In 2023, retirement scams will be a growing concern for individuals approaching retirement age. Scammers are constantly devising new and sophisticated methods to deceive and defraud unsuspecting victims, leaving them financially devastated and struggling to make ends meet in their golden years. The Better Business Bureau’s (BBB) Scam Tracker Risk Report for 2020 found that individuals aged 65 and older were the most likely to lose money to scams, with a median loss of $750 per scam.

Retirement scams can come in many forms, such as investment fraud, identity theft, and phishing schemes, to name a few. With the prevalence of these scams, retirees and those nearing retirement age must educate themselves on the common tactics scammers use and take measures to protect their retirement savings.

Here are the top two scams to be on the lookout for this year:

Investment Fraud

Investment fraud is one of the most prevalent retirement scams in 2023. Investment scams were among the top three types of scams reported to the FTC in 2020, with over 64,000 reports and a reported loss of over $336 million. Investment scams are becoming more prevalent. Scammers use various methods to lure in their victims, such as promises of high returns or exclusive investment opportunities that are only available for a limited time. They may also use high-pressure sales tactics to convince individuals to make quick decisions without adequately researching the investment opportunity or consulting a financial professional. These scams often result in significant financial losses, leaving retirees with little to no savings to support themselves in retirement.

Identity Theft

Another type of retirement scam that is becoming increasingly common in 2023 is identity theft. Scammers use personal information to open credit accounts, file false tax returns, or access retirement accounts. They may also use phishing emails or phone calls to trick individuals into giving out their personal information, such as Social Security numbers or bank account information. Once scammers can access this information, they can use it to steal retirement savings or commit other financial fraud. Identity theft can devastate retirees, leaving them with damaged credit and significant financial losses, with long-term consequences that involve multiple steps to verify their identity.