Financial Scams Are Becoming More Sophisticated--And Seniors Are Paying the Price

Jeff Smith of The Retirement Smith shares vital information everyone should know about financial scams

FREDERICKSBURG, Va., May 13, 2026 /PRNewswire/ -- Nobody thinks they will become the victim of a financial scam. We all know they happen on a regular basis, but we tend to believe they happen to someone else. That is, until it happens to us or someone we know. The problem is that financial scams have become so prevalent and sophisticated that they are more difficult to spot, and seniors and others are paying a hefty price. It is crucial that people be aware of what to watch for in order to avoid becoming one of the millions being scammed yearly.

"Sadly, this is an issue that touches millions of people, and it can rob them of their retirement savings," said Jeff Smith, a financial planner and owner of Fredericksburg, Va.-based The Retirement Smith. "It's imperative that people be proactive in watching for scams so they can be avoided each and every time they are presented with one."

Smith has heard stories from his own clients of their experience with being scammed, including for tens of thousands of dollars. While we would like to think that they are isolated incidents when we hear about them, that's just not the case when we look at the facts. According to the Federal Trade Commission (FTC), there is a growing wave of scams aimed at stealing the life savings of retirees. They report that from 2020 to 2024, the number of older adults who reported having been scammed of at least $10,000 increased fourfold. During the same period, those reporting having been scammed of at least $100,000 had increased sevenfold.

The National Council on Aging reports that fraudsters target older adults because they believe they have plenty of money in the bank. Since many people end up embarrassed about being scammed, some of it goes unreported, which leads fraudsters to believe it is a crime with a low risk of being caught. Meanwhile, they report that worldwide, those over the age of 60 collectively lose billions of dollars per year to scams.

With advances in technology, financial scams have become increasingly more sophisticated. They include the use of artificial intelligence (AI), spoofed calls and texts, emotional manipulation, fake fraud alerts, voice cloning, impersonation scams, and more. The more high-tech the scams become, the more people they are able to convince, including those who are considered intelligent and aware of scam risks.

While there is no sure-fire way to prevent becoming a victim of fraud and scams, there are some things that everyone can do to try to reduce the risks. Here are some tips to help protect and prevent being financially scammed:

• Be aware. Oftentimes, the details about what the latest common scams are readily available online. This will help people be able to spot them easier when they do come their way. Current popular scams include tricking someone by telling them a loved one is in need of assistance, those posing to be from a financial institution or debt collection agency, tech support scams, government impersonation scams, and romance scammers.
   
• Contact companies directly. Those who are told a particular company needs to contact with them should avoid responding to texts, calls, and emails. Rather, contact the company directly by going to their website and contacting them without using any links or numbers provided in the suspicious message.
   
• Block spammers. It is common for people to get spammers calling or texting on a regular basis. Be sure to block them all, rather than respond to them, in order to minimize seeing more of them. Avoid replying to the spammers, because it just lets them know it is a legitimate contact method.
   
• Never transfer money. Avoid sending money to anyone who reaches out asking for it. Anyone who feels they need to pay for something, but they are unsure if it's a scam or not, should get a second opinion. Once money is transferred, it cannot be taken back, and this is how millions lose money each year.
   
• Report suspicious activity. Any suspicious activity or requests should be reported to the local police department through their non-emergency route. This way, they can evaluate it and also alert others of the types of scams that are circulating. Fraud can also be reported to the FTC.

"It is a devastating situation to be in when getting financially scammed," said Smith. "We have to be hyper-vigilant when it comes to this issue, unfortunately, because fraudsters are always out to scam people. We can and must take steps to help make it more difficult for them to be successful."

The Retirement Smith serves those in the Fredericksburg, Va., area and beyond with individualized financial planning. Their motto is to treat people as they want to be treated, and they aim to ensure there are no gaps, that people have the answers and solutions they need, and that they will not fall short in their retirement years. They offer retirement planning, income planning, and life insurance. They provide a free, color-coded money risk analysis that focuses on the three major phases of retirement financial management: accumulation, distribution, and preservation. They also offer a Balanced Retirement book to help people plan for a successful retirement. Smith has recently joined with his wife, Jennifer Scherer, owner of Fredericksburg Fitness Studio, to create a podcast that focuses on fitness and finances. For more information or to schedule a complimentary consultation, please visit our website at: https://www.theretirementsmith.com/.

About The Retirement Smith
Financial planning expert Jeff Smith owns The Retirement Smith, located in Fredericksburg, Va. The company focuses on providing people with well-thought-out retirement income strategies. Plans are tailored to the needs of individuals and families, as well as small and large businesses. For more information, visit the site at: https://www.theretirementsmith.com/.

Disclosure: Advisory Services are offered through The Retirement Smith, A Registered Investment Advisor in the State of Virginia. The Retirement Smith and The Insurance Smith are not affiliated with or endorsed by Social Security Administration or any other government agency. Insurance products and services are offered through The Insurance Smith, an affiliated company.

Sources:

Federal Trade Commission. False alarm, real scam: how scammers are stealing older adults' life savings. August 2025. https://www.ftc.gov/news-events/data-visualizations/data-spotlight/2025/08/false-alarm-real-scam-how-scammers-are-stealing-older-adults-life-savings

National Council on Aging. The Top 5 Financial Scams Targeting Older Adults. March 2026. https://www.ncoa.org/article/top-5-financial-scams-targeting-older-adults/

SOURCE The Retirement Smith