Avoiding Scams Guide: A Guide for Protecting Your Loved Ones

Financial Scams
Written By DiversiFi Capital

Financial scams targeting older adults are becoming more sophisticated every year. While many of you are tech-savvy and financially literate, your parents, maybe in their 60s and 70s, can be more vulnerable. Scammers exploit urgency, trust, and fear to trick people into giving away money or sensitive information.

In this post, we’ll review some of the most common scams aimed at older adults, share practical tips to help families stay safe, and point you toward resources you can use if you ever suspect fraud.

Common Financial Scams to Watch Out For

1. Imposter Scams (IRS, Social Security, Medicare)

One of the most common frauds involves scammers pretending to be government officials. They may call claiming you owe back taxes, threaten that your Social Security benefits will be suspended, or insist Medicare coverage is at risk unless you pay immediately. These scams sound convincing because they use fear and urgency to create pressure.

How to stay safe:

  • Remember that government agencies never call demanding immediate payment or personal information.

  • Hang up the phone, and if you’re concerned, call the official number listed on the agency’s website to verify.

2. Investment “Too Good to Be True” Offers

Retirees are often targeted with unsolicited offers for “exclusive” investment opportunities. These may include pre-IPO shares in big-name companies, cryptocurrency pitches, or high-yield bonds that supposedly offer guaranteed returns. The promise of safety plus high income can be especially appealing for older adults who want to protect their nest egg. Unfortunately, these scams often leave victims with major losses.

And the problem is getting worse. According to recent reports from the FBI and other consumer-protection agencies, investment scams have surged dramatically over the past few years, with losses among Americans aged 60 and older rising by more than 40% in 2024 alone. These scams are now among the most common and costly forms of fraud affecting retirees, often resulting in tens of thousands of dollars in losses per victim.

How to stay safe:

  • Be skeptical of investments that claim to have high returns with no risk. This is a classic red flag.

  • Always discuss unfamiliar opportunities with a trusted advisor before making a commitment.

3. Grandparent / Family Emergency Scams

These scams pull at the heartstrings. A caller claims to be a grandchild, or sometimes a lawyer or police officer representing them, who is in urgent trouble. The story often involves needing bail money, covering medical bills, or being stranded abroad. Scammers rely on fear and secrecy, urging victims not to tell anyone else.

How to stay safe:

  • Pause before reacting, and verify the situation by contacting another family member directly.

  • A simple phone call can confirm whether the “emergency” is real or fabricated.

4. Tech Support Scams

Pop-ups, emails, or phone calls may warn that a computer is infected with a virus and must be fixed immediately. The scammer may ask the victim to download software, grant remote access, or pay for unnecessary services. Once inside a computer, they can steal personal data, install malware, or demand ransom payments.

How to stay safe:

  • Never give strangers remote access to your computer or phone.

  • If something seems suspicious, contact a local, trusted tech support professional instead of responding to the unsolicited message.

5. Phishing Emails and Texts

Scammers frequently send emails or texts that appear to come from banks, brokerages, or major companies. These messages often contain links asking recipients to “verify” their account, reset a password, or confirm personal details. Clicking the link can lead to stolen credentials or malware installation.

How to stay safe:

  • Do not click on unexpected links or download attachments from unknown senders.

  • If you receive a suspicious message, log in directly through the company’s official website or mobile app instead.

Practical Tips for Families

  • Slow down. Scammers count on panic and urgency. A pause often prevents a mistake.

  • Set up alerts. Many banks and brokerages offer account notifications for unusual activity.

  • Talk often. Encourage open conversations so parents feel comfortable sharing concerns.

  • Use advisors as a checkpoint. Remind loved ones that they can run financial decisions by you or by us before acting.

Helpful Resources for Reporting Scams

How We Can Help

As your advisors, we cannot prevent every scam, but we can be an extra layer of protection. Encourage your parents to reach out before making financial decisions they are unsure about. Even a brief conversation could protect them from costly fraud.

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DISCLOSURES

This blog post contains links to third-party websites for your convenience and reference. By providing these links, DiversiFi Capital LLC does not endorse or guarantee the accuracy, completeness, or reliability of the information, opinions, products, or services offered on these websites. These links are provided solely as a resource for our readers.

DiversiFi Capital LLC is not responsible for the content or privacy practices of third-party websites linked to or from this blog post. We recommend that you review the privacy policies and terms of use of any third-party websites you visit, as they may differ from those of DiversiFi Capital LLC. The inclusion of links to third-party websites does not imply any affiliation, sponsorship, endorsement, or approval by DiversiFi Capital LLC. We are not liable for any loss or damage that may arise from your use of these external websites or the information they contain.

Please exercise caution and conduct your own research and due diligence before interacting with or making decisions based on information from third-party websites. Your use of any third-party website is at your own risk.

DiversiFi Capital
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