Scamming old people is a growing problem that occurs mainly under the radar, mostly, because many victims suffer from cognitive impairment and are not aware of what is happening.
According to statistics, about five million seniors in the US become victims to elder fraud each year. From home repair scams and IRS scams to investment frauds, there is a wide range of cons targeting older people. More alerts are found on consumer review websites like PissedConsumer.com, where elderly people report being scammed. Hopefully, you can help change that and become your parents’ best advocates.
The retirement savings make seniors one of the wealthiest segments of the population in the United States. In addition to the fact that they are also more vulnerable than other age groups, one can easily understand how easy it is to exploit these people in financial issues. Besides, senior citizens are usually embarrassed to admit to their family members that they have been abused. That is another reason why they become easy targets to those interested in putting old people’s scams into action.
Low-income elder people are also targeted and it is not always a stranger that commits these scams. An overwhelming 90% of all reported elder abuse is perpetrated by the senior person’s own family members (i.e. children, nieces and nephews, grandchildren, etc.).
Most Common Types of Scams Against Seniors
Telemarketing/Phone Fraud
Imposters rely on the fact that seniors feel more and more comfortable making purchases over the phone (including their mobile phone). Given that everything is done without face-to-face interaction, setting up elderly phone scams is made easy. Also, when the scammers manage to make a successful deal with a senior, they pass on the buyer’s name to other scammers that will most likely try to deceive the same person.
Another phone scam is the “Grandparent” fraud, where the imposters exploit the elderly person using their natural feelings of love and care towards grandchildren. The victim receives a call from a supposed grandchild. The unsuspecting grandparent tries to match the voice on the telephone with one of their grandchildren. Once the older person believes they are indeed talking to a grandchild, things are easy. The scammer asks for money to pay for an unexpected financial issue (i.e. car repair) while “begging” the grandparent not to tell anything to the parents.
Other four of the most characteristic senior phone scams are:
Health-Related Fraud
Medicare Scam
The perpetrator contacts the elder person posing as a Medicare representative. The goal is to convince the senior citizen to disclose their personal information. Scammers may also reach out to the elderly person to provide spurious health services at temporary mobile clinics.
Again, the ulterior motive is to steal the elderly’s personal information, to bill Medicare, and then to take the money for themselves. To do so, they employ different types of fraud. For example, they call the victim and ask them if they suffer from chronic pain. Then, they offer an “arthritis kit” that promises to relieve victims of their pains.
The Discount Prescription Plan
The con artist offers seniors prescription drugs at a significant discount (up to 50% off), provided the elderly pay a membership fee to join a discount club. To do so, they usually need to give their credit card number. These scams usually operate on the internet and are growing in popularity. Most of the time, the medicine is a generic herbal replacement, which will not help the elderly’s medical condition.
Lottery or Sweepstakes Scams on Elderly
Those that try sweepstakes scams by phone or email inform their victims that they have won sweepstakes (or lottery) of some kind and that they need to send money to have their supposed prize unlocked. In doing so, seniors receive an authentic-looking check with notification that they are winners of a foreign country lottery.
The senior deposits that check-in their bank account but a few days later, the fake check is rejected. During those few days, con artists collect the money for supposed taxes or fees. When the check bounces, the victim sees that the supposed prize money is taken from their account.
There’s also another version where the imposter asks the victim to buy inexpensive magazine subscriptions or trinkets – which they receive – so that they can have their name entered in the contest.
Funeral/Cemetery Fraud
The main tactic scammers follow to conduct fraud against seniors is to pretend to be a grieving friend or a business partner (of some sort) of a deceased elderly person. To make things more believable, the trickster may attend the funeral service or even read an obituary. The goal is to take advantage of the vulnerable widower or the widow (or even other relatives) and to ask them to pay a (fake) outstanding debt the deceased person had with them.
Homeowners & Reverse Mortgage Fraud
Senior citizens usually own their homes, which is exactly what triggers scammers of this particular type of fraud. They send the victim a personalized letter, made to look official, on behalf of a reputed authority, such as the Country Assessor’s Office, where they mention the property’s assessed value. Then, they ask the homeowner whether he/she would like to have his/her property’s value rearranged (as a means to relieve themselves of the hefty taxes related to it), always for a fee. As for the older person that has recently unlocked equity in their property, scammers offer a reverse mortgage.
How to Report the Situation If Scammed
Although scamming old people seems to be reaching epidemic proportions, there is still a lot we can do to protect the elderly members of the family. We know that most scammers aim at lonely and vulnerable senior citizens who have nobody to talk to. We also know that older people that get scammed are very afraid or even embarrassed to talk about it. So, it is important to become their voice if they can’t speak for themselves, and to make them feel they are not alone in this or any other phase in life.