News & Trending

10 AI Scams Retirees Need to Watch Out For

Fraudsters are using advanced AI technology to deceive seniors.

fake text message
Updated Sept. 24, 2024
Fact checked

We receive compensation from the products and services mentioned in this story, but the opinions are the author's own. Compensation may impact where offers appear. We have not included all available products or offers. Learn more about how we make money and our editorial policies.

Scammers have always targeted older adults, but now they are using cutting-edge technology to do it.

With the rise of artificial intelligence (AI), these fraudsters have developed new and sophisticated ways to deceive and steal from unsuspecting retirees. Understanding these scams and how to protect yourself can help you avoid wasting your retirement savings.

To preserve financial security during your golden years, watch out for these scams — and learn how to avoid them.

Earn cash back on everyday purchases with this rare account

Want to earn cash back on your everyday purchases without using a credit card? With the Discover®️ Cashback Debit Checking account (member FDIC), you can earn 1% cash back on up to $3,000 in debit card purchases each month!1

With no credit check to apply and no monthly fees to worry about, you can earn nearly passive income on purchases you’re making anyway — up to an extra $360 a year!

This rare checking account has other great perks too, like access to your paycheck up to 2 days early with Early Pay, no minimum deposit or monthly balance requirements, over 60K fee-free ATMs, and the ability to add cash to your account at Walmart stores nationwide.

Don’t leave money on the table — it only takes minutes to apply and it won’t impact your credit score.

Apply for a Discover Cashback Checking account today

Phony calls from loved ones

Rokas/Adobe scammer calling on smartphone placed on a wooden table

AI can now mimic voices with alarming accuracy, allowing scammers to create convincing fake phone calls from loved ones. For example, they might pose as a grandchild in trouble, asking for money to pay ransom or bail.

To avoid falling for this scam and jeopardizing your financial fitness, always verify the caller's identity by asking questions only your loved one would know. Or, call your loved one back at their known number.

Fake videos from celebrities

metamorworks/Adobe surprised reading text

AI-generated videos — also known as deep fakes — show realistic footage of celebrities endorsing products or services, such as making an investment or donating to a worthy cause. However, the videos are not real.

These fake endorsements can lure retirees into fraudulent schemes or investments. Always verify the authenticity of such endorsements through reliable sources before taking any action.

AI-created websites

Tupungato/Adobe internet scam fake banner

Scammers use AI to create professional-looking websites that mimic those of legitimate companies. These websites can trick retirees into providing personal information or making purchases that lead to financial loss.

Ensure you are on a secure website by looking for the “s” in "https" in the URL. Also, verify the site's legitimacy by looking for trusted reviews and official company contact information.

Earn $200 cash rewards bonus with this incredible card

There's a credit card that's making waves with its amazing bonus and benefits. The Wells Fargo Active Cash® Card(Rates and fees) has no annual fee and you can earn $200 after spending $500 in purchases in the first 3 months.

The Active Cash Card puts cash back into your wallet. Cardholders can earn unlimited 2% cash rewards on purchases — easy! That's one of the best cash rewards options available.

This card also offers an intro APR of 0% for 12 months from account opening on purchases and qualifying balance transfers (then 19.49%, 24.49%, or 29.49% Variable). Which is great for someone who wants a break from high interest rates, while still earning rewards.

The best part? There's no annual fee.

Click here to apply now.

Phishing emails

tippapatt/Adobe blocking spam e-mail

Phishing emails have become more sophisticated with AI, making them harder to distinguish from genuine communications.

These emails often appear to be from trusted sources, such as banks or government agencies. They ask for personal or financial information or prompt you to click on malicious links.

Always verify the sender's email address and avoid clicking on links or downloading attachments from unknown sources.

Product offers that steal your cash

Tim/Adobe financial scam

AI-generated advertisements for products can appear highly convincing and targeted to your interests. Scammers use these ads to lure retirees into purchasing nonexistent or subpar products.

To protect yourself, research the company and product thoroughly and read customer reviews before making any purchases.

Travel schemes

9nong/Adobe upset traveler using smartphone

AI can create enticing travel offers that promise great deals and discounts. These scams are especially likely to target retirees who enjoy traveling. The offers often require upfront payments.

Verify travel deals through reputable travel agencies or directly with airlines and hotels to avoid falling victim to these schemes.

Predatory romance scams

Celia/Adobe scammer trying to ask money

AI-powered chatbots and deep-fake profiles can make online romance scams more convincing. Scammers use these tools to build emotional connections with retirees, eventually asking for money under various pretexts.

Be cautious when forming online relationships and never send money to someone you have not met in person.

Bank account fraud

Rawpixel.com/Adobe Computer fraud alert warning

Scammers use AI to create fake notifications from your bank, prompting you to provide account information or log in to a fraudulent site. Some scammers even use fake driver’s licenses and computer-generated faces and graphics to open bank accounts in other people’s names.

These scams can lead to significant financial loss if your account details are compromised. Always verify the authenticity of any communication from your bank by contacting someone who actually works for the bank.

Financial institution scams

photobyphotoboy/Adobe masked no sincerity of doing business together

AI can generate convincing communications from financial institutions other than banks, such as your brokerage.

Always conduct thorough research and contact your financial institution at its official phone number or email address to verify whether these communications are a scam.

If you’re over 50, take advantage of massive discounts and financial resources

Over 50? Join AARP today — because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.

How to become a member today:

  • Go here, select your free gift, and click “Join Today” 
  • Create your account (important!) by answering a few simple questions 
  • Start enjoying your discounts and perks!

You’ll also get insider info on social security, job listings, caregiving, and retirement planning. And you’ll get access to AARP’s Fraud Watch Network to help you protect your money, as well as tools to help you plan for retirement.

Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $12 per year with auto-renewal.

Become an AARP member now

Charity scams

weerapat1003/Adobe credit card phishing card with hook

AI-generated charity scams exploit retirees' generosity, especially during crises and natural disasters. These scams create realistic websites and communication from fake charities.Then, they solicit donations.

Verify the legitimacy of any charity through resources such as Charity Navigator or the Better Business Bureau (BBB) before making a donation.

Bottom line

Tomasz Zajda/Adobe unauthorized Payments

AI technology has given scammers new tools to deceive and steal from retirees, making it essential to stay vigilant and informed. Always verify the authenticity of communications, websites, and offers before taking any action with your hard-earned savings.

By staying cautious and informed, you can get ahead financially and eliminate some money stress, ensuring a secure and enjoyable retirement.

Lucrative, Flat-Rate Cash Rewards

5.0
info

Wells Fargo Active Cash® Card

Current Offer

$200 cash rewards bonus after spending $500 in purchases in the first 3 months

Annual Fee

$0

Rewards Rate

Earn unlimited 2% cash rewards on purchases

Benefits and Drawbacks
Card Details