Digital Awareness for Retirees: Keeping Your Financial Information Secure Online

As more financial activity moves online, digital awareness has become an essential part of protecting your money. This is especially true for retirees. Older adults are increasingly targeted by cybercriminals because they often manage multiple accounts, savings, and retirement benefits in digital formats.

According to the FBI’s 2024 Elder Fraud Report, victims aged 60 and older reported more than $3.4 billion in losses, a 11% increase from the previous year. These numbers show the importance of staying alert, understanding common online risks, and knowing how to protect your information.

“Some of the most common scams today target your investments and retirement accounts. These schemes can be devastating to a person’s hard-earned savings,” says Scott Mass, Senior Vice President, Investments at David Lerner Associates, Inc.

“When your data is secure, you can manage your finances with confidence and focus on the goals that matter most to you.”

Recognize Common Scams Targeting Retirees

Retirees are often targeted through phishing emails, fake phone calls, and fraudulent websites that appear legitimate. Criminals know that many older adults use digital tools for banking, health care, and communication, which gives them more opportunities to trick people into sharing sensitive information.

The 2024 FBI Elder Fraud Report noted that investment scams were the costliest category for older adults, with losses exceeding $1.2 billion. Many of these scams begin with a simple message or phone call urging someone to click a link or join an “exclusive” opportunity.

You can protect yourself by being cautious with unexpected messages. Always check a URL before impulsively clicking a hyperlink. Do not click on unfamiliar links or respond to requests for personal information.

Criminals often imitate legitimate organizations, so verifying their identity is important. They may use wording that elicits a strong call to action such as saying you won a prize or that your account has been hacked.  If an email looks suspicious, contact the company directly using a verified phone number or website.

Strengthen Your Online Protection

When you take steps to secure your digital environment, you make it harder for criminals to access your accounts.

1. Start with your passwords. Use strong, unique passwords for each account, and avoid using details like birthdays or family names. Many older adults use the same password across multiple accounts, which increases their risk of being hacked.
2. Enable two-factor authentication whenever possible. This adds an extra layer of protection by sending you a code when someone tries to log in. Even if a criminal gets your password, they will not be able to access your account without that code.
3. It is also important to update your devices regularly. Software updates include security patches that fix weaknesses criminals may try to exploit. Make sure your computer, phone, and tablet are running the latest version of their software.

Protect Your Financial Information

Your financial accounts contain some of your most sensitive information. Keeping them secure should be part of your financial wellness routine.

1. Always access your accounts through secure networks. Avoid logging in when using public Wi-Fi, which is easier for cybercriminals to intercept.
2. Regularly review your account statements and credit reports. Early detection can prevent small issues from turning into major losses. Early reporting improves the chances of recovering lost funds, especially when fraud involves bank withdrawals or unauthorized credit card charges.
3. Be cautious when storing personal information on your devices. Save financial documents in secure folders or encrypted storage, and avoid keeping sensitive data in email inboxes where it can be easily accessed.
4. If you work with an investment counselor, use secure communication channels. Many firms offer encrypted portals where you can upload documents or view account summaries without exposing your information to unnecessary risks.

Build Safe Online Habits

Strong digital awareness comes from consistent habits.

Here are steps that help protect your information every day:

• Log out of financial accounts when you finish using them.
• Use a password manager instead of writing passwords on paper.
• Be cautious about what you share on social media. Criminals can use birthdays, addresses, and family details to guess security questions.
• Set up alerts for account activity. Many banks and brokerage firms allow you to receive notifications for withdrawals or transfers.
• Back up important files to an external drive or secure cloud storage.

These habits help you stay aware of changes in your accounts and reduce the chances of missing signs of fraud.

Conclusion

Digital security does not require advanced technical skills; it starts with small steps that can be incorporated into your regular routine.

Digital awareness is an important part of protecting your financial future. When you understand the risks and take steps to secure your online activity, you reduce your chances of becoming a victim of fraud. Retirees who stay alert and build strong digital habits are better prepared to navigate online tools safely and confidently.

Take time during Data Privacy Week to review your online security. If you want guidance on how digital safety fits into your broader financial wellness routine, connect with an Investment Counselor at David Lerner Associates.

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Material contained in this article is provided for information purposes only. It is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities. These materials are provided for general information and educational purposes, based on publicly available information from sources believed to be reliable. We cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.