Murders and violent crimes are down around the country, but one kind of crime is rising steadily: scams against the elderly. Senior citizens have always been especially vulnerable to scams, but it appears that the situation is getting worse. Scam artists are privy to the psyche of the elderly. Seniors tend to remain quiet victims. More often than not, they do not tell family members that they were duped for fear of going into nursing homes or arousing concern that they are not capable of living independently. Due to age, it is harder for a senior to recall the events that took place, and most seniors shy away from having to testify in court. These reasons, plus the fact that there is a high chance of getting a lot of money, make the elderly easy targets for scam artists. Other contributing factors for the increase of scams against the elderly is the prevalence of Alzheimer's Disease and other dementias, and the rise in companions and caregivers. According to a a study last year by Metlife Mature Market Institute, Senior citizens lose more than $2.6 billion a year, many of the thieves come from their own families. This is a low estimate because many times cases are not reported. Ironically, last month, a caregiver and a social worker at the Grayson County Virginia Department of Social Services were charged with taking more than $24,000.00 from the bank account of an 89 year old client who had gone to the agency looking for care and companionship. This is what makes the situation so atrocious, the people that the elderly go to for help are some of the people who scam them. Seniors are characteristically trusting, and even some members of their own family take advantage of that fact. So, unless it is not completely feasible, the elderly needs to take matters into their own hands. Here are some of the most prevalent scams and what Seniors and trusted family members should watch for.
Credit Card Scams: Watch for offers of credit cards, credit card protection or credit repair services when a fee is charged. The fee is charged to your card but the card or services are never delivered. Watch out for offers of a credit card regardless of your credit history. It is best to throw away any offer that you receive in the mail for credit cards and services.
Magazine Sale Scams: A person who claims to work for the magazine company misrepresents the price and it is actually much higher. Often the magazines is never delivered. Do not purchase anything from a door salesman, or by phone.
Investment Frauds: They usually tout spectacular profits with no risk. Instead of making money, you lose it. Never accept an invitation to participate in an investment opportunity. Investments should be made at a local, reputable investment company or bank and always bring your son, daughter or both.
Overpayment Scam: You advertise something that you want to sell and a potential buyer offers to purchase it. The buyer sends you a check for more than the asking price and asks you to wire the difference back. You do but later the buyer's check bounces and you are out all the money plus the money you wired to the buyer. If you need to sell something make sure that a trusted family member or friend is with you and take only cash.
Work-at-home Scams: You see an ad promising big earnings for people who want to work from home. You send a check for training and materials and receive a kit with cheap craft materials. Soon you discover that their are no clients to pay for your work. Watch out for any promises of big earnings. If it sounds too good to be true, it is.
Vacation/Travel Fraud: You accept an offer for very cheap or free travel package but later you end up paying hidden costs, such as reservation fees or taxes, or listening to a high-pressure sales pitch for a timeshare or club membership. Again, watch for anything that sounds too good to be true!
Telephone Slamming: Your telephone service is switched from one company to another one without your knowledge or permission, resulting in higher charges for long distance and other services. Watch out for a telephone company representative who is trying to talk you into changing your phone service and offers you a rebate or check if you switch.
Telephone Cramming: These are unauthorized charges for goods or services that appear on your telephone bill, but you miss seeing them because your phone bill is complicated with authorized charges such as voice mail and Internet service. Read over your phone bill very carefully every month. Don't assume that whatever is on your bill was authorized by you.
Phishing: You receive an email message that says your bank or financial account must be updated or it will be closed. You click on a link to a website that looks like it belongs to your bank or other institution and "update" your account by entering personal identifying information. Soon you discover you are a victim of identity theft. Never, ever, give anyone your personal information on the computer or by phone. Any reputable bank or financial institution will not ask for your personal information in this way. Never, ever click on any link that you do not know. The only emails that you should click on are from people who you personally know.
Pharming Scam: This is a technique used by criminals to redirect Web traffic from a legitimate server to their own server, where they can steal any personal information that the user types in. Again, watch for any unusual links or websites that pop up in your email.
Nigerian Money Scam: You are contacted by someone from Nigeria offering huge amounts of money if you will transfer money from a foreign bank to your bank account for safekeeping. When you agree, you are asked to pay huge transfer fees or legal expenses but receive no money. Watch out for any request to send money before receiving anything. These are email scams, so never open an unusual email.
Sweepstakes Scam: You are told that you won a fabulous prize but in order to claim it you must buy something or pay taxes up front. The prize is a useless, cheap trunket worth much less than the amount of money you paid to claim it. Watch out for any prize or sweepstakes winner announcement. If it is a legitimate sweepstakes, you will not be asked to pay anything up front.
Lottery Scams: You are offered tickets to enter a foreign lottery and are asked to send money by phone or mail in the United States. The lottery, either does not exist, or the tickets never arrive. Remember that it is illegal to promote a foreign lottery.
Pyramid Schemes: You are promised big profits in exchange for a fee or for recruiting new members. Plans that promise profits for recruitment of members rather than for selling goods and services are illegal and usually collapse.
Charity Scams: A natural disaster has just occurred and it is all over the news. You get a letter, an email, or a phone call asking you to donate funds to help its victims. You send money, but the victims never receive your donation or receive only a tiny portion, the rest goes to cover administrative costs like salaries. Before making a donation to any Charitable Organization, ask for their company information and read the allocation of dollars donated to that charity.
Merchandise Sales Scams: You buy something advertised for sale on the internet or through a telemarketing call. You pay for the merchandise but never receive it, or you receive an inferior or counterfeit product in its place.
It is advisable to use extreme caution when buying merchandise from the internet or by phone. It is in your best interest not to buy anything from the internet or by phone.
Deposit Check Scam: You receive a check for $10.00- $25.00 from your credit card company or phone company. You deposit the check into your bank account and soon you find out that you switched your phone service or just joined a travel club from your credit card company. Watch out for any checks that you receive from an existing company. Look at the back of the check where you sign and read the statement. It always tells you that by signing the check you agree to join a such and such a club, or you agree to switch your phone service. No company sends money for free. It always costs you.
Look at all of these scams and there is a common link between all of them. Watch out for anyone or any company that requires you to send money upfront, that asks you to give personal information, that tells you to click a link, or that offers you huge profits. Anytime it sounds too good to be true, it is! So, Seniors stay alert, and don't get scammed!
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