Seniors increasingly report that they have been duped by someone to hand over some of their hard earned savings. Many more do not report these crimes out of embarrassment. Sometimes, a bank employee, caregiver, or other person will recognize the problem.
Elderly Scams
The above list outlines common scams, but be aware that new scams happen every day. Here are some general tips to keep you or a family member safe. If you are a caregiver, you may want to talk to your family member about these ideas:
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Source: www.sageminder.com
STAF, Inc.
Elderly Scams
- The Needy Relative: This is where a con artist will find out the name of a young relative, like a nephew for example, of the senior. He or she will pose as a lawyer or doctor and explain that the poor nephew is in trouble and needs bond money or money for an emergency surgery. They will ask the senior to not call anyone else in the family because it is a sensitive or confidential matter and urge the person to wire money.
- The Credit Card Company: This scam has been used many times and because seniors often trust that they will be treated fairly in the marketplace, they are particularly susceptible. A person will call and state that there is a concern about the senior’s credit card – maybe the number appears to have been stolen and used online to buy something. He will ask the senior to verify the number on the card by reading the number, codes, and expiration dates. At that point, the con artist has everything he needs to go shopping online….
- The Windfall: In this scam, a caller will explain that a prize has been won, an inheritance came through, or some error in the person’s favor has occurred. To process the check, however, the con man will need the senior to send in some fee to cover the costs of transferring the prize. The transfer money is paid, and the senior never collects the windfall. This type of scam often takes place in the mail through a letter as well.
- Investment Scams: Some will encourage “down” money to begin an investment that will make a senior “thousands.” The down money will be paid and the return on the investment never comes. This type of scam typically involves someone grooming the person over time to trust that this is a solid and real business offer.
- Insurance or Funeral Scam: Someone may come to the door and actually show the person official looking documents to prove ownership of a funeral, a burial plot or life insurance. The person is told to pay in cash or in money order so that they won’t have to explain it to their family members who may become upset by the idea of end-of-life planning. Of course, no such insurance, plot, or funeral service actually exist.
The above list outlines common scams, but be aware that new scams happen every day. Here are some general tips to keep you or a family member safe. If you are a caregiver, you may want to talk to your family member about these ideas:
- If it sounds too good to be true, then it usually is.
- Legitimate investments, purchases, and even legal or medical crises usually do not require a person to keep the matter confidential from other family members.
- Real situations would never call for a need to use a money order or wire transfer rather than a standard check.
- Never give personal information over the phone such as your birth date, social security number, or credit card numbers. A credit card company that calls you would not need to ask for your credit card number over the phone.
- If someone comes to the house to sell you something, ask for them to come at another time when another family member can help read contracts and verify the legitimacy of the paperwork.
- If you or a loved one have trouble saying no, remember that you can always buy time by:
- asking to have time to think it over
- asking for the person to call back or come back when someone else can help you make decisions.
- The most vulnerable seniors are those who live alone or who are having memory or other cognitive deterioration. If you have concerns about someone’s ability to handle their finances responsibly, you may want to pursue a durable power of attorney so that he or she cannot be taken advantage of. If you are concerned about fraud coming in through the mail, make an effort to go through mail together.
Related articles:
Legal and Financial Matters
Avoiding Conflict with Money
Source: www.sageminder.com
STAF, Inc.