Scammers have always targeted older adults, but now they are using cutting-edge technology to do it.
With the rise of artificial intelligence (AI), these fraudsters have developed new and sophisticated ways to deceive and steal from unsuspecting retirees. Understanding these scams and how to protect yourself can help you avoid wasting your retirement savings.
To preserve financial security during your golden years, watch out for these scams — and learn how to avoid them.
Eliminate your late tax debt
Each year, the IRS forgives millions in unpaid taxes. If you have more than $10,000 in tax debt, or have 3+ years of unfiled taxes, you could get forgiveness too. You might be eligible to lower the amount you owe, or eliminate your tax debt completely.
Easy Tax Relief could help you lower or get out of your tax debt for good. They’re well respected in the industry and have been recognized for their ethical standards when dealing with tax debt. While most tax companies just put you on a payment plan and file your taxes for you, Easy Tax Relief talks to the IRS directly. They can help you pay off your tax debt faster while potentially reducing what you owe.
Important: Not everyone will qualify. To take advantage of this special program you must owe more than $10,000 in past-due taxes.
Fill out this form to get started
Phony calls from loved ones
![scammer calling on smartphone placed on a wooden table](https://cdn.financebuzz.com/filters:quality(75)/images/2023/05/05/incoming-call-from-scammer-on-smartphone.jpeg)
AI can now mimic voices with alarming accuracy, allowing scammers to create convincing fake phone calls from loved ones. For example, they might pose as a grandchild in trouble, asking for money to pay ransom or bail.
To avoid falling for this scam and jeopardizing your financial fitness, always verify the caller's identity by asking questions only your loved one would know. Or, call your loved one back at their known number.
Fake videos from celebrities
![surprised reading text](https://cdn.financebuzz.com/filters:quality(75)/images/2024/07/05/surprised-reading-text-adobe.jpg)
AI-generated videos — also known as deep fakes — show realistic footage of celebrities endorsing products or services, such as making an investment or donating to a worthy cause. However, the videos are not real.
These fake endorsements can lure retirees into fraudulent schemes or investments. Always verify the authenticity of such endorsements through reliable sources before taking any action.
AI-created websites
![internet scam fake banner](https://cdn.financebuzz.com/filters:quality(75)/images/2024/07/05/internet-scam-fake-banner-adobe.jpg)
Scammers use AI to create professional-looking websites that mimic those of legitimate companies. These websites can trick retirees into providing personal information or making purchases that lead to financial loss.
Ensure you are on a secure website by looking for the “s” in "https" in the URL. Also, verify the site's legitimacy by looking for trusted reviews and official company contact information.
Earn $200 cash rewards bonus with this incredible card
There's a credit card that's making waves with its amazing bonus and benefits. The Wells Fargo Active Cash® Card(Rates and fees) has no annual fee and you can earn $200 after spending $500 in purchases in the first 3 months.
The Active Cash Card puts cash back into your wallet. Cardholders can earn unlimited 2% cash rewards on purchases — easy! That's one of the best cash rewards options available.
This card also offers an intro APR of 0% for 15 months from account opening on purchases and qualifying balance transfers (then 20.24%, 25.24%, or 29.99% Variable). Which is great for someone who wants a break from high interest rates, while still earning rewards.
The best part? There's no annual fee.
Phishing emails
![blocking spam e-mail](https://cdn.financebuzz.com/filters:quality(75)/images/2024/07/05/blocking-spam-e-mail-adobe.jpg)
Phishing emails have become more sophisticated with AI, making them harder to distinguish from genuine communications.
These emails often appear to be from trusted sources, such as banks or government agencies. They ask for personal or financial information or prompt you to click on malicious links.
Always verify the sender's email address and avoid clicking on links or downloading attachments from unknown sources.
Product offers that steal your cash
![financial scam](https://cdn.financebuzz.com/filters:quality(75)/images/2024/07/05/financial-scam-adobe.jpg)
AI-generated advertisements for products can appear highly convincing and targeted to your interests. Scammers use these ads to lure retirees into purchasing nonexistent or subpar products.
To protect yourself, research the company and product thoroughly and read customer reviews before making any purchases.
Travel schemes
![upset traveler using smartphone](https://cdn.financebuzz.com/filters:quality(75)/images/2024/07/05/upset-traveler-using-smartphone-adobe.jpg)
AI can create enticing travel offers that promise great deals and discounts. These scams are especially likely to target retirees who enjoy traveling. The offers often require upfront payments.
