What You Should Do Now: 8 Scams to Watch For
Knowledge is your best defense. Scammers rely on surprise and confusion. By learning their scripts, you take away their power. Here are eight of the most common scams that target retirees today, along with the red flags to watch for.
1. The Grandparent Scam
How it works: You get a frantic phone call, text, or email from someone pretending to be your grandchild. They’ll say they’re in trouble—often a car accident, a legal problem, or stuck in a foreign country—and need you to wire money immediately. They’ll beg you, “Please don’t tell Mom and Dad.”
Red flags:
- A sense of extreme urgency.
- A request for secrecy.
- They ask for payment via wire transfer, gift cards, or a payment app, which are hard to trace.
What to do: Resist the urge to act immediately. Hang up and call your grandchild or another family member directly using a phone number you know is real. Verify the story. No matter how convincing it sounds, never send money based on an urgent, emotional plea.
2. Tech Support Scams
How it works: A pop-up message appears on your computer screen with an alarming warning: “Your Computer Has a Virus! Call this number now!” Or, you might get a call from someone claiming to be from Microsoft or Apple, saying they’ve detected a problem with your device.
Red flags:
- Unsolicited contact. Legitimate tech companies will never call you out of the blue about a virus.
- They demand remote access to your computer.
- They try to sell you software or a “service plan” to fix the non-existent problem.
What to do: Never call the number on a pop-up or give a stranger remote access to your computer. If you get a pop-up, shut down your computer. If you get a call, just hang up. If you are worried about your computer, take it to a trusted local technician.
3. Medicare or Health Insurance Scams
How it works: Someone calls claiming to be from Medicare. They say you need a new Medicare card or are eligible for bonus benefits, but first, they need to “verify” your Medicare number, Social Security number, or bank information. They might also offer “free” medical supplies or genetic testing.
Red flags:
- Medicare will almost never call you unless you’ve called them first and asked for a callback.
- They threaten to cancel your benefits if you don’t comply.
- They ask for your personal numbers. Medicare already has your number and will not ask you to verify it over the phone.
What to do: Hang up. Guard your Medicare card like a credit card. Never give your number or other personal information to an unsolicited caller. If you have questions about your benefits, call the number on the back of your official Medicare card.
4. The “You’ve Won!” Sweepstakes and Lottery Scam
How it works: You receive a call, letter, or email announcing you’ve won a huge prize, like a lottery or a new car. The catch? To collect your winnings, you first have to pay a fee for taxes, shipping, or processing.
Red flags:
- You have to pay to get your prize. Legitimate sweepstakes do not ask for money upfront.
- They pressure you to make a decision quickly.
- They ask for payment by gift card or wire transfer.
What to do: If it sounds too good to be true, it is. You can’t win a contest you didn’t enter. Never pay a fee to collect a prize. Simply ignore the message or hang up the phone.
5. Government Impersonation Scams
How it works: A scammer calls pretending to be from the IRS or the Social Security Administration. They might say you owe back taxes and will be arrested if you don’t pay immediately. Or, they might claim your Social Security number has been suspended due to criminal activity.
Red flags:
- Threats of arrest or legal action. Federal agencies do not operate this way.
- They demand immediate payment, often with a specific method like a gift card.
- The caller ID might look real, but this can be faked (“spoofed”).
What to do: Hang up. The IRS initiates most contact through postal mail, not threatening phone calls. The Social Security Administration will never suspend your number. If you’re concerned, look up the official phone number for the agency and call them directly.
6. Romance Scams
How it works: A scammer creates a fake profile on a dating site or social media platform. They build a relationship with you over weeks or months, gaining your trust and affection. Eventually, they will start asking for money for a sudden emergency, a plane ticket to visit you, or a business problem.
Red flags:
- The relationship moves very fast, with declarations of love.
- They always have an excuse for why they can’t meet in person or video chat.
- Sooner or later, they ask for money.
What to do: Be cautious with online relationships. Never send money to someone you have not met in person. If you suspect a romance scam, stop all contact immediately and report the profile to the dating site or social media platform.
7. Home Repair Scams
How it works: Someone shows up at your door uninvited, often after a storm or other natural event. They claim to have leftover materials from a job “down the street” and offer a great deal on paving your driveway, fixing your roof, or trimming trees. They demand payment upfront and then do a poor job or disappear completely.
Red flags:
- Unsolicited offers and high-pressure sales tactics.
- They demand cash payment upfront.
- Their vehicle is often unmarked, or they have no professional credentials.
What to do: Never hire a contractor who shows up at your door. For home repairs, get multiple written estimates from reputable, local companies with good references. Never pay the full amount before the work is completed to your satisfaction.
8. Fake Charity Scams
How it works: Scammers take advantage of your generosity by creating fake charities, especially after a natural disaster or during the holidays. They’ll call, email, or even go door-to-door asking for donations to a cause that sounds legitimate.
Red flags:
- Vague or sentimental claims with no specific details about how your donation will be used.
- They pressure you to donate immediately.
- They thank you for a pledge you don’t remember making.
What to do: Do not donate in response to pressure. Ask for detailed written information about the charity. You can verify a charity’s legitimacy using online tools like Charity Navigator or the BBB Wise Giving Alliance before you give.
