Protecting your inner circle from fraud

It is important to understand that bad actors often target older adults in financial scams, though anyone experiencing emotional upheaval can be vulnerable. Recognizing subtle, sometimes sudden changes in a loved one’s behavior can be the key to realizing that they need help. Stress, grief, or any major life changes can cloud judgment and lead to noticeable shifts in routine, communication, and demeanor.

Scammers frequently instruct victims to keep their interactions confidential. They may warn that sharing details with family, friends, or financial institutions could jeopardize “the process” or cause them to lose money. This secrecy is a major red flag, especially if your loved one becomes unusually guarded or evasive about financial matters.

Victims may also be directed to carry out strange or uncharacteristic financial tasks, such as:

• Making multiple cash withdrawals from different accounts or branches.

• Visiting banks, convenience stores, or gas stations on a more frequent basis.

• Making payments to overseas locations or transferring funds to new institutions.

• Purchasing gold bars, buying gift cards in bulk, or depositing money into cryptocurrency ATMs. In 2024, victims reported $219 million in losses due to gold courier scams alone.²

Other behavioral shifts may be noticeable, such as:

• Unavailability during times they’d normally be free.

• The presence of a new individual in their life that they interact with online or over the phone but never in person.

• A sudden aversion to phone calls, unusually brief conversations, or a hesitation to discuss their day.

• Resistance to in-person visits.

• Heightened concern about account security, often paired with the mention of suspicious instructions that don’t align with normal security procedures.

These changes can reflect constant contact from scammers—sometimes even 24/7— leaving little room for normal communication with friends and family. 

Approaching a loved one who may be caught in a scam requires sensitivity, patience, and a focus on support. Here are some thoughtful ways to start the dialogue and assemble a plan:

• Share your observations. Gently explain what you’ve noticed that was cause for concern, whether it’s changes in behavior, unusual financial activity, or signs of stress.

• Keep the tone open and nonaccusatory. Avoid language that could feel blameful or confrontational. Instead, ask questions and actively listen. 

• Focus on education and protection. Instead of pointing out mistakes or issuing warnings, frame the discussion around helping your loved one stay safe.

• Involve other trusted individuals if needed. Sometimes hearing similar concerns from multiple people can help a person recognize the situation more clearly.

• Be interactive and informed. Research common scam tactics together with your loved one and share resources that include examples—such as photos or messages scammers often use—to help them identify red flags.

• Create a plan of action. Encourage future conversations about scams when warning signs occur and discuss what to do and who to contact when there is uncertainty about a call or request from a third party. If your loved one experiences multiple scam attempts or needs steady guidance, consider helping them to designate a trusted contact or establish a power of attorney for their accounts.

To help maintain financial security, we encourage investors to visit our Security Center for a comprehensive overview of how Vanguard protects your accounts and personal information. Our perspectives and commentary page also offers tips and insights to help identify fraud and prevent crossover scams.

Safeguarding against scams is a shared responsibility. By staying informed, fostering open conversations, and remaining vigilant, investors can play a powerful role in protecting themselves and their loved ones.