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Outsmarting Scams and Frauds 

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For many people tracking your spending is a new thing. It’s the beginning step to creating your spending plan. You need to know where your money has gone in order to make changes and get it going where you want it to go. There is no one best way to track your spending. The method you use is entirely up to you. The first step is to think back to your last paycheck. Try to remember exactly where you spent your money. You will find that it’s nearly impossible to account for every dollar, after it is spent. Tracking money while you are spending is more accurate and complete. Common Methods for Tracking Spending Notebook or ledger Some people find that carrying a small notepad with a pen or pencil is the best option for them. Every time they spend money—regardless of whether they’re in a store, at a vending machine, or out with friends—they immediately write down the amount. On the other hand, they may write down their spending at the end of the day in a ledger. You can use your phone instead of a piece of paper. Use the notepad feature or an app and record every purchase as you make it. Collect receipts Keep all your receipts and categorize them once a day or week, whatever works for you. You can store receipts in an envelope, shoebox, or even clipped to the refrigerator. You may need to jot down costs for items you don’t receive a receipt for such as vending machine items. Review account statement Looking at bank, debit card and/or credit card statements can help with tracking expenses. Keep in mind that if you shop at a large store, you may need your receipt to know if you bought food or clothing or school supplies, or something else. Envelope method This is a tried-and-true method used for genera­tions! Put your money (cash) into an envelope labeled for a specific purpose, like “groceries.” All grocery purchases are made from cash in that enve­lope—when the money is gone, spending in this category is done until the next paycheck. Put receipts for items purchased back in these envelopes to look more closely at details of purchases. For example, you might discover a large part of your grocery store spending is on personal care items and not food. (This is a really a combination of tracking expenses and managing spending.) Some people don’t want to carry cash. In this case, they may prefer to label envelopes by spending categories and to put their receipts into the envelopes. Then, they can subtract the receipt amount from the amount they had planned to spend. Spreadsheet or computer financial software Computer programs like spreadsheets or personal finance software packages are good for tracking expenses and helping to develop and follow spending plans. The initial cost to purchase this type of software can be relatively high. Online tools: Some financial institutions offer free tracking and budget­ing programs to their customers. Mobile apps: There are many different apps to use on different phones and tablets. Some are free and some have a minimal cost. Explore dif­ferent apps and determine what works best for your situation. Con­sider what you will use consistently. Some apps work like the envelope method but it’s all electronic rather than cash. Tips for Success:   Whatever method you choose to track your spending, use it consistently. If you have multiple spenders in your family, you may have multiple tracking methods. If all members of your household prefer to use the same method, accounting for expenses will be easier. In my family, my husband uses the notebook & receipt method. He jots down what he spends in a little spiral notebook he carries with him, but if he’s in a hurry he gets a receipt and puts it in the notebook. At the end of the day, his spending is recorded on a spreadsheet where I keep a master list of expenses. When my daughter was young, she used envelopes for activities, like going to the movies, skating, etc. If she wanted to do something that cost money, she could look in her envelops to see if she had enough money. Check out https://www.facebook.com/moneysmartcolorado for Colorado State University Extension Agents bringing financial education, programs and discussions to Coloradoans everywhere. For more information on personal finances check out Colorado State University Extension's publications at https://extension.colostate.edu/topic-areas/family-home-consumer/.Outsmarting scams and frauds are a constant challenge. Scams targeting older adults are evolving. However, with the right knowledge you can stay ahead of the game. According to the 2023 FBI Internet Crime Report, individuals aged 60+ reported 101,068 incidents, resulting in $3.4 billion in losses. This is up from 2022, which had 88,262 complaints and $3.1 billion in losses. It’s important to note that many scams go unreported each year. 

The good news is that by educating yourself on how to recognize and prevent scams. You can protect yourself and others.  

Stay Sharp – Common Scams & Fraudulent Activities

  • Government Impersonation Scams: person with smartphoneScammers call and pretend to be representatives from entities such as Medicare, Social Security, and the IRS. Fraudsters convince victims they will be cut off if they do not provide their personally identifiable information. This includes social security number, name, date of birth, address, etc.  
  • Sweepstakes & Lottery Scams: Scammers call stating the individual has won cash, gift cards, or prizes. The scammer often will state they are part of organizations such as the publishers clearing house. This helps to establish trust and sound legitimate. They will ask the victim to send money and financial information in order to pay for the nonexistent taxes and fees related to this fake money that the individual has won.  
  • Phishing: Scammers use fake email and websites to impersonate banks and companies in an effort to steal information by clicking on links within the email or requesting personal information. 
  • Grandparent Scams: Scammers contact someone pretending to be a family member, often a grandchild, pretending to have an emergency need for financial support.
  • Loneliness and Isolation:  photo of a red heartScammers are keen to prey on those at risk of loneliness and isolation. For example, willing to spend large amounts of time in conversation and show interest in the individuals personal life. Additionally, they will ask to date or start a relationship. Then, be apologetic for asking for financial assistance for themselves or a family member.

Outsmart the scammers with these tips

  • Slow Down or Stop the Conversation: Scams rely on creating fear and urgency to get what they want.  
  • Practice saying “No”: These fraudsters are professional manipulators. Anyone who is calling legitimately will be able to mail information or contact you through secure accounts online. 
  • Ask a family member and/or friend: Before sending money or disclosing sensitive information, stop and consult as a trusted family member or friend.  
  • Triangle warning sign with word SCAMContact Local Police: Your local police department non-emergency line. They will be able to help you file a report and advise on ways to protect yourself.   
  • Call a Hotline:  If you or someone you know is age 60 or older and has been a victim of a scam or elder fraud, call the free National Elder Fraud Hotline at 1-833-372-8311. You may also contact AARP  at 1-877-908-3360, they offer free resources for members and nonmembers with trained fraud specialists.
  • Cognitive Changes: If you or a loved one are noticing changes such as memory loss, forgetting tasks more often than usual, confusion, difficulty with familiar tasks, and/or personality or behavior changes, make an appointment to see your doctor. They can screen for signs of dementia or other risk factors which can make you at higher risk of falling victim to scams and fraud.  
  • Create a Financial Support Team: Identify a trusted family member(s), friend, lawyer, and/or financial advisors to meet and review your accounts on a regular basis. This can help catch any scams and report them as quickly as possible. 

About Ginger Williams

Comments

  1. Kirsten Wulfsberg says

    EXCELLENT article! My dad was scammed by a computer ‘virus’ and it caused months of upheaval and new bank accounts, etc. Thanks for writing this!!!

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