Digital Safety After 50: Protecting Your Identity & Finances Online

In this episode of The Retirement Guide, George Jameson, CFP® and founder of Capital Wealth Group, shares essential strategies to help those 50 and above protect their identity, finances, and personal information in today’s digital world. From spotting scams to safeguarding accounts and securing devices, George covers practical steps to reduce your risk and keep your retirement safe from cyber threats. 

 Welcome to "The Retirement Guide" Podcast! I'm your host George Jameson, owner of Capital Wealth Group, a Fee Only Advisory firm. Whether you’re nearing retirement or already retired, Join me each week as we explore the world of retirement planning and equip you with the knowledge and tools you need for a successful retirement.

Thank you for tuning in to this episode of The Retirement Guide. If you enjoyed this episode, please subscribe & leave a review. If you'd like a free 30-minute retirement review, visit our website at www.capitalwealthplan.com to schedule.

This is for education only.It is not tax, legal, or investment advice. Before  acting on any information consult your tax, legal, or investment advisor.

Let's Connect!

Visit our Website: Capital Wealth Group

Please Subscribe: To our Newsletter/Podcast

Schedule a Free Introductory Call Today! (30min)

Capital Wealth Group is a Flat Fee-Only Advisory Firm located in Columbia, SC , serving clients locally in South Carolina and North Carolina and virtually nationwide.

Any Questions or Topic Ideas? Send me an email at George@capitalwealthplan.com

Transcript

Welcome to today's episode of The Retirement Guide Podcast. I’m George Jameson, A Certified Financial Planner Practioner and founder of Capital Wealth Group in Columbia SC. Today we'll be discussing how to protect your identity, investments, and personal information in our increasingly digital world. Especially for those in their 50’s and above!

The Growing Threat of Cybercrime

As we enter our golden years, we often become prime targets for cybercriminals. In fact, in 2023, individuals aged 60 and older in the United States lost over $1.2 billion to online investment fraud alone, a significant increase from the previous year[3]. This alarming trend highlights the urgent need for increased awareness and protection.

 Common Scams Targeting Older Adults

Let's start by identifying some of the most prevalent scams you need to watch out for:

1. Tech Support Scams: These involve Scammers posing as tech support agents from well-known companies, claiming your device is infected with malware. In 2022, these scams cost older Americans over $588 million[3].

2. Phishing Scams: These are deceptive emails and text messages that appear to be from legitimate sources, tricking you into revealing sensitive information like passwords, banking details, social security numbers, address, cell phone etc. [3].

3. Government Impersonation – Scammers email, text, or call seniors and young people a like, pretending to be IRS agents and ask for personal like social security numbers due to a false tax bill, fraud, or some other made up crime. 

4. Health insurance scams

Scammers target the elderly into providing personal information because every US citizen or legal resident over the age of 65 qualifies for Medicare.  

5. Romance/Friend Scams: Scammers build fake profiles on social media like Facebook, Instagram, and even dating sites to get your sensitive information and to extract money from unsuspecting victims[2].

6. Investment Scams/Fraud: Criminals/Scammers use Social Media like FaceBook and others promising high returns with little risk. This could be an actual investment but comes with very high risk to a totally fake investments where they are actually trying to steal your money[3]. This is another big one you need to watch out for. If it’s sounds too good to be true, it usually is. Like guaranteeing 8% returns without any risk.

7. Parent or Grandparent Scams: Imposters pose as children or grandchildren in distress, urgently requesting financial help[2]. Some will react before thinking about it.

8. New Scam – Targeting High-Net Worth Clients 

A new fraud trend where bad actors use social engineering tactics to collect personal information, they can then use to open new Online brokerage accounts in a client's name. They then attempt to use these new, fraudulent accounts to take over high net worth clients' existing accounts and withdraw those accounts' funds. Charitable organizations are specifically being targeted because they often share account information on their websites in order to collect donations. I am going to do a follow up episode specifically on this and how you can protect your accounts. 

Protecting Your Digital Identity

Now, let's discuss some practical steps to protect yourself:

1. Be Skeptical & use Common Sense: Always approach unsolicited communications with caution. If something seems too good to be true, it probably is. However, some of the phishing emails and text messages can be very convincing do be extra careful and only reply or open attachments from people in your contact list. 

2. Verify Identities: When receiving calls or text messages or emails from unknown sources please verify. If they are claiming to be from relatives or close friends in distress, always verify their identity by contacting other family members first[2].

3. Be careful what you click: Don't click on links or open attachments in unsolicited emails or text messages. 

 4. Use Strong Passwords: Create unique, complex passwords for each of your online accounts. Consider using a reputable password manager to keep track of them securely.

5. Enable Multi-Factor Authentication (MFA): This adds an extra layer of security by requiring a second form of verification when logging into your accounts[5].

6. 

5. Keep Software Updated: Regularly update your devices' operating systems and applications to protect against the latest security vulnerabilities.

6. Never download any files from an email unless you know for certain it is from someone you know and you are expecting the email. Even if it’s from someone you know, their email address could have been hacked. So only open attachments if you are expecting it. 

