One of my clients, a 79-year-old retiree, stopped at her bank’s ATM to take out some cash. She had no reason to think twice about it. A few hours later, she was staring at $1,400 in unauthorized withdrawals from her account.
Criminals had installed a card skimmer on the machine. What made the situation worse: The bank didn’t own the ATM. The actual owner was a third party, so recovering her money meant weeks of paperwork, phone calls and escalating frustration.
She eventually got every dollar back, but the experience shook her in a way that no market downturn ever had.
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At Octave Wealth Management, where I am the president and founder, we spend a lot of time helping clients grow their money: Picking the right investments, managing risk, keeping taxes down. But there’s a category of financial loss that doesn’t get nearly enough attention in planning conversations: Fraud.
And the tactics being used against retirees right now are more convincing than most people realize.
Here are five scams targeting retirees right now and the specific moves you can make to stop them.
1. The “your money isn’t safe” scam
This is the one keeping fraud investigators up at night. You receive a call, text or email from someone claiming to be the IRS, your bank, Social Security, Medicare or the FBI.
You’re told your accounts have been compromised, your identity has been stolen or you’ve been linked to criminal activity. You must move your money to a “safe account” immediately.
You’re instructed to wire funds, withdraw cash, buy gold, load money onto a cryptocurrency ATM or hand cash to a courier who shows up at the door. Once that money moves, recovery is nearly impossible.
No legitimate government agency, bank, or law enforcement organization will ever ask you to move money to protect it. If someone calls you on the phone and tells you otherwise, hang up and call the institution directly using the contact number given on its official website.
2. Investment and cryptocurrency scams
These scams generate some of the largest losses among older Americans. According to the FBI’s Internet Crime Report, investment fraud cost Americans more than $4.5 billion in 2023, with older adults among the hardest hit.
The scheme typically starts with what looks like a random text message, a LinkedIn connection, or a friendly exchange on Facebook or a dating site. The scammer builds rapport over weeks or months before introducing an “exclusive” opportunity, usually involving cryptocurrency.
You might receive polished account statements showing impressive gains. But the accounts don’t exist. When you try to withdraw your money, there is nothing there.
If an investment opportunity arrives through social media, a text from an unknown number or anyone you’ve never met in person, treat it as a red flag. Legitimate investment opportunities don’t come from cold messages.
3. Wire fraud during major transactions
This one catches people off guard because it happens in the middle of legitimate financial activity. Criminals intercept email chains tied to large transactions — home purchases, refinancings, trust fundings, IRA rollovers, family wealth transfers — and send revised wiring instructions that look authentic. The money goes straight to the scammer.
Never rely solely on wiring instructions sent over email. Before moving any significant sum, call a trusted phone number you already have on file — not one provided in the email — and confirm the details verbally.
4. AI voice-cloning and the grandparent scam
This version of an old fraud has gotten significantly harder to detect. A grandparent picks up the phone and hears a panicked voice: “Grandma, it’s me. I’ve been arrested.” The voice sounds real because, in a sense, it is — criminals now use AI to clone voices from social media videos and phone recordings.
The caller claims there’s been an accident, an arrest, a medical emergency. They need money now. The combination of a recognizable voice and manufactured urgency can override even a careful person’s instincts.
The best defense: Establish a family code word that only immediate family members know. If a caller can’t provide it, the call ends there.
5. Tech support scams
A pop-up appears on the screen. Your computer has a virus. Your Microsoft account has been locked. Call this number immediately. Once contact is made, the “tech support” rep asks for remote access to fix the problem — and uses that access to steal passwords and drain accounts.
Never allow remote access to your computer from someone who contacted you first. Legitimate tech companies don’t reach out through browser pop-ups asking you to call a number.
Easy ways to stay safe
These five scams share the same design. They manufacture urgency that makes it hard to think clearly. The “solution” always involves moving money or giving access fast, before you can verify anything.
A few habits cut the risk:
- Use a credit card instead of a debit card for most purchases, since credit cards tend to offer stronger fraud protections in most cases.
- Skip outdoor ATMs when you can and use machines inside a branch.
- Keep a dedicated credit card with a low limit for online purchases.
- Let unrecognized numbers go to voicemail.
- Inspect email addresses carefully before clicking anything.
- When something feels off, hang up and call the company or family member directly using a number you already trust.
- Consider freezing your credit with the three major credit agencies (Equifax, Experian and TransUnion) and unfreeze when you need to open an account or take out a loan.
The most effective scams aren’t built to defeat smart people. They’re built to create fear and pressure before you have time to think. The single best countermeasure: Slow down, verify and confirm before you act.