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Every year, American seniors lose over $28 billion to fraud, according to AARP. But here’s the shocking part: Only a fraction ever gets reported.
If you’ve received a letter, email, or call claiming you’ve been “pre-qualified” or “pre-approved” for a 401(k) rollover or annuity upgrade, beware. These scams are getting smarter. They sound official and even personalized. But the offers aren’t random; they’re based on real details about you.
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5 STEPS TO PROTECT YOUR FINANCES FROM FAMILY SCAMS
Why these retirement scams feel so real
Scammers now buy your personal data from data brokers to craft convincing offers. If you’re in your 50s or 60s, you’re a prime target. They know your age, homeownership status, estimated net worth and even retirement timeline. They don’t guess, they know. Your information is being sold across hundreds of websites, and thousands of people can access it. Curious about how exposed you are?
WHAT IS ARTIFICIAL INTELLIGENCE (AI)?
What is a “pre-qualified” retirement scam?
These scams mimic real communications from financial institutions. You might get a letter or call claiming you’re approved for a new investment or annuity opportunity. Scammers often use financial buzzwords like “IRA consolidation” or “required minimum distribution guidance.” The goal? To make you feel like you’re dealing with a trusted expert. They create fake advisor profiles, complete with headshots, license numbers and U.S. contact info. Many even add logos or branding from familiar banks to boost credibility. But once you respond, they’ll ask for private financial info or, worse, get you to transfer funds directly into their accounts.
Why older adults are prime targets
Scammers love targeting seniors because they typically have savings and are making major financial decisions. Plus, their data is easier to get. The unregulated data broker industry makes it easy for bad actors to find and target seniors with laser focus.
How scammers get your data
These scams are fueled by data purchased from brokers. These companies gather your details, compile profiles and sell them, often without your knowledge. You could appear on lists labeled “Retirees with $250k+ Net Worth” or “Homeowners Nearing Retirement.” It’s disturbingly precise. Some brokers scrape public records, while others buy data from loyalty cards, surveys or sweepstakes. Bottom line: this happens quietly, behind your back.
The financial toll of these scams
In 2024, the FBI reported that seniors lost over $4.8 billion to scams, a record high. Retirement-related fraud was a major part of that. Once your money is gone, it’s usually gone for good. Even if the scammer misled you, your bank may not cover the loss if you authorized the transaction. These scams drain more than just savings. They create lasting stress, fear and shame. Prevention is your best defense.
6 warning signs of a retirement scam
Stay alert for these red flags anytime you get financial offers:
- You didn’t request the offer. If it’s unsolicited, be skeptical, even if it looks legit.
- Urges you to act fast. Pressure tactics are a classic scam move.
- Promises “guaranteed” returns. No real investment can promise that.
- Asks for sensitive details. Legitimate advisors won’t demand your Social Security number or account info over email or phone.
- References real personal info. Just because they “know” your retirement date, that doesn’t mean they’re trustworthy.
- Lacks verifiable credentials. Always double-check licenses and business addresses through your state regulator.
How to protect yourself from retirement scams
You don’t have to wait until it’s too late. Follow these steps to take control today:
1. Use a personal data removal service
The fewer people who can access your personal information, the safer you are. Opt out of data broker websites manually, or use a data-removal service. Manually removing yourself from hundreds of data brokers is overwhelming. A reputable service can automate the process and protect your exposure long-term. While no service can guarantee the complete removal of your data from the internet, a data-removal service is really a smart choice. They aren’t cheap, and neither is your privacy. These services do all the work for you by actively monitoring and systematically erasing your personal information from hundreds of websites. It’s what gives me peace of mind and has proven to be the most effective way to erase your personal data from the internet. By limiting the information available, you reduce the risk of scammers cross-referencing data from breaches with information they might find on the dark web, making it harder for them to target you.
Check out my top picks for data removal services, and get a free scan to find out whether your personal information is already out on the web by visiting Cyberguy.com/Delete
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2. Verify the source
Contact your bank, broker or financial advisor directly. Never trust a cold call, email, or mailed offer without confirmation.
3. Guard your personal details
Never share your Social Security number, account numbers or full birthdate over the phone or email, even if the offer sounds legitimate.
4. Loop in a trusted contact
Before making any financial moves, talk to a family member or someone you trust. A second opinion can expose red flags.
5. Block scam messages
Use spam filters, call blockers and browser protections to stop scam messages before they reach you.
6. Use strong antivirus software
Protect your devices from phishing links and malicious downloads that scammers use to steal personal info. The best way to safeguard yourself from malicious links that install malware, potentially accessing your private information, is to have antivirus software installed on all your devices. This protection can also alert you to phishing emails and ransomware scams, keeping your personal information and digital assets safe.
Get my picks for the best 2025 antivirus protection winners for your Windows, Mac, Android & iOS devices CyberGuy.com/LockUpYourTech
7. Monitor your accounts
Regularly check your bank, investment and credit accounts for unusual activity, and set up alerts for transactions.
8. Report suspicious activity
If you think you’ve been targeted, file a report with the FTC at reportfraud.ftc.gov. It helps investigators and prevents others from falling victim.
9. Stay informed
Subscribe to alerts from trusted sources like CyberGuy to stay ahead of new scams targeting seniors and retirees by signing up for my free CyberGuy Report newsletter at CYBERGUY.COM/NEWSLETTER
What this means for you
If you’re planning your retirement, you must be extra cautious. Scammers are watching, and they’re armed with your data. Blocking them starts with controlling what’s out there. The less they know, the harder it is to fool you.
Kurt’s key takeaways
Don’t assume an offer is real just because it uses your real data. That’s often a sign it’s a scam. Scammers thrive on your personal information. Take control by locking it down, verifying offers and refusing to be rushed into decisions.
Should data brokers be required to get your permission before selling your information? Let us know by writing to us at Cyberguy.com/Contact
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