Why retirees are targeted by scammers, the most common fraud types, the warning signs to recognize, and the practical steps to protect yourself.
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“I tell members: slow down. The scammer’s job is to make you feel like you have no time to think. Your job is to take that time anyway.”
Every scam depends on pressure and speed. When someone is rushing you toward a financial decision — especially one involving personal information or unusual payments — that rush is the scam. Taking thirty minutes to call someone you trust or look up an official number has stopped more fraud than any other single action.
Fraud targeting retirees is widespread, and it’s important to talk about it openly — not to create fear, but to give you the awareness that keeps you protected.
Scammers deliberately seek out retirees for several practical reasons: retirees often have accumulated savings, pension income, or home equity; many retirees are home more often and reachable by phone; and scammers know that some older adults may be less familiar with newer digital tactics.
But awareness is the most powerful protection. The people who fall for scams are not foolish — they are often targeted by skilled, professional criminals who have refined their tactics over years. Knowing how these schemes work is not a sign of distrust; it’s a sign of being prepared.
This lesson covers the most common scam types, the warning signs that cut across all of them, and the steps you can take right now to protect yourself and the people you care about.
• Government impersonation scams Someone calls or texts claiming to be from Social Security, Medicare, the IRS, or another government agency. They say your benefits are suspended, you owe a fine, or your account has been compromised — and demand immediate payment or personal information. Real government agencies do not call you out of the blue demanding payment or threatening arrest.
• Tech support scams A pop-up or phone call claims your computer has a virus. A "technician" asks for remote access to fix it — then either steals your information or charges hundreds of dollars for fake services. Legitimate tech companies do not contact you this way.
• Romance scams Scammers build fake relationships online over weeks or months, then ask for money for an emergency. These can cause both financial and emotional harm. Be cautious of anyone online who claims to care deeply but can never meet in person.
• Investment and lottery scams Promises of guaranteed high returns, risk-free investments, or prizes you’ve "won" — but must pay a fee to collect. If it sounds too good to be true, it is. Legitimate investments carry risk; lottery winnings don’t require upfront payments.
• Medicare fraud Someone offers free equipment, tests, or services in exchange for your Medicare number. They then bill Medicare for things you never received. Guard your Medicare number the same way you guard your Social Security number.
• Family emergency scams A caller claims to be your grandchild or a relative in trouble — arrested, injured, or stranded — and begs you to wire money immediately. Always hang up and call the family member directly before doing anything.
• Charity fraud Fake charities contact you after disasters or during holidays asking for donations. Verify any charity at give.org or charitynavigator.org before giving.
Scams come in many forms, but they share a small set of warning signs that appear again and again. Recognizing any one of these should make you pause:
• Urgency and pressure Scammers create a false deadline: "You must act now or lose your benefits." "If you don’t pay today, you will be arrested." Real institutions give you time. Pressure is a tactic, not a real requirement.
• Unusual payment demands Requests to pay by wire transfer, prepaid debit card, gift card, or cryptocurrency are major red flags. These methods are hard to trace and impossible to reverse. No legitimate government agency, business, or charity asks for payment this way.
• Requests for personal information you didn’t initiate Your Social Security number, Medicare number, bank account information, passwords, or PIN should never be given to someone who contacted you first. You didn’t start the call — that’s the warning.
• Offers too good to believe Guaranteed returns, free prizes, miracle cures, or exclusive opportunities that only you have access to. Scarcity and exclusivity are sales tactics, not reality.
• Caller ID, email addresses, and websites can be faked A call appearing to come from "Social Security Administration" or an email that looks official can be completely fabricated. Never trust contact information at face value.
The single most effective thing you can do against a scam is slow down. Scammers are experts at creating urgency because urgency makes people bypass their own judgment.
• Hang up and call back on a number you find yourself If someone claims to be from Social Security, Medicare, your bank, or a government agency, hang up. Then look up the official phone number independently — from the agency’s website or a card you already have — and call that number. Do not use any number the caller gave you.
• Do not click links in unsolicited emails or texts Go directly to the organization’s official website by typing the address yourself. Links in emails can take you to convincing fakes.
• Never pay to claim a prize If you have to pay money to receive a prize, it is not a prize. Legitimate lotteries and sweepstakes do not require upfront fees.
• It is okay to say "I need to think about it" No legitimate offer expires in the next five minutes. A real opportunity will still be there after you’ve had time to think, ask someone you trust, and verify the details.
