SpreadsheetSolving

Would You Recognize a Financial Scam If It Didn’t Ask for Money?

Many financial scams today do not look like scams at all. Fraudsters often use familiar tools, polite language, and simple requests, which is why many people fall for them. Some of the most effective scams never ask for our password, Social security number, or money at first. They seem harmless. But the information collected can later be used to open the door to fraud. Let’s see how this unfolds.

Who is Affected?

While financial scams affect anyone, older adults (ages 60 and over) tend to report higher median losses than younger age groups.

How Much is Lost?

According to the Federal Trade Commission (FTC), seniors who reported fraud lost $2.4 billion in 2024 — up from $600 million in 2020, a four-fold increase. Even more troubling, the FTC believes actual losses are far higher because most fraud goes unreported. Estimates range from $10 billion to $80 billion annually.

How is This Happening?

There are many ways seniors are being scammed.Here are a few common: Business Impersonator Scams: A caller claims to be from a well-known company and demands payment for a subscription renewal using gift cards. Or someone posing as Amazon or a bank claims there is a fraudulent charge and instructs you to move money to a “safe” account, which actually belongs to the scammer.

How much is your low interest rate mortgage worth?

One of the ideas floating around lately is that if you were lucky enough to secure a low interest rate, it is actually a hidden asset in your net worth. Of course, it’s a little more complicated than that, for example if you move/sell you have to repay your mortgage and that asset would disappear, which is not what typical assets actually do.