Retirement in many parts of Washington requires a significant amount of savings. So, the prospect of losing all or even a portion of your hard-earned money to a scam is devastating.
Unfortunately, many scammers target retirees, and they often succeed. Fraudsters understand how to find and attack people at their most vulnerable.
Even if you believe you are not at risk, your assets are probably more vulnerable than you realise. The best defence against a thief is to understand their tactics before they strike.
These are some of the most common scams targeting older Americans in the United States, including Washington residents.
Retirees Are Losing Hard-Earned Money
According to the American Association of Retired Persons (AARP), people over the age of 60 lost $28.3 billion in 2023 alone. Many experts believe the number is low.
Darius Kingsley, Chase’s head of Consumer Banking Practices, told USA Today that many theft victims are ashamed and do not report the crime.
However, there is no reason to be embarrassed if you fall for a scam.
Many of the most savvy consumers have fallen for them at some point.
1: The Grandparent Scam
Many retirees have a brood of adorable grandchildren over whom they feel especially protective.
Unfortunately, scammers are aware of this and try to take advantage.
In “grandparent scams,” fraudsters claim that the victim’s grandchild is in trouble and urgently needs money. They typically have a lot of personal information about the grandchild, making the story appear credible.
Though they frequently ask victims to wire money, fraudsters in a recent rendition of the scam requested an envelope of cash to be delivered via Uber.
2: Government Imposters
Fraudsters have no problem impersonating government officials. They might work as IRS agents, Social Security employees, or Medicare representatives.
They frequently spoof their phone number, giving the impression that a government agency is calling you.
When they get you on the line, they’ll ask for identifying information such as your Social Security number or Medicare ID.
They will claim to be using it to verify your identity, but in reality, the information will be used to steal your identity.
3: Tech Support Scam
Tech support scams are among the easiest to fall for because they frequently rely on you contacting them.
Assume you’re looking for assistance with your computer or a social media account, so you look up the company’s phone number online. Pop-ups or other top-of-the-page advertisements that resemble search results will occasionally appear, along with the alleged support phone number.
If you call that number, the people on the other end will impersonate the support team you need to contact.
They may inform you that your account has been hacked or that your computer contains viruses and that they require additional information to resolve the issue.
From there, they may request personal identifiers that they can use to steal your identity, or they may request payment for their fraudulent services.
4: Elder Financial Abuse
When you think of a fraudster, you probably picture a stranger sitting in front of a wall of computers thousands of miles away.
However, scammers targeting retirees are frequently much closer to home.
A study conducted by the New York State Coalition of Elder Abuse discovered that 52.3% of people reporting elder financial abuse were duped by a relative.
Children, grandchildren, and carers may dupe older Americans into changing their wills, signing over power of attorney, or lending them money they do not intend to repay.
5: False Investment Schemes
You had to save a lot of money to retire, and, unfortunately, that puts you at risk. Many fraudsters will try to target your savings by offering fake investment opportunities.
In this scam, the thief calls or contacts you via the mail, pretending to be a financial advisor. They’ll spell out the terms of an unbelievably lucrative investment opportunity and ask if you want to be involved.
They may offer fake bonds or talk about some sort of low-risk, high-reward scheme that sounds too good to be true.
Of course, whatever they’re selling is fake.
If you start sending them money, you’ll likely never see a return on your investment.
6: Phishing
All Americans are potential phishing victims, but retirees may be especially vulnerable.
A phishing scam involves a fraudster calling or emailing the victim while pretending to be a legitimate company.
If you respond by clicking on a link or returning a phone call, they will attempt to obtain personal information that can be used to steal your identity.
Email phishing is especially dangerous because the link may download malware onto your device, allowing the scammer remote access to your accounts.
7: Romance Scams
People can become lonely and isolated in retirement, making them especially vulnerable to romance scams.
If you decide to look for love on a dating site or app, you should be especially cautious about these scams.
In romance scams, fraudsters create fictitious personas and interact with users on dating apps or websites. Once they’ve established rapport, they ask for favours or help.
They may ask for money to cover “travel expenses” or “healthcare costs,” but it’s all a ruse.
8: Sweepstakes Scams
Many people dream of winning the lottery or a large sweepstakes prise, but be wary if you receive notification that you have won a contest in which you did not participate. Scammers in this scheme call or email victims, claiming they’ve won a prise.
If the victim responds or clicks on the link in the email, the scammer attempts to collect personal information or install malware on their device.
Unfortunately, sweepstakes scammers frequently target older Americans.
Memory issues that can occur with age can make it difficult to remember whether or not you entered a sweepstakes, allowing the scammer to get what they want.
9: Funeral Scams
Unfortunately, as you advance through your retirement, you’ll likely have more funerals to attend, some of them for people you’re very close to.
Even worse, at the funeral of a loved one, you may be especially vulnerable to this type of scam.
In a funeral scam, fraudsters read obituaries looking for funeral services to attend. They’ll show up at the service pretending to be a close associate of the deceased.
Then, they start telling family members that the deceased owed them money, and they start asking for payment.
10: Reverse Mortgages
By the time you retire, you may have accumulated a significant amount of equity in your home.
A legitimate reverse mortgage can provide a consistent income stream, whereas a reverse mortgage scam will steal your hard-earned equity.
These scammers frequently use billboards, flyers, or pop-up advertisements to claim they know how to help you access your home’s equity.
In reality, they will either steal your money or, even worse, commit deed fraud and steal the title to your home.
11: Online Shopping
Online shopping is convenient for retirees, but it is not always the most secure way to purchase products. Purchasing from a scam website or fraudster is all too easy.
Unfortunately, if you make a purchase from a fraudulent seller, they may steal your payment information, take your money, or sell you a counterfeit product.
This happens with everything, from shoes to pharmaceuticals, and it’s more common than you realise.
According to the AARP, it is the second most common type of reported fraud.
12: Fake Charities
Many retirees choose to donate to charities, but unfortunately, scammers are all too eager to target them.
In this type of scam, fraudsters set up bogus charitable organisations to steal money from victims.
Scammers frequently call or email retirees following a natural disaster, requesting donations. Sometimes the fraudster requests personal information and steals the victim’s identity.
13: Bank Impersonators
Scammers may attempt to impersonate trusted financial institutions, such as your bank or mortgage company.
They may call, email, or text pretending to be from a financial institution you use.
Responding to these phishing attempts is a big mistake. If you do, the scammer may attempt to access your account information or install malware on your devices.
Instead, if you believe your bank is calling or emailing you, do not answer. Call them back later at the number provided on their website.
14: AI Calls
In recent years, artificial intelligence (AI) technology has advanced dramatically. Today, voices can be cloned, and many scammers take advantage of this.
Be wary if you receive a phone call from someone claiming to be a loved one and urgently requesting money.
A scammer may have cloned their voice to defraud you of your savings.
Avoiding Scams as a Retiree
Scammers are constantly coming up with new ways to target retirees, but most scams still have a few things in common. If you’re aware of these commonalities, you’re less likely to fall for a fraudulent scheme.
Warning lights should come on anytime someone urgently asks for money or aggressively demands you share personal information.
You should also be wary of answering numbers you don’t know or calls you aren’t expecting from known institutions, like your bank.
Typically, your bank and government agencies will contact you via mail and will not initiate phone conversations unless you request one.
