For decades, seniors have been the target of scams looking to drain their bank accounts or swindle personal information. These thieves continue to improve their deceitful ways, leading even right-minded, cautious adults to be unsure of whether they’re dealing with a legitimate individual or an imposter.
While retirees are often the target of scams, we all must remain diligent whenever we’re sharing personal information or providing payment information. Here are common scams you should be aware of.
Phishing Emails, Phone Calls, & Text Messages
Telemarketers and sales calls are one thing, but when the person on the other end of the line seems to know one too many details about you or begins requesting money over the phone, it’s time to sound the alarm.
Communication can arrive in various forms — email, phone calls, and even text messages. They often mask themselves as representatives from businesses or organizations you do indeed utilize or know. Here are a few examples:
Utility company scam — the caller pretends to be a representative from a utility company you utilize. Based on your address, this is simple information for scammers to determine. It’s important to remember, that if you didn’t receive a past due notice and you know you stay up to date on paying your bills, it’s likely a scam.
Fake charity scam — the caller asks for donations to what sounds like a great cause. But if you have not heard of the charity, you should not provide any payment information or offer to support their cause. It’s smart to end the call and do a bit of research before you accidentally donate to an illegitimate cause.
Subscription services text message scam — The scam happens when you receive a text message stating something to the effect of: ‘we’ve put a hold on your Amazon account due to suspicious activity, click the link or call us to verify your account to reinstate’. Amazon is just one example, they may also reference PayPal or other online subscription or payment services to steal your identity or access/use your account.
Medicare & Insurance Scams
This scam often targets seniors by phone, pretending to be a Medicare representative. During the call, you’ll be asked to share personal and medical information. Those who fall into the trap are at risk of identity theft.
In other scenarios, callers are selling medical equipment. While you may indeed receive a piece of equipment, it often is of poor quality or their services are not as expected. In the end, you’re stuck with a product or service you wish you didn’t have, all while the poor-quality provider cashes in by billing Medicare.
Medicare is new to all retirees, making it all that more important to ensure you don’t fall for a scam. Ask a lot of questions, do your research, and when in doubt, hang up and try calling the organization yourself through a verified phone number. When online, reference websites ending in .gov and utilize trusted referrals for medical equipment and home health services.
The Grandchild Scam
This scam uses fear and targets loving grandparents who would do anything to protect their family. How it works is a young-sounding person calls pretending to be your grandchild. They’ve often tracked down this information from social media or other published documents or articles.
The calls often come late at night and the scammer sounds panicked while pretending to be in trouble. They often state they need money or credit card information ASAP to get out of a sticky situation. This can be a scary situation for the recipient, making it all the harder to decipher the truth.
If you receive a similar call, immediately ask questions that your grandchild could easily answer but an imposter could not such as:
What is uncle Mark’s dog’s name?
What dessert does Grandma always make on Christmas?
Where does your cousin Matt go to college?
IRS Impersonation Scams
Last but not least, imposters regularly impersonate Government officials demanding payments for unpaid taxes. Taxes can be complex leaving vulnerable seniors uncertain of what to do. Remember the simple fact that the IRS does not ever make the first attempt to contact someone or collect payments by phone. You will always receive a written notice of any tax-related issues, concerns, or payments due.
To double-check your standings with the IRS, check with your accountant or log into your personal online IRS account to review payments made and balances due.
While this list is a good overview of common scams happening in our communities today, it’s certainly not comprehensive. By understanding how these thieves operate, you can be more aware when answering the phone or opening your email. Our hope is this message acts as a reminder to all of us to remain diligent and aware for ourselves and our vulnerable loved ones.
About Integrated Wealth Management
Integrated Wealth Management is owned by Burt Hutchinson, CPA, CFP®. We’re a CPA-led organization, meaning we’re here to handle your complex tax scenarios and provide cost-saving insight related to your financial plan.
We’re here to guide you through the 3 stages of retirement:
Uncertainty Stage: When you are within 10 years of retirement and have questions about how to make it work
Stability Stage: When you have reached the financial milestone to retire comfortably and confidently
Reflection Stage: When you are looking to leave a legacy
We are also here to provide experienced, empathetic support during times of loss, such as the death of a life partner. You need confidence and a sense of security to enjoy retirement. As fiduciaries with a fee-only structure, we never receive commissions. Free of ulterior motives, you can be sure we’re focused on your goals.
Continued Readings:
Sources:
https://www.experian.com/blogs/ask-experian/top-scams-targeting-seniors/