Bonnie Parker, of Bonnie and Clyde steal-and-murder infamy was asked why she robbed banks. She reportedly replied, “I rob banks because that’s where the money is.”
And so it goes with scammers and retirees. Older people are a great target for scams because they have saved money and have assets to steal. Here are 3 top ways older people are targeted and how to avoid getting robbed.
The Grandparent Scam
A swindler calls or emails, pretending to be your grandchild (or someone claiming to represent them, like a lawyer or police officer. They say your grandchild is in trouble-maybe arrested or in an accident-and needs money fast. They’ll often beg you not to tell anyone else in the family.
Scammers have GREAT tech these days and can spout off a lot of information about your family member that makes them sound legitimate. They have probably hacked your family member’s email (or yours) and read lots of conversations that make them sound like one of your inner circle.
How to avoid it:
- Don’t act right away, even if the caller sounds urgent or emotional.
- Call your grandchild or another family member directly to check the story.
- No matter how convincing they sound, never send money or give out personal info.
Tech Support Scams
You get a phone call, pop-up, or email saying there’s a problem with your computer or online accounts. The “tech support” person offers to fix it-for a fee. This ever-so-helpful person might ask access to your computer or credit card information.
If there was something wrong, you would have noticed it already. This is just a way to get your money or personal info to steal your identity.
How to avoid it:
- No legitimate tech companies contact you out of the blue about computer problems.
- Never give control of your computer to someone who contacts you first.
- Try to get a local IT expert in advance of having computer problems. Call them if you hit a snag with your laptop or phone.
Fake Investment and Financial Scams
Defrauders offer “can’t-miss” investment opportunities, promising high returns with little or no risk. They may pretend to be financial advisors or use official-sounding language. Once you invest, your money disappears, and so do the “exclusive advisors”.
I’ve said it before and I’ll say it again: If an investment sounds too good to be true, it is.
And to elaborate: Any financial person offering you guaranteed positive returns, ESPECIALLY if it’s higher than 10% is absolutely a thief.
If you want to do a public service, pretend to be interested, get their contact info, and call your state’s attorney general office to report the scam.
How to avoid investment scams
- Be skeptical of any investment that promises guaranteed or unusually high returns.
- Check out the person or company with FINRA’s broker check
- Never rush into investments. Take your time, ask questions, and talk to a trusted Staying alert and informed is your best defense against scams. If you think you’ve been targeted, report it to local authorities or the Federal Trade Commission (FTC) right away.
Most importantly, if you are a victim of a scam, it’s not your fault! Call your local police station to report the theft. Don’t let embarrassment get in the way of possibly catching a thief or maybe getting some money back.
These scammers are well-funded and sophisticated. It’s not just dummies or rubes that are victims. Educated, smart, savvy people are victims of scams every day.
