“When I consider Life, 'tis all a cheat;
Yet, fooled with hope, men favour the deceit...”
~John Dryden, Aureng-Zebe
Most of us consider people that would hurt the elderly as the lowest of the low. But unfortunately there are scores of people out there who make their living doing just that. And in the same way your parents protected you from the unknowns of your world when you were young; it’s our turn to protect them.
As a daughter and daughter-in-law of aging parents, I realize more every day that an aging body is not the only thing seniors have to worry about. Some older adults are not only behind in technology, but almost completely unaware of all of the new ways the world has come up with to attack, scam and steal from them.
My own mom received a letter recently from a bogus operation that had actually intercepted her tax payment to the federal government. The person or persons had the gall to return her check to her, asking her to make it out to their phony agency, claiming she had made the check out to the wrong department. The letterhead was quite professional looking, and on it they gave her precise instructions about who to make the new check out to and where to send it. They used the term “Department of Revenue” to legitimize their bogus office, which confused her. I immediately knew it to be a scam because there is a big difference between a state-run “Department of Revenue” and the federally-operated Internal Revenue Service. Nevertheless, it can be a minute difference if any to a senior who has always just honestly and honorably paid their bills and followed instructions. And this is exactly what the bottom feeders are counting on.
But as always, information is power. And there are plenty of excellent sources of information out there on how to avoid scam artists. If you are a senior, seek them out. If you know a senior or are a child of an aging parent, take note.
The American Association of Retired Persons (AARP), a nonprofit, nonpartisan organization based in Washington D.C. advocates for middle-aged and elderly people in the United States with regard to health care, employment, income security and protection from financial abuse. Its membership of nearly 38 million people is open to all persons age 50 or older, whether working or retired. And they have plenty of suggestions to avoid the schemes of the scammers.
In his most recent article, “Profile of a Scam Victim,” AARP Fraud Expert Sid Kirchheimer outlines who is most likely to be an “easy mark” for scammers.
“Do you know me? I'm an ordinary sort. I might be your neighbor, your best friend, your spouse's cousin. Heck, I might even be you,” Kirchheimer writes. “Con artists make a dirty living identifying the people most likely to fall for schemes designed to separate honest folks from their cash. And while I might look overwhelmingly average, there are actually certain things about me that criminals target when choosing their next victim.”
He says this is what a predator's profile of his or her mark might look like: The person is over 55, lives in Florida (Floridians consistently lead the nation in per capita reports of being defrauded) or lives in Michigan (this state leads the nation in complaints about identity theft). Country folks aren’t safe either, apparently. Kirchheimer reports that federal regulators have found that rural living makes one more likely to be preyed upon with lottery or sweepstakes schemes. And a 70-something woman who lives alone and never went to college, is even more vulnerable.
Someone who makes more than $50,000 a year is enough to get the attention of con artists, Kirchheimer says. In fact, a college-educated white man over 50 who believes he’s financially literate is in danger of scammers as well. It could be that perhaps exaggerated sense that he understands the financial world that makes him a prime target for investment scams.
Vulnerability to a rip-off skyrockets after a stressful life change such as a loved one's serious illness or death, a job loss or a divorce, Kirchheimer reports. And widows and widowers are especially vulnerable if their partner handled their finances.
Even extroverts who are open to new experiences might be considered overconfident and prone to risk-taking.
Kirchheimer says to remember that scammers are likely to ask for their target by name when they call, and not their adult daughter, for instance. He also reminds seniors to be cognizant of their weak spots: “Predators know that I am conscientious about my family's safety and well-being. That's what they are counting on when they call me up with the grandparent scam. That's the one in which someone who has learned enough details about me, perhaps through a hack of my email account, makes a convincing call posing as a grandchild in distress and begging for a quick cash drop. I'm also a prime target for the IRS scam, in which a convincing letter or phone call warns me of arrest or ruinous fines unless I send money to settle a tax debt. Even if I smell a rat, I might follow through to avoid jeopardizing my family.”
