Retirement should be the time of your life where you get to enjoy the fruits of your labor – not when you get scammed out of all your savings. According to the Internet Crime Complaint Center (IC3), roughly $3.4 billion in total fraud losses were reported by Americans over 60 years old in 2023, with the average loss per case measuring nearly $34,000.i Scammers often target retirees because they are generally more trusting and typically have retirement savings in their bank accounts. So how do you protect yourself and the money you’ve worked decades for? Here are some of our top tips to protect yourself from potential scams in retirement:
Enhance Your Cybersecurity
The internet is one of the most common places where people get scammed, and it can happen to anyone who isn’t careful and doesn’t take proper precautions. As a general rule of thumb, you should be extremely careful of anyone you meet on the internet, whether it’s on social media, a dating site, or someone posing as a customer service representative. Never give away any of your financial information online unless you’re doing business with a virtual financial advisor whom you’ve done proper background research for. Additionally, we recommend using two-factor authorization wherever possible.
Watch Out for ‘Salespeople’ Who Prey on Fears
Scammers know that many retirees are concerned about whether their retirement savings are enough to last, and they know how to exploit that fear. They may pitch their scheme in a way that enhances that insecurity and then offer a solution that seems to solve everything. It’s often too good to be true.
Do Your Research
Education is your greatest tool in protecting yourself from scammers in retirement. Before you engage with any unfamiliar person about any significant decisions in your finances, health, or general future, make sure you ask all the right questions, and then some. Are they rushing you? Do they have a legitimate online presence? Can you find any of their credentials on BrokerCheck, the Better Business Bureau, or the SEC? Be wary of any unsolicited offers, “once-in-a-lifetime” opportunities, and those who use scare tactics. Remember that you are in control of your financial future and can ask as many questions or reject as many offers as you please.
Report Scams
If you feel you have become a victim of a scam, you can report it to the FBI’s system, the Internet Crime Complaint Center. You can also contact your local FBI field office or submit a tip online.
Here are Some Common Elder Fraud Scams
- Tech support scam: criminals posing as tech support representatives offering to fix non-existent computer issues
- Romance scam: criminals posing as interested romantic partners
- Grandparent scam: criminals posing as a relative claiming to be in immediate financial need
- Sweepstakes/charity/lottery scam: criminals who claim to work for a legitimate organization, or claim the victim has won a foreign lottery or sweepstakes
How to Report to the IC3
If you want to file a report with the IC3, it’s best to include as many of the following details as possible:
- Names of the scammer and/or company
- Dates of contact
- Methods of communication
- Phone numbers, email addresses, mailing addresses, and websites used by the perpetrator
- Methods of payment
- Where you sent funds, including wire transfers and prepaid cards (provide financial institution names, account names, and account numbers)
- Descriptions of your interactions with the scammer and the instructions you were given
Being scammed out of your retirement savings is a legitimate concern, but it doesn’t have to happen to you. If you keep your cybersecurity skills sharp, approach new financial opportunities and offers with caution, do thorough research on any unfamiliar companies, and report scams if they do happen, you can help protect yourself and your savings from con artists in the future.