Common Retirement Scams to Avoid

Posted on Jun 11, 2024

Retirement is meant to be a time to enjoy the rewards of your years of hard work. Unfortunately, it can also make you a target for fraudsters, and scams are on the rise and getting more sophisticated. Here are some common retirement scams to watch out for, along with tips on how to protect yourself.

1. Pension Scams: Pension scams often involve thieves promising high returns or early access to your pension funds. They may contact you out of the blue, offering free pension reviews or one-off or unusual investment opportunities with “guaranteed returns.” Be wary of anyone who pressures you to act quickly or offers to help you access your pension before age 55. These offers are likely scams and can result in the loss of your savings or an unexpected tax bill.
2. Social Security Scams: Social Security scams are common and can take various forms, such as fraudulent phone calls, emails, or texts claiming an issue with your Social Security number or benefits. Scammers may use spoofing to make their calls appear legitimate. Delete any dubious texts and always hang up on suspicious callers. The Social Security Administration (SSA) will never threaten you or ask for personal information over the phone or via email. Report any suspicious activity to the SSA or the Federal Trade Commission (FTC).
3. Investment Fraud: Investment fraud targets retirees by offering "risk-free" investments with high returns. Scammers may use sophisticated tactics including fake websites and testimonials to appear believable.  Before making investment decisions, consider consulting with a financial advisor and conducting thorough research. Be skeptical of unsolicited investment offers and promises of guaranteed returns; what sounds too good to be true usually is.
4. Phishing Scams: Phishing scams involve fraudulent emails, texts, or websites designed to steal your personal information. These messages often appear to be from legitimate organizations, such as government agencies, banks, or insurance companies. Never click on email links or provide personal information in response to unsolicited communications. Instead, contact the organization directly using a verified phone number or website.
5. Tech Support Scams: Tech support scams prey on retirees by claiming there is a problem with their computer. These scammers may ask for remote access to your computer or request payment for unnecessary services. If allowed to access your computer remotely, they can install malware and steal your personal data. If you receive an unsolicited call about a technical issue, hang up immediately.

By staying vigilant and taking proactive steps, you can protect your hard-earned assets and reduce the risk of falling victim to investment scams. Reject unexpected offers and be very cautious of unsolicited calls, emails, or messages. Verify the legitimacy of the person or company contacting you. Never be rushed into making investment decisions. Safeguard your retirement accounts as much as possible by using strong passwords and 2-step verification, and monitor your account statements for any unauthorized transactions or suspicious activity.

This material is provided for informational purposes only, and is not intended as authoritative guidance, legal advice, or assurance of compliance with state and federal regulations.