Podcast Summary: What the Hack?

Episode 239: Is AARP Doing More than the FBI to Stop Scams?
Host: Beau Friedlander (DeleteMe)
Guest: Kathy Stokes (Director of Fraud Prevention, AARP)
Date: February 17, 2026

Overview

This episode focuses on the massive and growing scale of online scams—particularly those targeting older adults—and asks whether organizations like AARP may be doing more than law enforcement or federal agencies to fight back. Kathy Stokes shares her expertise on current scam trends, emotional impacts, organized crime’s involvement, and what practical support AARP offers. The conversation ultimately points to a need for society-wide action and greater coordination to address the “fraud tsunami” sweeping the U.S.

Key Discussion Points & Insights

The Scale and Sophistication of Modern Fraud

• Scams are increasingly complex and organized:
  • Scammers use highly refined methods, exploiting victims’ emotions and targeting vulnerable moments.
  • Quote: “These are victims of sophisticated, complex crimes. It's not the guy in the hoodie in his mom's basement anymore... This is the space of transnational organized crime.” — Kathy Stokes [07:46]
• Fraud affects everyone, but older adults are prime targets:
  • Highest payouts are extracted from those 50+, making them focal points for scammers [04:55].
  • Younger people report more fraud incidents, but older adults lose more money.

Underreporting and Actual Economic Impact

• Reported vs. actual losses:
  • FTC reports: $12.5 billion lost to fraud (2023), while FBI cites $16.5 billion just to cyber fraud.
  • Adjusted for underreporting, AARP estimates losses as high as $158.3 billion in 2023, with $61.5 billion lost from older adults’ savings [13:05-14:28].
• Why the numbers are so different:
  • Shame, stigma, and emotional devastation keep many from reporting losses.
  • Quote: “So many stories we have from our helpline where people die of suicide, it's just too much to bear.” — Kathy Stokes [14:55]

Organizational and Societal Failures

• Law enforcement struggles:
  • Local and even federal police are overwhelmed, and jurisdictional complexity—often international in scope—prevents meaningful prosecution.
  • Cases of “$10,000 here and there” never reach the investigative threshold for federal action.
  • Quote: “Law enforcement has not played much at all of a role in going after these criminals… And it hasn't been prioritized.” — Kathy Stokes [21:11]
• Fraud isn’t treated with urgency or as organized crime:
  • Lack of a coordinated legal/law enforcement approach allows scammers to operate with near-impunity.

What AARP Is Doing Differently

• Fraud Watch Network and other initiatives:

  • 100,000+ annual helpline calls, powered by 150-160 specialized volunteers [16:37-17:54].
  • Nationwide grassroots fraud-fighter volunteer network delivers presentations, raises local awareness, and provides emotional support [24:01].
  • Watchdog Alerts break down specific scams for easy understanding [22:17] and the “Perfect Scam” podcast features stories from real victims.

• Emotional and psychological aftercare:

  • Small group support sessions via Zoom help victims heal and reduce isolation.
  • Peer-led, lasting communities have developed organically, supporting ongoing healing and, in some cases, turning victims into advocates [24:48].

• Advocacy and legislative wins:

  • State-level actions: 13 states now regulate cryptocurrency ATMs, refunding scam victims and adding consumer protections [28:09-30:38].
  • Federal activity: Bipartisan GUARD act aims to resource and train local law enforcement.

Current and Future Solutions

• Need for a coordinated cyber-fraud strategy:
  • Aspen Institute initiative is bringing 80+ organizations together to propose the U.S.’s first national fraud strategy, including calls for a “Fraud Czar” to coordinate efforts (as seen in UK, Australia, Singapore) [26:53-28:01].
• Community engagement and communication:
  • Regular conversations within families and communities help inoculate people against emerging scams.
  • Quote: “We owe it to each other to talk about this... The more we talk about it, the more we bring it out of the shadows.” — Kathy Stokes [37:09]
• Law enforcement glimmers of hope:
  • Some agencies and prosecutors are adapting, training, and leveraging blockchain analysis to recover stolen crypto; highlighted efforts from Santa Clara County DA Erin West and Operation Shamrock [35:44-36:44].

Notable Quotes & Memorable Moments

• “You might think online scams are just some guy in a hoodie in a dark room... These are victims of sophisticated, complex crimes.” — Host and Kathy Stokes [00:31-00:44]
• “It's where the money is. As Willie Sutton said. If you get the older adult on the hook, you have a much bigger payout.” — Kathy Stokes [06:24]
• Kathy’s defining “fraud tsunami”:
  • “...the organization rethought the work they were doing in the fraud space and decided to move this thing they called the Fraud Watch Network. And I became the interim lead of that work and it changed my life.” [03:58]
• On the emotional cost:
  • “Sometimes they're not even telling their kids and they're left to social safety nets. So many stories we have from our helpline where people die of suicide, it's just too much to bear.” — Kathy Stokes [14:55]
• A call for coordinated action:
  • “If we coordinate and we start looking at this through an organized crime lens... Arrest them and give them real time. And it's been proven that you can begin to disrupt the fraud business model.” — Kathy Stokes [34:41]
• Host’s summary of the problem:
  • “It's incredible... for a long time, folks have thought that fraud... are a different category of crime, but they are actually just a department in an organization. Much like the AARP has a fraud prevention program, you know, your local Tony Soprano has a crypto scam program and a timeshare program.” — Beau Friedlander [32:40]

Important Timestamps

• 00:31-01:07: Fraud is a vast, organized crisis, not minor or random
• 03:58-07:04: Kathy Stokes’ journey to AARP and personal mission
• 09:00-11:03: Education is necessary but not sufficient; requires societal action
• 13:05-14:28: The real scale of underreported fraud losses
• 16:10-17:54: How AARP’s Fraud Helpline and volunteer network operate
• 24:48-26:24: AARP’s victim support groups and the healing power of peer connection
• 28:09-30:38: Efforts to regulate crypto ATMs and legislative initiatives (GUARD act)
• 35:44-36:44: Law enforcement's evolving response; blockchain tracing and Operation Shamrock
• 37:09-38:50: The importance of normalizing fraud conversations with loved ones

Practical Takeaways (“Tinfoil Swan” Paranoid Advice) [39:16]

• What if someone you love is “addicted” to a scammer (especially in romance scams)?
  • Don’t try to argue or reason if they won’t listen—connect emotionally instead.
  • The solution is the “three Cs”: Connect, Communicate, Care.
    “The opposite of addiction is connection.” — Host [39:32]
  • Show online evidence together and foster an environment of trust and sharing to break the isolation that scammers exploit.

Episode Tone

• Empathetic, urgent, and practical.
• Sober examination of alarming fraud trends, balanced by hope through activism, advocacy, and community.
• Encourages honest discussion and action, refuses to shame victims, and empowers listeners to stay informed and connected.

Conclusion

While AARP may not have the force of law, their broad, volunteer-driven fraud prevention programs offer education, emotional support, and local awareness that often outpaces slow-moving public agencies. But as the fraud ecosystem becomes both more global and more sophisticated, only a united, “whole-of-society” approach—one that treats fraud as organized crime and supports victims—can hope to stem the rising tide.