4 Financial Scams That Could Cost You Your Retirement Savings (And How to Protect Yourself)
According to the FBI, financial scams continue to rise each year, and retirees are among the most frequently targeted victims.
If you've spent decades building your retirement savings, the last thing you want is for a scammer to steal it in a matter of minutes.
The good news?
Most financial scams follow predictable patterns. Once you understand how they work, they're much easier to recognize—and avoid.
In this article, we'll discuss four of the most common scams targeting retirees today, explain how scammers gain access to your accounts, and provide practical steps you can take to protect your retirement savings.
Why Are Retirees Frequent Targets?
Scammers know retirees often have:
Significant retirement savings
Investment accounts
Bank accounts with larger balances
Excellent credit
A willingness to answer phone calls and text messages
Rather than trying to "hack" into sophisticated financial systems, modern scammers often rely on something much simpler:
Social engineering.
They manipulate people into voluntarily providing the information needed to access their accounts.
Most scams rely on three ingredients:
A trusted-looking sender
A strong sense of urgency
Just enough believable information to appear legitimate
Once you recognize these tactics, you'll be far less likely to become a victim.
Scam #1: Account Takeover Scams
This is arguably the most dangerous financial scam facing retirees today.
It often begins with a simple text message.
"Did you authorize this transaction? Reply YES or NO."
If you respond "No," you'll often receive a phone call within minutes from someone claiming to work for your bank or brokerage firm.
The caller sounds professional.
They already know:
Your name
Address
Date of birth
Possibly even part of your Social Security number
Unfortunately, thanks to numerous large data breaches over the past decade, scammers often already possess much of this information.
Then comes the trap.
The caller says they're sending a six-digit security code to verify your identity.
They ask you to read the code back to them.
What Actually Happened?
The code wasn't generated by the scammer.
It was generated by your financial institution because the scammer is actively attempting to log into your account.
The only thing preventing them from gaining access is that one-time verification code.
By reading it aloud, you're unknowingly giving them permission to enter your account.
Within minutes they may:
Change passwords
Add new devices
Transfer money
Wire funds overseas
At that point, recovery becomes much more difficult.
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What If You've Already Given Them the Code?
Act immediately.
Call your financial institution directly using the phone number on its official website or your account statement.
The sooner the account is frozen, the greater the likelihood that pending transfers can be stopped.
Unfortunately, many brokerage firms—including those with security guarantees—may not reimburse losses if you voluntarily provided authentication codes or passwords, even if you were deceived into doing so.
Scam #2: Fake Debt Collection Text Messages
Another increasingly common scam involves fraudulent debt collection notices.
These text messages often say something similar to:
"This is a debt collector attempting to collect an outstanding balance. Contact us immediately regarding reference number XXXXX."
Some messages include:
A dollar amount
A fake account number
A company name
A phone number
A payment link
The objective is simple:
Create anxiety.
Most people don't want collection agencies contacting them.
Scammers know this emotional reaction often causes people to act before thinking.
If you call the number or click the payment link, you're likely to be asked for:
Bank account information
Credit card numbers
Personal identifying information
Verification codes
None of which should ever be provided unless you've independently verified the debt.
How to Protect Yourself
If you receive a debt collection notice:
Don't call the phone number listed in the message.
Don't click any payment links.
Contact the company directly using its official website or customer service number.
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Scam #3: Unpaid Toll Road Text Messages
If you've received a text claiming you owe a toll payment, you're not alone.
These messages have exploded in popularity.
They often read something like:
"Your unpaid toll balance is $14.75. Click here to avoid additional penalties."
The amount is intentionally small.
Scammers know most people won't spend much time questioning a $15 charge.
Unfortunately, clicking the payment link often leads to a fake website designed to steal:
Credit card information
Banking information
Personal identification
Even worse, some websites install malicious software onto your device.
What Should You Do Instead?
Always visit the toll authority's official website yourself.
Never use the link provided in the text message.
If you truly owe a toll, you'll be able to verify it there.
