Don’t Fall for These Scams
“Your Microsoft account has been compomised. Click this link to reset your connecton.”
Does this message look familiar, typos and all? We’ve all seen suspicious emails or calls attempting to steal personal information. One unfortunate drawback of our tech-enabled world is that scams are increasingly common.
According to the FBI’s Internet Crime Complaint Center, people aged 60+ submitted more than 140,000 complaints and reported nearly $5 billion in direct losses in 2024. Sadly, most estimates suggest that unreported costs related to scams and fraud are orders of magnitude higher. Even though we are all keenly aware of the prevalence of fraudsters, the numbers have been steadily trending upward in the past several years.
Three-card monte. Image created with ChatGPT (C) Tableaux Wealth
As a financial advisor, I undergo annual cybersecurity training and weekly lessons on common scams and cybersecurity threats. I think it is essential to stay abreast of the popular scams. Although it sounds simple to avoid scams, even smart and thoughtful people will occasionally click a suspicious link or answer a fraudulent phone call. It’s all too easy to get a little sleepy and drop your guard.
Seniors are often targeted because they have savings and may hesitate to report fraud. According to the National Council on Aging, here are some of the most common scams targeting retirees today.
Grandparent Scam
This scam preys on our willingness to help family. In this ruse, a scammer impersonates a grandchild or close relative, sometimes using clues they know about the relative. They claim an urgent financial need such as a car repair or medical emergency. They try to exploit your emotions by telling you not to tell other family members. This typically ends with a request for payment via gift cards or wire transfers, which are difficult to recover.
Financial Services Scam
Another common trick targets your trust in financial institutions. In this scheme, a pretend bank, mortgage company, or debt collector might call or email claiming that your account is compromised or that unpaid bills must be settled. They may ask for passwords or Social Security numbers, or direct you to send money through peer-to-peer platforms such as Venmo, Zelle, PayPal, and others. These scams will often pressure you to act quickly for fear of immediate consequences.
Tech Support Scam
These scams exploit unfamiliarity with fast-moving technology. In this scam, a perpetrator reaches out to say that your computer or phone is broken or infected. They can provide “help,” although what they really want is access. They may ask for direct payment, or they may install malware and demand payment to fix the problem.
Government Impersonation Scam
Scammers exploit the complexity of Social Security, Medicare, and taxes by posing as agency personnel and alleging unpaid taxes, benefit issues, or threats of arrest. They can even spoof agency phone numbers to seem legitimate and demand payment with prepaid cards, wire transfers, or cash.
Romance Scam
This scam seeks to exploit people seeking new relationships. On social media or dating sites, fraudsters cultivate a fake romantic relationship or friendship, then ask for money to pay for travel, medical emergencies, visas, or other urgent (and fake) needs. The FTC reported that over 64,000 people lost a total of $1.1 billion to romance scams in 2023.
Stay Alert and Prevent Scams
These popular scams are just a sampling of the ways that scammers target retirees. There are obvious safeguards that are needed for cybersecurity, including keeping personal information private, creating strong passwords, and installing robust anti-virus software.
But much of the onus of fraud prevention falls on us as individuals. Be skeptical of any unexpected contact, and always verify using a trusted number or source. It is unlikely that something legitimate would come out of the blue.
Verify before you trust. If someone claims to be from your bank or a tech company, or that they’re a grandchild in trouble, hang up and call back using a known number, not one provided by the caller. When receiving an email, pause before you respond or click a link.
The SLAM method is a simple checklist for spotting scam emails. It stands for Sender, Links, Attachments, and Message:
Check the email Sender’s address
Hover over Links (to see if it’s a trustworthy url)
Avoid suspicious Attachments, and
Evaluate the Message for urgency or errors.
If anything feels off, don’t click, reply, or share information. Verify directly with the company or person through a trusted contact.
As fraudsters become more sophisticated, awareness is still our best defense. By pausing before we click, verifying unexpected messages, and talking openly about scams with friends and family, we can protect our finances and peace of mind. There is nothing wrong with being skeptical about unexpected emails or calls. With vigilance, a few good cybersecurity habits, and the SLAM method, we all can enjoy the benefits of technology while keeping scammers at bay.
This article originally appeared in the Berkshire Business Journal and on the Boston College Center for Retirement Research website.