Retirement has always been a time to sit back, take a break & bask in the glory of years of work. But it also makes retirees more ripe for scammers who wring life savings from them. Even my family came close to getting into one of these con scams & that showed me how sneaky these con artists can be. Understanding the dangers of these scams & learning how to guard against them is important to avoiding financial ruin. In this list, I will share with you 11 scams that retirees typically experience & how to stay out of them.
Featured Image Credit: Tima Miroshnichenko /Pexels.com.
Fake IRS Calls
Scammers posing as the IRS make frantic calls, threaten retiring people with arrest or court action unless they immediately pay. These strategies are scary but they’re 100% fake. And keep in mind that the IRS never calls to demand payment over the phone or arrest you. You should immediately hang up & report the call to the IRS or the police to stop the con artist.
Medicare Fraud
People offer to get you free medical devices or services, steal Medicare numbers & then charge you for fake treatments. It’s up to retirees to stay out of trouble by only giving Medicare information to trusted providers & reviewing Medicare bills on a regular basis for unusual charges.
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Investment Schemes
Scammers prey on retirees’ need to increase savings by promising “sure fire” returns in phony investments that wipe out hard-earned savings. Always talk to a professional financial advisor before investing & be wary of “all is not lost” pitches. Ask to see the background of any company or person giving investment advice.
Grandparent Scams
The scammer disguises themselves as a sick grandchild that urgently requires bail, treatment or money for unforeseen expenses & asks pensioners to take it at once and keep it secret. Don’t fall for it and check with your grandchild or other family member if the story sounds real before handing over any money. Never let urgency override caution.
Tech Support Scams
In such scams, hackers pretend that your computer has a virus & offer to “repair” it for you, deploying malware to steal information. True technology companies don’t call customers so hang up & never give anyone else remote access to your computer.
Sweepstakes or Lottery Scams
You get told you’ve inherited a big sum but that you need to pay fees or taxes upfront to get it. These scammers use corporate-looking documents to deceive older people. Remember, if you didn’t enter a sweepstakes, you didn’t win. All legitimate lotteries do not require a deposit, so don’t fall for these false promises.
Romance Scams
Be careful of online dating that’s too rapid, or is asking for money. Don’t pay someone you haven’t met in person, however plausible their narrative is.
Home Improvement Scams
Scam artists offering low-cost fixes take advance payments & never finish the job. Avoid this by only employing licensed contractors with references. Never pay the full amount before work begins & always get a detailed written contract outlining the scope and cost of the project.
Fake Charity Appeals
Scammers exploit the charitable spirit of retirees by posing as charities during natural disasters or holidays, making calls & requesting donations. Never give over the phone or by email without checking charities with credible resources, such as Charity Navigator or GuideStar.
Social Security Scams
Scammers call in claiming to represent the Social Security Administration, threatening to suspend or cut benefits unless an immediate payment is made. The SSA never calls or asks for payments like that. If you receive such a call, hang up immediately & report it to the SSA’s fraud hotline so no one else gets scammed.
Timeshare Resale Scams
Seniors who want to sell timeshares face a problem because scammers ask for upfront payments and then break promises. Stay safe by doing your research on resale companies & never pay up front. Consult with licensed professionals or legal professionals for safe & proper procedure.
Disclaimer: This list is solely the author’s opinion based on research and publicly available information.
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