This Houston man, 65, lost $500K in an elaborate elder fraud scheme — now he says he doesn’t know if he’ll be able to retire or have to work until he dies. How to stay vigilant against fraud

However, as he had received an official IRS letter two weeks prior warning him that his identity might have been stolen, he immediately thought the situation was legitimate and started following the scammers’ directions. Within five months, he had redirected — and lost — around $500,000.

“Now I can’t sleep,” said Nguyen.

Losing a financial future after a lifetime of hard work

Nguyen immigrated to the United States over 50 years ago. Since arriving, he has worked tirelessly and saved his money along the way.

Now aged 65, he had planned to retire in the near future. But after losing his life savings, retirement might no longer be feasible for him.

“I lost maybe $500,000,” said Nguyen. “I don’t know when I could retire or if I have to work until I die.”

The scam worked in part because, with the IRS’s recent warning in mind, he thought that this was a legitimate government agency reaching out to help him protect his identity. So when the caller said he would need to send money to clear his name, Nguyen believed them.

Over the coming months, the scammers exchanged messages with him through Viber, an encrypted messaging app, with forged government documents and AI-generated videos of official protocols.

And, as is typical of many scams, scammers directed him to transfer money via a wire transfer. In the quest to clear his name, he transferred most of his life savings.

Eventually, he determined that the money wasn’t coming back and worked up the courage to reach out for help by sharing the situation with his daughter.

“I was in shock, I did not know that this was going on for the past five months,” said his daughter, Kathy Nguyen. “He didn’t have anything left and he needed to reach out for help, but he was ashamed."

Currently, Nguyen is in the process of selling his house with the goal of paying off the debts incurred throughout this process.

His daughter is doing everything she can to help him get back on his feet, including starting a GoFundMe, which has already raised five figures to help him get back on his feet.

Elder fraud is on the rise

Elder fraud is heartbreaking. But it’s also more common than you might think. And it’s on the rise.

According to the FBI, elderly Americans lose more than $3 billion per year to scams. In 2023, that number was $3.4 billion — an increase of 11% from the previous year, with government impersonation scams accounting for $180 million in losses.