Major Money Mistakes To Avoid in Retirement
According to a MetLife survey, an estimated $3 billion a year is lost by retirees in America due to scams, fraud and financial abuse. After working so hard to get your finances in order for a pleasant retirement, it is so important to be aware of this statistic and do everything you can to protect yourself. Why do many crooks target retirees? This is mainly due to the assumption that retirees have large amounts of money.
Protect yours!!!!!
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Telephone Scams
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Making a rule to never give any information over the phone may be one of the best things you can do to protect yourself and your finances in retirement. Statistics show that seniors are most likely to be convinced to give out their information over the phone. An example of a common telephone scam is the lottery call. Someone will call and say you won something but that you need to pay a small shipping cost or taxes. They will ask for your credit card number. Always say, NO! Never pay for anything over the phone that you haven’t ordered. Another scheme that is easy to fall for is the jury duty phone call. Someone will pretend to work at the court and say you missed your appearance for jury duty. They will ask for your Social Security number to confirm this. Simply hang up the phone if you are ever questioning the legitimacy of the phone call. You can always look up the real court number and call to make sure it was fake. Make this a hard rule in your home, or even go as far as putting a sticky note on the phone reminding you and your family of your confidentiality.
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The Grandparent Scam
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This is an easy one for anyone to fall for. A person will call your home pretending to be your grandchild or family member and act like they are in some type of crisis. Often they will say they are stranded in a foreign country and need to be wired money. It is also common for the criminal to hack your family member’s email account and email you the message from your family member’s email address. If you weren’t aware that this is a common scam, most people would fall for it in an emotional panic for their loved ones. This is where it pays to keep yourself informed and aware of such threats to your financial security.
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Computer Scams
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Computer scams are something that the majority of retirees are most fearful of. A types of scheme involving the computer is the “phishing” tactic. An email will arrive that says it is from the IRS regarding a tax refund. This would be very easy to fall into, but certainly do not give your personal information to them online. Many people also get caught in this scheme by clicking on links that are included in the email. This may give the schemer access to your email account or files on your computer. Another type of computer scam involves a phone call from a person claiming to work for Mac or Microsoft. They may say your computer has a virus and that they can fix it by having you log into a certain website. This may also give them full access to your computer, and you should be cautious of this.
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Charity Scams
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Many scams involve fake charity organizations and target retirees because they usually have the time to listen to their “sad” story and develop sympathy for the “charity worker.” This scheme is particularly easy to spot because it will usually involve some sense of urgency. The scammer will make it sound like it is urgent to donate immediately so that you won’t have time to investigate the charity to verify it’s legitimacy. This kind of scam is especially upsetting because it is taking advantage of a retiree’s compassion and generosity. Giving to a charity is an amazing and respectable thing to do, however, make sure to do your research first!
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If you ever think you may be a victim of a scam, or are even slightly suspicious that you may have fallen into a scheme, there are a few things you can do. Notifying your bank personnel is most important. Bank employees are in a good position to see and handle suspicious activity in regards to your bank account. You can also contact APS, Adult Protective Services. This is a government-affiliated agency geared toward investigating reports of elderly financial abuse. To learn more about ADP, visit www.azdes.gov. In any case, you should also always alert local law enforcement. We all hope that these things will never occur in our lives, however, it is smart to be aware and knowledgeable about these schemes that could threaten the retirement that you’ve worked so hard for. So keep your eyes open and educate your family and loved ones as well!
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Brooks, Rodney. “Retirement: 7 Scams Retirees Too Often Fall for.” USA Today. N.p., 14 Jan. 2014. Web. 16 July 2015.
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By Allie Vossoughi
