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Scams That Target Senior Citizens

Informing yourself about the different types of scams, especially the ones that target seniors, is your best weapon for preventing purveyors of this kind of fraud from ripping you off.

Why seniors are more vulnerable

While these attempts target everyone, crooks often aim their efforts at elderly citizens for a number of reasons including:

• Senior citizens have often accumulated substantial savings
 

• Criminals can use technology to constantly develop new ways to defraud people

• Elderly people tend to spend a higher than average amount of time at home

• Senior citizens may be easier to persuade into handing over their money using their fear of losing financial independence 

The most common schemes

Many cons used to talk you into giving up your money, property, and personal information appear to be offers and inquiries from trusted sources, including business people, government officials, or individuals seeking charitable donations or help. Familiarizing yourself with the most common types of schemes can save you money, time, and stress in the end. Here are some of the scams to watch out for:

• Sweepstakes and other prize money--A type of fraud that commonly targets the elderly, the swindle begins with a letter, email, or phone call notifying you that you have won a prize or a large amount of money in a lottery or sweepstakes. The scammer will then tell you that you must cover shipping and handling, taxes, and other fees before you can receive your winnings. In 2004, more than 12,000 older consumers complained to the Federal Trade Commission about this kind of con, with losses totaling $35 million ($2,000 being the median amount of money lost).

• Phony investments--This kind of fraud can hit consumers hard. It occurs when someone – an individual or firm – contacts you about an investment or business opportunity that guarantees substantial returns. The opportunity will seem like it beats what banks offer for deposits. This type of offer is too good to be true. The “individual” or “firm” will likely disappear with your money.

• Charity schemes--You may think that you are giving your money to a good cause, but some “charitable organizations” out there are merely criminals taking advantage of your wish to help those in need. When someone comes knocking for a donation, educate yourself. You can stick to familiar charities or contact the Better Business Bureau, or visit www.give.org to see if the charity checks out.

• Home/Auto “repairs”--When someone comes to your door (or calls) offering to fix your roof or car, be skeptical. Many consumers have paid for such repairs only to find that repairs were never even started or are inadequate at best. Some scammers skip out on the work and while collecting money from their “clients” for repairs they never did.

• “Predatory” loans/mortgages--Elderly homeowners struggling to make ends meet are among the most vulnerable targets for this kind of scheme. It generally involves convincing consumers to take out high-cost loans using persuasive and misleading sales methods. The loans are often too expensive for cash-strapped consumers, and the lender then tries to pressure them into refinancing several times over – and paying high fees to do so. This is known as “loan flipping.” Consumers who have used their houses as collateral face foreclosure in this kind of scheme.

• Foreclosure “help” --If your house faces foreclosure beware if someone contacts you offering to get you out of it. If you do not read the fine print, a scammer may trick you into signing ownership of your property over to someone else.

• “Assisting” fraudsters--This kind of scam comes in the form of a request for assistance that involves your divulging of a bank account number or other information. For example, if someone contacts you claiming to be a police officer investigating fraud, and needs your bank account number to do so, you should be more than skeptical. 

Keeping an eye out

Always remember that you are in control. Informing yourself is the best defense against scammers of every type.

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