Train your brain to spot scams before they strike

Fraud has outgrown the stereotype of a lone phone call from a con artist.

• It's now a systemic, organized enterprise that exploits technology, psychology and, most effectively, shame.

Why it's important: Last year alone, Americans reported $12.5 billion stolen from incidents of fraud, but the FTC believes losses could be closer to $150 billion once underreporting is factored in.

What you need to know: Fraud is a coordinated, profit-driven business that costs the nation billions and preys on isolation and shame.

• It's a crime of manipulation — but unlike victims of theft, fraud victims are often met with blame rather than support.
• This cycle keeps victims from reporting, allowing criminals to go unpunished and fueling the larger fraud business model.

An expert take: "For far too long, we have had this tendency to believe that fraud only happens to people who are gullible," explains Kathy Stokes, AARP's director of fraud prevention programs. "But this sentiment has been turned on its head."

• A 2025 report found that an estimated 41% percent of American adults have had money stolen or sensitive information obtained and used fraudulently.
• "That's huge," says Stokes. "Ten years ago, the presumptions were that maybe about 15% of people had experienced fraud."

Key numbers: For all its prevalence, fraud remains an underreported crime.

• Only 21% of respondents who had been fraud victims reported the crime to local law enforcement, and only 14% told the FBI or FTC.
• Just 43% of respondents who were fraud victims warned their peers, like family members or friends, about their experience.

Fraud is built on emotion — surprise, fear, urgency — but it thrives on silence.

• AARP's research shows that awareness dramatically lowers risk: if you know about a specific scam, you're 80% less likely to engage with it.

Scammers rely on a split-second emotional reaction before your logic intervenes — but if you can recognize the pattern, you can train your brain to disrupt your reflex to fulfill a scammer's demands.

How it's done: AARP's "Pause, Reflect, Protect" model applies behavioral science to crime prevention, teaching consumers to recognize scammers' emotional manipulation.

• Pause: Take a breath before reacting.
• Reflect: Ask what the sender wants you to do and why.

• Protect: Verify independently — not through the number or link you were given.

If you spot or experience a scam, report it to local law enforcement and to the FTC.

• Every report helps authorities identify patterns and catch criminals faster.

The background: AARP's mission is to help people choose how they live as they age, including protecting their financial security.

• Through its Fraud Watch Network™, AARP equips consumers with tools and direct guidance from fraud specialists to recognize the common blueprint of manipulation and disrupt the pattern.

Worth a mention: AARP Iowa's volunteer fraud prevention presenters travel statewide offering free sessions to any group, large or small.

• The sessions are free and open to all, regardless of age or membership.

Education works, but knowledge alone can't stop an industry of professionalized deception.

• AARP advocates for legislation that disrupts criminal networks and reinforces consumer confidence.
• By combining advocacy with education, AARP helps Iowans stay informed and protect themselves.

Learn how to protect yourself by requesting a free fraud-prevention presentation for your community.