Scamming The Elderly

Scam artists have been around for as long as there have been people to scam, and even though we've all been warned, they're out in abundance these days and we must stay alert.  Scam artists go after people from all walks of life, but the elderly seem to be especially vulnerable.  Annual losses from elder financial fraud jumped 12% to $2.9 billion in 2010 from $2.6 billion in 2008.  One in 20 people over age 60 says they have been the victim of some kind of financial abuse in the prior year, yet very few crimes are reported.

Grandparent scams.  This happened to my mom, and about six months later, to me.  A young man calls on the phone, in a low, whispery voice.  "Grandma, it's your grandson."  At this point the man on the phone expects grandma to say the name of the grandson, but my mom didn't fall for it.  She kept saying, "Which grandson?"  and questioning him about when his birthday was, etc.  He told her he was in Canada, had been arrested, and needed $1,000 right away to get out of jail.  Of course my mom didn't fall for it, nor did I.  In fact, I simply hung up on the guy.  But lonely grandmas who are just happy to hear from their grandson might be sucked in. 

Free lunch investment seminar.  I'm not talking about the ones put on by legitimate financial institutions, but ones which involve selling people  worthless real estate, rare coins, or variable-rate annuities.  These are usually investments that have high fees to the person selling the investment, and little value to the buyer.

Bogus sweepstakes.  In most of theses scams, the winner is promised big money, but in order to collect you have to wire some of your own money to claim the prize.  This has fraud written all over it.

Credit card fraud.  Often made in the early morning or late at night, is the fake credit card call.  The receiver of this call is told that his credit card has been stolen.  The caller then tries to confirm sensitive financial information, including address, credit card and social security number.

Sweetheart swindles.  Typically a younger person or alleged suitor feigns romantic interest in an older person long enough to establish trust.  He may get access to credit cards, bank accounts, and social security number.  The suitor disappears along with the property. 

Other scams perpetrated on seniors include knock-knock thefts, medicare fraud, home loan scams and unsolicited home improvement scams.  There is a scam du jour, and it's up to us to stay alert to what's real and what's a fraud.  Scam artists prey on the weakest and most vulnerable in our society.  Some of these scammers are so slick it's hard not to get caught up in their scheme.  Think before you act.  Check and double check to make sure that when you're giving money to a person or organization it's the real deal.  I hate to sound like a sceptic, but how often have you had a kid show up at your door selling magazines, trying to get money for camp or school tuition?  Is it real or not?  The sceptic in me says no, although my heart wants to help.  In the end, I always say no.