Would you say you have a love-hate relationship with money? It’s one thing to work with money. But understanding how to make it work for you is more complicated.
Financial literacy is often an overlooked topic. And yet, having the skill is a cornerstone of knowing how to make informed financial decisions.
According to a study by Market Watch guides, only half (57%) of Americans are financially literate. To add insult to injury, researchers found women less financially literate than men. Not all is lost. You could get a financial advisor to help devise a solid financial plan.
If you’ve reached retirement age, you probably know by now the importance of financial literacy and security.
Financial Planning Tips
How can seniors plan their finances? Simple. Be consistent in future-proofing your finances by:
- Sticking to a budget
- Reviewing taxes
- Emergency fund
Judging from a survey from Business Wire, retired boomers are said to be content with their financial situation. However, they aren’t immune to significant challenges like rising living costs, adapting to a fixed income and medical expenses.
Then there’s the risk of becoming a victim of financial scams and fraud. It’s not something many seniors give much thought to. Unfortunately, the threat is real and increasing. In this article, we’ll educate and empower seniors on how best to protect their finances as retirees.
Understanding Scams Targeting Seniors
Scams targeting seniors have become big business in the U.S. The latest figures reported by the FBI showed that people over age 60 lost $3.4 billion in fraud schemes in 2023. This was a significant 11% increase from 2022.
The FBI also added that criminals used romance scams to target their victims via dating apps and social media.
One reason why elderly people often find themselves as soft targets is because they’re less likely to report the crime, says the National Institute of Aging.
The institute listed the following as common scams targeting older adults:
- Someone posing as a company rep to gain sensitive information
- Fake prize, sweepstakes asking for account information
- Tech support staff wants customers to pay for the fix
- Caller pretending to be a family member in distress
Recognizing the Signs
Identifying a potential scam could be the only thing standing between retired people and their life savings. That’s why it’s important to spot the red flags.
For instance, don’t answer calls from unknown numbers. Scammers either feed on your fear or use opportunistic lines to bait seniors.
Either way, if they claim to be calling from your bank’s fraud department and want you to confirm your banking details, outright refuse. No financial institution requests such information via phone or email.
Damage Control
No matter how vigilant some seniors may be, there’s always a chance a scammer is one step ahead.
If you’ve shared sensitive banking information, change your banking app password immediately. Notify your bank and alert them to what just happened.
The next step is to report the incident to the FTC via their website, along with local law enforcement. Personal finance expert Kimberly Palmer says if you’ve sent money within the U.S., contact your state attorney general. For money transferred outside the border, get hold of the FBI.
The chances of recouping lost money are slim, especially if sent directly from your bank account to a scammer. The Consumer Finance Protection Bureau safeguards consumers from unauthorized electronic funds transfers. The regulation falls away if the payment was authorized by the account holder.
Victim Support
Adrienne Omansky is the founder of a Facebook group called Stop Senior Scams Acting Program. They use skits to educate older people about fraud and how to avoid it.
While chatting to Spectrum News 1, she said older folks were more comfortable talking to each other about being scammed. “…they don’t want their children to think that they might be losing some of their mental capacity,” she added.
Herein lies the truth behind seniors being opportune targets. Criminals are very aware they’re taking advantage of society’s most vulnerable.
Seniors who think they’ve been a victim of fraud or scam can also contact the National Elder Fraud Hotline at 833–372–8311.
Final Say
The best advice is to keep abreast of the latest scams. Criminals are clever and very imaginative. They’ll use inventive ways of parting seniors with their money.
Be vigilant and encourage others to share their stories to create more awareness. And if you suspect you are a victim of a scam or fraud, don’t be ashamed to speak up. Anyone can fall for a bamboozle. It’s human nature to trust people, no matter if they’re good or bad.