Frauds & Scams 

https://www.agingcare.com/Frauds-Scams

 

Helpful Articles on Frauds & Scams

• Common Ways Seniors Become Victims of Identity Theft

• Preventing Elderly Scams

• Protecting Against Senior Investment Fraud

• How to Protect Your Parents from Identity Theft

• How Seniors Get Scammed into Buying Useless Insurance Policies

 

Your Parent Could Be a Victim of Identity Theft and Not Know It

https://www.agingcare.com/Articles/elderly-identity-theft-victims-frauds-scams-cons-139206.

 

Anyone can become the victim of identity theft, including elderly people. And they don't know their identity has been stolen until unexplained charges start showing up on credit cards or their bank accounts have been emptied.

 

Identity theft "occurs when a thief steals the elderly person's social security number, bank account numbers and other financial or personal documents. With this information, he can open a new credit card account for his own use, apply for loans in the victim's name, drain the victim's bank accounts, and illegally obtain professional licenses, driver's licenses and birth certificates.

 

Why are seniors targeted?
Seniors are seen as an easy opportunity. Identity thieves love older people because they are vulnerable. They are often socially isolated, lonely, tend to be trusting and vulnerable, and may have early dementia or memory loss. This is the perfect victim profile for an identity thief to prey upon. Too often, seniors are like sitting ducks.

How do criminals take their identity?

Scammers are always coming up with new ways to get information to commit identity theft. There are many ways a criminal can steal an identity.

 

Stealing mail - ID thieves can easily steal a senior's mail, including bank and credit card statements, checks, tax information and more. And it's not only the mail that gets stolen: Thieves will steal a senior's garbage, rummaging through it for personal and financial information carelessly tossed into the trash.

 

Sending mail - Identity thieves not only take the mail, they also send it to seniors. The mail appears to come from trusted sources, such as the victim's bank, charitable organizations or well-known companies. The scam mail usually contains "official" letterhead, authentic looking logos and registered trademarks.

 

Calling victims on the phone - Thieves will also call elderly people, pretending to represent charities, associations and the elderly person's bank or financial institution. Unfortunately, many senior citizens believe that these phone calls are coming from a trusted source.

 

"Phishing" online - Online, phishing is a common practice. Thieves pretend to be financial institutions or well-known companies (like the eBay scam a years back) and send spam messages asking seniors to "verify" account information and social security numbers.

 

Swiping credit cards - Even sales clerks and wait staff in restaurants can get access to financial records when they swipe a senior's credit card for a purchase. Thieves use tiny scanning devices to steal the numbers and then use the cards, running up exorbitant bills before the senior is even aware that their identity has been stolen.

 

Where are the common places identity may be stolen? 
Identity theft can happen anywhere: over the phone, online, in a restaurant or store, or in person.

 

Tips to prevent identity theft

Never give out personal information on the phone, through mail, or over the internet unless you know the receiver and have initiated the contact.

• Shred all financial documents, bank statements, sensitive mail, credit card solicitations, and documents that contain any type of personal information. 

• Guard credit cards. Watch sales people, wait staff in restaurants, and anyone who asks for your credit card. 

• Cut up rarely used or unused cards. 

• Don't let anyone copy your aging parents' driver's license. Anyone doing this has instant access to the senior's address and from there, can get bank account numbers and personal data. 

• Get a locked mail box or post office box.

• Have checks delivered to your bank or post office box, not your home address.

•  

Is identity theft common among seniors? 
It's impossible to say how often seniors are scammed, or even what percentage of known fraud targets seniors. The Federal Trade Commission regularly compiles identity theft complaints, but these are voluntarily registered by victims over the telephone or by e-mail. According to the FTC, nine million Americans have their identities stolen each year.

 

How to Protect Elderly Parents from Identity Theft

https://www.agingcare.com/Articles/protecting-elderly-parents-from-identity-theft-137713.htm

 

Your Mom lives alone. She has friends, but gets lonely sometimes. She likes to talk on the phone. Dad is a widower, and seems lost since your mother passed away. He is a little confused, but can take care of himself with a little help at home from a health care agency. What do they have in common? Both are exactly the kind of victim identity thieves prey upon.

Identity thieves love aging parents because they think they are so vulnerable. Social isolation, loss of a spouse, early dementia, general memory loss or confusion make our elders and aging parents an easy mark. Add to that that seniors tend to be friendly and trusting, and you have a combination that can make your aging parent a sitting duck. How can we help them protect themselves? There are an estimated six people a minute having their identities stolen, according to a television report on the Today Show in 2007.

