For many people in their 60s, this is a time to enjoy the fruits of their lifelong work, plan for retirement, and ensure their financial stability. Unfortunately, older adults are often targeted by scammers and can become victims of fraud, identity theft, or other financial scams. With a few preventive steps, however, you can protect your accounts and stay safe from those who might try to take advantage.
Taking control of your financial security involves creating strong account protections, staying aware of current scams, and understanding how to keep personal information private. Let’s explore how you can protect your financial accounts and reduce the risk of financial fraud, so you can enjoy this time in life with peace of mind.
Understanding Why Seniors Are Often Targeted
Seniors are targeted for several reasons. First, many scammers believe that older adults may not be as familiar with technology, making it easier to manipulate them online or over the phone. Seniors also tend to have a more stable financial background, with assets or retirement savings that fraudsters may try to exploit. Additionally, older adults are often seen as more trusting and willing to engage with others, which can make them more vulnerable to scams.
The good news is that awareness and some basic protective steps can make a huge difference in keeping your finances secure. By being proactive, you can stay one step ahead of fraudsters and protect your hard-earned savings.
Secure Your Accounts with Strong Passwords
One of the simplest ways to protect your financial accounts is to create strong, unique passwords for each account. Many people use the same password for multiple accounts because it’s easier to remember, but this makes it easier for scammers to access several of your accounts if they get hold of just one password.
Avoid using easily guessed information like birthdays, anniversaries, or names of family members. A password manager is a secure app that stores all your passwords in one place, allowing you to access them with a single, master password. This way, you can create unique passwords for each account without the hassle of memorizing them all.
Enable Two-Factor Authentication
Many financial institutions now offer two-factor authentication (2FA) as an added layer of security. With 2FA, you’ll need to confirm your identity through an extra step, like entering a code sent to your phone or email, whenever you log in to your account. This helps keep your accounts secure, even if someone tries to log in with your password.
Setting up two-factor authentication is usually straightforward. Once enabled, it adds an extra barrier for potential hackers, as they would also need access to your phone or email account to gain entry. Most major banks and financial institutions now offer this feature, so be sure to check if it’s available and activate it on any accounts that support it.
Monitor Your Accounts Regularly
Keeping an eye on your accounts can help you quickly spot any unusual or unauthorized activity. Make it a habit to check your accounts at least once a week, either by logging in online or reviewing your statements. Look for unfamiliar transactions, even small ones, as scammers sometimes test an account with a minor charge before attempting larger withdrawals.
Most financial institutions have fraud departments that can help you resolve suspicious activity. Additionally, many banks and credit card companies allow you to set up account alerts that will notify you via text or email of any significant transactions, which can help you detect fraud even faster.
Be Cautious with Emails and Phone Calls
Phishing scams, which involve tricking you into sharing personal information, are common among scammers targeting seniors. These scams often come in the form of emails or phone calls that appear to be from your bank, credit card company, or even the government. They may ask you to “verify” your account details or provide personal information to “resolve an issue.”
Legitimate institutions will never ask for sensitive information like your account number, Social Security number, or PIN over email or phone. If you receive an unexpected email or phone call asking for personal information, do not provide it. By avoiding direct responses to unexpected requests, you can help keep your personal information safe.
Limit What You Share Online
With social media and online platforms, it’s easy to overshare personal information without realizing the risks. Details like your birthdate, address, or even the names of your children and grandchildren can be used by scammers to guess your security questions or passwords.
To protect yourself, limit the amount of personal information you share on social media. Consider adjusting your privacy settings so that only trusted friends and family can see your posts. It’s also a good idea to avoid mentioning your travel plans, as this can alert people that your home may be empty.
Use Credit Over Debit When Possible
Credit cards generally offer more fraud protection than debit cards, making them a safer option for purchases. If someone gains access to your debit card, they can potentially drain your bank account, whereas with credit cards, you typically have a short window to dispute fraudulent charges before payment is due.
Most credit card companies have robust fraud protection policies and will work to resolve disputes quickly. By using a credit card for online purchases or larger expenses, you have an added layer of security if something goes wrong. If you do use a debit card, check your statements frequently and report any suspicious activity immediately.
Consider Freezing Your Credit
Freezing your credit can be an effective way to protect against identity theft, especially if you’re not planning to apply for new credit cards, loans, or other credit-based accounts. When you freeze your credit, it prevents anyone, including yourself, from opening new credit accounts in your name until you unfreeze it. This way, even if someone obtains your personal information, they won’t be able to open new credit accounts in your name.
To freeze your credit, you’ll need to contact each of the three major credit bureaus: Equifax, Experian, and TransUnion. Freezing and unfreezing your credit is typically free, and it can be done online or by phone. By taking this step, you can have peace of mind that your credit won’t be used without your knowledge.
Shred Personal Documents
Shredding is a simple but effective way to protect your information. Financial documents, medical statements, and even junk mail with your name and address can be used by scammers to gather details about you. Before discarding any documents that contain sensitive information, shred them to prevent others from reading them.
Investing in a small home shredder can be a wise choice for securely disposing of old bank statements, bills, and any papers with personal information. Many local libraries or community centers also host free shredding events where you can safely dispose of documents you no longer need.
Review Your Social Security Statement
Checking your Social Security statement can help you spot any unusual activity related to your Social Security number. Visit the official Social Security website to create an account and view your statement online. This allows you to see any reported earnings and benefits, making it easier to detect fraud.
If you notice any errors or suspicious activity, report it immediately. Protecting your Social Security benefits is essential for financial security, and regularly reviewing your statement is an important preventive step.
Educate Yourself About Scams
Staying informed about common scams can help you recognize warning signs before it’s too late. Scammers use a variety of tactics, from lottery scams to fake charity requests. By understanding these tricks, you’ll be better prepared to avoid falling victim to them. Many local organizations, including senior centers and libraries, offer free classes or information sessions about recognizing and avoiding scams.
The Federal Trade Commission (FTC) and AARP are also good resources for learning about current scams and fraud prevention tips. Staying informed will help you recognize red flags and feel confident in protecting your financial information.
Work with a Trusted Financial Advisor
A financial advisor can provide guidance on protecting your assets and offer advice tailored to your specific needs. A good advisor can help you manage your money wisely and ensure your financial accounts are secure. Make sure to choose a certified and trusted advisor who has experience working with seniors, and ask about their policies for protecting client information.
If you’re already working with a financial advisor, make it a priority to discuss ways to improve your account security. They can help you stay updated on any changes in financial security and advise you on the best strategies for protecting your assets.
Conclusion
Protecting your financial accounts in your 60s is essential for maintaining security and peace of mind. By taking proactive steps—such as creating strong passwords, enabling two-factor authentication, monitoring accounts, and limiting what you share online—you can significantly reduce the risk of fraud. Staying informed, shredding sensitive documents, and considering credit freezes are simple actions that provide strong protection.
Remember, you’ve worked hard for your financial stability, and keeping it safe is well within your control. With awareness, education, and a few strategic habits, you can protect your assets and enjoy your retirement years without worry. Taking the time now to secure your financial information means you’ll be able to focus on the things that truly matter in life.