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.

HOW TO HAND OFF DATA PRIVACY RESPONSIBILITIES FOR OLDER ADULTS TO A TRUSTED LOVED ONE

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.

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What makes grandparents worth targeting

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.

Why elder fraud losses are often underreported

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.

Account protections worth setting up

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.

1) Add a trusted contact to brokerage accounts

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.

SOCIAL SECURITY ADMINISTRATION PHISHING SCAM TARGETS RETIREES

2) Ask about holds on suspicious withdrawals

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.

3) Verify urgent calls before sending money

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.

4) Block online changes to Social Security

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.

Identity theft recovery is harder on your own

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.

OUTSMART HACKERS WHO ARE OUT TO STEAL YOUR IDENTITY

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

Kurt’s key takeaways

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.

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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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Congress has failed to pass a three-week extension of Section 702 of the Foreign Intelligence Surveillance Act (FISA), with the House voting 218-198 against reauthorizing the controversial warrantless wiretapping authority through July 2nd. After a short-term extension earlier this year, the spying program now appears set to lapse for at least a week. This is the nightmare scenario FISA’s proponents have been warning about — but it doesn’t actually mean the US has lost its surveillance capabilities.

Proponents of a clean extension claim a lapse will hinder intelligence agencies’ efforts to thwart potential terrorist attacks, with surveillance networks “going dark”. Sen. Tom Cotton (R-AR) stressed the importance of reauthorizing Section 702 ahead of the World Cup. House Speaker Mike Johnson (R-LA) has said even a brief lapse would be disastrous. “Democrats in the Senate are playing political games right now with the lives of Americans,” he told reporters Wednesday. “It’s a very dangerous situation.”

In March, the FISA court recertified surveillance under Section 702 until 2027. The Brennan Center for Justice notes that a lapse won’t allow telecom companies to flout requests to hand over communications information to the NSA and other spy agencies. In 2008, after Yahoo failed to comply with a Section 702 request during a lapse, the FISA court ruled that the directives issued under Section 702 are effective while the certification is in place — even in the event of a lapse.

“The phrase ‘going dark’ is significantly misleading,” Andrea Sawka Fiegl, the senior policy director for media and technology at Common Cause, said on a Tuesday press call. Fiegl added that companies don’t choose whether they participate in surveillance under Section 702. If they don’t comply after being served with a directive, they face fines starting at $250,000 a day.

“The ‘going dark’ framing is basically a pressure tactic designed to strip Congress of its leverage to negotiate reforms by creating this false binary,” Fiegl said. “There is ample time for Congress to consider and pass reforms.”

Among those reforms are a warrant requirement for queries involving US persons, including so-called “backdoor searches” in which intelligence agencies identify a foreign target with ties to a US person, and then search that person’s communications, thus granting them access to their desired US target. Reformers also want to prohibit intelligence agencies from buying Americans’ data from private brokers to get around warrant requirements.

“Every day that Section 702 is in effect without reforms is a day that Americans’ rights are under threat,” Sen. Ron Wyden (D-OR) said in a statement Wednesday night, after Senate Republicans blocked his request for a five-week extension of Section 702 with new transparency requirements. “If there is going to be an extension of these authorities, there needs to be some guardrails or at least some transparency that would allow Congress and the American people to understand the abuses that have taken place and the need for reforms.”

Though President Donald Trump and Republican leaders in both chambers have called for a clean reauthorization of Section 702, there’s bipartisan appetite for reform — and a handful of Republican holdouts stand in the way of a clean reauthorization. Most Democrats — even some who have supported reauthorization in the past — have objected to a clean extension due to Trump’s appointment of Bill Pulte as acting director of national intelligence.