BBB: Help Prevent Seniors from Becoming Scam Victims

The likelihood that seniors have a nest egg, that they’re receiving Social Security payments, that they have a house that’s paid off or that they simply are courteous and find it difficult to say no, are all factors that make them desirable targets for crooks. Additionally, seniors are more likely to be home during the day, when scammers are most active.

World Elder Abuse Awareness Day earlier this week reminds us all to stay alert to the schemes continuously perpetrated against senior citizens.

The Better Business Bureau Serving Wisconsin wants seniors, their families and caretakers to be aware of scams that typically target them.

“Taking advantage of a senior’s financial vulnerability to steal their money is a form of elder abuse,” says Ran Hoth CEO and president. “Unfortunately, a large percentage of scams go unreported. The prevalence of scams targeting older adults makes extra vigilance important and the BBB reminds people to take time to report them.”

The following are common scams that target older Americans:

Sweepstakes Scams – Calls, e-mails or mailings notify “you’ve won” a large sum of money or a prize. The scammer gains your trust and explains that, in order to collect the winnings, you must first send a small sum of money to pay for processing fees or taxes. Don’t fall for it. A local man recently reported a call he received from 850-610-8458, offering him a large cash award and requesting he pay $6,000 to claim it. The caller, with a heavy accent, stated he was from “Mega Million Coupon Cash Award.” Luckily, the local senior hung up and reported it to the BBB instead. Beware these calls are currently going around Wisconsin.

The Grandparent Scam – This one has been around for years and shows no signs of stopping. The scam most often takes the form of a phone call in which someone impersonates a grandchild of the victim saying they’re in jail or were involved in an accident outside the country and their voice sounds different because of injuries. They claim to need money quickly, ask that it be wired (or some other untraceable method) and “don’t tell my parents.”

Door-to-Door Sales – People go door-to-door and offer low prices for home improvement work often stating the offer is only good at that moment. Complaints to the BBB each year include asphalt paving, roofing, tree stump removal, and storm damage repairs. Door-to-door salespeople are often transient, and if you’re unsatisfied with the work or don’t receive the magazines you paid for in advance, there may be no way of finding them to get your money back. Check on all companies with the BBB before doing business. Take time to think about the offer; compare prices locally, and ensure you know where the company is located before doing business.

Medicare and Insurance Fraud Scams – Scammers will misrepresent they are Medicare or insurance representatives, stating they’ll be sending you a new card or announcing a new plan, and stating personal information is necessary. Sometimes, they’ll falsely state that an initial payment needs to be made for the new card or plan. They’re simply attempting to get personal or financial information to scam you out of money.

Prescription Drug Scams – High prescription prices drive many seniors to the Internet looking for better deals. But not all online pharmacies are legitimate. Some sell counterfeit medication which multiply the dangers-you may be paying scarce dollars for a drug that does no good and, in fact, may be harmful. Before choosing an online pharmacy, check with BBB.org and the National Association for Boards of Pharmacy. Its list includes accredited pharmacies called VIPPS (Verified Internet Pharmacy Practice Sites) which must comply with federal and state laws and regulations.

Computer Repair Scam – Swindlers call claiming to be from Microsoft or other “tech support” departments, informing that you have a computer virus and offering to fix it remotely, for a fee. Instead, they gain access and control, making the computer programs no longer accessible.

Investment Schemes – During the senior years, it’s typical to plan for retirement and make financial plans. Scammers target seniors because of this. Be wary of pyramid schemes (like Bernie Madoff’s), investment schemes promising quick and plentiful returns, foreign letter and advance-fee schemes. Remember, if it sounds too good to be true, it probably is.

Travel Scams – Travel offers come by mail, phone, fax, and e-mail offering cheap rates, freebies, and promotions for travel packages or vacation clubs. They are often accompanied by “free” restaurant gift certificates, gas cards, or other gifts for attending presentations (which obligate you to sit through high-pressure sales pitches). Understand that it is unlikely you will get a refund once you sign a contract. Be especially wary of timeshare sales and resale offers.

Telemarketing Fraud – Telemarketing scams usually involve offers of free or low-cost products or devices, bogus health care products (such as supplemental insurance or prescription cards), and inexpensive vacation offers. Never give personal or financial information over the phone to a stranger. Make sure you’re registered with both local (1-866-9-NOCALL) and national (1-888-382-1222) “Do Not Call” lists and report phone solicitors.

This is just a partial list of the many ways that scammers can take advantage of senior citizens. Scams involving foreign lotteries, medical alert devices, anti-aging products, counterfeit check scams, reverse mortgages, and funeral planning fraud all prey on the elderly.

Please also note that scammers often look for people who have already been scammed in the past. So, if you’ve been a victim once, chances are you’ll be called again by other scammers.

For more information check out the BBB’s Savvy Senior Scam Center.
Report scams and sign up to receive scam alerts with BBB Scam Stopper.

̲: