Category Protection

On August 13, 2025, New York Attorney General Letitia James filed a major lawsuit against Early Warning Services (EWS), the company that runs the money transfer app Zelle. The lawsuit claims that EWS and several major banks allowed widespread fraud on their platform by failing to protect users. Scammers used Zelle to trick people into sending money by pretending to be trusted companies or by offering fake services. One example involved a New Yorker who lost nearly $1,500 after a scammer pretended to be from Con Edison. The state says that EWS and the banks knew about these risks for years but didn’t do enough to stop them, even though they had the tools to help prevent fraud.

A recent report from the Federal Trade Commission shows that imposter scams targeting older Americans have skyrocketed since 2020. These scams often involve criminals pretending to be from trusted sources, like banks or government agencies, and tricking victims into giving away money or personal information. Since 2020, the number of older adults losing more than $100,000 to these scams has jumped eight times higher, causing total losses to grow from $55 million to $445 million in just four years. This rise is linked to more people using digital tools for banking and communication, especially after the pandemic, making it easier for scammers to take advantage of retirees looking to protect their savings.

A new scam called “Magic Mouse” is stealing credit card information from hundreds of thousands of people each month. It works by sending fake text messages that look like they’re from delivery companies, toll agencies, or the government. These messages trick people into clicking on links and entering their personal info on fake websites. The group behind Magic Mouse uses that information to charge people’s accounts through mobile wallets right away. This scam is especially harmful now, as many families are already struggling to manage their money due to inflation. Unfortunately, law enforcement hasn’t been able to fully stop the group, and the scam continues to grow.

Retirement scams are becoming more common and more convincing, especially during times of economic uncertainty. Scammers often target older Americans by sending fake letters, emails, or calls that claim they’ve been “pre-approved” for special retirement plans, like 401(k) rollovers or annuity upgrades. These offers seem real because the scammers use actual personal information like age, home value, and estimated savings—data they buy from companies that collect and sell this kind of info. To trick people, they use official-sounding terms like “IRA consolidation" and copy the style of real financial institutions. Many older adults don’t report these scams out of fear or embarrassment, but AARP estimates that seniors lose at least $28 billion each year to fraud.

In 2024, impersonation scams in the U.S. cost people nearly $3 billion, with older adults being the most frequent victims, according to the Federal Trade Commission (FTC). These scams involve criminals pretending to be government officials or representatives from trusted companies. They trick people into sending money through bitcoin ATMs or handing over cash and even gold to fake couriers. Seniors are especially at risk because they may be more isolated or less familiar with digital technology. The rise in these scams is happening during a time of economic stress, which makes people more anxious and likely to fall for fraud.

On August 7, 2025, the Federal Trade Commission (FTC) announced a $145 million settlement with Prudential's former unit, Assurance IQ, and the marketing tech company MediaAlpha. These companies were accused of tricking people who were shopping for health insurance. They allegedly collected personal information by falsely advertising health plans and then sold that information to marketers who used it to flood consumers with robocalls and misleading sales pitches. This case highlights growing concerns about fraud, especially as more people turn to online platforms for important services like health coverage. The FTC's action is part of a broader effort to protect consumers—particularly older adults and vulnerable individuals—from deceptive practices in the digital age.