Retirement is meant to be a time of financial security, but for many, it has become a prime target for scammers. One recent case reported in the NY Times, involving 76-year-old retired lawyer Barry Heitin, highlights how easily even well-informed individuals can fall victim to complex fraud schemes. Over the course of three months, Heitin lost nearly $740,000—his entire retirement savings and retirement accounts—to criminals posing as federal investigators, convincing him that he was helping prevent a larger crime.

Heitin’s story is not an isolated incident. Scams targeting older adults are on the rise, with potential losses from cybercrime surpassing $12.5 billion in 2023 alone. The methods are sophisticated and often involve impersonating government officials, tech support, or even a family member. Scammers pressure victims to move money quickly or divulge sensitive personal information, often preying on those who trust too easily or feel a sense of urgency.

How to Protect Yourself and Your Retirement Accounts

So how can retirees protect themselves from these scams? I sat down with Steve Arndt, president of Silver Linings Technology, to get his expert advice.

Verify Everything

One key mistake Heitin made was calling the fraudulent number provided to him by the scammers. Steve Arndt advises that when something feels off with any online or bank accounts, always verify the contact information independently. "Whenever you're dealing with sensitive information or large sums of money, it's essential to contact your provider directly, using a number from their official website or your account documents—not one displayed on a suspicious screen."

Never Move Money on Someone Else's Terms

Another critical takeaway is that you should never move or withdraw money from your retirement savings based on someone else's request without validating the source. According to SLT’s President Stephen Arndt, "Scammers often create a false sense of urgency to push victims into action. They may say they need to gain access to your accounts to prevent fraud or some other scam. Always stop and ask, 'Who is requesting this, and why?' Never feel rushed into making financial decisions."

Be Wary of Offers That Sound Too Good to Be True

If an offer or warning sounds too good or bad to be true, it probably is. Scammers often present attractive schemes that seem like guaranteed investments or safety measures. Be cautious and always double-check, especially when it involves your retirement savings or bank accounts.

Don’t Isolate Yourself

One of the most alarming aspects of Heitin’s experience was how the scammers manipulated him into keeping the situation secret from his family. Arndt stresses the importance of staying connected: "If you’re retired and don't have access to an IT department, turn to family, friends, or trusted former co-workers for advice. Scammers often use social media or direct communication to isolate victims. If you're told your actions are 'special' or 'confidential,' it's a huge red flag."

Be Vigilant and Seek Help

Scams thrive on secrecy and urgency. If you find yourself in a situation where you're told not to share information with others or feel pressured into immediate action, stop. Talk to someone you trust before making any decisions, especially when your personal information or finances are involved.

Heitin’s story serves as a stark reminder of the importance of vigilance. With rising cybercrime rates and increasingly sophisticated schemes, protecting your retirement savings requires proactive steps—like verifying contacts, seeking advice from loved ones, and never acting on impulse.

By following these guidelines, you can help safeguard your hard-earned savings and prevent becoming the next victim.