Today, more than ever, the elderly are targets for every scam from age-defying snake oil to emergency calls from young people posing as grandchildren. Without the proper tools and education, more and more seniors will find themselves cheated out of their hard-earned savings and retirement nest eggs. Knowing what to look for, how to react, and ways to protect themselves can go a long way in keeping them financially and physically safe.
With over 10,000 baby-boomers in the United States turning 65 every day, financial scams that target them are now being coined, "the crime of the 21st century." According to the National Council on Aging, (NCA) seniors are often targeted because they are the ones who own homes, have retirement and savings accounts, and they are more likely to fall for it.
Here lately, the grandparent scam is one of the most prevalent. A person will call and say, "Grandpa(ma), this is your grandson(daughter)." At this point, the senior will often give the name of the child which starts the conversation. The scammer will state that they are in jail, stranded, or in a hospital. "Don't tell mom," or "Don't' tell dad," is soon to come into the conversation after asking for a sum of money. A so-called attorney will take the phone and provide information on how to send money for the grandchild. These people prey on a senior's emotions to financially destroy them. To avoid being the victim of this scam, tell the caller to give you the name of the facility where the child is being held and that you will call your son or daughter. They will hang up and that will be the end of it. Anytime someone says, "don't' tell," that should be the first sign of something amiss.
The NCA identified nine potential scams that are circulating besides the grandparent scam. They are as follows:
* Medicare/health insurance scams; since all Americans over 65 qualify, so the scammer poses as a Medicare representative to convince older people to give them personal information, or they create fake services such as makeshift mobile clinics, and then use the information to bill Medicare and pocket the money.
* Counterfeit prescription drug scams operate on the web where seniors with some knowledge of the internet will search for better prices on high-cost drugs. The problem here is that besides paying for something that may not help a person's medical condition, victims may purchase something potentially dangerous.
* Funeral and cemetery scams are two types that are on the rise. Scammers read obituaries and target the widow/widower and family members, again, preying on their loss. Scammers claim the deceased family member had an outstanding debt to extort money from them to settle the bogus debt. Disreputable funeral homes will add unnecessary charges to the bill, or insist that a more expensive casket is necessary even with a direct cremation where a cardboard one will do.
* Fraudulent anti-aging products is another as the idea of staying young, beautiful, and wrinkle free is at the forefront of every commercial and advertisement. NCA states these scammers target older Americans and it is a big business.
* Telemarking/phone scams are the most common and prey on older people, who as a group make twice as many purchases over the phone. These scams are the most successful with no paper trail. Some of these include the pigeon drop, where the con tells the individual that they found a large sum of money and is willing to split it with a "good-faith" payment by withdrawing funds from their bank account; the fake accident is much like the grandparent scam and involves sending money on the pretext that a family member is in the hospital and needs money; and then the charity scam which often occurs after a natural disaster when a lot of organization's are trying to help with relief.
* Internet fraud is bigger among the older generation because they are not as computer-savvy as the current one, so when they see a pop-up simulating a virus-scanning software, they are more apt to click on it. Messages resembling reputable companies also appear telling the individual to click on the button to update or verify their accounts. This allows the con to gain access to the computer and all the owners passwords and information.
* Investment schemes are big among seniors planning for retirement, and pyramid schemes and fables of a Nigerian prince looking for a partner are other ways to take advantage of an older and much trusting generation.
* Homeowner/reverse mortgage scams are on the rise with the number of seniors taking out more of these mortgages and unlocking the equity in their homes. Those considering reverse mortgages should be aware of people in their lives pressuring them to make these mortgages or those who stand to benefit from it, such as home repair companies who approach an older adult directly.
* And then there is the sweepstakes and lottery scams, which many people are quite familiar. The scammer tells the victim they have won but will have to make a payment to receive the prize.
Always protect yourself and your loved ones from money scams:
* Be aware that you are at risk from strangers, and sometimes from those closest to you. According to the NCA, over 90 percent of all reported elder abuse is committed by the older person's own family members, most often their adult children, followed by grandchildren, nieces and nephews, and others.
* Don't isolate yourself, stay involved. That is why senior activity centers are so important to allow older adults avenues that keep them well informed.
* Always tell solicitors that you never purchase from anyone who calls or visits unannounced. Send something in writing. Don't buy from an unfamiliar company and never donate if it requires you to write your credit card information on any forms.
* Shred all receipts with your credit card number.
* Sign up for the "do not call" list and take yourself off multiple mailing lists. Do not let incoming mail sit in your mailbox for a long time, and when sending out sensitive mail, drop it off at a secure collection box.
* Use direct deposit for benefit checks to prevent checks from being stolen from the mailbox.
* Never give your credit card, banking, Social Security, Medicare, or other personal information over the phone unless you initiated the call. Always remember that these entities already have your information. Review your Medicare statements to be sure you actually received the services billed, and report suspicious activities to 1-800-MEDICARE. And,
* Be skeptical of all unsolicited offers and thoroughly to your research.