The RMD Phishing Scam: Real Rule, Fake Contact

There’s a real rule that says once you hit your early 70s, you have to start taking Required Minimum Distributions (RMDs) from most retirement accounts. That’s not new. But scammers are using it in a new way – counting on the fact that most people either don’t know what an RMD is, or feel unsure about how it works.

Here’s how the scam plays out:

You get a call, email, or even a text message claiming to be from your retirement provider or “an IRS-registered representative.” The message says your RMD deadline is approaching and that action is needed – either to confirm your withdrawal amount, avoid a penalty, or provide updated account information.

It might look official. It might even name your financial institution. But it’s fake.

What they’re really after is access: your account login, your Social Security number, or details they can use to impersonate you and drain your retirement accounts.

What Makes It Convincing

• It’s tied to a real rule. RMDs are legitimate. That’s what gives the scam its credibility.
• It targets older adults. Most people hit with this are in their 60s or 70s, prime time for RMD confusion.
• It uses urgency. The messages say things like “final notice” or “immediate action required.”
• It piggybacks on confusion. Many people don’t know when RMDs start, how much they need to take, or who is supposed to notify them so they trust the contact.

What to Know

• The IRS will never contact you by email, text, or phone to demand action on your RMD (more info HERE)
• Your retirement provider might send a notice but they’ll never ask you to click a link, provide login credentials, or verify sensitive information in an email or phone call.
• If you’re not sure, log in to your account directly through the official website or call the provider’s number on your statement. Don’t use the number or link in the message you received.

Bottom Line

This scam works because the rule is real and the fear of getting it wrong is real too. That’s why we’re teaching this to advisors and talking about it here. When you know the actual rules, it’s a lot harder for someone else to fake them.