Tips for Older Americans to Protect Themselves Against Scams

EDITOR’S NOTE: Recently, my son called me to ask why Grandpa was asking him for his bank account information. He wondered if my dad was sick, having memory issues, or just messing around. I told my son not to answer emails like that and that they were scams. He replied that it was a phone call with my father’s voice. I immediately called my dad, asking the same thing—are you alright? What’s going on?

After some investigation, it seems scammers are getting even more high-tech. When a spam number calls and asks you questions, it could be cloning your voice and voice patterns to use for phone calls—so the less you say, the better. These calls sound just like the caller they say they are but indeed are not. Be careful who you release ANY personal information to!

Scammers are constantly improving their techniques. According to the Data Book, Americans reported losing $10 billion to scams in 2023, a full $1 billion more than in 2022. While anyone can be a victim, elderly people are often targeted because they are presumed to have more savings.

According to CERTIFIED FINANCIAL PLANNER® professionals, you can help safeguard your financial future with these tips:

SLOW DOWN: From romance scams to debt and IRS scams, many scammers use emotional appeals to scare or charm their victims into giving up personal information or their money. Before acting, take a deep breath and speak to a trusted friend or relative who may be able to help you spot a potential scam. Remember that the IRS initiates contact only through U.S. mail, not via email, text, or social media.

You can also do a bit of investigative work yourself. For example, if you receive an email claiming to be your bank or another institution asking you to click on a link, first make sure the request is legitimate. Do the return address and URL look right? Are there spelling errors? If you’re contacted by text or with a phone call, look up the number of the bank or company and call them back directly, not with the number provided.

BE CHOOSY: As you age, it is common to enlist friends and family to help you make financial decisions and with everyday administrative tasks, like paying your taxes or bills. Select who has access to your sensitive documents and online accounts carefully.

Also, never leave bills, statements, and other identifying information around. You may want to invest in a paper shredder or a file cabinet with a lock so you can dispose of and store documents carefully. You should also ensure all your online accounts have strong passwords known only to you.

Finally, consider setting up automatic bill payments. This will not only keep you up-to-date on payments and help you avoid late fees, but it will also reduce the amount of sensitive paperwork you have in your home and receive by mail.

SEEK ASSISTANCE: If you are the victim of identity theft or another scam, a CFP® professional can help you recover with a smart financial plan. They can also help you avoid becoming a victim in the first place by helping you monitor your accounts and by setting up notifications from your financial institutions when suspicious activity is detected. As fiduciaries, they have an ethical obligation to always work in your best interests and can be valuable members of your money team. To find a CFP® professional near you, visit letsmakeaplan.org.

It’s easy to think identity fraud and other financial abuse happen only to other people. However, scam tactics are becoming more sophisticated, and anyone can be targeted. The best defense is staying abreast of the latest tactics and arming yourself with the assistance of trusted advocates.