Protecting Your Finances from Scams

Nearly everyone who uses social media, email and search engines such as Google or receives phone calls and texts will likely encounter scams aimed at obtaining personal information or accessing their financial accounts.

Older adults are particularly at risk: In 2023, the FBI reported over 100,000 complaints of fraud from people over 60, resulting in $3.4 billion in losses. By comparison, those aged 30 to 39 had 88,000 complaints and $1.2 billion in losses.¹

While all individuals need to be aware of deceptive activity online and over the phone, certain scams have proven to be successful and should be the ones at the top of your list to watch for. According to the FBI, the top 5 scams that made up more than 65% of complaints from 2015 to 2020 include the following:²

• Government Impersonation Scam. Scammers pretend to be from the IRS, Social Security Administration or Medicare, and claim you have unpaid taxes and threaten arrest or deportation.
• Sweepstakes Scams. Scammers say you have won a lottery or prize and to claim your winnings, you must send money upfront to cover supposed taxes and fees.
• Illegal Robocalls/Unsolicited Phone Calls. Some robocalls claim a warranty is expiring on your car or electronic device, and payment is needed to renew it.
• Computer Scams. A pop-up message or blank screen appears on a computer or phone, claiming your device is damaged and needs fixing. When you call the number for help, the scammer may either request remote access to your computer and/or demand you pay a fee to have it repaired.
• Grandparent Scams. Scammers call and ask an older adult: “Hi, Grandma, do you know who this is?” When the unaware grandparent guesses the name of the grandchild, the scammer instantly secures their trust. The fake grandchild then asks for money to solve some urgent financial problem and asks the grandparent not to tell anyone.

A good rule of thumb when interacting with anyone on the phone, via email or online: If an offer sounds too good to be true, it most likely is.

Keep in mind there are always new scams that arise so it’s important to stay alert and informed. To help protect against financial fraud, particularly for an elderly relative, consider adding a trusted contact to an investment account. A trusted contact can provide an extra layer of protection when something unexpected happens.

If you have questions on adding a trusted contact to an account, call your Jemma Financial Advisor at 855.662.2121.

1 Federal Bureau of Investigation, Internet Crime Report 2023. 2 U.S. Senate Special Committee on Aging.