October is Protect Older Americans from Fraud Month

Fraud against older Americans is a serious problem affecting thousands every year. Many scam artists prey on and target seniors as their victims. Unsuspecting older Americans have lost their life savings or suffered serious financial strain. During October, Protect Older Americans from Fraud month, the BBB, along with the U.S. Postal Inspection Service and other agencies remind seniors and their families to be alert to common scams that can target the elderly.

It is sometimes hard to tell if a sales pitch is legitimate or fraudulent. You cannot judge it by the tone of someone’s voice, or how friendly or sincere the person seems to be. Good salespeople are convincing, and so are crooks. But it is likely to be a scam if:

• You get a call, postcard or e-mail from someone telling you that you have won a prize and asking for payment for processing or administrative fees, for customs, taxes or any other reason. Legitimate sweepstakes or prize offers do not ask for such payments because it is illegal.

• The person says you have to take the offer immediately or you will miss the opportunity. Legitimate companies do not pressure people to act without taking the time to look into the deal.

• The caller refuses to send you written information before you commit to anything. Legitimate companies are always glad to send information about what they are offering.

• The caller, e-mail or letter claims that you can make huge profits in an investment with no risk. "High return" investments are not guaranteed and legitimate companies will tell consumers about possible risks involved.

• The caller, e-mail or letter claims that you can make huge profits through a franchise or other business opportunity with little to no effort. All business ventures require knowledge and effort on the part of the buyer, and no reliable company would guarantee profits.

• The caller is asking for a donation but will not tell you exactly how the money will be used and how you can verify the charity and what it does. Reputable charities are willing to say what percentage of contributions is used for services and how much goes to overhead and fundraising. They are also willing to tell consumers who they can check with to confirm that they are legitimate.

• The caller or e-mail asks for your Social Security number, credit card or bank account number or other financial information when you have not made a purchasing decision and have not agreed to pay anything with those accounts. Legitimate companies only ask for financial information to bill you or debit your account for purchases you have agreed to make.

• The company offers to get you a loan or credit card, no matter what your credit record, or to "repair" your bad credit if you pay an up-front fee. Legitimate lenders and credit card issuers do not ignore credit records, they will not demand payment in advance, and no one can get bad information removed from a credit file if it is accurate.

• The person insists that you send your payment by a private courier or wire the money. Reputable companies do not discourage potential customers from checking the deal out and changing their minds, nor do they try to evade the postal authorities by demanding immediate payment by courier or wire service.