Fraud targeting senior citizens is a growing
concern as millions have fallen victim to scammers. Better Business Bureau
encourages families to keep the lines of communication open with their elders regarding
finances and to recognize some common cons targeting senior citizens.
According to a June 2010 survey by Investor
Protection Trust, more than 7.3 million senior citizens—roughly 20 percent of
Americans aged 65 or older-- have “been taken advantage of financially in terms
of an inappropriate investment, unreasonably high fees for financial services,
or outright fraud.”
“Having a serious conversation with your
elderly parents about how they are managing their money is not easy, but it is
extremely important in order to help protect them from unscrupulous crooks,” said
Sheryl Bilbrey, San Diego BBB President/CEO. “It’s extremely important to keep
the lines of communication open so that you can identify suspicious spending
habits, as well as educate your elder family members on recognizing the red
flags of common cons.”
BBB warns against the following five scams
that commonly target senior citizens:
Sweepstakes
and Lottery Scams –Typically, the victim receives a
letter in the mail stating they have won a lottery or sweepstakes; it might
even claim to be from Publisher’s Clearing House or Reader’s Digest. The letter
instructs the victim to deposit an enclosed check and then wire a portion back
to the company to cover taxes or administration fees. While the funds will
initially show up in the bank account, the money will be removed when the bank
determines the check is fake. The victim is out whatever they wired back to the
scammers—often amounting to thousands of dollars.
- BBB
Advice: Never wire money to someone you don’t
know. You should never have to send money to receive any winnings from a
lottery or sweepstakes.
Medicare
Scams – Navigating the Medicare system isn’t easy
and some scammers will look for any opportunity to take advantage of the
confusion. Commonly, a scammer will claim to be with Medicare and ask for
personal information such as Medicare, Medicaid, social security, credit card
or bank account numbers. The victim might be given any number of excuses to
provide this information including that an error needs to be fixed, that he or
she is part of a survey or eligible to receive free products or can sign up for
a new prescription drug plan.
- BBB Advice:
Remind your elderly family members that Medicare will never call to ask
for sensitive personal financial information. If you suspect fraud contact
your local police or the Health and Human Services Office of Inspector
General at 800-HHS-TIPS.
Bereavement
Scams – Scammers will often try to take advantage
of the increased vulnerability of senior citizens who have recently lost a
loved one, such as a spouse. In one recent example, a mother and daughter team
in Ohio would
find targets by scouring the obituaries. They would then call the widow or
widower and claim that their spouse had outstanding debts that needed to be
paid immediately. Victims would then provide a blank check or credit card.
- BBB Advice: Offer
help to elderly family members if they have recently lost a loved one and
are inexperienced in managing finances. If you are uncertain about owing a
debt when collectors call, ask for written confirmation.
Deceptive
Professionals – While many scams targeting senior
citizens might not have a face, some scammers will be invited in the front door
including technicians, contractors, chimney sweeps, air duct cleaners and other
services. Some professionals will lie about the extent of the problem or claim
safety issues and then inflate prices for unsuspecting senior customers.
- BBB Advice
– Find professionals you can trust by checking out BBB’s
directory of Accredited Businesses.
Always research a company with BBB before you hand over any money
and report any deceptive services to your BBB, local law enforcement and
the state Attorney General.
Investment
and Work at Home Opportunities - Promises of easy
money often target older adults because they may be looking to supplement their
income. The pitch might come in the form of an investment opportunity that
promises big returns, or as a way to make money at home for an upfront cost.
Regardless of the specifics, the victim is offered what sounds like a great
opportunity but the extra income never materializes.
- BBB Advice:
Always research any work at home opportunity with BBB. Beware of investment or
money-making offers that seem too good to be true or use high pressure sales
tactics to get you to sign up immediately.
