Scams Targeting the Elderly
The articles you read here are frequently focused on general scams. This time, we're going to focus on those that fraudsters use to take advantage of seniors, many of whom live on fixed incomes and who could use some assistance meeting their basic needs. Even if you're not a senior, you might want to read on. A scam is a scam, and anyone can fall victim.
With senior scams, fraudsters gain trust and confidence by pretending to be concerned about the senior's well-being. Once they've gained that trust, they encourage the victim to make a quick decision without consulting a family member.
Types of Scams:
- Charitable contributions
- Fraudsters solicit donations to charities or other organizations that simply don't exist. They also use company names that are identical or very similar to well-known charities.
- Sweepstakes
- You just received news that you've won a sweepstakes. But wait a minute! To claim the prize, you need to forward a fee to pay for taxes, shipping or processing fees. Remember, it's illegal for a company to require you to buy something or pay a fee in order to win a prize. Legitimate sweepstakes will provide documentation on how the contest works, explaining that no purchase is necessary, and that a purchase will not increase your odds of winning.
- Confidence Games
- A fraudster claims to be a lottery winner but has no bank account in which to deposit the winnings. He or she promises you a "cut" in exchange for using the victim's account but requests a good faith payment to ensure the senior does not keep all the proceeds. After the senior pays the good faith payment to the fraudster, the victim never hears from him (or her) again.
- Travel
- Seniors are always on the lookout for a bargain and are attracted to inexpensive travel packages. Frequently, these packages cost more than they should, provide inferior accommodations or fail to provide the services promised.
- Investments
- In these types of scams, the fraudster persuades the elderly to invest in gems, real estate or stocks and bonds claiming a high rate of return on the investment. The gems are often fake, the real estate is ramshackle, and the stocks and bonds are shares in a nonexistent company.
- "Reload" Scams
- Many victims are too embarrassed to report they've been victimized. They fear they will be judged too incompetent to handle their own affairs. Fraudsters exploit this fear by contacting the victims and offering to help recover the funds for a percentage of the loss. Victims willingly participate, hoping no one will find out they've been victimized. Of course, the percentage must be paid up front. The fraudster then disappears with the funds, leaving the senior victimized for the second time.
These are just a few of the schemes con men and women use to defraud their victims. Don't be afraid to simply hang up on callers who want your money. Explain you aren't interested and end the call. Be alert to promises of high returns, guaranteed profits or pressure to act quickly. Don't be so quick to part with your hard-earned money. Remember, if these offers seem too good to be true - it's because they are.
Closer to Home
Keep in mind that not all frauds are committed by strangers. Relatives and caregivers generally have a position of trust or relationship with the senior that can be easily exploited. Offenders can also be lawyers, accountants or financial advisors. The offenders use deceit, intimidation, emotional and physical abuse, isolation, neglect and coercion to misuse the senior's assets for personal gain. Financial exploitation can occur through the following:
- Property theft
- Repeatedly "borrowing" money and never repaying it
- Lack of medical care
- Forcing the victim to sign over property
- Signing and cashing checks
- Misusing credit and/or debit cards
- Joint account abuse
- Power of attorney abuse
Funds misappropriation can also occur from dealing with a dishonest nursing home. Some may attach unnecessary liens to property or charge for services that were never performed. Most states have a regulatory agency that oversees nursing homes. If you're considering going into a nursing home, be sure you or someone you trust ensures that the home is properly licensed. References should be checked, too.
Don't let shame keep you from reporting the fraud to the police or other legal authorities. If you recognize that you've been victimized - speak up promptly. Try to document what occurred by writing it down. Although it's doubtful, you may be able to recover a portion of your funds.
If you or someone you know has been victimized, contact your local Area Agency on Aging for assistance. The Pennsylvania Statewide elder abuse hotline number is 800.490.8505. The line is staffed 24 hours a day, 7 days a week. Callers may remain anonymous. The Hotline takes reports whether the senior resides at home, in a nursing facility, personal care home or even a hospital.