IRS Warns of Rising Elder Fraud Schemes: How to Protect Yourself and Your Loved Ones

The IRS is sounding the alarm about a troubling increase in elder fraud schemes, and families across the country should pay attention. According to a June 15, 2026, warning from IRS Criminal Investigation, fraudulent activity targeting older Americans has increased in recent years, with IRS-CI opening 97 new elder fraud investigations in fiscal year 2025 and 64 more cases halfway through the current fiscal year. From fiscal year 2021 through fiscal year 2026, IRS-CI launched 255 elder fraud investigations involving alleged fraud totaling more than $885 million.

For older adults, these scams can be financially devastating. For families, they can be heartbreaking. Many victims are targeted because scammers believe they may be more trusting, isolated, or unfamiliar with newer fraud tactics involving cryptocurrency, fake online relationships, impersonation calls, or urgent digital payment demands.

At IRS Trouble Solvers, we know how frightening it can feel when someone claims to be from the IRS, threatens legal action, or demands immediate payment. The most important thing to remember is this: real IRS problems can be solved through proper channels. Scam pressure tactics are designed to scare you into acting before you think.

Common Elder Fraud Schemes the IRS Is Warning About

IRS Criminal Investigation identified several types of scams commonly used against older adults. One of the most concerning is the government impersonation scam, where a criminal pretends to be from the IRS or another government agency and threatens arrest, legal action, deportation, or other serious consequences unless payment is made immediately.

Other common elder fraud schemes include:

Emergency scams. A scammer pretends that a child, grandchild, or loved one is in danger and needs money right away.

Romance scams. A criminal builds a fake online relationship and eventually asks for money, often claiming an emergency, business problem, medical issue, or travel complication.

Lottery and sweepstakes scams. The victim is told they have won a prize but must first pay taxes, fees, or processing costs.

Investment fraud. Scammers promise high-return, low-risk opportunities, sometimes involving Ponzi schemes, cryptocurrency, or “exclusive” investments.

Charity scams. Fake nonprofits ask for donations, often after disasters, tragedies, or emotional news events.

These schemes may look different on the surface, but they usually rely on the same formula: fear, urgency, secrecy, and payment methods that are hard to trace.

Red Flags That Something May Be a Scam

The IRS warning highlights several red flags families should watch for. Scammers often pressure victims to act immediately, keep the situation secret, or send money through gift cards, wire transfers, cryptocurrency, or cash. They may also contact victims through unsolicited phone calls, texts, or emails and ask for personal or financial information.

Be especially cautious if someone:

• Claims to be from the IRS and demands payment over the phone.
• Threatens arrest, jail time, deportation, or immediate legal action.
• Tells you not to speak with your spouse, children, accountant, attorney, or financial advisor.
• Asks for payment by gift card, cryptocurrency, wire transfer, prepaid debit card, or cash.
• Says you must pay “taxes” or “fees” before receiving a prize or inheritance.
• Requests your Social Security number, bank login, account number, or tax information unexpectedly.
• Creates emotional panic by claiming a loved one is in trouble.

Legitimate tax problems may be serious, but they do not require panic-based decision-making. If the IRS has a real issue with your tax account, you generally receive written notices and have rights, options, and time to respond.

What to Do If Someone Claims to Be From the IRS

If someone contacts you claiming to be from the IRS and demands money or personal information, stop before responding. The IRS specifically advises people to hang up if someone claims to be from a government agency and asks for payment or personal information, then contact the agency directly using information from the agency’s official website.

A safe response looks like this:

• Do not confirm personal information.
• Do not click links in suspicious emails or text messages.
• Do not call back numbers provided by the person contacting you.
• Do not send money.
• Do not allow fear to rush your decision.

Instead, verify the issue through official channels or speak with a trusted tax professional who can help determine whether the tax issue is legitimate.

How Families Can Help Prevent Elder Fraud

Family members can play an important role in protecting older loved ones. IRS-CI recommends discussing common scams openly, establishing trusted contacts with financial institutions, watching for unusual withdrawals or sudden secrecy, and considering power of attorney arrangements in cases of cognitive decline.

These conversations can feel uncomfortable, but they are important. A simple family rule can help: No major financial decision should be made under pressure or without first speaking to a trusted person.

Families should also watch for warning signs such as:

• Sudden large withdrawals.
• New “friends” online who ask for money.
• Unusual secrecy about phone calls, emails, or financial activity.
• Repeated purchases of gift cards.
• Unexplained wire transfers or cryptocurrency transactions.
• Fearful comments about owing money to the IRS or being arrested.

The goal is not to take away independence. The goal is to create a safety net before scammers can cause lasting damage.

What If You or a Loved One Has Already Been Scammed?

First, do not be embarrassed. The IRS emphasized that these schemes have become increasingly sophisticated. Victims are not foolish; they are targeted by criminals who know how to manipulate fear, trust, loneliness, and urgency.

If you believe you or a loved one has been victimized, take action quickly:

• Cease contact with the scammer immediately.
• Notify your bank or financial institution if money or account information was shared.
• Preserve records, including emails, screenshots, phone numbers, texts, receipts, and transaction records.
• Report the incident to local law enforcement or an IRS Criminal Investigation field office.
• If the scam involved tax information, identity theft, IRS notices, or a possible tax debt, speak with a qualified tax resolution professional as soon as possible.

When a Tax Problem Is Real, IRS Trouble Solvers Can Help

Scammers often succeed because people are terrified of the IRS. They hear the words “tax debt,” “criminal investigation,” “levy,” “garnishment,” or “arrest,” and they panic.

That fear is exactly what criminals are counting on.

But real tax problems have real solutions. If you received an IRS notice, owe back taxes, are facing a levy or garnishment, or are unsure whether a message you received is legitimate, IRS Trouble Solvers can help you understand what is actually happening and what options may be available.

Do not let a scammer push you into a costly mistake. And do not ignore a real IRS issue because you are afraid to deal with it.

If you or someone you love has been contacted by someone claiming to be from the IRS, call IRS Trouble Solvers before sending money or sharing personal information. We can help you sort out whether it is a scam, a legitimate tax issue, or something that needs immediate attention.