Financial scams can happen to anyone, but retirees and those close to retirement can be particularly vulnerable. It’s important to understand the common scams out there and how to protect yourself and your hard-earned savings.
Common Types of Scams
Scammers often target people with retirement savings by using convincing stories or fake offers. Some of the most common scams include:
- Phishing emails and phone calls: These try to trick you into giving away personal information by pretending to be a trusted company or government agency.
- Fake investment opportunities: Scammers promise high returns with little or no risk to get you to hand over your money.
- Romance scams: Scammers create fake relationships to gain trust and ask for money.
- Charity and disaster scams: Scammers pose as charities, especially after natural disasters or major news events, to take advantage of your generosity.
How AI Can Be Used to Fool You
With advancements in technology, scammers are also using artificial intelligence (AI) to create even more convincing scams. For example:
- AI-generated emails and messages can sound more realistic, making it harder to tell if a message is legitimate.
- Deepfake videos and audio recordings can imitate trusted voices or public figures—even people you know personally, like a family member, advisor, or lawyer—making fake requests for money seem authentic.
- Chatbots and automated systems can carry on conversations that feel human, tricking you into sharing personal details.
These new tools mean it’s even more important to be cautious and verify information before taking any action.
Red Flags to Watch For
Knowing the signs of a scam can help you avoid them. Here are some red flags:
- Pressure to act immediately or “limited-time offers.”
- Promises of guaranteed returns or “no risk” investments.
- Requests for personal information like Social Security numbers or bank details over email or phone.
- Payment requests via gift cards, wire transfers, or cryptocurrency.
- Messages that sound more human but come from unknown contacts—especially with poor grammar or strange requests.
Tips to Protect Yourself
Protecting your nest egg is about staying alert and taking a few key steps:
- Verify the source: If you’re contacted by someone asking for personal information or money, confirm their identity through trusted contact numbers or websites.
- Be cautious with emails and phone calls: Don’t click links or provide sensitive information to anyone you don’t know. Even if an email looks legitimate, it’s safer to go directly to the company’s website.
- Guard your personal details: Don’t share your Social Security number, bank account information, or passwords unless you’re certain it’s safe.
- Stay skeptical: If an offer sounds too good to be true, it probably is.
- Check with someone you trust: If you’re not sure about a request or an offer, ask a trusted friend or your financial advisor.
Working with a Professional
Having a trusted financial advisor can be a strong defense against scams. We help you understand how to spot red flags and review any suspicious offers. We also make sure your retirement accounts and personal data are handled securely.
If you ever see something that doesn’t seem right—like an unexpected email or a call asking for money—reach out. It’s always better to double-check before acting.
Why Staying Informed Matters
Scammers often change their tactics, and with AI now in the mix, staying informed is more important than ever. The Federal Trade Commission (FTC) and other consumer protection agencies regularly update alerts about new scams. Checking these can help you stay ahead of the latest tricks.
The SEC also warns investors about fraudulent “investment seminars” that promise wealth with no risk. These seminars can be a front for scams that target retirees and those near retirement.
Bottom Line
Protecting your nest egg is about staying alert and cautious, especially in a world where AI can make scams even more convincing. Knowing the red flags and checking in with your financial advisor can help you avoid falling for a scam.
If you have questions about how to protect your retirement savings or if you’ve been approached with an offer that sounds suspicious, let’s talk. We’re here to help you keep your financial future secure.
References:
FTC: Consumer Advice – How to Avoid Scams: https://consumer.ftc.gov/articles/how-avoid-scam
SEC: Spotting and Reporting Investment Scams Targeting Older Investors: https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-alerts/spotting-and-reporting-investment-scams-targeting-older-investors?utm_source=chatgpt.com
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Velekei Giles Financial Advisors is a separate entity from Valmark Securities, Inc. and Valmark Advisers, Inc.