5 Ways Retirees Have Avoided Getting Scammed Out of Money
Written by
Josephine Nesbit
Edited by
Justice Petersen
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In a GOBankingRates survey, 62% of respondents aged 65 and older said they have never been scammed, while only 52% of respondents aged 55-64 had the same response. Conventional wisdom has always pointed to older people being more susceptible to scams, but is this really the case?
“It’s true that the stereotypical scam picture paints older people as disproportionately victimized. Today, however, we know that scams affect everyone, no matter what age they are. Different demographics are simply affected by scams differently,” Paige Schaffer — CEO of Iris powered by Generali, an identity and cyber protection company — wrote in an email.
Schaffer also pointed out that the Federal Trade Commission’s (FTC) latest Consumer Sentinel Network Data Book showed that younger people reported losing money to fraud more often than older people. However, when older people did lose money, the median amount was much higher.
“It’s a similar story for scams,” she noted. “And it would also make sense that scammers go after different age groups in ways that better align with their lifestyles (think fake social media ads for younger people and government impersonation phone calls for older folks).”
Here are several ways retirees have avoided getting scammed out of money, according to experts.
Education Is Key
Education is the best prevention method when it comes to scams, according to Schaffer. “The FTC has a ton of great scam resources so that consumers can always stay in the know about the latest scam tactics and how to protect themselves,” she wrote. “They can even sign up for consumer alerts so that scam advice will hit their inbox the moment it becomes available.”
You can sign up for consumer alerts through the FTC or the Cybersecurity and Infrastructure Security Agency (CISA) for the latest consumer advice and scams — and for tips on what you can do to better protect yourself. You can also stay up-to-date on the latest scams by following reliable news sources and staying connected with local law enforcement.
Watch Out for Red Flags
Some scams have telltale red flags to look out for. According to the Consumer Financial Protection Bureau (CFPB), some of these warning signs include:
- Claiming to be from the government, bank, business or someone you know, asking to pay them money.
- Asking you to pay money or taxes to receive a prize or gift.
- Asking you to send cryptocurrency or money via a wire transfer service, payment app, prepaid card or gift card.
- Asking for access to ATM cards, bank accounts, credit cards, investment accounts or cryptocurrency wallet keys.
- Creating a false sense of urgency and telling you to act immediately.
Verify the Sender
Criminals are constantly adapting their social engineering and phishing techniques, according to the National Council on Aging (NCOA). A criminal can call, text or email you to convince you they’re someone you know or a reputable company. The email or phone number may even be recognizable, as well.
“They are keeping a pulse on the way reputable organizations are communicating with consumers, and they are replicating those communications through all sorts of different communication channels,” said Abigail Bishop, head of external relations for scam prevention at Amazon, during a panel at Age + Action 2024.
Schaffer recommended verifying a message’s legitimacy and always remaining skeptical, especially when asked to provide personal information or send money. You can do this by contacting the organization or individual directly using verified contact details.
Take Your Time
Don’t let scammers play on your emotions. According to Psychology Today, people under time pressure are more likely to fall for phishing scams. Some scammers will even make their scheme a little more obvious to specifically target impulsive thinkers.
Take your time when reading emails or messages, especially those related to money. Honest businesses will also give you time to make a decision, and anyone who pressures you to pay or give them information is likely a scammer, the FTC reported.
Invest in an Identity Protection Program
You can also monitor your personal information closely by investing in an identity protection program that includes scam support. “The best solution would combine powerful technology that can comb the dark web for compromised information or credentials while also providing access to real humans around the clock to help with any fraud or scam questions,” Schaffer wrote.
These services can also monitor for signs of your personally identifiable information (PII), such as your Social Security number or bank account information. You’ll receive alerts if it appears on social media, court or arrest records, payday loan applications, check cashing requests, USPS address change requests or orders for a new utility or phone service, CNBC Select reported.
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