 

We need to educate our aging parents that trusting strangers on the phone is very dangerous. We need to warn our aging parents that even their own children can rip them off if they are desperate. Drug and alcohol abuse, serious financial trouble and mental illness can lead an adult child to steal account numbers when visiting and later raid his own parents' bank account and steal from the ones most likely to trust him or her. Our elders must be educated to be alert to dangers in their own families. If you have a "black sheep" in the family who has serious money or substance abuse problems, consider it a risk to your parents.

 

Can we thwart the attempts at stealing our aging parents' identities? We can at least take protective measures. Some of the simplest protections are the best.

 

• First, buy a cross-cut shredder. Shred or have your aging parents shred sensitive mail, credit card solicitations, and outdated personal documents such as bank statements, rather than throwing them in the trash. Thieves go through the trash looking for anything they can use to steal.

• Guard credit cards. Watch sales people, wait staff in restaurants, and anyone who asks for your credit card. Thieves use tiny scanning devices called skimmers to steal the numbers and then use the cards. Get rid of any rarely used or unused cards. The fewer your parent has, the better. Don't give out the numbers unless you absolutely must.

• Mail letters at a mail box or the post office, rather than leaving outgoing mail in the mail box in front of the home. Thieves steal checks and payments slips, taking the information and using it to attempt to steal the entire identity. They take out new credit cards in the victim's name and rob them of everything they can.

• One should never, ever give out personal information or financial account information over the telephone. Telephone solicitors offer prizes and rewards to trick the person into telling the solicitor his bank account number, social security number, and mother's maiden name. With that, the thief can wipe out a bank account in minutes.

• Don't let anyone copy your aging parents' driver's license. Anyone doing this can get access to bank accounts, personal data, and anything else you would want to protect. Getting the license number to verify a check is one thing. Letting someone take the entire license and have the other information on it is never necessary

 

Can Elderly Scams be Prevented?

https://www.agingcare.com/Articles/prevent-elderly-becoming-scam-victims-138455.htm

 

Old people with money. Scam artists relentlessly prey on them. Why are the elderly more susceptible and more likely to become victims of a scam? The elderly are vulnerable to scams because they tend to be too trusting, gullible, live alone and don't have someone watching over their finances. Loneliness also plays a role. Elders are often grateful to have someone to talk to – not suspecting that the "nice man" on the phone may be preying on them. Can anything be done about elderly scams? "Many of us have a parent, friend or neighbor who would benefit from a friendly reminder that seniors are prime targets for scam artists. We can help prevent them from losing their money, their dignity and their sense of security," said Ken Hunter, president and CEO of the Council of Better Business Bureaus. Caregivers can take some steps and identify red flags to help protect their elderly parents from scam artists and fraud against elders, according to the Better Business Bureau. These include:

• Get involved with seniors' financial decisions as much as possible, especially when managing personal finances has become a burden.

• Never allow your elderly parent to give out (or at least warn them against it) personal banking information, credit card numbers or social security numbers to someone who has called. Popular scams include promising information on new health miracle product, a charitable donation, or confirmation of a sweepstakes.

• If a salesperson will not provide written information about his or her company--including the company's name, address and telephone, do business with someone else.

• If someone calls from a "government agency" requesting money, ask for a certified letter on an official letterhead.

• Visit the homes of elderly relatives regularly. Ask about phone call they've received (con artists tend to develop relationships with their lonely victims and prey on their need for conversation.). And watch for a full mailbox. Large numbers of mailings from promotion companies could indicate that the elderly person is on a "sucker list." 

• Tell your parent never to hire someone who shows up at their door. If they are told their plumbing needs fixed, or the roof needs repaired, the scammer may take money, but never do the work.

• Tell your parents never to make an "on-the-spot" decision. If the person says you have to take the offer immediately or you will miss the opportunity, it is likely a scam. Legitimate companies do not pressure people to act without taking the time to look into the deal.

• Avoid investments that promise huge profits with no risk. "High-return" investments are not guaranteed and legitimate companies will tell consumers about possible risks involved.

• Put the senior's phone number on the National Do Not Call registry by phoning 1.888.382.1222 or visiting www.donotcall.gov (this will help to limit phone calls from telemarketers.)

• Fraud against older Americans is a serious problem affecting thousands every year. These tips can help prevent your aging parent from falling victim to scams.

 

Seniors Scammed into Buying Insurance Policies They Don’t Need?

https://www.agingcare.com/Articles/Insurance-Are-Seniors-Being-Duped-into-Buying-Policies-They-Don-t-Need-133376.htm

 

Seniors are inundated with a never-ending onslaught of insurance offers. Disability insurance, Medigap, supplemental, mortgage life, self-funded healthcare, long-term insurance, permanent life, term life…and the list goes on.

