Outrageous Scams that Target Senior Citizens

It is absolutely reprehensible that there are scams that specifically target senior citizens.  Unfortunately, the scammers know that many senior citizens are lonely, friendly, helpful, easily confused and, in some cases, have slight dementia, which makes it difficult for them to determine whether or not they are being told lies.  Most of these scams take place by phone.  While many senior citizens refuse to accept calls from strangers, others can find themselves victimized by a simple phone call.

Bill Collector Scams

For example, if someone calls and tells them that they have "forgotten" to pay a bill and the collector says that they are just trying to help them out by calling them personally, a senior citizen is much more likely than younger adults to give the collector their debit or credit card information over the phone.  The phony bill collector may also take a threatening tone.  They may claim that the victim's electricity or cable will be cut off if they don't pay their bill over the phone immediately.  The senior citizen may be embarrassed to think that they forgot to pay a bill.  They may be afraid that others will think they have dementia or that they are not capable of handling their personal affairs.  This fear may be stronger than their natural sense of suspicion.

Charitable Scams

Another type of scam is the charitable scam.  Someone from an official sounding charity may call the home asking the senior citizen to help feed poor people in their neighborhood.  Again, the senior citizen may provide their credit or debit card information because they want to be helpful.  The truth is that they have no idea if the person placing the call actually belongs to a charity.  The senior citizen may also find that they get charged far more than they expected.  Once again, they may be too confused or embarrassed to question the charge.

According to the newspaper for my retirement community, here are other current scams that are targeting senior citizens:

Medicare Fraud - The scammer gets the senior citizen to give them their personal information, including Social Security number, birth date and Medicare information.  Then, the scammer may use this info to bill Medicare for phony medical procedures and keep the money for themselves.

Funeral and Cemetery Scams - In these cases, the scammers read the obituaries, attend funerals and tell the relatives that the deceased person owed them money.

Counterfeit Prescription Drugs - Prescription medicine can be a major expense for some of the elderly.  As a result, some of them attempt to purchase their prescriptions online.  Sadly, what they receive may be fake and the senior citizens can end up not having the medications they need.  This can be a life-threatening scam.  The television show, "Sixty Minutes," has featured the issue of counterfeit prescription drugs at least twice in 2015.  However, people still fall for this scam, because they sometimes have trouble paying for their drugs.

Anti-Aging Products - Although we all know there is no fountain of youth, far too many people hope that they will maintain their youth, strength, appearance or virility, if they can just find the right combination of creams and supplements.  Often they buy things that will not help them at all and, in some cases, may actually bring them harm.

Telemarketing Sales - Scammers know that the elderly are twice as likely as younger adults to buy products over the phone.  Unfortunately, most of the time they don't even need these products.  In some cases, they pay for the items they buy, but never receive them.  In other cases, they receive an item that is not worth anything close to what they paid for it.

Lottery / Prize Scams - In these scams, the senior citizen is called and told that they have won a large prize, such as a trip or cash.  However, they are told that first they must pay the taxes on the item they won.  This is against federal law.  No one should ever have to pay up-front in order to receive a prize.  If someone asks you to do this, you know that it is a scam.

The Grandparent Scam - This is one that has been covered on this blog several times.  This occurs when a teen calls and either is crying and begging their grandparents to send them money OR they are screaming in the background while someone else says the teen has been kidnapped and the grandparents need to send money to get them released.  In either case, it is a horrifying scam.

Being forewarned is forearmed.  We all need to educate ourselves about these scams in order to protect ourselves from being the victim of the next scam.  When in doubt, get your friends or other family members involved, too.  People are less likely to fall for a scam if they discuss these phone calls with other people.

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Despicable Scams Affecting Senior Citizens

It is bad enough that there are criminals around the world who seem to spend all their time trying to cheat Americans out of their hard-earned money.  What makes these crimes even more horrifying, however, is the fact that one out of three scam victims is over the age of 65!   The number may actually be higher, in fact, because senior citizens often do not tell anyone that they have fallen victim to a scam.  They are either too embarrassed or they do not want their children to take over the handling of their money.  Consequently, many of these crimes go unreported.  Both the AARP and the National Council on Aging are trying to inform people of these issues in the hope that fewer seniors will become victims. 

