📅 2026 Update: Changes in US Fraud Law and Impact on Older Adults

Since the original article was published, there have been significant updates in US fraud law and the impact of fraud on older adults. These changes highlight the growing threat of fraud and the increasing penalties for offenders. The original article continues further down the page.

📈 Increased Losses in Older Adults

In 2025, older adults reported losses totaling $2.7 billion due to fraud. This number is a 20% increase from 2024. Older adults are becoming prime targets for various fraud schemes, making awareness and prevention crucial.

📱 Rise in Social Media-Related Fraud

Fraud involving social media platforms has sharply risen. In 2025, older adults faced losses of about $1.2 billion through these channels. This figure represents a twelvefold increase compared to 2020.

Scammers are leveraging social media to reach victims more effectively.

⚖️ Enhanced Penalties for Bank Fraud

As of September 26, 2026, individuals convicted of bank fraud under 18 U.S.C. § 1344 can now face up to 30 years in federal prison and fines reaching $1,000,000 per count. These tougher penalties aim to deter bank fraud and protect consumers.

💰 Adjusted Civil Penalties

Starting January 13, 2025, the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 increased maximum civil money penalties across federal agencies. This adjustment reflects the need to keep penalties in line with inflation and the seriousness of fraud offenses.

📌 Key Takeaways

  • 📊 Older adults lost $2.7 billion to fraud in 2025.
  • 📱 Social media-related fraud costs older adults $1.2 billion.
  • ⚖️ Bank fraud now carries up to 30 years in prison.
  • 💵 Civil penalties have been adjusted for inflation.
  • 📅 Awareness of these changes can help in preventing fraud.

💡 Tips for Understanding Fraud and Reporting

Reviewing your situation with an attorney can provide clarity on your specific circumstances. Understanding the types of fraud and how to respond is essential for protection.

🛡️ Know the Types of Fraud

Familiarize yourself with different types of fraud, such as identity theft, wire fraud, and bank fraud. Each type has specific characteristics and methods used by fraudsters.

📞 Report Fraud Quickly

If you suspect fraud, report it to the Federal Trade Commission (FTC) promptly. Timely reporting can improve the chances of recovering losses and preventing further fraud.

🖥️ Use FTC Resources

The FTC provides free resources to help consumers recognize, avoid, and report fraud. Utilize these resources for guidance on how to protect yourself and your finances.

📚 Educate Yourself

Stay informed about the latest fraud trends, especially those targeting older adults. Knowledge can help you recognize suspicious activity and avoid falling victim.

🔒 Protect Personal Information

Be cautious about sharing personal information, especially online. Ensure that your social media privacy settings are secure and be skeptical of unsolicited requests for information.

🏆 Free Options Ranked by User Reviews (2026)

No national paid service in fraud prevention met the review threshold, so this section highlights free government and nonprofit resources available to help consumers.

🥇 1. Federal Trade Commission (FTC)

The FTC offers tools and resources for consumers to report fraud and learn how to avoid scams. It helps anyone who has been a victim of fraud, ensuring they have access to the information they need.

🥈 2. Consumer Financial Protection Bureau (CFPB)

The CFPB provides information and assistance related to financial fraud. They focus on consumer protection, helping individuals navigate issues related to fraud and financial security.

🥉 3. AARP Fraud Watch Network

AARP offers resources and alerts aimed at protecting older adults from fraud. Their network provides valuable information to help consumers identify and avoid fraudulent schemes.

🔍 Tips Before Paying for Help

  • 🔍 Verify the legitimacy of any service.
  • 💰 Check for hidden fees before signing up.
  • 📞 Confirm that the resource has a good reputation.
  • 📜 Look for reviews from other users about their experiences.

❓ Frequently Asked Questions

❔ What should I do if I suspect I am a victim of fraud?

Report your suspicions to the FTC. They provide resources and guidance for victims to help address the situation effectively.

🕒 How long does it take to resolve a fraud complaint?

The FTC processes complaints promptly, but the time frame for resolution depends on the complexity of the fraud reported.

💼 Can anyone report fraud to the FTC?

Yes, any individual who has been a victim of fraud, regardless of age or location, is eligible to file a complaint with the FTC.

