Disability Scam Statistics
Disability scams have become part of a broader surge in fraud activity across the United States. In particular, there has been a significant rise in government impersonation scams targeting vulnerable groups like seniors and disability benefit recipients. Over 2.6 million consumers reported fraud to the Federal Trade Commission (FTC) in 2024, and the most commonly reported scam category was imposter scams, with government imposter scam losses surging to nearly $800 million.
According to FTC data, consumers reported losing $12.5 billion to fraud in 2024, a 25% increase from the prior year. This was driven by a 38% increase in the percentage of people who reported losing money to fraud or scams. Consumers lost $5.7 billion to investment scams and $2.95 billion to imposter scams.
Why Disability Beneficiaries Are Targeted
Disability benefit recipients—especially older adults—are significantly more likely to suffer high-dollar fraud losses. Victims above age 60 are three times more likely to lose over $100,000 in impersonation scams compared to younger victims.
In 2025, reports to the FTC showed an increase in scams targeting retirees’ life savings. Scammers pretend to be from known government agencies and businesses, using fake security alerts and false alarms to prey on older adults’ vigilance about protecting their money and identity. From 2020 to 2024, the number of reports from older adults who lost over $10,000 to these scams more than quadrupled. Losses of over $100,000 increased nearly sevenfold, and combined losses went up eightfold.
Most Common Types of Disability Scams
Several major scam categories can affect disabled individuals. Some of the most common lies scammers may use to target disabled individuals include false statements that someone is using their accounts, that their information is being used to commit crimes, or that there is a security problem with their device.
Government Impersonation Scams
Federal law enforcement agencies have warned the public about a surge in government imposter scams using real Social Security Administration, Office of Inspector General, and Medicare employee names, badge images, and social media profiles. Scammers use the name of a real employee along with a fake badge or credential to appear legitimate. They may reach out by phone, text, email, social media, or mail, applying pressure to act immediately.
Fake Benefit Increase or Grant Scams
Grant schemes involve scammers pretending to offer grants to disabled individuals, often from the U.S. Department of Health and Human Services, and requesting payment or sensitive personal information in return. If someone contacts you about an opportunity to get free federal grant money, it’s likely a scam.
Phishing and Account Takeover Scams
Phishing is an extremely common type of online scam where an imposter creates a fake online persona to deceive disabled individuals into providing personal information or money. If successful, scammers use this information to unlawfully access and gain control of victims’ accounts, stealing money and identities.
Fraudulent Legal or Disability Assistance Services
Consumer protection agencies report ongoing complaints involving fake legal aid or disability claim assistance scams. Scammers may try to obtain personal information by pretending to help with disability benefits applications and claims. They may contact you, whether you’ve started an application for benefits or not, requesting your Social Security number or bank information to “complete the process.”
Financial Abuse by Trusted Individuals
Cognitive impairment and the need for help with activities of daily living make disabled individuals more vulnerable to financial abuse. According to the National Adult Protective Services Association (NAPSA), one in 20 older adults experience some form of perceived financial mistreatment, and the vast majority of abusers are family members of other trusted individuals. These may include caregivers, neighbors, friends, attorneys, pastors, doctors, nurses, and more. However, stranger scams and fraud are also common.
Who Is Most at Risk?
Adults over 60 lose significantly more money per fraud incident than younger victims, according to FTC consumer data summaries. Age, low income, social isolation, and digital access barriers all make people more vulnerable to scams.
Fixed-Income Households
Individuals relying on fixed government income are more likely to experience financial harm from scams due to limited recovery capacity.
Digital Access Barriers
Limited digital literacy is strongly associated with greater susceptibility to consumer fraud.
Social Isolation
Social isolation and diminishing cognitive capacity can combine to affect the judgment and decision-making capacity of senior investors, which can, in turn, make them more vulnerable to financial abuse. Financial abuse can happen at any time, but perpetrators often strike when a senior is experiencing a health crisis or mourning after a death. Personal details from obituaries and social media posts give scammers an easy “in” to the victim’s life.
Impact of Disability Scams on Victims
Disability scams can have significant financial and emotional consequences for victims and their loved ones.
Financial loss and benefit disruption
Stolen funds and delayed payments can lead to significant financial losses and even the disruption of government benefits.
Emotional stress and fear of reporting
Anxiety, confusion, and trust issues can arise after scams occur.
Long-term identity theft risks
Initial scam exposure can lead to ongoing fraud and identity theft risks.
How to Recognize Disability Scams
Some of the main warning signs and red flags for disability scams include urgency, threats, requests for personal or financial information, and contact from unofficial communication channels.
Urgency and threat-based messaging
Scammers use pressure tactics to try to get panicking victims to submit.
Requests for personal or banking information
Scammers may impersonate government employees to obtain personal or banking information from a disabled individual.
Unofficial contact channels
Scams often use fake phone numbers, emails, or websites.
How to Protect Yourself From Disability Scams
Verify Government Communications
Confirm the legitimacy of a Social Security Administration, Medicare, or other agency contact before providing any information. Government agencies will never call, email, text, or message you to ask for money or sensitive personal information. Only scammers pretending to be from government agencies use this tactic.
Secure Personal and Financial Information
As a preventative measure, use secure passwords with multi-factor authentication on your accounts. Only give account information and access to completely trusted individuals, such as close family members.
Report Suspected Scams
If you suspect you’ve been targeted by a disability scam, report it to the FTC, the SSA Office of Inspector General, and consumer protection agencies, if applicable.
What to Do If You Were Targeted or Scammed
Contacting financial institutions immediately
After being targeted by a scam, contact your financial institutions to stop transactions or recover funds.
Reporting identity theft
Contact your financial institution and the three major credit bureaus to freeze your credit and set up fraud alerts on your accounts. You may also wish to sign up for identity theft monitoring.
Seeking legal or consumer support
Class Action U offers resources for broader consumer protection awareness, as well as connections to reputable attorneys who can evaluate your legal options.