Building a Moat Around Your Nest Egg: How to Spot and Stop Retirement Scams

October is Cybersecurity Awareness Month, and it’s the perfect time for us to have a chat about a crucial topic: protecting your financial house. You’ve spent decades building a strong financial foundation for your retirement, and my job is to not only help you build it but also to help you defend it from the threats that are, unfortunately, becoming more common and sophisticated.

The numbers are genuinely sobering. According to the FBI’s latest Internet Crime Report, reported losses from online scams exceeded a staggering $16 billion last year. What’s most concerning to me is who is being targeted. Individuals over 60 suffered the highest financial losses of any age group, totaling nearly $5 billion. This tells me that scammers see your hard-earned nest egg as their prime target.

One of the biggest tools they’re using today is cryptocurrency. So, let’s pull back the curtain on that.

Why Scammers Love Cryptocurrency

You’ve probably heard of Bitcoin or Ethereum. In simple terms, cryptocurrency (or “crypto”) is digital money. People use it for various reasons, like making fast payments or avoiding bank fees. Many also buy it as an investment, hoping its value will go up.

But here’s what scammers know and exploit:

• There are no protections. If you buy something with a credit card and it’s a scam, you can call your bank and dispute the charge. Crypto doesn’t have those legal protections.

• Payments are irreversible. Once you send a crypto payment, it’s gone. You can’t reverse it unless the person on the other end decides to send it back—and a scammer will never do that.

Because of this, scammers have created entire playbooks to trick you into sending them crypto. If you see any of the following scenarios, the alarm bells in your head should be ringing loud and clear.

Four Common Scams to Watch For

1. The "Guaranteed" Big Profit Scam

This is a classic investment fraud with a crypto twist. Someone, perhaps a so-called "investment manager," contacts you out of the blue. They promise you huge, guaranteed returns with no risk if you just buy some cryptocurrency and transfer it to their special account.

They might even show you a professional-looking website that seems real, but it’s a fake. Once your money is in, you’ll find it impossible to withdraw, or you’ll be hit with endless fees to get it back. Remember, in the real world of investing, there is no such thing as a guaranteed big profit with no risk.

2. The Wrong Number Text Scam

Have you ever received a text from a number you don’t recognize, maybe with a simple "Hello" or asking a question? Scammers send these out by the thousands, hoping someone will reply, even just to say they have the wrong number.

Once you engage, they’ll apologize and try to strike up a friendly conversation. Over time, they build your trust, and eventually, they’ll start talking about a great investment they made in crypto and how you can get rich, too. If you send them money, it will disappear forever. The best defense? Ignore the text and block the number.

3. The Work-From-Home Job Scam

Be very wary of online job ads that sound too good to be true, especially if they require you to be paid in—or make payments with—cryptocurrency. A recent story in Business Insider highlighted the experience of a 56-year-old woman named Brenda Smith, who lost $15,000 to a job scam she found on LinkedIn.

The scammers will often send you small initial "payments" to gain your trust. Then, they’ll invent reasons why you need to send them crypto to cover fees, training, or account maintenance, all while promising a big payout is just around the corner. It’s a trap designed to drain your account.

4. The Romance Scam: Guarding Your Heart and Your Wallet

This last one is perhaps the most painful because it preys on emotion. Scammers create fake profiles on dating sites and social media, aiming to build a relationship with you. For those who are widowed or divorced, the online world can feel like a new and hopeful place to connect, but you have to be incredibly careful.

The pattern is always the same. They build trust, profess their love quickly, and then, an "emergency" happens. They might claim to be working overseas and need money to get home, or they’ll want to show you a "great crypto investment."

The FBI recently shared the story of a woman named Rita, who lost $90,000 to someone she met online who was posing as a celebrity. The scammer eventually convinced her to move their chats to an encrypted app (a major red flag) and began asking for money for various events, always demanding payment in Bitcoin.

As Rita said, the worst part wasn't the money. "The biggest part," she said, "is to lose your heart and your soul to someone you trusted."

The single most important rule is this: Never, ever send money or gifts to someone you have not met in person.

You Are the Quarterback of Your Protection

When your emotions are involved, whether it's the excitement of a big profit or the hope of a new relationship, it's easy to let your guard down. But I want you to feel empowered, not scared. You are in control.

Listen to that voice in your head. If a situation feels rushed, if someone you've never met is asking for money, or if it involves cryptocurrency, take a step back. Pause. Breathe. And please, call me. Think of me not just as your financial planner, but as part of your defense team. Sometimes, just talking through a situation with a trusted third party is all it takes to see a scam for what it is.

We value the trust you place in us, and we are committed to helping you protect the future you've worked so diligently to create.