Americans lose billions of dollars in fraud every year, many of which are older.
Imagine a 71-year-old retiree who lost every penny of his entire 401(k) and savings due to an online scam. The extent of this loss will put his entire financial future in danger.
This could happen: According to the FBI, the elderly population loses more than $3 billion a year.
If you or a loved one has become a victim of a financial scam, the first thing to do is to report the crime to the Federal Trade Commission (FTC) and the FBI immediately.
Losing a retirement nest egg due to a scam can be devastating. Facing the situation can help you correct the ship.
For beginners, stop bleeding. When you find yourself in a scam, try to mitigate your losses. Block any additional funds from leaving your bank account.
Depending on the situation, you can actually recover some funds with the help of the authorities and your financial institution.
If you don't have any luck through reputable channels, don't fall back to the recovery scan, which is expected to help recover your funds but will actually steal more money from you. If someone asks for an upfront fee to help you recover your funds, it could be a recovery scam.
When you run out of recovery options, the only thing you have to do is move forward. Fortunately, there are still some strategies that can help you restore your financial stability.
First explore your social security benefits. For eligible elderly people who have not yet applied for Social Security benefits, this may be the right time to take advantage of this month’s income. While social security income alone may not replace your savings, it can help you meet your needs.
In addition to social security, research on advanced support programs provided through local nonprofit organizations. For example, some people may offer packaging for nutritious foods or health care services, both of which may help you expand your budget.
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Don't ignore the possibility of returning to work as a certain identity. Although you may not reach a full-time position, you may work part-time or remotely to earn supplemental income. Combined with your Social Security benefits, it may be enough to realize your retirement dream.
Finally, losing a nest egg may mean you need to reevaluate your retirement plan. For example, if you are planning to move to a more expensive area, it may be a viable option now.
Or, if you have a big house with a lot of equity, you might consider downsizing so you can rely on those hard-earned equity for the retirement year.
Getting into a scam can have serious financial consequences. As more retirees manage finances online, being familiar with common scams can help you protect your assets.
According to the FBI, technical support scams are the most widely reported fraud in older adults. In this case, the elderly receive “help” from malicious actors online, hoping to solve the technical problems. The scammers were not helped, but stole funds and personal information from the victims.
If you need technical assistance, find help from a well-known company. In some cases, it is best to take the device to a physical location for repair, such as the Apple Store or Best Buy, to get legal help from a technical problem solver.
Romance is another common pitfall. When an older person starts an online “relationship” with a fraudster, it usually ends up as a victim to resolve funds to resolve their so-called partner’s problems.
Although slightly less common, investment scams are the most expensive type of elderly fraud in 2023. Some have lost most of their lifetime savings as victims lost a collective total of more than $1.2 billion in 2023.
Often, investment scams claim that you can make money quickly or easily through “investment opportunities.” After the victim provides funds, the scammers usually disappear. If someone promises that it sounds good, then this may be the case.
Stop all communication with the fraudster when you discover a scam or think you have discovered it.
If you are not sure if something is a scam, ask someone else for their opinion. If possible, ask someone, such as a child or a young relative, for their opinions. In many cases, the younger generation can help you quickly spot scams.
If it is not available, consider calling the National Senior Fraud Hotline at 1-833-372-8311. Agents can help you determine if something is a scam.
This article provides information only and should not be construed as advice. It is without any warranty of any kind.