Common Scams that Target the Elderly

Sadly, some unscrupulous people focus their attention on senior citizens as their prey. Taking advantage of fear, hope, and trust, these scammers defraud thousands of older Americans each year out of much needed cash. If you receive a call, letter, or a personal visit from anyone claiming the following, chances are you’ve been contacted by a rip-off artist.

“You need a new roof.”
Many cons target older Americans because so many seniors are homeowners. It usually begins with a spontaneous visit from a “contractor.” They will offer a special repair deal for seniors, a free inspection, or quick work on something terribly wrong with your home that needs urgent attention. If you take the bait, you’ll likely be charged exorbitant fees to fix something that needs no fixing, the job will be done shoddily or not at all, or the price of the repairs will increase dramatically in the middle of the job.

Before hiring someone to work on your home, ask to see their contractor’s license number and check it with your state’s Contractors License Board. Get at least three other bids before making a final decision.

“I can get you a loan for that new roof.”
If you need to finance any home repairs (or pay for property taxes, medical expenses, etc.), watch out for predatory lenders who target older Americans. These shady operations have a way of finding cash-strapped homeowners and offering them home equity loans that come with outrageously high interest rates, unnecessary fees, and unreasonable repayment terms. Be extremely wary of loans marketed to people with bad credit, offers that are only good for a very short time, telephone applications, next-day approval with an immediate payment, or having to pay upfront fees to cover the first payment or other expenses.

Avoid doing business with salespeople who initiate contact with you. Reputable lenders rarely solicit business over the phone or in person. If you really need a loan, contact your financial institution.

“We can fix your bad credit.”
Preying on many seniors’ desire to maintain good credit, some scammers promise to erase negative items from a report – for hundreds of dollars. No matter what the company advertises, bad credit cannot be magically transformed into good credit. The only real way to improve your credit rating is through time and effort: pay what you owe; keep your balances down; and use credit responsibly.

Real credit repair comes with no cost.

“You’re a winner!”
Ever gotten a call or letter stating that you’ve won a prize, but in order to claim it you need to send money to cover a shipping or handling fee, or to pay for taxes up front? Nonsense. You don’t have to pay for something you’ve won. As much as you want to believe that Lady Luck has finally paid you a visit, with an offer like this, she hasn’t.

To be a real winner, toss this “award” in the trash.

“I can help you recover your loss from the win that never was.”
A particularly vile scheme is one that targets seniors who have already been swindled. Called recovery scams, a con typically poses as a government agency representative who is working on your case. A large sum of cash (which must be wired or sent immediately) is needed to conduct the investigation. To earn your trust, the scammer may even provide phone numbers for the Better Business Bureau or other consumer agencies (which are false, of course). Oh, and how did the perpetrator of this deception know you’d been ripped off? They either bought your information from the con artist who took your money in the first place, or it’s the original swindler back for another go-round.

Remember, no genuine FBI agent, police officer, or other law enforcement agent will ever ask for payment to do their job.

“I want to help you pay your bills.”
Or do they want to help themselves to the money in your checking and savings accounts? Certainly, some seniors need assistance managing their financial affairs. If you’re one of these people, be highly selective with the person you choose to seek help from, particularly if they suggest becoming a joint account holder. That person will have as much power as you do to withdraw funds. They can even arrange to inherit every dime in the account at your death.

Get professional, objective legal advice before letting anyone have this kind of power over your finances.

“This seminar will change your life.”
Yes, it probably will – by making you a lot poorer. If someone not vouched for by a trusted entity like your financial institution invites you to attend an investment or estate-planning seminar (often with a prize just for coming), stay home. These are often bogus operations that market heavily to retirees wishing to prepare their estate or increase a fixed income stream. Slick-talking salespeople often convince attendees to divulge sensitive personal information or buy expensive but worthless products and services.

If you’d like to take a class, inquire with a trusted organization in your community, like your financial institution, the local library, your municipal or county government, or a nearby college. If you need investment advice, visit a reputable financial institution or a licensed professional advisor. To set up your estate, see an attorney.

Before doing business with anyone, contact the Better Business Bureau to verify the enterprise is legitimate. If you’ve been scammed, report the crime to the police and the Federal Trade Commission. Nobody enjoys admitting they’ve been taken, but it’s important to take action to stop these criminals and fraud rings before they cheat other senior citizens out of a lifetime of earnings.

Resources

Better Business Bureau
1-703-276-0100
www.bbb.org

Federal Trade Commission
1-877-382-4357
www.ftc.gov

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