Common Scams Against the Elderly

Online Dating:  If you put your profile on a dating site, be cautious if, after weeks or months of pleasant messages, the person you have connected with online begins to express a need for money.  They may say they want the money so they can afford to visit you or because they have a medical or personal emergency.  Frequently they will ask that you send the money in a wire transfer.  American women over the age of 50 are the most common victims of these scams.  They lost a reported $34 million in 2012, while American men lost approximately $5 million.  It is believed that many more cases go unreported because the victims are too embarrassed to tell anyone.  Each incident costs the victim an average of $10,000.

Sweepstakes:  Beware of letters, emails and phone calls announcing that you have won a contest or sweepstakes, especially one that you do not remember entering.  If the contest administrators ask for money to pay them money in advance to cover taxes, insurance or other fees, it is almost certainly a fraud, since honest contests are not allowed to do this.  Call your local sheriff's office or county prosecuting attorney's office.

Phony Charities:  I have repeatedly listed on this blog that people need to thoroughly vet any new charity before they make donations to it.  Never give your credit card information to someone who comes to your door or calls you with a charitable request.  Be skeptical of any charities that you have never heard of.  Check them out with the Better Business Bureau Wise Giving Alliance, CharityNavigator.org, or a similar charity evaluator.  Otherwise, stick to charities that you have dealt with in the past and trust, such as your religious organization, the Red Cross, United Way, the Salvation Army and similar well-known non-profits.

Home Repair Scams:  These scams happen most often after a major catastrophe that damages homes in your neighborhood; however, they can happen at other times, as well.  Someone may show up at your door offering to repair your gutters, fix your driveway, replace roof shingles or make other home repairs.  They can cheat you in one of two ways: either they ask for an upfront fee and then disappear; or they make shoddy repairs and keep asking for more and more money to fix new "issues" they find (or create).  Get recommendations for contractors from your friends, neighbors or insurance company before you use anyone.  Make sure they have a contractor's license.  Never hire anyone who unexpectedly shows up at your door.

Grandparents Scam:  Two personal friends of mine have fallen victim to this scam.  Both of them were intelligent women who never thought they would fall for something like this.  Both of them discussed the situation with their husbands before sending money.  One of them is married to a retired Deputy Sheriff and even he was fooled.  In this scam, a upset "grandchild" or other relative calls, desperately begging for money and sobbing at the same time, so it is hard to recognize their voice.  Think you would not be fooled?  People in the United States have reported losing $110 million a year to this scam ... and many more may not have reported it!  We have already told our children and grandchildren to not get their feelings hurt if they call us and ask for money and we call other relatives to verify the story before we respond. 

Healthcare Thieves: This has been going on for a long time, but it is expected to become worse for a while because so many people are confused about the new Affordable Care Act.  A stranger, pretending to be a consultant, may offer to help you get free medical supplies or to help you understand changes to your insurance.  What they are really trying to do, however, is steal your identity, get medical care under your name, and leave you with the bill.  A woman here in Orange County, California, where I live, was arrested a few years ago for stealing another woman's medical identity and using the other person's identity to get several elective surgeries, including cosmetic surgery!

Investment Scams:  Unfortunately, these types of crimes did not end with the arrest of Bernie Madoff.  I have known several people who have fallen for these types of smooth-talking crooks.  One elderly couple we know lost nearly all their savings and were stunned when they discovered that "the nice young man" they trusted had actually stolen from them. This scam may start with a free-lunch seminar or some other special program set up under the guise of helping seniors find "low-risk" investments. People can be wiped out before they realize there is a problem.  Once again, stick with major investment firms, you bank or advisers whom you know very well.

If you believe you have been a victim of a thief or scammer, contact your local police department, sheriff's department or the prosecuting attorney's office.  Keep any evidence you have that will help them identify the person behind the scam.

Other scams that often target senior citizens are counterfeit drugs, funeral scams, anti-aging products, and deceitful practices involving financial services such as reverse mortgages.  Always discuss major outlays of money with other family members as well as trusted financial advisers.

Bottom line:  Be careful.  Be skeptical.  Rely on all those years of experience that have kept you safe during your younger days.  You do not want to give away your hard-earned savings to criminals.

Whether you are already retired or about to retire, you may also enjoy reading the information on my retirement blog.  It contains information about where to retire, financial planning, medical concerns, changing family issues, etc:

http://www.baby-boomer-retirement.com

Sources of information about scams:

http://www.ncoa.org/enhance-economic-security/economic-security-Initiative/savvy-saving-seniors/top-10-scams-targeting.html

AARP Bulletin, Fall, 2013.

Photo is courtesy of www.morguefile.com