The truth is women are twice as likely as men to fall for elder financial abuse. And either gender with a Type A personality who is used to making quick decisions is vulnerable to "act now!" scams like fake lotteries.
Kirchheimer said if any of these demographics apply to you or an older adult you care about, beware. “Scam artists make a science of the demographics of victimhood.” Kirchheimer is also the author of Scam-Proof Your Life, published by AARP Books/Sterling.
If you are the son or daughter of an aging parent, Kirchheimer suggests talking to your parents about steering clear of fraudsters. He said giving your parents stern warnings or demanding power of attorney to control their finances may seem like the way to go, but talking to them and teaching them how to avoid being taken is a better choice.
"When protectors take over finances or lecture parents about their mistake, it plays right into the scammers' hands by threatening the target's independence," says Anthony Pratkanis, a social psychologist at the University of California, Santa Cruz, and coauthor of Weapons of Fraud with AARP's Douglas Shadel. "For scam victims to admit they were wrong means they're stupid and unable to take care of themselves," Shadel said.
Kirchheimer suggests simple logic, explaining that government agencies do not make unsolicited phone calls for personal information. Why would they? They have our information on file. He says don’t shame or blame your parent. Simply remind them what they always taught you about trusting strangers. Or try some reverse psychology by asking them if they would want you to take the financial risk they are taking.
In his AARP article “Protect Your Parents From Scams,” Kirchheimer makes suggestions for keeping your parents safe even from afar. If you don't live nearby, ask a trusted neighbor to be your eyes and ears by paying attention to who is soliciting your parents for “opportunities” either by mail or telephone. He says these could suggest that your parents are on "sucker lists" for sweepstakes and "investment opportunities." These lists are developed and sold among scammers to identify past victims as candidates for future fraud, Kirchheimer said.
Kirchheimer says the most common scams against the elderly include:
- Phony lotteries and sweepstakes seeking upfront fees to enter or collect.
- Government impostors posing as reps from Social Security and Medicare.
- The grandparents’ scam, in which a grandchild is supposedly in deep trouble.
- Offers for free or discount medications (including anti-aging drugs) or medical equipment.
- Credit card fraud and investment schemes.
Here are a few suggestions for limiting the possibility of your parent being scammed, according to Kirchheimer:
- Set up online access to your parents' bank and credit card accounts to keep an eye out for unusual monthly charges, big and small.
- Unlist your parents’ phone number, or replace the landline with a cell phone, which is less likely to be called by scammers.
- Put your parents' addresses on opt-out lists with the Data & Marketing Association (DMA). Once done, Kirchheimer says legitimate vendors won't send junk mail, and parents will know that what arrives is likely from scammers. That mail should be reported to the U.S. Postal Inspection Service, he said.
- Check your parents’ credit reports at AnnualCreditReport.com to ensure that fraudulent new accounts haven't been opened in their names.
If these suggestions aren't enough or parents will not heed your warnings, call the AARP Fraud Fighter Call Center at 800-646-2283 toll-free. Messages are usually returned within 48 hours. Says program director Jean Mathisen: "We get a lot of calls from children asking that we contact their parents" about possible scams, and even more from elders suspecting that they have been caught in a scam. "But I don't want to tell my children," they say.
Jeff Dailey, CEO of Senior.com offers general tips and reminders to prevent fraud in his article, “Tips to Reduce Financial Elder Abuse.” Along with the basics, such as never giving out personal information to anyone on the phone, mail or internet; never responding to an offer that you do not understand; always asking for it in writing and paying only when you have received a performed service; and never tossing credit card receipts or statements in the trash whole (shred instead), Dailey gives tips on healthcare and health insurance fraud, investments and reverse mortgage scams and charity scams.
In any event, Daily recommends calling for help if you’re not sure of something. Other resources for avoiding or reporting scammers include:
- Adult Protective Services (APS) 1-800-451-5155
- Your local police department. Ask for the Economic Crimes Division or whatever department can assist you against fraud against the elderly.
- Or contact the National Council on Aging for other resources including Economic Security and Public Policy and Action.
