The amount was unusually large, but the target was not.
Con artists scammed 76-year-old retired lawyer Barry Heitin out of $740,000, nearly all his retirement savings.
The criminals pulled off their elaborate fraud by tricking Heitin into believing he was helping with a federal investigation that would put scammers behind bars, The New York Times reported last year. Instead, he helped the scammers drain his bank account.
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Such cons aimed at retirees are common for several reasons, according to the National Council on Aging. Scammers might suspect that retirees have saved a hefty sum of money in their accounts, even though that’s not the case for everyone.
Older people also are often trusting or in some instances have cognitive issues that make them an easy mark.
In addition, many older people live alone without anyone to help them manage their money or to intervene if something appears to be not quite right.
Regardless of your age or income, it’s wise to be on the alert for fraud and to understand some of the common scams you might encounter.
Phishing and other deceptions
One of the more prevalent scams involves phishing emails. These are emails where someone tries to gain access to your passwords, bank account numbers or other sensitive information by tricking you into thinking you are dealing with someone else, such as the Social Security Administration, Medicare, the IRS, your workplace or even a trusted friend.
Here’s an example: An email that appears to be from your bank might arrive in your inbox and ask you to update your account information or warn you that your credit card has been compromised. You will be instructed to click on a link; once you do, the scammers will ask for passwords and account numbers, or in some instances download ransomware into your computer.
Phone scams also are frequent. These could be someone:
- Claiming to be from your bank
- Telling you that you won a prize
- Impersonating your grandchild or another relative who supposedly is in a crisis and needs money –– right now
Another deceptive practice to be aware of is online offers that are too good to be true. One that has become more widespread, according to the FBI and the Federal Trade Commission, is phony online used car sales. In this case, scammers post online advertisements for inexpensive cars they don’t own.
Avoiding the scams
Unfortunately, scammers are relentless. Just as soon as you dodge one of their schemes, another emerges, which makes it important to keep up your guard so you’re not easily taken in.
A few things to keep in mind: Your bank will never call and ask for your full account number or routing number over the phone. No legitimate institution will ask for your complete Social Security number. Medicare will not call unexpectedly and ask for your Medicare number.
Be alert to any unanticipated email that requests private information. Instead of clicking on a link, verify the email is legitimate by calling the institution, government agency or person the email appears to be coming from. (Find a phone number independently; don’t use the one provided in the email.)
Also, never share your passwords and avoid passwords that are easy to guess, such as numbers in sequential order or simply the word “password” (yes, people really do that).
Seeking assistance
Sadly, many retirees don’t report scams, in some cases because they’re embarrassed to admit they were conned — an understandable reaction.
But everyone makes mistakes, and anyone can be deceived under the right circumstances. If someone gains access to your retirement savings through trickery, it’s important to report the crime to law enforcement authorities so they can bring the criminals to justice and perhaps protect others who might become victims.
Falling for a scam could also be a signal that you could use someone else’s input when making decisions involving finances.
A relative or other trusted person could help you slow down and double-check that you are making the right decisions for the right reasons.
In addition, working with a financial professional is helpful because they can assist in several ways, such as researching any financial opportunities presented to you to help determine if they are legitimate.
They can also share information about common scams and the red flags to watch out for, as well as monitor your accounts to spot unusual patterns and take action to protect your money if something seems amiss.
Scams are nothing new and they are not going away. But if you arm yourself with knowledge, avoid acting too quickly and have someone in your corner to turn to for advice, you can reduce the odds you will fall victim to the next one that arrives in your inbox or on your phone.
Ronnie Blair contributed to this article.
The appearances in Kiplinger were obtained through a PR program. The columnist received assistance from a public relations firm in preparing this piece for submission to Kiplinger.com. Kiplinger was not compensated in any way.
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