 

Salesmen use many questionable tactics to get seniors, who are often times too trusting and too easily fooled, to buy insurance policies they don't need. For example, the pitch may offer a very low-cost first month premium, but the small type grants the insurer the right to charge your parent's credit card at a greatly inflated rate every month. They might try to sell your parent a long-term care policy which, because of the person's age at the time of purchase, is very expensive while providing very little financial benefit. Or, a salesman will scare your parents by saying their current policies are in danger of being canceled or the insurer not able to pay out.

 

Anyone caring for an aging parent should know what policies their parent has and be involved in future purchasing decisions. If you are not aware of what policies your elder parent has, now is the time to do some research. Checking your parent's insurance coverage will not be your most exciting caregiver assignment, but it may prove to be one of the most important. Identify questionable policies and pricing so that unnecessary coverage be canceled or changed.

 

Protecting Against Senior Investment Fraud

https://www.agingcare.com/Articles/Protecting-Against-Senior-Investment-Fraud-110484.htm

 

When Ben and Ida received an invitation for a complimentary gourmet meal if they attended an investment seminar, they learned the hard way that there is no such thing as a free lunch. Promised a guaranteed income on an investment, the senior couple opened an account with the sponsoring firm, and got bilked out of thousands of dollars. They are not alone.

A survey by the North American Securities Administrators Association (NASAA) shows senior investment fraud accounts for nearly 50% of all complaints received by state securities regulators. That number is up from the 2005 survey, when 28% percent of fraud reports involved the elderly.

 

The financial industry is littered with slick schemes that result in broken dreams for seniors who take the bait. Stories of elderly seniors losing their life savings are far too abundant. Seniors are being targeted through the internet, mail, phone, in-home visits, and free "financial seminars" specifically tailored to large groups of seniors, says Bob Webster, Director of Communications for NASSA.

 

There are many reasons the elderly fall victim to fraud, including:

 

• Being too trusting, and too good mannered to be rude

• Wanting a better rate of return on their money

• Believing the salesperson is nice, friendly and caring

• Being impressed with fancy credential and titles

These titles can serve as an easy way for an unscrupulous sales agent or adviser to gain a senior's trust, which is the first step in a successful fraud," says Webster. "It is exceedingly difficult for prospective investors – particularly senior citizens – to determine whether a particular designation represents a meaningful credential by the agent or simply an empty marketing device."

 

Financial predators use tactics to instill fear in seniors of running out of money and becoming a burden to their families. They inspire distrust in seniors of family members concerning their finances to keep seniors from disclosing the fraud. And they prey upon the loneliness and isolation, and availability of some retired or widowed seniors. How do you know if a potential investment is legit? Webster says to contact your state's securities regulator to see if the salesperson is licensed in your state to sell the security and if the security is licensed for sale in your state. "Usually investments that guarantee or promise high returns for little or no risk are signs of trouble ahead," he says.

 

Investment scams can take many shapes. If it didn't sound good, seniors wouldn't give it a second thought! Whatever the enticing investment, scammers use specific tactics to hook seniors. Be cautious of these phrases:

• "Your profit is guaranteed."

• "It's an amazingly high rate of return."

• "There's no risk."

• "You can get in on the ground floor."

• "You would be a fool to pass this by."

• "This offer is only available today."

• "It's a secret investment tip just for you."

• "I'll get you the paperwork later."

• "Just make your check out to me."

• Webster adds, "Remember, if it sounds too good to be true, it usually is.

   

Most investments are some form of securities that must be registered with the state securities regulator or with the Securities and Exchange Commission (SEC). Check to see if the investment opportunity is registered by contacting your state securities regulator. If the potential investment is not properly registered, Do Not Invest.

Check the person. Is the person properly licensed with the state or with the SEC to sell this product? If not, beware. Is this person a broker, licensed to buy and sell stocks, bonds and other securities, or with an investment adviser, someone who is paid to provide advice about investing in securities but is not licensed to sell them?

Check the history. Does the person or their firms have had any complaints filed against them with regulators? Those who do business with an unlicensed securities broker or a firm that later goes out of business, may have no way to recover money.

 

One way caregivers can help protect their elderly loved ones from investment fraud is to strive for an open, two-way communication when it comes to finances. Make sure the loved one is comfortable talking about money honestly and openly without fear of reprisal. If possible, have them turn to you, or a trusted financial advisor or lawyer before making any investment. If an investor is real, he will have no problem speaking to his client's family member before taking the senior's money.