Seniors Beware of Scams

Senior Citizens Should Be Aware of Potential Scams

wolfinsheepsclothing.jpgSeniors over the age of 65 only account for 13% of the current total US population,  yet they are the target of scams more than any other age group and account for 56% of all reported fraud cases. 

According to the Federal Trade Commission, “Individuals who grew up in the 1930s, 1940s, and 1950s were generally raised to be polite and trusting.  Two very important and positive personality traits except when it comes to dealing with a con-man.”

Now with an even larger and more financially affluent portion of the population heading towards the 65+ age bracket, concern for protecting seniors from the shrewd practices of clever cons is also growing. 

That those now entering the early stages of seniorhoodTM are proclaimed to be better educated and less trusting than previous generations does not innoculate these newest seniors against these cunning scammers.   Those unscrupulous people searching to take an easy buck from those who worked hard for theirs have also been doing their homework.  With a plethora of personal information now available on the Internet, information once considered private may now fall easily into thieving hands.  

So just what can an honest senior do to protect the assets they have worked so hard over the years to accumulate?  The answer is quite a bit.  There are many web sites and articles now readily available to seniors offering excellent advice on identifying and avoiding fraudulent activities.    

An article that I found particularly interesting, titled Elder Fraud Leaders Guide, was found on the consumer-action.org web site.  Though  written about a year ago, the article contains valuable information for seniors both in understanding why they are so often the target of fraud and how they can better protect themselves.

Listed below are some modified highlights taken from that article.

Reasons senior citizens often are targeted by criminals:

  1. Criminals usually go to where the money is, and many seniors have valuable assets, such as paid-for homes and hefty savings accounts.
  2. Seniors may grow concerned about running out of money during their retirement years and become increasingly vulnerable to claims of quick profits.
  3. As people age, they may begin to suffer from varying degrees of mental confusion or begin to experience trouble with their memory, making them easier to deceive.
  4. Seniors oftentimes are socially isolated and may desire attention, even if from complete strangers.
  5. Having learned to treat others politely, seniors often have a difficult time rejecting unsolicited proposals or charitable requests.
  6. Seniors, often afraid of losing their independence, are hesitant to report scams.

Some possible warning signs of fraud are:

  1. You’re notified that you’ve won a prize or free gift.  If you receive a call, email, or letter about winning a foreign lottery, count on it being a scam.  Hang up or tear it up immediately!
  2. You’ve been selected to receive a special offer.
  3. You’re told that in order to receive a great deal, you must act imediately or lose out.   Scammers often pressure you to act quickly.
  4. Your fabulous prize or free gift requires you to pay for the shipping.
  5. You are guaranteed high financial returns or risk-free investing. 
  6. You are being shared private legal loopholes to make a financial profit.
  7. Someone requests your credit card number and expiration date for verification purposes.
  8. Someone asks for your Social Security number.   It would be rare that you would legitimately need to give your Social Security number over the phone.  When doubtful of someone asking for your SS number, it would be best to decline the request and then report the incident. 
  9. You are asked for your bank account information by someone unfamiliar to you. 
  10. You are asked to donate to a charity that sounds like a well-known charity but isn’t.  Many scammers use phony names of organizations that sound very similar to legitimate ones.  Take time to verify an organization if you are unsure.  Legitimate charities will understand your concern.  To verify the names of reputable charities before making a donation, go to:   www.charitywatch.org.
  11. Someone tells you that you are one of a select few to receive a certain free or low-cost offer.
  12. Someone offers or pressures you to send a courier to your home to collect payment for an over-the-phone transaction.
  13. You are assured, though unable to recall, that you have made previous satisfactory purchases with the caller.  If the caller begins to confuse you, hang up the phone and report the incident at once.

 Ways of protecting your assets against fraud:

  1. Never reveal personal information, particularly your social security or bank account information, to someone over the telephone.
  2. Do not allow strangers into your home seeking information about you and your assets.
  3. Do not assign power of attorney to anyone you don’t know well or that you do not completely trust.
  4. Never sign an incomplete contract that could later be filled in with erroneous information or added clauses.
  5. Always have a knowledgeable third party review a contract for a new home.  This could also apply to a reverse mortgage.  Disreputable lenders could actually steal your home.
  6. Don’t assume a stranger who says they represent a deserving organization will actually use money that you might donate for a good cause.
  7. Don’t be a “courtesy” victim.  Save your polite behaviour for those deserving it, such as friends and family.  If a stranger on the telephone won’t accept no for an answer, it is perfectly okay to just hang up. 
  8. Don’t make a tragedy worse by making rash financial decisions during times of crisis.  Emotionally-made decisions are oftentimes not the best decisions. 
  9. If you feel you have been targeted by fraudulent or abusive activity, don’t let embarrassment or fear stop you from reporting your concerns.

Numerous agencies are diligently working to protect seniors against fraudulent activity, and it is a good idea to not only remain aware of current scamming methods but to keep the contact numbers of those agencies available should you ever need them. 

To find the nearest state agency working on behalf of victims of elder fraud, you can visit the “Adult Protective Services” section at the National Center on Elder Abuse web site(www.elderabusecenter.org).

Other important resources include:

  • National Do Not Call Registry, which allows you to block telemarketing calls.  (www.donotcall.gov, 1-888-382-1222)
  • The National Fraud Information Center, which offers tips to help you recognize fraud as well as an online form to file a complaint.   (www.fraud.org, 1-800-876-7060)
  • Better Business Bureau, which lists certain circulating scams.  (www.bbb.org, 1-800-955-5100 Option #4)
  •  The National Center on Elder Abusem which again is a resource to senior citizens on the topics of abuse, neglect, and exploitation.  (www.elderabusecenter.org; 1-202-898-2586)
  • U.S. Administration on Aging, which is the federal agency that advocates for older persons.  (www.aoa.gov; 1-800-677-1116)
  • FTC, where you can receive valuable information and even file a complaint against a company or organization.   (www.ftc.gov)  
  • A web site maintained by FTC where consumers can learn more about identity theft is:  (www.consumer.gov/idtheft)
  • AARP, which offers a wide variety of articles on scams and tips to avoid becoming a victim.  (www.aarp.org)
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