(StatePoint) Scammers are getting better at what they do all the time. According to the Data Book, Americans reported losing $10 billion to scams in 2023, a full $1 billion more than in 2022. While anyone can be a victim, elderly people are often targeted, as they are presumed to have more savings.
According to CERTIFIED FINANCIAL PLANNER professionals, you can help safeguard your financial future with these tips:
Slow Down
From romance scams to debt and IRS scams, many scammers use emotional appeals to scare or charm their victims into giving up personal information or their money. Before acting, take a deep breath and speak to a trusted friend or relative who may be able to help you spot a potential scam. Remember that the IRS initiates contact only through the U.S. mail, not via email, text or social media.
You can also do a bit of investigative work yourself. For example, if you receive an email claiming to be your bank or another institution asking you to click on a link, first make sure the request is legitimate. Do the return address and URL look right? Are there spelling errors? If you’re contacted by text or with a phone call, look up the number of the bank or company and call them back directly, not with the number provided.
Be Choosy
As you age, it’s common to enlist friends and family to help you make financial decisions and with everyday administrative tasks, like paying your taxes or your bills. Select who has access to your sensitive documents and online accounts carefully.
Also, never leave bills, statements and other identifying information lying around. You may want to invest in a paper shredder or a file cabinet with a lock so you can dispose of and store documents carefully. You should also ensure all your online accounts have strong passwords that are known only to you.
Finally, consider setting up automatic bill payments. This not only has the benefit of keeping you up-to-date on payments and helping you avoid late fees, it will also reduce the amount of sensitive paperwork you have in your home and receive by mail.
Seek Assistance
If you are the victim of identity theft or another scam, a CFP professional can help you recover with a smart financial plan. They can also help you avoid becoming a victim in the first place by helping you monitor your accounts and by setting up notifications from your financial institutions when suspicious activity is detected. As a fiduciary, they have an ethical obligation to work in your best interests at all times and can be a valuable member of your money team. To find a CFP professional near you, visit letsmakeaplan.org.
It’s easy to think identity fraud and other financial abuse is something that happens only to other people. But scam tactics are becoming more sophisticated, and anyone can be targeted. The best defense is staying abreast of the latest tactics and arming yourself with the assis-