Personal Finance

The Top Scams Retirees Fall For Every Time

David Beren

Published: November 10, 2024 11:30 am

24/7 Insights

• Retirees are considered easy victims among scammers. 
• Technology challenges can easily fool retirees. 
• Families should be on the watch for unusual money requests.
• Also: Are You On Track to Retire? Take This Quiz and Find Out (Sponsored) 

One of the best aspects of retirement is living without worrying about your 9-5 and trying to enjoy every day. Unfortunately, this group, which tends to be 65 and over, is also a primary target of scammers. 

For a group that is often technologically challenged, they have become easy pickings for scammers looking to siphon money out of those who frequently have money to spare from investment income, social security earnings, or traditional savings. 

While we all wish we could wave a magic wand and make this type of activity disappear, here are some top scams that retirees may fall for and how family members can protect them. 

The Grandparent Scam

One of the more awful scams retirees fall for is “The Grandparent Scam.” This scammer is reaching out, pretending to be a grandchild stuck in a bad situation. The scammer will usually claim the grandchild has been in an accident or is in jail and ask for financial assistance. 

The scammers will ask the grandparent to send money via wire transfer or through gift cards you can buy at your local Target or Walmart. Of course, the scammer will tell you to keep everything secret. 

The easiest way to avoid this is to hang up and call whichever grandchild is in question quickly. Call them directly and make sure they are safe and okay. If so, you know the initial call was a scam. 

Online Romance Scams

Sadly, online romance scams are all too common and can lead to thousands, if not tens of thousands, of dollars lost as the heart takes over from the brain. These romance scams are not common to seniors or retirees but are also some of the easiest victims. 

The FTC claims that over a billion dollars is generally lost in these scams yearly, which is shockingly high. This is also a long con, which means the scammer will take weeks and months to get to know the retirees before coming up with a situation like being behind on rent or needing money to travel to meet them. Retirees who believe the person they are talking to is real will often more than willingly send money to the person. 

To help a family member avoid this scam, you should first be wary of whoever you meet online. If they send a picture, run a reverse image search to see if it appears under a different name. You should also Google their name and ask for a video or phone chat. They will also likely refuse to meet in public if they refuse voice or video, which is another giant red flag. 

Tech Support Scams

As retirees tend to struggle more with technology than younger audiences, they are ideal targets for scams that target their computers. These scams tend to originate with a pop-up appearing on the screen that tells the retiree a virus has infected their system and gives them an 800 number to call for help. 

This tech support number is fake and serves as a direct line to a call center where they are trained to milk money out of retirees with false promises to infect their system. What’s worse, retirees will give these people access to computers, enabling them to see login information for bank accounts and then steal more money remotely. 

If a retiree does get a virus warning, they should immediately contact a family member who can help. Of course, the most important thing is never to call any number appearing on your computer screen. No honest virus program or Microsoft will ever ask you to contact through a pop-up, so this should be an immediate red flag. 

Lottery Scams

If you’re fearful a family member could be a victim of the popular lottery scam, remember that in 2014, scammers tried this act on the former FBI Director, William Webster. In this scam, you’ll receive a phone call telling you that you won a sweepstake or the lottery and need to pay to claim the prize. 

The scammer will claim that any fee you pay covers taxes and other fees, but the prize never materializes after you make any payment. Scammers will claim to be from popular organizations like Publishers Clearing House to try and establish credibility. 

To protect family members from this scam, remind them that no lottery winner receives a winning announcement via phone or email. The best thing to remember is that if it’s too good to be true, it usually is. In other words, if a retiree receives this call, remind them to hang up quickly. 

Online Shopping Scams

With online shopping now a staple way to make purchases, it was only a matter of time before retirees began to be targeted for online shopping scams. Thanks to American Express, my in-laws were recently targeted by something similar and were fortunate not to lose money. 

However, not everyone is fortunate. Scammers build websites that look like legitimate storefronts selling popular goods at a discount. These could be electronics, shoes, clothes, or other popular items. When you try to buy something on these sites with a credit card, the scammer has your information and will run up charges before you realize anything is wrong. 

If you want to protect your family and yourself from this scam, only buy from online stores you know. If you see a website with prices that are too good to be true, websites that are brand new, or riddled with spelling errors, don’t make any purchases. 

Home Repair Scams

This is one of the more awful scams retirees can face as it often occurs face-to-face. A retiree may find themselves in a situation where their home or apartment needs repair. A scammer may knock on your door, being able to see the need for a repair from the outside of the house, and offer to repair at a price that sounds wonderful. 

Of course, they will require a small deposit with the promise to return another day and perform the work. Once the scammer has the deposit money, they never return to the home and move on to their next victim. 

The best way to help a family is to contact a reputable home repair specialist you have worked with or found online through rigorous research. Check Google Reviews, Yelp, or other popular sites where someone may have used one previously. 

Charity Scams

For better or worse, retirees are often prone to giving money to those less fortunate, and this is an admirable trait. However, this also makes this scam successful, as retirees can easily be targeted for their willingness to help. 

With these scams, you may receive a phone call asking you to donate to a worthwhile cause, especially if it’s something a scammer knows you may be interested in, or they’ll ask for your help after a natural disaster. 

The most important way to protect yourself is to research any charity online. Alternatively, if you want to donate, visit the charity’s official website and contact them to be certain the money will go to the right cause.