What’s the fastest way to lose your life savings in retirement?
Clicking the wrong link while trying to fix your printer.
In this publication, we’re diving into one of the most heartbreaking forms of financial fraud: elder scams. These aren’t just annoying spam calls—they're sophisticated, emotionally manipulative traps that are robbing retirees of their hard-earned savings.
Every year, Americans over 60 lose over $3 billion to scams, often through fake tech support, romance fraud, or phony investment schemes. These scams are designed to drain retirement accounts and leave seniors financially stranded—with little time to recover.
How It Works:
Here are three common elder scams and how they reel victims in:
- Tech Support Scams: A pop-up or fake call claims your device has a virus. The scammer then "helps" you fix the issue—for a fee or remote access. Once in, they may steal personal info or wipe out your accounts.
- Romance Scams: A scammer builds an online relationship, then pretends to be in trouble—needing money for travel, medical bills, or emergencies. Victims often send thousands before realizing it's a lie.
- Investment Scams: The fraudster pitches a too-good-to-be-true opportunity—sometimes posing as a financial advisor or using a well-known company name. Once the victim sends money, the scammer disappears.
Who’s Targeted:
Primarily adults 60+, especially those managing their own finances online or looking for companionship, assistance, or investment opportunities in retirement.
Real-Life Example:
Imagine a 71-year-old retiree, recently widowed, trying to fix a minor computer issue. He calls a number from a pop-up ad and grants remote access. Within hours, his 401(k), checking, and savings accounts are drained. It’s not a rare story—it’s the most reported type of elder fraud in the U.S., according to the FBI.
Why You Should Care:
These scams don’t just hurt bank accounts—they destroy retirements. Victims often:
- Lose their entire nest egg
- Face depression or shame, which prevents them from reporting it
- Fall prey again to "recovery scams" that promise to retrieve lost funds—for another fee
And worst of all, they often suffer in silence, embarrassed to admit they’ve been duped.
Actionable Steps to Protect Yourself or a Loved One:
• Never give remote access to anyone who contacts you first. Always go to a reputable source like an Apple Store, Geek Squad, or trusted tech provider.
• Talk openly with older family members about online and phone scams. Set up a plan so they can check with you before acting.
• Verify investment offers independently. If someone promises high returns quickly—especially with no risk—it’s a scam.
• Be cautious with online relationships. If someone you’ve never met asks for money, even just “a little,” it’s likely a romance scam.
• Don’t pay upfront fees for “fund recovery services.” Scammers often target previous victims with a second scam promising to get their money back.
Quick Tips & Updates:
🔹 Did you know? Victims of elder fraud lost over $1.2 billion to investment scams alone in 2023—more than any other type.
🔹 Pro Tip: Freeze your credit reports if you're not applying for new credit. This helps protect against identity theft in case your data was compromised.
Stay safe, stay informed.
Key Definitions:
- Elder Fraud: Financial scams that primarily target older adults.
- Tech Support Scam: A scam where fraudsters pose as technical support and trick you into giving access or money.
- Romance Scam: A scam in which someone builds a fake relationship to manipulate and financially exploit the victim.
- Investment Scam: A fake opportunity designed to take your money with no real investment behind it.
- Recovery Scam: A second scam targeting victims of fraud, offering fake services to recover their stolen money—for another fee.
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