Common Financial Scams that Target Retirees and How to Spot Them

Unfortunately, with the rise of technology there have been more and more accounts of retirees being targeted for financial scams to rob them of their wealth or identities. Because scammers have gained an understanding of how to trick and manipulate this generation, it has become quite common for them to gain access to bank accounts, personal information and in some cases, assets.  

Learning about the common risks and schemes in this day and age can mean the difference between you or your loved ones remaining protected or playing right into the tricks of scam artists. 

Common Scams That Target Retirees and Seniors

Health Insurance Scams

If you are 65 or older, you qualify for Medicare benefits, which can make you the target of health insurance scams. Utilizing insurance provider information, which can be easily aquired, scammers are able to perform fraudulent behavior over the phone or even in person.

Several of the more common scams are, being notified that you need a new Medicare card and must provide your Social Security information to receive it.

Telemarketing Scams

1. Investment Scams

Many retirees are interested in expanding their wealth, especially if they have a legacy to one day leave behind, which can make this group easy prey for faux “investment opportunities” that may not exist at all. Whether it’s offering their finances to a fictional business or buying a vacation property that isn’t real, investment scams have the potential to deplete retirees of their savings in a flash. 

2. Internet & Email Scams

Online schemes have become a favorite among scammers because many of the current retirees are of older generations unaware of the many technology and internet changes. Phishing scams, viral pop-ups and attempts to steal someone's identity are a few examples of what you may encounter. Always remember, no bank or business will ask for your personal information via email. If you are ever uncertain, call the organization or visit their website to learn more. It is always better to be safe than sorry!

3. Charity Scams

We all know that natural disasters are often unpredictable and happen regularly. With these occurrences, scammers find opportunities to target those who have been affected or want to offer their support. These situations can occur over the phone, through social media, email or in person. Always donate to reputable charities and learn more using the IRS’s tax-exempt organization search. 

4. Help/Grandparent Scams

This scenario often consists of someone calling or emailing the victim either pretending to be a family member in trouble or acting as a person of authority representing the relative. They then ask for money to be wired to cover certain fees, which you may be all too happy to provide as someone who is emotionally involved. In order to keep the situation under wraps, you may then be asked not to tell anyone and soon after will never hear from the “relative” again, leaving you out of a particular amount of money. 

If you find yourself to be a victim of any of the scenarios above it’s important to file a complaint with the Federal Trade Commission. By doing so you may be able to retrieve your funds, but you will ultimately be helping a potential victim from experiencing a similar situation. 

Protecting Yourself and Others From Financial Scams

It’s important to protect yourself and those close to you from falling victim to financial scams that have become so frequent. Taking the time to address these details can help prevent you from encountering devastating theft. 

• Be suspicious 
• Ask questions and stay informed
• Never give out personal information to unknown sources
• Don’t make hasty decisions
• Invest carefully

It’s unfortunate, but scammers who often prey on the elderly generally rely on the assumption that retirees and older groups of people are unfamiliar with technology and that they are unaware of the many possibilities of having their personal information stolen. 

If you ever feel suspicious of an email, phone call or other forms of contact don’t hesitate to go with your gut and do your research regarding the origins of the “company” or group you’re speaking with. Staying aware will help you ultimately safeguard your well-being.