Preventing Cyber Scams that Target Seniors

“Your Microsoft account has been compomised [sic]. Click this link to reset your connecton [sic].”

Does this message look familiar, typos and all? We’ve all seen suspicious emails or calls attempting to steal personal information. One unfortunate drawback of our tech-enabled world is that scams are increasingly common.

According to the FBI’s Internet Crime Complaint Center, people ages 60+ submitted more than 140,000 complaints and reported nearly $5 billion in direct losses in 2024. Sadly, most estimates suggest that unreported costs from scams and fraud are much higher. Despite growing awareness of fraudsters, the numbers have been steadily trending upward.

As a financial advisor, I undergo annual cybersecurity training and weekly lessons on common scams and cybersecurity threats in order to stay abreast of the popular scams. Although it sounds simple to avoid scams, even smart and thoughtful people will occasionally click a suspicious link or answer a fraudulent phone call. It’s all too easy to get a little sleepy and drop your guard.

Seniors are often targeted because they tend to have more savings, may be more hesitant to report fraud, are less tech savvy, and are prone to cognitive decline as they age.

Common Scams

According to the National Council on Aging, here are some of the most common scams targeting retirees today.

Grandparent Scam

This scam preys on our willingness to help family. In this ruse, a scammer impersonates a grandchild or close relative, sometimes using clues they know about the relative. They claim an urgent financial need such as a car repair or medical emergency. They try to exploit your emotions by telling you not to tell other family members. This scam typically ends with a request for payment via gift cards or wire transfers, which are hard to recover.

Financial Services Scam

Another common trick targets your trust in financial institutions. In this scheme, a pretend bank, mortgage company, or debt collector might call or email claiming that your account is compromised or that unpaid bills must be settled. They may ask for passwords or Social Security numbers, or direct you to send money through peer-to-peer platforms such as Venmo. These scams will often pressure you to act quickly for fear of immediate consequences.

Tech Support Scam

Scammers may take advantage of unfamiliarity with fast-moving technology. In this scam, a perpetrator reaches out to say that your computer or phone is broken or infected. They say they can “help,” but what they really want is access. They may ask for direct payment, or they may install malware and demand payment to fix the problem.

Government Impersonation Scam

Scammers exploit the complexity of Social Security, Medicare, and taxes by posing as agency personnel and alleging unpaid taxes, benefit issues, or threats of arrest. They can even spoof agency phone numbers to seem legitimate and demand payment with prepaid cards, wire transfers, or cash.

Romance Scam

This ruse seeks to exploit people seeking new relationships. On social media or dating sites, fraudsters cultivate a fake romantic relationship or friendship, then ask for money for travel, medical emergencies, visas, or other urgent (and fake) needs.

Stay Alert and Prevent Scams

These popular scams are just a sampling of the ways that fraudsters target retirees. Some obvious safeguards include keeping personal information private, creating strong passwords, and installing robust anti-virus software.

But much of the onus of fraud prevention falls on us as individuals. Be skeptical of any unexpected contact, and always verify using a trusted number or source. It is unlikely that something legitimate would come out of the blue.

Verify before you trust. If someone claims to be from your bank or a tech company, or that they’re a grandchild in trouble, hang up and call back using a known number, not one provided by the caller. When receiving an email, pause before you respond or click a link.

The SLAM method is a simple checklist for spotting scam emails. It stands for Sender, Links, Attachments, and Message:

• Check the email Sender’s address
• Hover over Links (to see if it’s a trustworthy url)
• Avoid suspicious Attachments, and
• Evaluate the Message for urgency or errors.

If anything feels off, don’t click, reply, or share information. Verify directly with the company or person through a trusted contact, such as a family member or friend who is tech savvy.

As fraudsters become more sophisticated, awareness is still our best defense. By pausing before we click, verifying unexpected messages, and talking openly about scams with friends and family, we can protect our finances and peace of mind. With vigilance, a few good cybersecurity habits, and the SLAM method, we all can enjoy the benefits of technology while keeping scammers at bay.

Luke Delorme, CFP® is Director of Financial Planning at Tableaux Wealth in Great Barrington, MA (www.tableauxwealth.com), reachable at luke@tableauxwealth.com. To stay current on the Squared Away blog, join our free email list.

This blog post is for informational and educational purposes only and should not be considered financial advice. Consult a qualified professional for advice specific to your situation.