Preventing cyber scams targeting seniors – retirement research center

“Your Microsoft account has been linked [sic]. Click this link to reset your Connecton [sic]. “

Does this message look familiar, typos and all? We’ve all seen suspicious emails or phone calls that try to steal someone’s personal information. One unfortunate drawback of our technology-enabled world is that scams are becoming more and more common.

According to the FBI’s Internet Crime Complaint Center, people over the age of 60 filed more than 140,000 complaints and reported nearly $5 billion in direct losses by 2024. Sadly, many estimates suggest that the uncollected costs from scams and fraud are much higher. Despite awareness of fraudsters, the numbers have been trending strongly upwards.

As a financial advisor, I undergo annual cybersecurity training and weekly courses on common topics and cybersecurity maturity threats to stay abreast of popular scams. Although it sounds easy to avoid scams, even smart and thoughtful people will occasionally click on a suspicious link or answer a fraudulent phone call. It’s so easy to get a little sleep and let your guard down.

The elderly are often targeted because they tend to be more frugal, may be reluctant to report fraud, are less savvy, and tend to decline cognitively with age.

Common scams

According to the National Council on Aging, here are some of the top retirement goals today.

Big Scam

This scam robs us of our willingness to help the family. In this rause, the scammer impersonates a grandchild or a close relative, sometimes using clues they know about the relative. They are looking for urgent financial needs such as car repairs or medical emergencies. They try to manipulate your feelings by telling you not to tell other family members. This ability often ends with a gift card or wire transfer request, which is difficult to recover.

Financial Services Scam

Another common strategy is targeting your trust in financial institutions. In this scheme, your bank, credit union, or debt collector may call or email that your account is in jeopardy or unpaid debts must be settled. They may ask for passwords or social security numbers, or direct you to send money through peer-to-peer platforms like venmo. These snakes often pressure you to act quickly for fear of immediate consequences.

Scam Support Scam

Scammers can take advantage of inefficiencies with fast-moving technology. In this scam, the perpetrator claims that your computer or phone is broken or infected. They say they can “help,” but what they really want is access. They may ask for an outright payment, or they may include a malware payment and demand payment to fix the problem.

A government impersonation scam

Scammers exploit the complexities of social security, Medicare, and the tax system by sending agency workers allegations of unpaid taxes, benefits problems, or threats of arrest. They may even know the agency’s phone numbers to appear legitimate and require payment by debit card, wire transfer, or cash.

A cocoon of romance

This lover wants to exploit people who are looking for a new relationship. On social media or dating sites, scammers develop romantic relationships or friendships, and then ask for money for travel, medical emergencies, visas, or other urgent (and fake) needs.

Stay alert and protect yourself from scams

These popular scams are just a sampling of the deceptive ways retirement is being targeted. Other obvious safeguards include keeping personal information private, creating strong passwords, and installing powerful anti-virus software.

But most of the onus for fraud protection falls on us as individuals. Be suspicious of any unexpected contact, and always make sure you are using a reliable number or source. It is unlikely that something legal will come out of the blue.

Confirm before you trust. If someone says they’re from your bank or tech company, or that they’re a grandchild in trouble, substitute and reuse a known number, not one provided by a stranger. When you receive an email, pause before replying or clicking on a link.

The SLAM method is a simple checklist for checking email scams. Represents the sender, links, attachment, and message:

• Check the email Sender put
• Move more Others (to see if it’s a valid URL)
• Avoid blaming Attachedagain
• Analyze Sent word to find urgency or errors.

If you hear anything, don’t vote, respond, or share the information. Confirm directly with the company or a trusted contact, such as a family member or tech savvy friend.

As fraudsters become more sophisticated, awareness is at our best. By pausing before we click, verifying unexpected messages, and talking openly about scams with friends and family, we can protect our money and peace of mind. With caution, a few good cybersecurity practices, and a slam dunk method, we can all reap the benefits of technology while keeping eBay scammers at bay.

Luke Delorme, CFP® is director of financial planning at Tableux Wealth in Great Barrington, MA (www.tableauxwealth.com), accessible at luke@tableauxwealth.com. To stay current on the low-profile blog, join our free email list.

This blog post is for informational and educational purposes only and should not be considered financial advice. See a qualified professional for specific advice in your situation.