Preventing Financial Fraud: A Practical Guide for Senior Citizens
Financial scams are becoming more sophisticated, but protecting your hard-earned money doesn’t require being a tech expert. By adopting a few “low-tech” habits and setting up simple digital guardrails, you can stay ahead of scammers.
Practice the “Pause Rule”
The most effective tool a scammer has is a sense of urgency. If a caller, email, or text claims you must “act now” to save your account or avoid arrest, stop. Take a breath. Hang up or close the screen. Real banks and government agencies will never pressure you to make a snap decision over the phone.
Verify Before You Trust
Never use the contact information provided in a suspicious text or email. If you get a call about your credit card, hang up and call the number printed on the back of your actual physical card. This ensures you are speaking to a legitimate representative and not a “cloned” voice or a fraudster.
Keep Your “Safe List” Handy
Write down the official phone numbers for your bank, doctor, insurance agent, and local police on a physical piece of paper. Keep this “Safe List” near your phone or computer. If you ever feel uncertain, ignore the incoming request and call the number on your list instead.
Master the Two-Second “No”
Scammers often ask for things a legitimate business never would. Use these two rules as your ultimate shield:
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Never share codes: Never give out an OTP (One-Time Password) or verification text code to anyone.
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Reject unusual payments: If someone asks for payment via gift cards, wire transfers, or cryptocurrency, it is a scam 100% of the time.
Scan Your Accounts Weekly
You don’t need to be an accountant to stay safe. Set a recurring 5-minute appointment twice a week to scan your bank statements. Look for small charges you don’t recognize—scammers often “test” a card with a $1.00 transaction before trying for a larger amount.
Set Up One-Time Digital Protections
If you have an adult child or a tech-savvy friend, ask for 15 minutes of help to set these up once:
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Credit Freeze: This is the best way to stop identity theft. It prevents anyone (including scammers) from opening a new account in your name.
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Bank Alerts: Enable text notifications for any withdrawal over $100 or any new login attempt.
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Two-Step Verification: This adds a second layer of security to your email and bank logins.
Reject “Remote Help” Offers
If a window pops up on your computer saying you have a virus, or if someone calls claiming to be “Tech Support,” do not give them access. Never install software that allows someone to “remotely control” your device. Simply turn off the computer and call a local, trusted technician.
If Fraud Happens: Your 30-Minute Action Plan
If you realize money has been moved or your information was shared, do not be embarrassed—scammers are professionals. Take these steps immediately:
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Stop the Bleeding: Call your bank’s Fraud Department immediately. Freeze your cards and stop any pending transfers.
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Secure Your Entry Point: Change your email password. If a scammer has your email, they can reset your other passwords.
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Disconnect: If you allowed someone onto your computer, turn it off and unplug the internet until a professional can scan it for “spyware.”
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Document: Take screenshots of the scammer’s messages or save the receipts of any transactions.
Legitimate Assistance Services
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AARP Fraud Watch Network: Provides a free helpline for seniors to talk to a fraud specialist (877-908-3360).
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FTC (Federal Trade Commission): Visit ReportFraud.ftc.gov to get a personalized recovery plan.
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FBI IC3: Use ic3.gov to report any online or internet-based scams.
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Credit Bureaus: Contact Equifax, Experian, or TransUnion to place a “Fraud Alert” on your file.