Common Financial Scams: What to Watch For and How to
By Jorge Padilla, CFP®
Financial scams targeting older adults are sadly becoming more common, and more sophisticated. Seniors are often targeted because scammers assume they have significant savings, are less familiar with digital technology, or may be more trusting in unfamiliar situations.
At Meira Wealth, many of our clients have aging parents or are seniors themselves. Knowing how to recognize common scam tactics is one of the most effective ways to protect yourself and your loved ones from financial harm. Below are some of the most frequently reported scams, along with practical tips to help you stay safe.
1. Government Imposter Scams
One of the most widespread types of fraud involves scammers posing as government representatives. These impersonators may claim to be from Medicare, the Social Security Administration, or the IRS. Their goal? To get you to hand over sensitive personal information such as your Social Security number or Medicare ID.
They may use threatening language, say you're at risk of losing benefits, or that you owe money. Sometimes, they even manipulate caller ID so the call appears to come from an official source.
What to do:
Never share personal information with someone who contacts you unexpectedly. Instead, hang up and reach out directly to the agency using a phone number from their official website. For Medicare, you can visit medicare.gov to verify your account details or benefits. Don’t be pressured by urgency. A legitimate agency will likely never demand immediate action without previous communication.
2. Telemarketing Scams
These scams typically involve phone calls offering fake products or services. Examples include miracle anti-aging products, health supplements, and fake sweepstakes or lottery winnings. The caller might sound friendly, professional, or even sympathetic, but their goal is to pressure you into making a quick decision.
Often, these scams rely on urgency: “Act now or you’ll lose your chance!” They might request your credit card number, banking information, or personal details right over the phone.
What to do:
Be cautious of any unsolicited calls offering products, services, or prizes. Never give out personal or financial information unless you initiated the call and know the company. And remember, if it sounds too good to be true, it usually is.
3. Grandparent Scams
These emotionally manipulative scams involve a call from someone pretending to be your grandchild. They may claim to be in trouble, stranded in another city, facing an emergency, or even in jail, and urgently need money.
The scammer counts on your instinct to help someone you love. They’ll often beg you not to tell anyone, making it even harder to pause and ask questions.
What to do:
If you receive a call like this, stay calm. Ask the caller questions only your grandchild would know. Better yet, hang up and contact your grandchild (or another family member) directly. Don’t wire money or send gift cards based on a phone call alone, confirm the facts first.
4. Internet and Email Scams
With more seniors using smartphones, email, and online banking, internet scams have grown more common. These can include phishing emails, fake websites, and pop-up messages claiming your computer has a virus.
A scammer might pretend to be from a technology company or financial institution, saying there’s a problem with your account or computer. They’ll ask for passwords or encourage you to click a link that installs malware.
What to do:
Don’t click on links or open attachments from unknown emails. If something looks suspicious, even if it appears to be from a known source, contact the company directly using a verified number. Use strong, unique passwords and enable extra security features like two-factor authentication wherever possible.
5. Investment Scams
Investment fraud can take many forms, but they all tend to share one feature: promises of high returns with little to no risk. These schemes may be pitched over the phone, via email, or through social media, often targeting seniors who want to grow or protect their retirement savings.
Common examples include Ponzi schemes, unregistered investment opportunities, or fake real estate ventures.
What to do:
Always research investment opportunities thoroughly. If you’re being offered something that sounds unusually profitable or secretive, proceed with caution. Consult a trusted advisor before making any financial commitments, especially if the offer comes with pressure to act quickly.
Protect Yourself and Your Loved Ones
Scammers thrive on confusion, urgency, and emotion. The more aware you are of the common tactics they use, the more protected you’ll be.
Here are some general tips to help you stay safe:
Don’t share personal or financial information with people you don’t know
Slow down and ask questions, urgency is often a red flag
Discuss suspicious communications with family, friends, or your financial advisor
Keep software and security settings up to date on your devices
Monitor your financial accounts regularly for unfamiliar transactions
At Meira Wealth, we regularly help clients review financial documentation and act as a second line of defense against suspicious offers. If you’re ever unsure, don’t hesitate to reach out to your advisor for guidance.
Final Thought
Fraudsters are clever, but you can be smarter. Stay informed, stay cautious, and never hesitate to get help when something doesn’t feel right. When in doubt, call our team. We’re always here to help you protect what matters most.
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