Many financial scams target seniors. Criminals exploit the fact that senior citizens may not understand technology like online banking. They also prey upon older people suffering from memory loss and cognition problems, such as individuals with Alzheimer’s.
That’s why it’s important for you and your loved ones to understand how to protect against financial scams. Learn how to safeguard your personal information, reduce your risk of identity theft, and know the warning signs of common schemes.
Here are some tips about financial abuse scams targeting seniors over the phone and online:
1. Never give personal info over the phone
Fraud and abuse often occurs over the phone. In one common type of financial scam, the scammer calls and pretends to be an employee from a bank, credit card company, or other financial institution. They claim there’s an issue with your account and ask for your Social Security number, bank account, or other personal info for “verification.”
In reality, these institutions never do this. Even if the caller knows your name and the name of your bank, hang up! Then, check your latest bank statement or look on the back of your credit card for a customer service number and call them yourself. Chances are, there won’t be any issues with your account.
These scam callers may also claim to represent your insurance company, health service provider, the IRS, real estate agents or sweepstakes contests. No matter what form they take, remember — no legitimate person is going to call you out of the blue and ask for your private info.
2. Never give personal info over email
Similarly, don’t divulge your information via email. Scammers have developed very sophisticated online financial scams, known as “phishing” or “spoofing,” where they may send emails that look like they’ve come from your bank or other companies. Again, real institutions won’t request your personal information in an email.
If an email ever asks for your Social Security number or other info, don’t click any links and delete it immediately. Learn more about financial scams via email here.
3. Practice safe shopping
When shopping online, stick with familiar retail sites such as Amazon or local businesses that you know and trust. Also, check the website address bar in your browser — the part that says “www.” — and always look for a secure website emblem. This is a little icon that looks like a closed padlock.
In addition to the secure website emblem, you should always see “https://” at the beginning of the website URL. This ensures that the website is using a secure server to protect your information. If a website lacks these security features, don’t give them your credit card information.
Also, keep your eyes open for anything suspicious such as misspelled product names. When websites are full of errors, they’re more likely to be financial scams.
4. Use secure passwords
Always use secure passwords. Use a different password for all your different online accounts, and make sure each password is hard to guess. Experts recommend that all passwords should be at least 8 characters and include at least one uppercase letter, one lowercase letter, one number and sometimes one symbol.
Avoid using the names of your loved ones and pets, as those passwords are more likely to be guessed. Instead, try creating unique passwords by scrambling the words in your favorite song, book or a place you’ve visited. Then, always remember to change your passwords at least once a year.
If you have difficulty remembering all your passwords, try LastPass. It’s free to use or you can upgrade to Premium for $2 a month.
5. Don’t do financial transactions on public wifi
Public wifi is convenient, but it isn’t always secure. Avoid conducting any online financial transactions — whether it’s online banking or online shopping — when you’re using the internet at a coffee shop, library, airport or elsewhere. This will prevent hackers from stealing your information and using it in other financial scams.
Learn More about Financial Scams
When it comes to financial scams, knowledge really is power. We recommend checking the FTC’s Scam Alerts website regularly to learn more.