The Better Business Bureau Foundation of Northwest Florida warns that older Americans are the fastest growing segment of the population to be victimized by identity fraud and internet schemes. They say that every day con artists bombard the telephones, mailboxes and email accounts of older Americans.
The BBB says that in many instances nest eggs are completely wiped out and some elderly victims may even lose their homes. To compound the problem, they are often too embarrassed to tell their families or report the crime.
The BBB also points out the following about senior citizens:
- They are more likely to be at home to answer the door or telephone.
- They tend to be more trusting and less likely to suspect a con artist.
- They may be lonely and thus susceptible to a friendly offer.
- They don’t recognize common persuasion tactics and/or they may act impulsively.
- They may be physically incapable of making their own home repairs, exposing them to pitches from workers who knock on the door and offer to do repairs cheaply.
- They may be on fixed incomes, making them vulnerable to promises of high investment returns or savings on medical care.
The BBB also points out the following common scams affecting seniors:
- Sweepstakes and Lottery Scams – You receive a brochure in the mail congratulating you for winning the lottery in a foreign county. The soliciting company promises to send your winnings once you pay a tax or transfer fee. Those who pay the requested fees never receive any winnings and lose the money they sent to claim their prize.
- Discount Medical Plans – With the rising cost of health care and prescription drugs, consumers may look to discount plans for relief. Many discount plans claim to offer savings on prescription drugs, doctor visits, and other medical services. Consumers should remember that discount plans are not considered health insurance and may not be regulated by your state. Consumers should also review the plan to ensure there is an adequate network of providers in their area.
- Phishing – You receive an email advising that there is a problem with your band or credit care account and are instructed to follow a hyperlink to another site to provide verification information. Or you may receive a phone call from someone posing as a Medicare representative that claims to need your personal information to update records. In these or other similar cases, the information collected is actually used to steal your identity. Banks and other legitimate companies never request confidential information in this manner.
- Grandparent Scam – A con artist calls posing as a grandchild in trouble, they need money wired immediately toa void jail, get a car out of impound or for some other emergency. They often ask the senior not to tell the partents in order to “stay out of trouble.”
- Telemarketing \Schemes – You receive a call offering a great deal on a product or vacation but have to act now to get the benefit. The caller asks for personal and financial information that will then be used to loot your bank account or run up charges on your credit card. Remember, don’t give out personal information over the phone if you don’t know or can’t verify the business. A legitimate business or financial institution that you have previously dealt with should already have your information.
- Phony Charities – To prevent being scammed by a fake charity, make sure you know with whom you are dealing. Some fake charities will choose a name similar to that of one that is well recognied. Phony charities may also pressure you for an on-the-spot donation. Many of these center around veterans, police, and firefighters. If you describe to donate, don'[t give cash. Instead write a check oout to the organization, not tjhe individual collecting.
- Home Repair Scams – Someone shows up at your door offering a variety of services. They may offer to repair you roof or pave your driveway with leftover materials from a previous job, mow your lawn or remodel your home for a very low price. Oftentimes, these con artists drive vehicles with out-of-state license plates and do shoddy work at an exorbitant price. They may also arrange financing through predatory lenders who charge high fees and monthly rates.
What you should do to protect yourself?
- Check with your BBB before dealing with an unfamiliar business or charity
- Ask your BBB for a list of Accredited Businesses in a specific industry before hiring a contractor or repairman. Make sure the contractor is properly licensed and insured.
- Keep careful records of your transactions such as bank or credit card statements. Check them for accuracy and shred documents thoroughly before throwing them away.
- Register your landline of cellphone number with the National Do-Not-Call registry at 888.382.1222 and/or www.donotcall.gov
- Have your social Security or pension benefit checks direct deposited to reduce the possibility of identity theft.
- Don’t give personal or financial information to an unknown caller, and don’t provide such information in response to unsolicited email/internet messages.
- Don’t yield to high pressure or emotional sales tactics. Red contract thoroughly and seek advice if you don’t undertstand them.
- Don’t pay money to collect lottery winnings, especially from a contest you didn’t enter.
- Don’t pay the entire cost of a repair job up-front. Try not to pay more than a third of the total cost. Make the final payment after inspection.
- Don’t wire money or send money by pre-paid card to anyone that you do not know.
- Don’t leave outgoing bill payments in an unsecured mailbox.