Most fraud advice for retirees is about recognizing the scam. The more useful question is what happens in the 48 hours after a retiree has already been convinced — because at that point the only thing standing between a nest egg and a wire transfer is whether the institution holding the money has legal authority to hit pause.
The Losses Are Concentrating in Investments
The FBI's Internet Crime Complaint Center recorded more than 201,000 complaints from Americans age 60 and older in 2025, with reported losses topping $7.7 billion. Complaints rose 37% year over year; losses rose 59%. The average reported loss for an older victim exceeded $38,000, and at least 12,400 victims reported losing $100,000 or more.
What changed is the mix. Investment fraud — much of it involving cryptocurrency and fabricated trading platforms — accounted for $3.52 billion of those losses, up from $1.83 billion in 2024, a 92% increase in a single year. That is roughly 45% of all elder fraud losses, more than tech support ($1 billion+), romance ($584 million) and business email compromise ($568 million) combined.
A newer wrinkle: IC3 received more than 3,100 complaints from older victims that specifically referenced AI, tied to over $352 million in losses.
The Protection Depends on Where the Money Sits
Here is the part most investors never think about. If your assets are in a brokerage account or an IRA at a broker-dealer, FINRA Rule 2165 lets the firm place a temporary hold on a disbursement when it reasonably believes an adult 65 or older is being financially exploited. The hold runs up to 15 business days, extendable to 25, with a single 30-business-day extension available if the firm reports the matter to a regulator — a maximum of 55 business days.
Mutual fund shares held directly with the fund company's transfer agent have no equivalent authority. The fund is generally obligated to honor the redemption. That is the gap H.R. 2478, the Financial Exploitation Prevention Act of 2025, is written to close. Sponsored by Rep. Ann Wagner, it passed the House 414–2 on June 25, 2026 and now sits with the Senate Banking Committee. It would amend the Investment Company Act of 1940 to let a fund or its transfer agent delay a suspicious redemption for up to 15 business days, with 10 additional business days if exploitation is confirmed.
FINRA is moving in parallel. Regulatory Notice 26-02, issued January 8, 2026, proposes a new Rule 2166 allowing a five-business-day delay for suspected fraud against any customer regardless of age, and would stretch Rule 2165's maximum hold from 55 to 145 business days.
What Actually Makes the Rule Work
None of this functions without a name on file. FINRA Rule 4512(a)(1)(F) requires firms to make a reasonable effort to obtain a trusted contact person, and a firm placing a hold must notify that contact within two business days. FINRA's 2026 oversight report found firms commonly ask only their senior customers for one — meaning many accounts have no one to call.
Three practical steps:
- Name a trusted contact on every account, including ones held directly at fund companies. It grants no trading authority.
- Map your accounts by holder type. Assets at a broker-dealer have hold protection today; direct-at-fund positions do not, pending the Senate.
- Treat urgency as the tell. Legitimate investments survive a 15-day hold. Scams are engineered specifically to avoid one.
Sources: FBI Internet Crime Complaint Center (IC3) 2025 Internet Crime Report; Congress.gov — H.R. 2478, Financial Exploitation Prevention Act of 2025; FINRA Rule 2165; FINRA Regulatory Notice 26-02; FINRA 2026 Annual Regulatory Oversight Report