One of our senior clients reached out to us recently, and we could hear something was wrong. It turned out they’d fallen victim to a scam over the phone and lost $15,000. The shame they felt was palpable, and sadly there was little we could do to help them get their money back. We walked them through changing existing passwords and adding extra security to their financial accounts, but the damage was done.
It’s a sad truth that our older loved ones are often the target of scams. They’re trusting, maybe a little more vulnerable, and sometimes not as familiar with the ways technology can be used to trick us. As the world gets more tech-savvy, so do the crooks, which means remaining diligent has never been more important. Here’s a look at some of the latest scams we are seeing, and tips on how to protect yourself.
Tech Support Scams
These scams have really stepped up in recent years. Scammers pretend to be calling from companies like Microsoft, Apple, or Amazon, saying your computer’s been infected or has some other issue. They’ll try to get you to grant remote access to your device (using your IP address or the Remote Desktop feature on most computers) or demand you pay for unnecessary repairs or virus “cleaning.” Sometimes, they’ll even install malware to steal personal or financial info.
Protection Tip: If someone calls claiming to be tech support, hang up! Legitimate companies will never call you out of the blue. Call the company directly using the contact information on their official website to check if the call was real.
Romance Scams
Loneliness can make people more vulnerable to romance scams, where predators target older folks on dating sites or social media. They build up a fake relationship over time, then ask for money, often claiming they need it for some emergency or travel expenses. These scams can be heart-wrenching, not to mention damaging financially, as the perpetrator attempts to emotionally manipulate the target.
Protection Tip: If someone you don’t know asks for money, especially online, it’s a red flag: full stop. Don’t share personal details with someone you’ve never met face-to-face. Talk to family members or friends before making any financial decisions based on a new online acquaintance. And if your older relative starts talking about a new online relationship, keep an ear out for unusual requests.
Legal Threat/Scare Scams
Scammers often pretend to be government officials – from the IRS, Social Security, or even local law enforcement – and threaten you with arrest or fines if you don’t pay immediately. Sometimes they’ll even say a family member is in trouble and needs money. These cons can be very convincing, especially when they seem to have specific details about the relative or friend in trouble.
Protection Tip: Remember, no government or law enforcement agency will ever demand payment over the phone or threaten you with jail. If you get one of these calls, hang up and call the agency directly using a trusted number you find on their official website.
Investment Scams
Scammers love to target folks looking for ways to grow their savings or provide more income in retirement. They promise big returns on investments with little risk – often sounding too good to be true. They may even use a friend to vouch for them, making the scam harder to spot.
Protection Tip: If someone offers an investment with guaranteed returns, be incredibly suspicious. Always talk to a trusted financial advisor (we’d be a good choice!) or family member before making any big financial moves. And remember, if it sounds too good to be true, it probably absolutely is.
General Tips for Protection
- Stay Informed: Keep up with the latest scams. Many government sites and non-profit organizations offer resources to help you stay aware. Talk about scams with your friends – sometimes, just hearing someone else’s story can save you.
- Trust Your Gut: If something feels off, it probably is. Always check with someone you trust before making a financial decision. Requests that emphasize a sense of urgency are always a red flag.
- Use Strong Passwords: Make sure your passwords are hard to guess – avoid using your name, birthdate, or other easy-to-find information. You’ve heard that advice before, but it’s alarming how many of us still do it. Additionally, you want to avoid using the same username/passwords on multiple sites. When scammers successfully hack one site, they will try to use the same credentials on many other sites. Consider using a password manager like Bitwarden, LastPass, or 1Password if the prospect of tracking login information on your own seems daunting.
- Monitor Financial Statements: Look over your bank and credit card statements regularly. Scammers might start by taking small amounts, hoping you won’t notice, so keep an eye out for even tiny charges that seem off.
Scammers are continually evolving to keep up with the latest technology and constantly searching for opportunities to catch us off guard. It’s important for all of us – especially seniors – to stay vigilant. Stay informed and cautious, and you’ll be less likely to fall for these schemes.
Please remember, your Wealth Management team with TPG is always here to help. We’ve seen our share of these scams and would love to be a resource for you, whether it’s helping you vet investments or providing a second opinion on something you’ve received. Don’t hesitate to reach out anytime.
Your Wealth Management Team
Advisory services offered through TPG Financial Advisors, LLC, an SEC-Registered Investment Advisor and a wholly owned subsidiary of The Partners Group, LLC.
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