Boomers look forward to enjoying the fruits of their labor as they retire or as it approaches. However, they are increasingly falling prey to financial scams, making it even more important for them and their loved ones to remain vigilant. Scammers often target boomers due to their accumulated savings and potential lack of familiarity with modern technologies.
Despite the alarming statistics of boomers losing billions of dollars to financial fraud, there is hope. Many of these scams follow similar patterns, making them easier to identify.
Let’s look at the most common financial scams that target boomers and provide tips on protecting oneself from falling victim to these schemes.
By the way, #11 is just downright cold and dirty, shame on them!
Government Imposter Plays
Scammers often impersonate government officials, targeting boomers to steal personal information or demand immediate payment, exploiting the complexity of their income and taxes. These scams typically start with attempts to gather personal data and quickly become more aggressive, falsely claiming the victim owes government debts and must pay immediately.
Tax season is a prime time for such scams, though they can happen year-round, using intimidation like arrest threats to pressure victims. It’s crucial to remember legitimate government entities, like the IRS, do not threaten arrest or demand immediate phone payments; they first send mail notices.
To guard against these scams, never share personal information with unsolicited callers. Always verify the authenticity of any government-related communication by contacting the agency directly.
False Investment Scams
Boomers are frequently targeted by scammers posing as investment advisors.
These scammers promise incredibly high returns or focus on seemingly safe investments to entice victims into fraudulent schemes. They employ varied tactics: one might boast about exceptional returns, supporting their claims with falsified documents, while another adopts a more subtle approach, suggesting low-risk investments like corporate CDs or bond funds.
Regardless of the method, the result is the same: victims lose their investment and cannot contact the advisor after transferring funds.
To protect against these scams, thorough research on the advisor is crucial. Legitimate financial advisors are registered and licensed, with verifiable credentials. Before committing any funds, potential investors should confirm the advisor’s legitimacy by checking for registration and looking up their name with the term “scam” for any red flags.
Being cautious of unrealistic promises and verifying the authenticity of any investment opportunity is essential for safeguarding one’s finances from false investment scams.
Tech Support Rackets
Scammers exploit individuals’ limited tech knowledge by pretending to be from reputable companies like Microsoft, Apple, or Adobe, offering assistance with technical issues to gain computer access. Once in, they might lock victims out or direct them to fraudulent sites to steal personal data, sometimes even promising refunds as bait.
To protect against these scams, it’s crucial to only engage with known and trusted tech support providers; remember, legitimate companies don’t make unsolicited calls to offer refunds. A creative defense against these fraudsters is exemplified by YouTuber Kitboga, who deliberately wastes scammers’ time, keeping them from targeting others.
Always be cautious and verify the legitimacy of anyone claiming to offer tech support to safeguard personal information from these tech support scams.
Sweepstakes Winner Ploys
The sweepstakes winner scam is a cunning method fraudsters use, evolving from old cons like the Nigerian prince scam and the “Spanish Prisoner” mail fraud. Victims are told they’ve won a significant prize—money, vacations, cars, or houses—but must pay fees or taxes to claim it. However, after payment, the promised prize never materializes, and the scammer vanishes with the funds.
A notable case in 2017 involved a Louisiana man charged with 269 counts of wire fraud from such scams, illustrating their widespread and lucrative nature. These scammers aim to collect bank details or payments by convincing victims of their win.
To protect yourself, be skeptical of any “prize” requiring upfront payment to claim. Never share personal or financial information with unknown individuals, and remember, legitimate sweepstakes do not ask winners to pay fees. Staying informed and cautious is key to avoiding these deceptive sweepstakes winner ploys.
Medicare Fraud
Medicare fraud targets boomers, with scammers posing as healthcare providers to offer unnecessary medical consultations or evaluations. They may hold fake appointments to gather personal details, then bill Medicare for non-existent services.
To avoid this scam, only trust your personal doctor or their recommendations. Remember, legitimate medical providers and Medicare itself do not make unsolicited calls to offer services. Be wary of sharing personal information with anyone claiming to be a healthcare provider over the phone.
This scam risks your identity, as fraudsters might use the gathered information for identity theft or other scams. Stay alert and report any dubious Medicare-related activities to the authorities.
The Grandparent Con
The “grandparent scam” targets boomers by tricking them into believing the scammer is their grandchild in distress. The scam begins with a call, “Hi Grandpa (or Grandma), do you know who this is?” leading some victims to inadvertently mention a grandchild’s name. With this information, the scammer, now masquerading as the grandchild, convinces the victim to send money, often through prepaid gift cards, to help with an emergency.
