Financial Red Flags and Scams to Watch Out For
Unfortunately, scammers often target seniors, believing they have accumulated savings and may be less tech-savvy. Being aware of their tactics is your best defense.
The Grandparent Scam
You receive a frantic phone call from someone pretending to be your grandchild. They say they are in trouble—a car accident, arrested in another country, or in the hospital—and need you to wire money immediately. They beg you not to tell their parents. The urgency and emotional manipulation are designed to make you act before you can think.
Warning Signs: A sense of extreme urgency, a request for secrecy, and a demand for payment via wire transfer, gift cards, or a cryptocurrency app. These payment methods are like sending cash; once the money is gone, it’s virtually impossible to get back.
Phony Investment Schemes
These scams often come through email, a social media message, or a cold call. The scammer promises an investment with “guaranteed” high returns and “no risk.” They may use high-pressure tactics, telling you it’s a limited-time opportunity you have to act on now. The investment is often vague or overly complex, designed to confuse you.
Warning Signs: Promises of guaranteed returns (all legitimate investments have some level of risk), pressure to “act now,” and requests to invest using non-traditional methods. Always be skeptical of unsolicited investment offers.
To protect yourself from scams and for consumer information, consult the Consumer Financial Protection Bureau (CFPB) and the FTC.
