How to Protect Yourself from Financial Scams
According to the FBI's Internet Crime Complaint Center (IC3), individuals aged 60 and older reported losses exceeding $3.4 billion due to financial scams in 2023, marking an 11% increase from the previous year. FBI.gov
Retirement should be a time of relaxation and enjoyment, but scammers often target this age group, exploiting trust and their unfamiliarity with digital technology.
The Latest Scams Targeting Retirees
Phishing Scams
Phishing involves emails, text messages, or phone calls that appear to be from legitimate companies, such as banks, government agencies, or tech support. Scammers trick you into revealing sensitive information, such as your Social Security number or credit card details.
Red Flag:
Unsolicited messages asking for personal information.
Urgent language like “Your account is at risk!” or “Act now to avoid being locked out.”
What to Do:
Do not respond to messages or click on any links, ever.
Contact the company using a verified phone number or website to check if the message is legitimate. Or go into your app to view your account.
Report the phishing attempt to the Federal Trade Commission (FTC).
Delete the message immediately after reporting.
Investment Fraud
Scammers promote fake investment opportunities that promise high returns and little risk. They often use high-pressure tactics to lure you in. These include Ponzi schemes, bogus real estate investments, and fraudulent bonds.
Red Flag:
High-pressure sales tactics urging you to “act now” to get in on a great deal - fast talking and lots of promises.
Lack of transparency or secrecy about the investment details.
Promises of guaranteed high returns with little or no risk.
What to Do:
Never make an investment decision on the spot. Take your time to research the opportunity.
Verify the investment advisor by checking their registration with the SEC at investor.gov.
Consult a trusted financial advisor or bookkeeper before investing large sums of money.
Romance Scams
Romance scammers create fake profiles on dating sites or social media, building emotional relationships over time. They are compelling. They often claim to be overseas or in the military and eventually ask for money to cover “emergencies” or travel expenses to come see you.
Red Flag:
Requests for money, especially through wire transfers, gift cards, or cryptocurrency.
Refusal to meet in person or participate in video calls, often with excuses about work commitments or bad internet connections.
Expressions of love or emotional bonding unusually early in the relationship.
What to Do:
Stop all communication immediately if you suspect a romance scam.
Do not send money or provide personal information under any circumstances.
Report the scam to the dating site or social media platform where you met the person.
Contact your bank if you’ve already sent money to see if you can reverse the transaction.
Medicare and Health Insurance Scams
Scammers pose as Medicare representatives to steal personal information or sell fake health services. They often target retirees during open enrollment periods when you’re updating your health insurance plans.
Red Flag:
Calls or visits from people claiming to be from Medicare, asking for your Medicare ID, Social Security number, or banking information.
Offers for “free” medical services in exchange for personal information.
What to Do:
Hang up immediately if you receive unsolicited calls asking for personal information - this goes for all instances.
Do not share your Medicare number or other personal details over the phone.
Contact Medicare directly at 1-800-MEDICARE to verify the legitimacy of the call. Report the call to them.
Grandparent Scams
Fraudsters pose as distressed grandkids needing immediate financial help, often claiming to be in legal trouble or stranded in a foreign country. They ask for urgent wire transfers or gift cards, playing on the grandparents’ emotional vulnerability. Artificial Intelligence is advancing tremendously. This scam will pull at your heartstrings and have you panicked. Please don’t fall for it.
Red Flag:
Emotional pleas for help with a sense of urgency.
Requests for money through wire transfers or gift cards.
The caller asks you to keep it secret from other family members.
What to Do:
Stay calm and do not act immediately.
Verify the story by directly calling another family member or grandchild using a known phone number.
Never send money or provide any personal or financial information.
Report the phishing attempt to the Federal Trade Commission (FTC).
Tips for Safeguarding Your Financial Information
Never Send Money to Someone You Haven’t Met in Person
Scammers excel at creating emotional connections, but if someone you’ve never met in person asks for money, it’s likely a scam.Be Skeptical of Unsolicited Requests for Personal Information
Legitimate organizations won’t ask for personal information through unsecured channels. Verify any request by contacting the organization directly.Use Strong Passwords and Enable Two-Factor Authentication
Protect your online accounts with strong, unique passwords and enable two-factor authentication for added security.Monitor Your Financial Accounts Regularly and Freeze Your Credit.
Check your bank statements and credit reports frequently to catch unauthorized transactions early.A credit freeze restricts access to your credit report, making it difficult for identity thieves to open accounts in your name. It does not affect your existing accounts or credit score and can be paused (“thawed”) or lifted whenever needed.
Contact Each Credit Bureau
Experian
Call: 1-888-EXPERIAN (1-888-397-3742)
Equifax
Call: 1-800-349-9960
TransUnion
Call: 1-888-909-8872NEVER click on a link in an email asking for immediate action or claiming your account, subscription, or order will be canceled. Scammers are skilled at creating identical logos and layouts.
Pause. It’s always easier to reorder than go through the process of getting your money or personal information back. Call or go directly to your online account for more details.
Educate Yourself and Stay Informed
Stay updated on the latest scams by following trusted sources like the Federal Trade Commission (FTC) Fraud Reporting and FBI’s Internet Crime Complaint Center (IC3)
Here’s a link to an IRS post from 2/27/25 explaining the DIRTY DOZEN tax scams to be aware of (you can sign up for alerts online).
How I Can Help Protect You from Scams
At Bookkeeping by Chrissy I actively help protect clients from financial fraud by:
Helping to set up fraud protection on your accounts.
Monitoring accounts for unusual activity and notifying you of any suspicious transactions.
Providing detailed financial reports so you can easily spot discrepancies.
Educating you on the latest scams and offering guidance on safeguarding personal information.
Schedule a free consultation today to learn how I can help you stay organized, secure, and scam-free.