📑 What are the penalties for identity theft?

Penalties for identity theft can range from a one-year misdemeanor to 30 years in federal prison, depending on the severity of the offense.

🔒 How can I protect myself from social media fraud?

Be cautious about accepting friend requests and sharing personal information online. Adjust privacy settings to limit who can see your posts.

📊 Are there specific trends in fraud targeting older adults?

Yes, older adults are increasingly targeted for fraud, especially through social media. Staying informed about these trends is crucial for prevention.

⚖️ Recent Cases Related to Fraud

Recent court rulings have addressed various aspects of fraud, including penalties and enforcement measures. These rulings connect to the ongoing battle against fraud in the financial sector.

For more recent rulings, check out more rulings on the news page.

End of October 2026 Update





What is Goldman Sachs?

Goldman Sachs is an influential and powerful investment banking and securities firm, which engages in various financial services, such as investment banking, investment management and securities. The primary clients of Goldman Sachs are high net-worth individuals and institutional clients, such as other banks or hedge funds.

In addition to its basic services, Goldman Sachs provides mergers and acquisitions advice, asset management functions, prime brokerage and underwriting services for its respective clients.

Goldman Sachs Fraud Explained:

In the early part of 2010, Goldman Sachs was charged by the Securities and Exchange Commission with fraud for allegedly delivering misleading statements and making egregious omissions regarding their mortgaged based investments. In essence, the Goldman Sachs fraud resulted when the investment bank packaged and subsequently sold products that they knew were flawed. Goldman Sachs created and sold these mortgage-backed securities to investors so they could effectively hedge against the sale or bet against it to earn a substantial profit.

What You Need to Know About Goldman Sachs Fraud

What Product did Goldman Sachs Fraudulently Sell?

The product surrounding the Goldman Sachs Fraud case was in fact a fundamental asset that triggered the global financial crisis. Sub-prime mortgages, which are a form of mortgage-backed securities, were agglomerations of toxic debt that were packaged and sold to investors as high risk/high yield investment products.

As a result of their toxic nature and the fact that the majority of the products ultimately were worthless from default, the regulators within the United States Securities and Exchange Commission identified the Goldman Sachs Fraud case as the deliberate 

As is common with any major financial transaction, an intermediary or middle man needs to be present. In regards to the Goldman Sachs fraud case, they were acting as the middle man or intermediary to facilitate the exchange of their mortgage backed securities. 

Facts Surrounding the SEC Investigation and Lawsuit:

On April 16, 2010 the Securities and Exchange Commission sued Goldman Sachs and one of its employees (Fabric Tourre) due to allegations that Goldman Sachs misstated and omitted facts in various disclosure documents for a synthetic collateralized debt obligation product, referred to as Abacus 2007-AC1. Goldman, which was paid $15 million for its work in this particular deal, was charged with misrepresenting investors who purchased this product.

The issue of the Goldman Sachs fraud case occurred when an independent selection agent, the ACA, had reviewed the particular product’s credit default obligations, and found that Goldman failed to disclose that a hedge fund (Paulson and Company) who  intended to short or bet against the packed fund, aided in selecting the underlying mortgages that comprised the package. Furthermore, the SEC alleged that Goldman’s employee (Tourre) also misled the ACA into believing that Paulson and Company invested approximately $200 million as a long position into the Abacus 2001-AC1.

As a result, these claims directly contrasted from the investigation efforts—Tourre claimed Paulson was long the Abacus 2001-AC1 when they were in fact shorting it. In turn Goldman stated that the firm never contended to the ACA that Paulson was to be a long investor and that as its customary business practice, market makers do not disclose the identities of buyers or sellers in a particular investment. 

The complaint of the SEC stated that Paulson made roughly $1 billion from its short investment while purchasers of the Abacus 2001-AC1 lost the same amount. 

Goldman Sachs Fraud Resolution:

On July 15, 2010 Goldman Sachs agreed to pay $550 million--$300 million went to the United States government and $250 million went to the investors who lost monies—in a settlement with the SEC. Additionally, the company regarded to change its mortgage investment business practice, including the way it created and designed marketing materials.