at 844-574-3577, Monday through Friday, 9 a.m. to 5 p.m. ET.
Even strong account protections may not catch every scam attempt. That is why identity theft monitoring and recovery support can help families respond faster when personal information gets exposed or misused.
Some identity theft protection services monitor dark web marketplaces, data broker sites and people-search sites for exposed Social Security numbers, addresses and other personal information. If fraud happens, recovery support may help contact creditors, file disputes with the three credit bureaus and organize the documentation needed to restore an identity.
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Some plans also include identity theft insurance for eligible recovery costs, such as lost wages and legal fees.
No service prevents every misuse of an older adult’s identity. However, family monitoring and fraud resolution can shorten the time between when theft happens and when you or someone in your family acts on it.
See my tips and best picks on Best Identity Theft Protection at Cyberguy.com
Grandparents have become a prime target because scammers know where the money is and how to create panic fast. A familiar voice, a stolen Social Security number or a fake emergency can turn one phone call into a devastating loss. The best defense starts before the call comes. Add trusted contacts to financial accounts, block online Social Security changes, verify urgent requests through a number you already know and talk openly with family about scam warning signs. Identity theft protection can also help spot exposed personal information and speed up recovery if fraud happens. No family can stop every scam attempt. However, a simple plan can give older adults more time, more backup and a better chance of keeping their money safe.
Is enough being done to stop scammers from using AI voices and stolen data to target grandparents? Let us know by writing to us at Cyberguy.com
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