6 Common Retiree Scams

Retiree scams

Knowing retirees have been careful financial planners, predators tailor their schemes to lure seniors into their trap. Being aware of the following common schemes can keep you protected.

1. Medicare Scams – Medicare will not call about the new Medicare cards nor is there a fee to activate or update the card. If you get a call or visit from someone claiming to be a Medicare representative, hang up or close the door. Do not share any personal information or insurance ID numbers.

2. IRS Phone Call – If someone from the IRS calls claiming you owe back taxes and asks for personal information and the last four digits of your Social Security number, hang up the phone! The IRS will contact you through the mail if they need to get in touch with you.

3. Fake Prescription Drugs – When you order medications online, be careful if you spot an advertisement promoting a cheaper drug alternative. Scammers set up websites that sell fake meds and then send you medication that won’t help your diagnosis. Only buy medications from a pharmacy licensed by your state that has a licensed pharmacist on staff.

4. Moving Company Rip-off – Be suspicious of moving companies that advertise extremely low rates online and offer to give a moving quote over the phone. Their low prices are often too good to be true. They will ask for payment upfront and then flee. To avoid the scam, make sure the mover is licensed and comes to your home to give you a quote. Check with several movers to compare rates and ask friends for recommendations.

5. Lottery Hoax – You may receive a letter or a phone call with a message that you’ve won money but you need to send in a payment to cover taxes or other fees before they’ll mail you a prize winnings check. This is a scam! Legitimate winnings don’t come with upfront financial fees.

6. Investment Deception – A common way money is stolen from retirees is when they grant their financial advisor the ability to send ‘third party checks’ to other individuals. To be safe, remove this authorization from all your accounts and always research before trusting someone with your money. Look at credentials and experience and consider referrals from trusted family members and friends.

Beacon Associates team members are certified financial advisors with a reputation for being trustworthy and sincere. Call us today and we can help you establish plans of action to protect your nest egg.

Information gathered from: Scams to Avoid in Retirement