To counter this scam, boomers should confirm the caller’s identity through shared personal details, such as past family events or pet names, before sending any money. Face-to-face transactions are safer for financial assistance. Awareness and caution in sharing personal information over the phone are key to avoiding the grandparent scam. Verifying callers’ identities helps protect boomers from becoming scam victims.
Basic Robocall and Recording Schemes
Boomers should be vigilant about robocall scams where fraudsters use automated calls to extract sensitive information. These scammers employ social engineering, manipulating people into revealing personal details by exploiting familiar social cues.
They particularly aim to record a person saying “yes” to unauthorized credit or debit card charges through questions like “can you hear me?” Beyond voice recording, these scams may involve selling bogus products or threatening legal consequences to coerce personal information.
To safeguard against these tactics, it’s advised to ignore calls from unknown numbers, refrain from sharing personal information over the phone, utilize call-blocking services, and register with the National Do Not Call Registry to minimize unwanted calls.
Fake Charity Drives
In the wake of natural disasters or tragic events, scammers often create fake charities to exploit the goodwill of potential donors. They might use names very close to real organizations to seem legitimate, such as “Veterans Authority” instead of “Veterans Affairs,” tricking people into donating money or sharing personal information that the scammers then steal.
To protect yourself from these scams, verify the charity’s legitimacy through official registries like the BBB Wise Giving Alliance or Charity Navigator, which track and evaluate genuine charities. Additionally, searching the charity’s name with terms like “scam” or “complaint” online can uncover any past fraudulent activities or warnings from others who’ve encountered scams.
Being cautious and conducting research before donating ensures your help reaches the intended recipients, not fraudsters. Always check the credibility of a charity, especially during times of immediate need following disasters or crises, to make your contributions count for those truly in need.
Counterfeit Prescription Sales
The rise in counterfeit medication sales is alarming, with the FDA reporting a significant increase in investigations of such activities, from an average of five cases per year in the 1990s to around 20 since 2000. The internet has become a common marketplace for these fraudulent sales, attracting individuals, especially boomers, who are often in need of affordable prescription medications.
The impact of buying counterfeit medications is severe. Boomers may lose money and receive no benefit for their health conditions. Worse, these counterfeit pills often contain harmful substances, posing serious health risks and potentially worsening their medical and financial situations.
This issue underscores the dangers of seeking cheaper medications without verifying the legitimacy of the source. It’s crucial for everyone, particularly those who are most vulnerable, to exercise caution when purchasing medications online and to ensure they are dealing with reputable pharmacies.
Offer in Compromise Mills
Offer in Compromise (OIC) mills exploit taxpayers seeking to reduce their tax debts, claiming they can negotiate settlements for much less than owed. These companies surface post-tax season, charging hefty fees for services that individuals could often manage on their own by directly contacting lenders or the IRS.
The danger of engaging with OIC mills lies in their potential to fail at securing viable repayment plans, leading to defaults and further financial woes. These mills prioritize collecting fees over achieving favorable outcomes for their clients.
Taxpayers are advised to steer clear of OIC mills. Direct negotiations with the IRS or lenders can often yield similar or better arrangements without the financial burden of third-party fees. This approach not only saves money but also avoids the pitfalls associated with unscrupulous OIC mills.
Obituary Raiding
Obituary raiding is a scam targeting the grieving by exploiting obituaries. Scammers, finding details about the deceased, may confront mourners at funerals or wakes, demanding payment for nonexistent debts or undelivered orders.
They employ two main tactics: claiming a package for the deceased requires payment or asserting the deceased owed them money. Often, widows are the primary victims, with scammers leveraging mourning families’ emotional vulnerabilities to coerce payments.
No legitimate business operates by harassing the bereaved for payments. If approached with such claims, it’s advisable to seek official correspondence from the alleged creditor and verify the claim independently. This scam preys on the unaware and can be dismantled with caution and skepticism.
Awareness is key to preventing victimization by obituary raiders. Protecting oneself and relatives involves recognizing these exploitative tactics and responding appropriately to suspicious claims.
What Do You Think?
How can the boomer generation arm themselves with knowledge and tools to outsmart scammers and secure their financial future against the evolving threat of these sophisticated scams?
Do you think you or someone you love would fall victim to these scams?