Scam #4: Fake Invoice Emails
Many retirees receive emails appearing to come from companies like:
Microsoft
PayPal
Norton
Geek Squad
Amazon
The email often contains an attached invoice stating:
"Payment Due Immediately"
or
"Your subscription has been renewed."
The email looks legitimate.
It includes:
Professional logos
Invoice numbers
Customer service phone numbers
However, these emails typically serve one of two purposes.
Purpose #1: Malware
Opening the attachment may install malicious software that allows criminals to:
Monitor your computer
Steal passwords
Access financial information
Install ransomware
Purpose #2: Fake Payments
Some invoices trick victims into calling customer service or paying for services they never purchased.
Once payment information is provided, scammers gain access to bank accounts or credit cards.
Always Check the Sender
Before opening any attachment:
Hover over the sender's email address.
Many scam emails originate from addresses that have absolutely nothing to do with the company they're pretending to represent.
How to Protect Your Retirement Savings From Financial Scams
Fortunately, protecting yourself doesn't require advanced technical knowledge.
It simply requires slowing down and following a few best practices.
1. Slow Down
Urgency is a scammer's greatest weapon.
If someone pressures you to act immediately, stop.
Take a few minutes to verify the situation independently.
2. Be Careful Answering Unknown Phone Numbers
Scammers frequently spoof local area codes to make calls appear legitimate.
If you answer and the caller immediately requests sensitive information, hang up.
3. Never Click Links in Unsolicited Text Messages or Emails
Instead, visit the company's official website yourself.
This simple habit prevents many scams before they begin.
4. Never Share Verification Codes
Banks and brokerage firms use one-time authentication codes to protect your account.
Those codes are meant only for you.
Legitimate financial institutions will never call and ask you to read them aloud.
5. Use an Authenticator App
Whenever possible, enable multi-factor authentication using an authenticator app instead of text message verification.
Authenticator apps provide significantly stronger protection because they aren't vulnerable to many of the text-message interception methods scammers use.
6. Add a Verbal Password to Your Accounts
Many financial institutions—including major brokerage firms—allow clients to establish a verbal password.
Representatives must verify this password before discussing your account over the phone.
It's an extra layer of protection that's well worth implementing.
7. When in Doubt, Assume It's a Scam
This may be the most important rule of all.
If something doesn't feel right:
Hang up.
Close the email.
Ignore the text.
Call the company directly using the phone number listed on its official website.
It's always easier to verify a legitimate request than it is to recover stolen retirement savings.
Final Thoughts
You've spent years—or even decades—saving for retirement.
Don't let a scammer undo all of that hard work in a matter of minutes.
Most financial scams succeed because victims are rushed into making emotional decisions before they've had time to verify what's happening.
Remember these key takeaways:
Never share security codes or passwords.
Verify requests directly with your financial institution.
Don't click unsolicited links.
Be skeptical of urgent requests.
Use strong account security features whenever possible.
A few extra minutes of caution today can help protect a lifetime of retirement savings tomorrow.
As always have a wonderful day,
a better weekend,
and I look forward to writing to you next Friday!
Written by Ryan Morrissey CFP®, CLU®, CHFC®, CMFC
Founder & Principal Advisor of Morrissey Wealth Management
Host of the Retire with Ryan Podcast
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Frequently Asked Questions
What is the most common financial scam targeting retirees?
One of the fastest-growing scams involves fraudsters posing as banks or brokerage firms and convincing victims to share one-time security codes, allowing criminals to take over investment and bank accounts.
Will my bank reimburse stolen money if I gave the scammer my verification code?
Not always. Many financial institutions distinguish between unauthorized access and situations where the account holder voluntarily provided passwords or authentication codes—even if they were deceived into doing so.
Should I click links in text messages from my bank?
No. Instead, log in through your bank's official website or mobile app to verify whether the alert is legitimate.
How can I better protect my retirement accounts?
Enable multi-factor authentication, consider using an authenticator app, establish a verbal password with your financial institution, and never provide verification codes to anyone who contacts you unexpectedly.