by Emily Hechler 
Fraudsters show no mercy when they want your money. Retirees are often targeted because they may have a comfortable financial cushion, receive regular retirement income, and are frequently the focus of scam campaigns. Protecting yourself from retirement scams and fraud starts with knowledge of common tactics scammers use. Once you know how these schemes work, you’ll be better prepared to recognize the warning signs and protect your retirement savings.
Government Imposter Scams
Scammers know that a reliable portion of your retirement income is from Social Security benefits. Many retirees also qualify for Medicare. Knowing this, you may receive phone calls, emails, or texts from people claiming that they work for Social Security or Medicare and ask for your information to verify income or benefits. Giving this information to a scammer can lead to identity theft, unauthorized account access, and disruptions to your benefits.
Protect Yourself from Government Imposter Scams
To avoid government impostor scams like Social Security fraudsters and Medicare scammers, check the source of the information you receive. Make sure to only look for information on the Social Security and Medicare websites. If you need to contact either service, use the services on the website to guarantee you contact the real agency.
Romance Scams
Anyone can be the target of romance scams, but older adults report the most financial loss with close to $10,000. While many have found love online, scammers know emotions are high and play on your feelings. Romance scammers often initiate a relationship online and won’t verify their true identity by meeting in person. Then they’ll ask for your help with a tough financial situation. They may ask for money through gift cards or by wanting your bank account information.
Protect Yourself from Romance Scams
While you and your partner’s finances are yours to manage, you must confirm that their relationship and intentions are legitimate. It’s helpful to bring close friends and family into the relationship to help gauge the situation. Stay informed on the latest online romance scams while you search for a partner to protect yourself and your finances.
Caregiver Scams
Sometimes caregivers, whether family members or hired help, don’t have your best intentions in mind. Victims of caregiver scams lose an average of $120,000. Caregiver scams can happen in a few ways. If the caregiver is a relative with access to your bank account, they may move money out of your account claiming to pay for your expenses. Instead, they’re pocketing the difference. A caregiver may instead sneak into your purse or wallet and take cash or credit card numbers. If your caregiver helps you pay your bills, these schemes may go unnoticed for months before you realize the extent of the missing money and financial damage.
Protect Yourself from Caregiver Scams
To protect yourself from caregiver scams, use a verified caregiver agency before hiring anyone to help with your care needs. Companies often have strict guidelines for whom they hire. While navigating family caregiver situations can be emotionally difficult, have other family members check in on your care and finances. You should also regularly review your account information on your own and question the transactions.
Alltru is AARP BankSafe certified, so we’re on the lookout for suspicious account activity and behavior of our senior-age members. If we suspect odd behavior, we’ll let you know.
Social Media Scams
Social media sites like Facebook and X are convenient methods to stay up-to-date on the lives of friends and family. However, social media can be a path to a scam if you aren’t careful. People may impersonate your loved ones by creating new profiles and message you to ask for money. Scammers can also create fake company profiles and message you offering to sell a service that may not even be a financial service and ask for your personal information.
Protect Yourself from Social Media Scams
Social media scam messages are increasingly common. Before responding to a message, verify that the account is legitimate and look for previous interactions with the person or organization. Even if the account appears to be legitimate, don’t share financial information in social media messages, as your account may be hacked and your information is accessible to scammers. If you receive an offer from a company through social media, find their real website and inquire directly if you want to learn more.
Investment Scams
Scammers know that you’re dependent on your retirement savings to support your everyday life. Who wouldn’t want to keep their retirement savings growing even during retirement? Fraudsters know this is a real desire, so they may impersonate a financial planner. Common warning signs include promises of guaranteed returns, pressure to act quickly, and requests for payment through unusual methods. Unfortunately, their intentions aren’t legitimate, and they’ll take your money and move on to the next victim.
Protect Yourself from Investment Scams
Similar to messages through social media, if you hear of an investing offer and want to learn more, research the company on your own. Find their website and contact the team to find more information. Even if the company is legitimate, remember that investing comes with risk and no one can guarantee a certain amount of growth.
Stay Safe from Retirement Scams
We know that you depend on your savings to fuel your retirement. With an Alltru Value Checking account, you can opt into identity theft protection services. These monitoring and resolution services include dark web monitoring to help identify potential identity theft risks.
If you have any questions about account safety at Alltru or think your information may be compromised, let us know so we can help.