• Guard your Social Security and Medicare numbers These two numbers are the master keys scammers want. Only give your Social Security number to your employer, your bank, or government agencies when you initiate the contact. Only give your Medicare number to your doctors, pharmacies, and Medicare itself.
• Use strong, unique passwords Avoid using the same password across multiple accounts. A password manager can help you keep track of strong passwords without writing them down.
• Be careful what you share on social media Posting your birthday, hometown, family members’ names, and daily routine creates a profile scammers can use to make contact seem more personal and convincing.
• Review financial accounts regularly Check your bank and credit card statements at least monthly. Look for any transactions you don’t recognize and report them immediately. Early detection limits the damage.
• Consider a credit freeze A free credit freeze at all three major bureaus (Equifax, Experian, TransUnion) prevents new credit from being opened in your name. This is one of the most powerful identity theft protections available.
• Have a trusted person you can call before making financial decisions This is one of the most effective safeguards. Before sending money, giving out account information, or making any unusual financial move, call a family member, close friend, or trusted advisor. Simply saying "let me run this by someone" can stop a scam in its tracks.
• There is no shame in being targeted Scammers are professionals. They target millions of people and are skilled at creating confusion, urgency, and false authority. Being targeted says nothing negative about you. What matters is knowing what to do when it happens.
• Report scam attempts Reporting helps protect others. Contact the Federal Trade Commission at reportfraud.ftc.gov. Call 1-800-MEDICARE (1-800-633-4227) for Medicare fraud. Contact your state’s attorney general office for local fraud.
• If you lost money, report it immediately Contact your bank or financial institution right away. File a report with your local police department. Contact the FTC. Some losses can be recovered if reported quickly, and your report protects others.
• Contact your Benefits Center for guidance If you believe a scam may have targeted your union benefits, pension, or retiree health coverage, contact your Benefits Center right away. They can help verify whether any communications you received were legitimate.
Protecting yourself from fraud is not about becoming suspicious of everyone or living in fear. It is about having a few clear habits that make you a much harder target.
The most important habits are simple: slow down before acting, never give personal information to someone who contacted you first, verify independently, and involve a trusted person before making unusual financial decisions.
You spent decades building the financial security you have. A few common-sense precautions protect what you’ve earned.
For questions about your specific union benefits, pension, or retiree health coverage, contact your Benefits Center. For personalized financial security guidance, a qualified financial advisor through FE4L can help you put the right protections in place.
Scenario: Sylvia receives a call from someone claiming her Social Security number has been "suspended" due to suspicious activity. The caller says she must verify her number immediately or her benefits will stop. He sounds official and urgent.
Outcome: Sylvia remembers that Social Security never calls to demand personal information. She hangs up, looks up the SSA’s official number online, and calls to confirm there is no issue with her account.
Lesson learned: Social Security will never call you demanding immediate action. Hang up, find the official number yourself, and call back.
Scenario: Ray gets a frantic call from someone who sounds like his grandson saying he’s been arrested and needs $2,000 in gift cards right away. The caller begs him not to tell anyone.
Outcome: Before going to the store, Ray calls his daughter, who immediately calls his grandson — who is fine and at home. It was a "grandparent scam." Ray avoided losing $2,000.
Lesson learned: Always verify a family emergency by calling the person directly before sending money. Scammers specifically tell you not to tell anyone — that request itself is the warning sign.
Trusting caller ID to confirm who is calling.
Why this happens: Caller ID can be spoofed to show any number or name, including "Social Security Administration" or your own bank.
Better approach: Hang up and call the organization back using a number from their official website or a card you already have.
Sending gift cards or wire transfers to resolve an "emergency."
Why this happens: Legitimate emergencies are not resolved with gift cards. This payment method is irreversible and untraceable — exactly why scammers request it.
Better approach: Call the family member or person directly before sending any money. Verify independently.
Giving Medicare or Social Security numbers over the phone to an unsolicited caller.
Why this happens: These numbers are the most valuable pieces of information for identity thieves and can be used to steal benefits or open fraudulent accounts.
Better approach: Only share these numbers when you initiated contact with a known, legitimate organization.
A caller identifies himself as being from Social Security and says your benefits are suspended unless you verify your Social Security number right now. What should you do?
Which payment method is a near-certain sign of fraud?
You receive an email from what looks like your bank saying your account is compromised and you must click a link to verify. What is the safest response?
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