Verify travel deals through reputable travel agencies or directly with airlines and hotels to avoid falling victim to these schemes.
Predatory romance scams
![scammer trying to ask money](https://cdn.financebuzz.com/filters:quality(75)/images/2024/07/05/scammer-trying-to-ask-money-adobe.jpg)
AI-powered chatbots and deep-fake profiles can make online romance scams more convincing. Scammers use these tools to build emotional connections with retirees, eventually asking for money under various pretexts.
Be cautious when forming online relationships and never send money to someone you have not met in person.
Bank account fraud
![Computer fraud alert warning](https://cdn.financebuzz.com/filters:quality(75)/images/2019/11/25/fraud_alerts_can_save_big_time.jpg)
Scammers use AI to create fake notifications from your bank, prompting you to provide account information or log in to a fraudulent site. Some scammers even use fake driver’s licenses and computer-generated faces and graphics to open bank accounts in other people’s names.
These scams can lead to significant financial loss if your account details are compromised. Always verify the authenticity of any communication from your bank by contacting someone who actually works for the bank.
Financial institution scams
![masked no sincerity of doing business together](https://cdn.financebuzz.com/filters:quality(75)/images/2023/04/28/masked_no_sincerity_of_doing_business_together.jpg)
AI can generate convincing communications from financial institutions other than banks, such as your brokerage.
Always conduct thorough research and contact your financial institution at its official phone number or email address to verify whether these communications are a scam.
Earn potentially $1,000s for basically free by opening this account as early as possible in life
You can turn your existing money into even more money, by basically doing nothing. Yes, it sounds insane. But it’s true — and it all depends on how early in life you open a high yield savings account.
The NexBank high yield savings account offers a rare 5.26% APY1— compare that to the national average APY of 0.45% (as of 7/02/24). This could be worth hundreds, even thousands of dollars in practically passive income.
This is all thanks to compound interest — the earlier in life you start putting money into this type of account, the more you can earn over time. As Ben Franklin put it, “Money makes money. And the money that money makes, makes money.” Bam.
Let’s say you put $50,000 into a high yield account at 5.00% APY at 30-years-old. Then, you contribute $5,000 a year, every year, until age 50. With interest compounding daily at that rate, you’d walk away with $303,466.67! But … if you start at age 45, you’d only have $91,898.37.
Open an account today — the sooner, the better. NexBank is powered by Raisin's savings marketplace, there are NO fees, and you can withdraw your money whenever you need it. Plus, with FDIC insurance, NexBank provides a more secure online banking experience and a safer place to store your extra cash.
Limited Time Bonus: Earn up to $2,000 when you refer friends and family to Raisin. Visit site to learn more.
Charity scams
![credit card phishing card with hook](https://cdn.financebuzz.com/filters:quality(75)/images/2024/05/09/credit-card-phishing-card-with-hook.jpeg)
AI-generated charity scams exploit retirees' generosity, especially during crises and natural disasters. These scams create realistic websites and communication from fake charities.Then, they solicit donations.
Verify the legitimacy of any charity through resources such as Charity Navigator or the Better Business Bureau (BBB) before making a donation.
Bottom line
![unauthorized Payments](https://cdn.financebuzz.com/filters:quality(75)/images/2024/07/05/unauthorized-payments-adobe.jpg)
AI technology has given scammers new tools to deceive and steal from retirees, making it essential to stay vigilant and informed. Always verify the authenticity of communications, websites, and offers before taking any action with your hard-earned savings.
By staying cautious and informed, you can get ahead financially and eliminate some money stress, ensuring a secure and enjoyable retirement.
Lucrative, Flat-Rate Cash Rewards
FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.
Wells Fargo Active Cash® Card
Current Offer
$200 cash rewards bonus after spending $500 in purchases in the first 3 months
Annual Fee
$0
Rewards Rate
Earn unlimited 2% cash rewards on purchases
Benefits
- Low spend threshold for its welcome offer — $200 cash rewards bonus after spending $500 in purchases in the first 3 months
- Cell phone protection benefit (subject to a $25 deductible)
- Can redeem rewards at an ATM for literal cash
Drawbacks
- Foreign transaction fee of 3%
- No bonus categories
- Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
- Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 15 months from account opening on purchases and qualifying balance transfers. 20.24%, 25.24%, or 29.99% Variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don’t expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.