Financial Advisors in Raleigh NC give tips on how to keep safe from scams.
Every year, thieves target individuals to get access to their personal information and money, and they tend to target older people. Far too many seniors fall prey to scammers who are looking to make a quick buck.
Quick Tips
First, be wary of any offer that seems too good to be true. If it sounds too good to be true, it probably is. It’s also wise to be careful about giving out personal information, such as your Social Security number, bank account information, or credit card number, unless you know who you are dealing with and trust them.
Second, try to get as much information as possible about any investment opportunities that are presented to you. Be sure to ask questions, and do your own research. Be wary of any salesperson who pressures you to make a decision right away, or who refuses to answer your questions.
Finally, if you think you may be a victim of a scam, contact your local financial advisor as soon as possible. They can help you determine if the offer is legitimate and can provide advice on the best course of action.
Common Scams and Fraud
Here is a breakdown of how some of the most common types of scams work.
Grandparent Scam
The Grandparent scam is a type of fraud where scammers pose as a grandchild in distress and target older individuals. They typically contact the victim via phone or email, claiming to be in a difficult situation and urgently needing money.
Charity Scam
The charity scam is a fraudulent scheme where scammers deceive individuals into donating money or providing personal information under the guise of supporting a charitable cause. They can take various forms, such as phone calls, emails, or even in-person solicitations.
Don’t agree to give to charities over the phone or when first approached. Instead, investigate the organization and find a number to call if you are interested in giving a donation.
Government Imposter Scam
The government imposter scam is a type of fraud where scammers pretend to be representatives of government agencies or officials to deceive individuals and extract money or personal information. These types of scams involve fraudsters impersonating government officials or agencies, such as the Internal Revenue Service (IRS), Social Security Administration, or immigration authorities, among others. They use various tactics to instill fear, urgency, or authority to manipulate victims into providing sensitive information or making payments.
Internet Scams
The term "internet scam" encompasses a wide range of fraudulent activities that take place online. They are schemes or deceptive practices designed to trick individuals into providing personal information, sending money, or engaging in other actions that benefit the scammers. These scams can occur through various channels such as emails, social media, online marketplaces, and fake websites.
Romance Scams
The romance scam involves individuals creating fake identities, typically pretending to be interested in a romantic relationship. They may use stolen photos, fabricated stories, and emotional manipulation to gain the trust and affection of their victims. Once a bond is established, scammers may request money for various reasons, such as medical emergencies, travel expenses, or investments, or they might exploit victims for identity theft purposes.
Medicare Scams
Medicare scams can take various forms, but they typically involve fraudsters posing as healthcare providers, insurance representatives, or government officials. They use tactics like phone calls, emails, or in-person solicitations to deceive Medicare beneficiaries. The scammers may attempt to obtain personal information, bill Medicare for unnecessary services, or sell fake insurance plans.
Investment Scams
Investment scams are fraudulent schemes that deceive individuals into making financial investments that turn out to be fake or nonexistent. They often promise high returns or guaranteed profits, targeting people looking for investment opportunities to grow their money. The scammers employ various tactics to create the illusion of legitimacy and exploit their victims.
Sweepstakes Scams
A sweepstakes scam is a type of fraudulent scheme where scammers deceive individuals by claiming they have won a prize or a large sum of money in a sweepstakes or lottery, but no such prize exists. The scammers often contact victims through phone calls, emails, or letters to inform them of their supposed win and then request payment or personal information to claim the prize.
Reverse Mortgage Scams
In a reverse mortgage scam, fraudsters often pose as legitimate reverse mortgage lenders, counselors, or financial advisors. They target vulnerable homeowners, particularly older adults, and employ various tactics to deceive them. They can involve charging excessive fees, manipulating loan terms, tricking homeowners into signing over their property, or convincing them to invest the borrowed funds in fraudulent schemes.
Bottom Line
Scams targeting seniors are prevalent and pose significant risks to their financial security and well-being. To avoid falling victim, seniors should remain vigilant, exercise caution when sharing personal information or making financial decisions, seek independent advice, and report suspicious activity to the appropriate authorities. By staying informed, seniors can protect themselves from scams and maintain their financial independence and peace of mind.
Sources:
https://consumer.ftc.gov/all-scams/scams-against-older-adults
Disclosures:
This site may contain links to articles or other information that may be on a third-party website. Advisory Services Network, LLC is not responsible for and does not control, adopt, or endorse any content contained on any third-party website.
This material is provided as a courtesy and for educational purposes only. Please consult your investment professional, legal or tax advisor for specific information pertaining to your situation.
