Those who have continuously saved are more likely to have a significant pension pot when retirement. Unfortunately, predators realize that many retirees have put years of effort into saving, so they devise schemes specifically for them. Here are some frequent retirement scams to be wary of.
1.Medicare frauds:
Someone claims to be a Medicare official and calls or knocks on your home. After that, you’ll be prompted to provide personal information, such as your insurance identification number. Once you’ve given the scammer this information, they’ll utilize it to bill Medicare for bogus services and pocket the money.
2.Call from the Internal Revenue Service:
Someone pretending to be from the IRS may contact you and have your personal information, such as your Social Security number’s last four digits. You are then informed that you owe back taxes and must pay by debit card or wire transfer. Analysts say that “any message you receive from the IRS stating you owe back taxes should be treated with caution.” In general, an IRS agent would never contact you out of the blue seeking payment of taxes. If the organization needs to communicate with you, they will do so via the postal system.
3.Grandchild scam:
A caller claiming to be your granddaughter or grandson requests you for money. The caller will seek to convince you to respond quickly before you have a chance to assess the situation entirely. Hang up and call your relatives before transferring money.
4.Prescription medicines:
If you order prescriptions online, be cautious if you see an advertisement for a cheaper drug. The con artist will create a website that promotes fake drugs. You may receive drugs that may not treat your ailment if you provide money. Check your pharmacy’s license to ensure you’re getting the medication you need.
5.Rogue packers and movers:
If a moving company promotes meager rates online and offers a moving quote over the phone, the pricing may be too reasonable to be true. Elderly people are the victims of widespread fraud in the moving industry. Make sure the mover is licensed and comes to your home to offer you a price to avoid the scam. Before migrating, compare pricing with several movers and ask friends for company recommendations.
6.Lottery:
You receive notification in the form of a letter or a phone call that you have won a prize. You’ll be requested to put in a payment to cover taxes and other costs to claim it. The fraudster may send a bogus cheque to the bank after you wire monies or send money. The bank will reject the fraudulent check, and the scammer will take the money you paid in. Knowing that authentic lottery winners do not come with upfront financial fees is your best defense against lottery con artists. Never pay somebody money to claim a reward.
7.Investment scam:
A caller claims to be a financial counselor and provides investment advice. After that, the individual inquires about your retirement money and savings. If you give the fraudster these details, they will gain access to your accounts, take the money, and vanish. You should confirm that the financial advisor you’re entrusting your financial records to isn’t a fraud. If you decide to deal with a financial advisor, do your homework before entrusting your money to them. Examine credentials, expertise, and affiliation with well-known professional groups.
8.Deceiving family members:
Proceed with caution if you are healthy and active, and a close one volunteers to oversee your finances. Without your permission, that person may use your money to buy a new automobile or pay off student loans. Consider getting a springing power of attorney to protect your assets. If you become disabled, this type of document becomes enforceable. You can even specify who can determine capacities, such as a doctor, family member, or both.
9.Repair offers:
Be wary if a man dressed in a worker’s uniform with a company symbol shows up at your door and offers to help. The person may want payment ahead and then refuse to execute the service, or they may do a lousy job and walk away with the money. A respectable organization does not go door to door.
10.Abuse of funds:
It may be time to switch your financial advisor when you have given them the right to send money in your name. When retirees grant their adviser the authority to send ‘third party checks’ to other parties, one of the most common ways cash is taken from them, the advisor gains the capacity to send a check to a third party without your approval. To be safe, disable this access on all of your accounts. Getting the check or wire into your account first before sending it out to someone else may be inconvenient, but it will help avoid fraud.