Unfortunately, once older adults reach the coveted milestone of retirement, they also become vulnerable to countless scams and fraud.
Retirees are perceived as having significant accumulated wealth, making them attractive targets. Common scams can be lurking online, but many come in the form of e-mails and phone calls.
Tip: How to Retire Comfortably on $2,000
Here are some of the most common scams to beware of:
1. Phony work-from-home opportunities – According to AARP, this common scam is one of the most dangerous. Seniors sign up through online ads for part-time jobs working as payment processors for legitimate businesses. In reality, it’s a ruse for a money laundering operation. Even though seniors are only unknowing participants, they can face legal action if the operation is prosecuted.
2. Lottery scam – This scam comes from an e-mail or phone call convincing the senior they’ve won money in a foreign lottery, says CBS News. They ask for money upfront to pay for “taxes and fees” so they can transfer the winnings. Obviously, there are no winnings.
3. Prescription drug scams – Seniors are especially vulnerable to these scams because drug costs can be outrageous, and, according to Money Crashers, it’s understandable for seniors to be looking for ways to save money. Online ads promise deep discounts. Once seniors supply their personal credit card information, they are charged but never receive their medications.
Special: If You Collect Social Security, Please Read This Critical Information . . .
4. Government official impersonations – The AARP asserts that government agencies do not send unsolicited e-mails. Even so, thousands of seniors fall prey to e-mails pretending to be from the Social Security Administration or the IRS asking for personal financial information. They can then be victims of fraud or identity theft once the scammers have the information.
5. Utility scam – This fear-based scam involves an official-sounding phone call from someone claiming to be from a local utility. They will tell the senior their utilities are about to be cut off because of a delinquent payment and demand money through a wire transfer to continue service, says CBS News.
6. Investment scams – Money Crashers says these scams can wipe out a senior’s savings in the blink of an eye. Victims are lured by investment opportunities in fake businesses or real estate that doesn’t exist through online ads, e-mails, or even phone calls.
Alert: Here's How to Never Run Out of Money During Retirement
© 2017 Newsmax. All rights reserved.