Senior Con Games
Education and Support Can Protect Seniors From Fraud
Con games are nothing new; they've been around for decades. There is one thing that's changing, though: the frequency with which seniors are being targeted by criminals looking to make a quick buck.
Senior scams are costing older adults their life savings, their homes and even their lives.
Seniors often are sitting ducks for a criminal looking to make fast cash. And they do that in a variety of ways. Everything from investment fraud to lottery and sweepstakes scams to home improvement schemes.
According to 2005 statistics from the National Fraud Information Center, 22 percent of telemarketing scam complaints were logged by those over the age of 70. That's the highest percentage of any demographic group that year.
And that could be just the tip of the iceberg. The National Center on Elder Abuse tells us that only one in every 25 financial exploitation cases against seniors is reported. That means there could be in excess of five million senior victims each year. And though seniors represent only about 12 percent of the U.S. population, they account for about 35 percent of all financial fraud victims, according to the Securities and Exchange Commission.
Criminals use many avenues to get to seniors including telemarketing, direct mail, free seminars and the Internet. According to our research, here are the five top scams against seniors.
These come from Home Instead Senior Care and the National Association of Triads, Inc., an 18-year-old organization that is part of the National Sheriffs' Association. This group sponsors local chapters that bring together senior volunteers, law enforcement and the community to help protect seniors.
First are prizes and sweepstakes scams. Here's how these work. A senior is told he or she has won a sweepstakes and all that's needed is a check to cover the taxes. Or, this individual will receive a fake check for $5,000 and be encouraged to deposit the money and send back $2,000 to cover the taxes. By the time the senior figures out the check is no good, his or her money is lost.
Second are home-improvement frauds. Criminals will knock on a senior's door offering to fix a driveway; then they'll merely paint the pavement black and charge the senior $3,000 for "repairs." Or a senior will be asked to pay up front for home renovations, never to see the alleged repairman again.
Third are "phishing" schemes. This is where a senior receives a call from someone claming to represent a bank or other reputable financial institution. The senior is warned that personal financial or credit card information has been compromised, so he or she is then asked to verify a bank account number or to call an 800 number, where this individual is asked for personal financial information.
Fourth is Internet fraud. A senior who is unfamiliar with use of the Internet can unwittingly give a credit card number to a scammer.
And finally, there's identity theft. A senior who gives up birth date and Social Security number to a stranger can open up his or her entire personal financial history to a thief.
So what makes older adults so vulnerable to tricksters, scammers and con criminals? It appears that physical and psychological needs are at the heart of this issue. For example, seniors often worry they will outlive their money, and thus, they could be concerned about their ability to pay for the lifestyle they desire. As a result, some may get caught up in these schemes because they are looking to improve their financial situations.
Thieves and con criminals are on the look-out for just these kinds of older adults. In fact, research confirms that. A report prepared recently by the Consumer Fraud Research Group for WISE Senior Services and the NASD (National Association of Securities Dealers) Investor Education Foundation revealed that fraud pitches are custom built.
In other words, they're tailored to meet the psychological needs of a potential senior victim.
For instance, when researchers listened to audiotapes of pitches, they found several interesting trends. They discovered that the con criminal will use one kind of appeal for the lottery fraud victim that may prey on the fact that person is a widow and feels deprived in life. And they found that con criminals will use a different pitch for the investment fraud victim who is more likely to be male, self-reliant and knowledgeable about finances.
Sadly, seniors and their families must be on guard for cons. That's why families of seniors who live in cities like ours may call upon Home Instead CAREGivers to assist their loved ones at home or in a care community, since these CAREGivers can serve as a second set of eyes to prevent situations like the one above from happening.
Anyone who uses Home Instead Senior Care can rest assured that all of the staff and CAREGivers are put through a stringent 3 phase background check, including fingerprint clearance through the California Department of Justice. All employees are bonded and insured by our company so you can rest assured you or your loved ones are in good hands.
In addition, families can support and help educate their seniors in several ways. Watch out for unusual activity and help seniors with their finances if they need it. In addition, make sure they destroy information that could be compromised, such as credit card offers. And because scammers target seniors who are alone or appear lonely, just knowing that a senior has someone to look out for him or her can be a deterrent.
Be vigilant: criminals will try just about anything. Scammers have taken out mortgages on seniors' homes. They can file quitclaim deeds on property and remove seniors from their homes. Or they'll open up joint checking accounts in the criminal's and senior's names and deplete these funds.
What's more, seniors can get on "sucker" lists' that ensure they'll continue to be the targets of unscrupulous people well into the future potentially resulting in legal issues that may even outlive a victimized senior. And a study published in the Journal of the American Medical Association showed that victims of elder mistreatment, including exploitation, have a three times higher mortality rate than non-victims.1
What's sad is that seniors often are just looking out for the best interests of their families. Most seniors want to leave a legacy to their children and grandchildren, but criminals can prevent them from doing that. And that might just be the biggest crime of all.
Source
1. The Mortality of Elder Mistreatment, by Mark S. Lachs, MD, MPH; Christianna S. Williams, MA; Shelley O'Brien, MS; Karl A. Pillemer, PhD; Mary E. Charlson, MD; Journal of the American Medical Association. 1998; 280:428-432.