Navigating the treacherous waters of financial scams and fraud is a critical concern for those enjoying their golden years. We’ve gathered seven invaluable tips from financial advisors and CEOs to secure your hard-earned assets. From guarding personal information vigilantly to verifying sources and maintaining healthy skepticism, discover how to protect yourself during retirement.
- Guard Personal Information Vigilantly
- Stay Informed and Use Multi-Factor Authentication
- Monitor Accounts and Set Up Alerts
- Implement Strong Online Security Measures
- Create a Trusted Financial Framework
- Use Trusts and Speak to an Attorney
- Verify Sources and Maintain Healthy Skepticism
Guard Personal Information Vigilantly
One important tip for protecting yourself from financial scams and fraud during retirement is to not give out any personal information for anything unsolicited, especially if it sounds too good to be true or involves fearmongering or urgency. Scammers are rampant, preying heavily on seniors by sending phishing emails or by calling and posing as government officials, such as those from the IRS, or as professionals wanting to offer you a great deal on everything from Medicare to investments to reverse mortgages.
Steps I’ve taken to safeguard my assets include blocking spam calls, staying updated on new scams, taking the time to verify information, and securing a cash-value life insurance policy, liability insurance, retirement accounts, and annuities.
Michelle Robbins
Licensed Insurance Agent, USInsuranceAgents.com
Stay Informed and Use Multi-Factor Authentication
One of the best tips for protecting yourself from financial scams during retirement is to stay informed and vigilant, especially about the types of scams that target retirees. Fraudsters often prey on seniors by exploiting trust or offering too-good-to-be-true investment opportunities. A critical step is never to share personal or financial information over the phone, email, or online unless you’re absolutely certain of the recipient’s authenticity. Scammers can be incredibly convincing, but taking time to verify identities and double-check sources can save you from potential fraud.
In safeguarding my assets, I’ve focused on building a strong network of trusted financial advisors and leveraging secure, reputable financial institutions for investments and transactions. I also make it a habit to regularly review my financial statements for any suspicious activity. Using multi-factor authentication on all financial accounts adds an extra layer of protection. By keeping an eye on my assets and having reliable professionals in my corner, I ensure that my financial well-being remains secure, no matter what challenges arise. Staying proactive is key to protecting yourself and your future.
Shehar Yar
CEO, Software House
Monitor Accounts and Set Up Alerts
As retirees are often targeted by scammers, it’s crucial to keep a close eye on your financial accounts. One effective step is to set up real-time alerts with your bank or financial institution. These alerts can notify you instantly via text or email whenever there’s activity on your accounts, whether it’s a transaction or a change in account settings. This immediate notification allows you to spot any suspicious activity and take action before a potential fraud escalates.
Additionally, I recommend regularly checking your credit report to look for any unfamiliar accounts or inquiries. Many banks now offer free credit monitoring as part of their services, making it easier to stay on top of your credit history. This not only helps catch potential fraud early but also keeps you informed of your overall financial health.
Lastly, it’s smart to limit the personal information you share online, particularly on social media. Scammers often use publicly available details to impersonate you or trick you into providing more sensitive information.
Rose Jimenez
Chief Finance Officer, Culture.org
Implement Strong Online Security Measures
In today’s digital age, protecting personal information online is just as critical as safeguarding physical assets. I use strong, unique passwords for all of my accounts and enable two-factor authentication where possible. This provides an additional layer of security, making it more difficult for hackers to gain access.
I also limit the amount of personal information I disclose on social media, as scammers might exploit birthdates and family names to commit identity theft. Keeping my internet presence secure has greatly reduced my vulnerability to financial fraud. These small actions ensure that my digital footprint is kept safe.
Timothy Allen
Director, Oberheiden P.C.
Create a Trusted Financial Framework
One key tip for protecting yourself from financial scams and fraud during retirement is to establish a trusted financial framework, such as using a professionally-managed trust or working with a reliable financial advisor. In my practice, I often recommend setting up an irrevocable trust or an offshore trust as part of an asset protection plan. These legal structures not only safeguard your wealth from lawsuits and creditors, but they also help shield your assets from scams and fraudulent schemes that target retirees.
Personally, I’ve taken steps to safeguard my clients’ assets by employing multi-layered protection strategies. This includes diversifying assets across various protected entities, ensuring that access to funds is limited to trusted individuals or professionals, and continuously monitoring for any suspicious activity. Implementing a strong, legally protected financial plan is one of the best defenses against scams during retirement.
Blake Harris
Attorney, Blake Harris Law
Use Trusts and Speak to an Attorney
I keep most of my personal assets in a trust to avoid probate and shield them from scammers. Trusts make assets much harder to access, even with stolen information. I advise retirees to consider speaking with an estate-planning attorney about setting up a trust for at least a portion of their life savings and investments.
I never conduct financial business over the phone, email, or text. Legitimate companies will send official letters or meet in person. If I get an unsolicited call, email, or text about my accounts, I know it’s fraud. I hang up and report it to the FTC.
Staying actively involved in managing your money is key. I check all my statements line by line each month to catch fraud early. Once, I found a $5,000 unauthorized charge and got it reversed within a week. If I hadn’t checked closely and often, I might have missed many months of withdrawals. It’s tedious but necessary.
Diversify your accounts across institutions in case one has a security breach. I have assets at three banks and two investment firms. If one gets hacked, the damage is limited. Convenience isn’t worth risking your life savings. Take an active role, stay vigilant, and be skeptical—those are my keys to avoiding financial fraud in retirement.
Michael J. Alvarez, CPRM, CPIA
Managing Partner, Nu Sure Insurance Group
Verify Sources and Maintain Healthy Skepticism
The golden rule for protecting your retirement from scams is to be wary of unsolicited offers and always verify the source. Scammers often prey on retirees with investment opportunities or urgent requests for personal information, pretending to be from trusted institutions.
Before engaging, independently verify the legitimacy of any phone call, email, or letter by contacting the institution directly using an official number, not one provided in the message.
To safeguard my own assets, I maintain a healthy skepticism. I regularly monitor my accounts for suspicious activity and shred any financial documents before disposal.
Scott Higgins
Financial Advisor, Family Wealth Management
