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Seniors can make easy targets for fraud. Fraud on seniors can happen by phone, mail, in person, or, less commonly, the Internet (because seniors are online in smaller numbers). It can happen to seniors regardless of assets or income. According to the FTC, con artists are more likely to target senior citizens because seniors are more susceptible to such scams.
Seniors tend to be retired so they're home and available. They tend to answer their phones and read their mail. The offers that come to seniors aren't necessarily more attractive to seniors, but they have the time to read it. Seniors tend to be vulnerable because they grew up in a more polite time when they thought it was rude to hang up on someone and there is the issue of being alone or lonely, so they're more likely to talk to strangers. Scams involving medical care services, sweepstakes and prizes are popular scams on seniors. Estimates state that each victim of a sweepstakes scheme lost an average of $7,000!
Another prevalent scam against seniors is for home repairs. One way this happens is for someone to show up at their door without a call or appointment. Usually this occurs when they have been doing home repairs such as re-roofing at a neighbor's house. The scammer will say that he noticed the senior's home has some shingles loose or other problem. He may even climb up a ladder and pull off some perfectly good shingles as "proof" that repairs are needed right away. They will use pressure and persuasion to scare the homeowner with stories of additional damage and the risk that insurance will not cover a problem that was not repaired by the homeowner prior to the damage from rain or wind occurring.
Feeling afraid and intimidated, the senior homeowner will hire the 'repairman' to fix the problem. The scammer will often ask for payment in advance and will make excuses that they have to buy materials and need to money to do so...or they will say that without payment in advance, they will not be able to fix the problem anytime soon pushing the senior to do so with similar scare tactics. After payment, the fake repairman will pretend to go to work even climbing ladders, making noise with hammers and such. They will then make the excuse that they need to buy more material, or go to lunch, or whatever never to return!
Also be on the watch for con artists posing as a utility worker saying they need to check the phone line, gas line, electrical line, etc. and ask for access to the home. Once inside, several things could happen. They may only be casing the place for security systems, others living in the home or just looking to see if there are valuables easily located. Or they may be able to find and access personal information; maybe from a bank statement or other mail lying about. Or they may simply ask to use the bathroom or ask for a cold drink of water while an accomplice sneaks in another door and steals something while the senior's attention is diverted.
Seniors are particularly vulnerable to phone fraud schemes because they are typically at home and rarely use caller id or message screening techniques. The techniques used can usually be categorized as follows:
· Figure of Authority/Authenticity: The con artist will put the senior on hold to pass the call off to the 'official verifier' or their 'manager' to confirm identity offering legitimacy of the offer
· Fear of Loss: The prize is just too great to even consider passing up and the targeted victim becomes obsessed on getting it.
· Sympathy & Reciprocity: The telemarketer uses empathy to engage the senior and then explains how much this means to them and that they will not get commission unless the senior pays the 'handling' fee for the prize
· Limited availability: The senior is informed that they have won a prize but if they do not respond immediately and pay a "handling" or other so-called charge, the 2nd place contestant will be awarded with the winnings
· Hype: The scammer will use high vocal tones, loud sounds, screams and yells in explaining how exciting it is to be a winner Another key to identifying a scam is when the senior states that it cost to much and that they live on a fixed income, the telemarketer will ask how much they can afford. If they are willing to accept the smaller amount, it's a scam!
And don't assume that they will stop at just one tactic. It is not unusual for them to use one or more of these tactics in order to complete a scam. They know that the longer that they keep their target on the phone, the more likely that the victim will eventually lose their suspicions and cave to the demands. The best way to protect your family is to talk about this. Of course, the best way to prevent fraud is to simply hang up on anyone that they do not know. If that person calls back, have the senior tell them to call you because you handle all financial situations and they have no way to pay them. Instruct the seniors to never, ever give personal information no matter who they say they are. A bank or government agency will contact the senior by mail and will never ask for account numbers or passwords over the phone unless it is the senior initiated the call. This is the best and only way to know for sure that you have reached the right agency.
Jeff has been writing articles and publishing editorials for over 3 years covering a number of popular topics about his day-to-day experiences. His interests have recently involved handicap access options and folding wheel chair choices and locating vendors for temporary wheel chair ramp installations for the home and office.
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