SCAMS AND THE ELDERLY – PART 3
In the previous two blogs, I explained why the elderly make desirable targets for fraud and then told you about some of the scams a senior might face.
In Part 3, we’ll look at a few more scams and who is most likely to take advantage of an elderly person.
One popular fraud is when someone calls a senior on the phone. “Hi Grandma? Do you know who this is?” The elderly grandparent makes a guess at one of their grandchildren’s name. The scammer now has a fake identity and will ask for money to help with a financial problem—sometimes saying they need to be bailed out of jail…they’ll ask funds be sent via Western Union or Money Gram which don’t always require ID to collect. They end this call with: “Please don’t tell my parents.”
This next example happened to some seniors who lived in a mobile home park. The older couple was sitting out on their front porch, and a car pulled up with a young man and woman inside. They exited their vehicle and in a big show of excitement greeted the couple saying they’d been their neighbors a few years prior and were so happy to see them. The couple couldn’t place the younger pair, but were embarrassed to say so. The female asked if she could get a glass of water, and the male said he needed to use the restroom.
The couple took the youngsters into their home. The girl made a big deal of engaging both the elderly husband and wife in conversation while the boyfriend roamed through the back of the house ransacking and grabbing items of value from bedroom and office. This is called a distraction burglary, and it is often done with pairs of people who are looking for a “lost ball” from a backyard, or two guys dressed in hardhats and vests doing an “inspection.”
Another common case of fraud is to tell a senior they’ve won a big contest or sweepstakes…all they have to do is pay the “fees and taxes.”
If your senior loved one is alone, be aware of potential suitors who woo lonely older folks. These types of scams are called “Sweetheart Scams.”
Do the elderly people in your family wear hearing aids or have a safety alert bracelet or necklace? Scammers convince seniors that they need some goods or services, then seriously overcharge them—often hiding the high cost in extravagant schemes involving interest and installment payments. This tactic is often used for products essential to a senior’s quality of life.
So what kind of monsters would take advantage of the elderly? Often it’s the victim’s friends, doctors, lawyers, accountants, and paid or volunteer caregivers…and the worst of all—family members.
Over 90% of all reported elder abuse (including physical) is committed by the senior’s own family members…most often their adult children. Common tactics include depleting a joint checking account, promising but not delivering care in exchange for money or property. Often these crimes start with small-value transactions, which escalate over time.
Fraudulent operations compile the names of fraud victims on “sucker” lists and sell them to one another. The lists offer a shortcut to “cold calling” or random-number dialing. The people on the lists have already shown themselves susceptible to fraud.
Not only are past victims retargeted, but they can also fall prey to scammers offering to help them recoup their losses from previous frauds. Fraudulent operations called “recovery rooms” approach past victims and offer to investigate the original fraud and to return the lost funds—for a fee. Once the victims pay the recovery fee, the scammer disappears.
Next month I’ll show some of the warning signs of senior fraud, indicators of financial abuse, what to do proactively, and what to do after a crime.
Until next time,
Remain vigilant
KMA367
