Life transitions—whether joyous, challenging, or bittersweet—are moments of change that often come with emotional, logistical, and financial upheaval. These periods—whether you’re retiring, divorcing, relocating, or grieving—can leave you particularly vulnerable to financial fraud. Scammers exploit distraction, stress, and routine disruptions to target unsuspecting individuals.
Here’s how you can protect yourself or a loved one from financial fraud during these sensitive life changes.
1. Understand Your Risk
Major life transitions create openings for fraud in several ways:
- New routines may cause you to miss suspicious activity.
- Delegated responsibilities (e.g., to attorneys or caregivers) may reduce your visibility into financial matters.
- Emotional stress can cloud judgment and reduce skepticism.
- Information sharing increases, whether through estate planning, moving services, or online updates—widening your digital footprint.
Recognizing that these times may elevate risk is the first step toward protection.
2. Watch for Common Scams
Here are some fraud schemes that frequently target people in transition:
- Imposter scams: Fake IRS agents, law enforcement, or even “grandchildren” calling for emergency help.
- Change-of-address fraud: Criminals reroute your mail to steal sensitive documents.
- Inheritance and investment fraud: Scammers posing as financial advisors offering bogus opportunities.
- Tech support or refund scams: These often target individuals who may be less comfortable with digital tools, such as some retirees.
- Romance scams: Widows and widowers are often targeted on dating platforms.
3. Take Actionable Precautions
- Secure Financial Accounts
- Set up alerts for all bank and credit card transactions.
- Use multi-factor authentication wherever possible.
- Regularly review credit reports (free annually at AnnualCreditReport.com).
- Limit Information Exposure
- Be mindful of oversharing on social media during transitions like moving, traveling, or retirement.
- Shred documents containing personal or financial details.
- Communicate Clearly
- If you have adult children, trusted friends, or advisors, keep communication open about changes.
- Establish a trusted contact with your financial institutions—this person may not manage your money, but can be alerted if suspicious activity occurs.
- Freeze Your Credit (If Appropriate)
- This prevents new accounts from being opened in your name.
- Especially wise during estate settlements, divorces, or job changes.
4. Use Professional Help Wisely
Engaging professionals is often necessary during transitions, but it’s crucial to vet them thoroughly:
- Confirm licensing and certifications.
- Check references and reviews.
- Be wary of anyone rushing you into decisions or asking for large upfront fees.
Be especially cautious if someone pressures you to act immediately, that’s a major red flag.
5. Stay Educated and Empowered
Preventing fraud isn’t about paranoia, it’s about preparedness. Organizations like the Federal Trade Commission (FTC), AARP Fraud Watch Network, and the Consumer Financial Protection Bureau (CFPB) offer valuable resources, hotlines, and newsletters to stay current on threats.
Final Thoughts
Life transitions deserve your full attention—but not at the expense of your financial security. By recognizing risks and taking proactive steps, you can navigate change confidently and with peace of mind.
Remember: the more prepared you are, the harder it is for fraudsters to take advantage of your vulnerable moments. Argent Bridge Advisors and Argent Bridge 2 Divorce are here to support you through life’s transitions—helping you stay safe and feel secure every step of the way.
Jamie Blum, CPA, CDFA®
Director, Divorce Financial Planning and Litigation Support
Argent Bridge 2 Divorce (AB2D) provides divorce financial planning services. AB2D does NOT provide legal advice. All information provided is financial in nature and should NOT be construed or relied upon as legal advice. Individuals seeking legal advice should solicit the counsel of competent legal professionals knowledgeable about the divorce laws in their own geographical areas. Divorce financial planning is a fee-only process that does not involve investment advice, securities, or insurance transactions. Argent Bridge Advisors offers investment advice, securities management, and insurance services through a separate engagement.
