Fraud targeting senior citizens is a growing concern as millions have fallen victim to unethical offers. 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--already have “been taken advantage of financially in terms of an inappropriate investment, unreasonably high fees for financial services, or outright fraud.”
“Although it may not be an easy task, having a serious conversation with your elderly parents about how they are managing their money is extremely important in order to help protect them from unethical offers,” said Karen Nalven, President of BBB West Florida. “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 three schemes that commonly target senior citizens:
Sweepstakes and Lottery Schemes –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—often amounting to thousands of dollars.
Medicare Schemes – Navigating the Medicare system isn’t easy and some unethical individuals will look for any opportunity to take advantage of the confusion. Commonly, they 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.
Bereavement Schemes – There are also those unscrupulous individuals who will 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.
Deceptive Professionals – While many schemes targeting senior citizens might not have a face, some cons 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.
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.
For more advice on avoiding scams and fraud visit: www.bbb.org/us/consumer-tips-scams/