By David Munn, CFP
On a regular basis we hear about scams, fraud, and identity theft attempts that our clients and others have experienced. Recently, many travelers in Ohio received scam texts claiming the recipient owes unpaid tolls to the Turnpike. These attempts are sophisticated in that they seem to target those who actually have used the Turnpike recently, making them all the more believable.
Scam attempts often involve executing transactions in something other than US currency to make it less traceable, such as gift cards, gold bars, or digital currency, and caution the victim not to notify anyone else, both of which should always be a humongous red flag.
Many scams are focused on the elderly. Here are some of the most common scams that target older adults.
1. Medicare and Health Insurance Scams
Scammers often pose as Medicare representatives or health insurance agents to steal personal information. They may call or send fraudulent emails claiming the victim needs a new Medicare card or must pay for medical services to maintain coverage. Once they obtain sensitive information like Social Security numbers or insurance details, they can commit identity theft or submit fraudulent claims in the victim’s name.
How to Protect Yourself: Never provide personal or financial information over the phone. If unsure about a Medicare-related issue, contact Medicare directly at 1-800-MEDICARE.
2. Grandparent Scam
In this scam, fraudsters impersonate a grandchild in distress, calling or emailing an elderly person and pretending to need urgent financial help. They may claim to have been arrested or stranded in a foreign country, begging their “grandparent” not to tell their parents. Scammers rely on the grandparent’s concern and willingness to act quickly without verifying the story.
How to Protect Yourself: If you receive such a call, ask the person for details only your grandchild would know. Contact other family members to verify their whereabouts before sending any money.
3. Tech Support Scams
Tech support scammers pose as representatives from major technology companies, claiming that the victim’s computer has a virus or other issue. They request remote access to the computer and often charge hefty fees for unnecessary or non-existent services. In some cases, they install malware to steal personal data.
How to Protect Yourself: Legitimate tech companies do not make unsolicited calls. If you receive such a call, hang up. If you need help with your computer, seek assistance from a trusted local service provider.
4. Lottery and Sweepstakes Scams
Scammers contact victims claiming they have won a lottery or sweepstakes but must first pay taxes, processing fees, or other charges to claim their winnings. Victims who send money may be strung along with more demands, losing thousands before realizing the scam.
How to Protect Yourself: Remember that legitimate lotteries do not require winners to pay fees upfront. If you did not enter a contest, you cannot win. Do not share personal or financial information with unknown callers.
5. Romance Scams
Scammers create fake online profiles on dating sites or social media, forming relationships with elderly individuals to manipulate them emotionally and financially. Once trust is established, they begin requesting money for emergencies, travel expenses, or investments.
How to Protect Yourself: Be cautious of online relationships that progress quickly. Never send money to someone you haven’t met in person. If unsure, consult a trusted friend or family member before making financial decisions.
Stay Vigilant!
Scammers often prey on emotions—fear, love, or excitement—to manipulate their victims. The best defense against scams is awareness and caution. Always verify requests for money, never share sensitive information with unverified sources, and discuss suspicious messages with trusted friends or family. By staying informed, individuals can protect themselves from financial exploitation and fraud.
This material is intended to be educational in nature, and not as a recommendation of any particular strategy, approach, product or concept for any particular advisor or client. This material is not intended as any form of substitute for individualized investment advice and social security planning. The discussion is general in nature, and therefore not intended to recommend or endorse any asset class, security, or technical aspect of any security for the purpose of allowing a reader to use the approach on their own. Before participating in any investment program or making any investment, clients as well as all other readers are encouraged to consult with their own professional advisers, including investment advisers and tax advisors. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client's investment portfolio. Past performance may not be indicative of future results. Munn Wealth Management, LLC, is registered as an investment adviser (RIA) with the United States Securities and Exchange Commission (SEC). Registration as an investment adviser does not imply any certain degree of skill or training. 1323GSP