7. Do not download any files, software, etc from websites unless you know for sure it is a legitimate website and safe. And if it’s free software, please be wary because free software often has malware and other malicious files attached. 

Safeguarding Your Finances

Protecting your hard-earned money is crucial. Here are some strategies to consider:

1. Monitor Your Accounts Online: You might think that avoiding online access to your accounts is a good way to stay safe, but it’s actually the opposite. If you don’t have a login for your bank, credit card, and investment accounts, it leaves the door open for someone else to access them. Make it a habit to regularly check your bank and credit card statements for any suspicious activity. Staying vigilant can help protect your finances! [4].

2. Set Up Alerts: Many banks and credit cards offer text or email alerts for large transactions. Enable these to stay informed about your account activity.

3. Freeze Your Credit: I recommend placing a security freeze on your credit reports to prevent criminals from opening new accounts in your name[4]. I have a security freeze on all 3 credit. The three main credit reporting agencies (CRAs) in the United States are Equifax, Experian, and TransUnion. 

4. Get a free credit report once a Year

You can request a free credit report from each of the three CRAs once a year for free at AnnualCreditReport.com. You can also request a report by calling 1-877-322-8228 or mailing in the Annual Credit Report Request Form.

5. Be Wary of Investment Opportunities: Research thoroughly before investing and be skeptical of unsolicited investment offers, especially those promising high returns with little risk.

6. Educate Yourself: Stay informed about the latest scams and fraud techniques. The scammers and fraudster’s are continuously changing their tactics.  Knowledge is your best defense.

Protecting Your Devices

Your computers, smartphones, and tablets are gateways to your personal information. Here’s how to secure them:

1.      Use Antivirus Software: Install and regularly update reputable antivirus software on all your devices. If you use Apple products, they come with built-in antivirus protection, but ensure your devices are up to date. Just because you’ve set automatic updates doesn’t guarantee your iPhone will always update itself—I've experienced this firsthand. For Windows users, Microsoft Defender is a solid option; just make sure it’s activated. I recommend Defender over free antivirus software, as the latter can sometimes introduce more risks. While I’m not a cybersecurity expert, my research suggests that if you choose to purchase antivirus software, Bitdefender is a reliable choice. However, remember that no antivirus can protect you from downloading infected attachments or software, so exercise caution.

2.     Be Cautious with Downloads: Only download apps and software from trusted sources to minimize the risk of malware.

3.     Secure Your Wi-Fi: Use a strong password for your home Wi-Fi network and avoid conducting sensitive transactions over public Wi-Fi.

4.    Use a VPN – If you are making financial transactions online it’s a good idea to use a VPN even when on your private network. It can hide your location, prevents tracking. However, VPN’s won’t protect you from all threats. 

5.     Public Wifi’s – What do I mean- Any coffee shop, restaurant, hotel, stores, and even city and government wifi’s. First, if you don’t have to don’t get on Public Wifi’s. Second, please don’t do any financial transactions using public wifi. Third, if you have to using Public Wifi, please use a VPN and turn off file sharing on your phone.

6.    Alternatives to Public Wifi – Use a Mobile Hotspot instead. It’s much more secure than a public wifi. Most phones have mobile hotspots and if you are a heavy user, you can buy. Apple Phones – you can use Private Relay as well. 

7.     Back Up Your Data: Regularly back up important files to an external hard drive or a secure cloud service to protect against data loss.

If you suspect you've been a victim of fraud:

1. Act Quickly: Time is of the essence. Immediately contact your bank and credit card companies to report suspicious activity.

2. Report the Incident: File a report with the Federal Trade Commission (FTC) at IdentityTheft.gov and your local police department[4].

3. Monitor Your Credit: Check your credit reports regularly for any unauthorized accounts or activities.

4. Consider Identity Theft Protection: If you are really worried about identity theft. Services like those offered by Experian can help monitor your credit and alert you to potential fraud[4]. Is it worth it? That’s for you to decide. 

Conclusion

Remember, staying safe in the digital world is an ongoing process. By remaining vigilant, skeptical of unsolicited offers, and implementing these protective measures, you can significantly reduce your risk of falling victim to cybercrime and fraud.

As we wrap up, I want to emphasize that it's never too late to start protecting yourself. If you found this information helpful, please share it with your friends and family. The more we spread awareness, the better we can protect our community from these threats.

Thank you for listening, and stay safe out there!

Disclaimer

The information discussed in this podcast is for general explanations and education only. It is not tax, legal, or investment advice. Before considering acting on any information heard here, first consult with your tax, legal, or investment advisor. Thank you and have a great day. 

Learn more about Capital Wealth Groupand George Jameson, CFP®, MBA, a Financial Advisor based in Columbia, SC, CLICK HERE!

George can be reached at (803) 250-6464 orgeorge@capitalwealthplan.com

Check out "The Retirement Guide" Podcast by: George Jameson - CLICK HERE!

Check out Capital Wealth Group’s Blog Page – CLICK HERE!