Dear Readers: A man in California is found guilty of taking more than $5 million dollars in an investment scheme carried out in a retirement home. A Canadian couple is arrested for allegedly victimizing many consumers across the U.S. by selling a bogus credit card protection plan via telemarketing. Finally, a financial planner/estate lawyer in Maryland pleads guilty to defrauding his own clients.
In these three cases, there is one common thread: All of the victims were senior citizens. Why are seniors more likely to become victims of such bogus schemes?
According to the FBI, con artists seek out older citizens for several reasons. Many seniors have a nest egg. In addition, they are not as likely to report fraud because they aren't sure to whom such a report should be made. Furthermore, they are quite embarrassed at having been victimized and really don't want to discuss it.And finally, the products being sold tend to be age-related.
Given the fact that baby boomers (those born between 1946 and 1964) are now the largest segment of our population - 78 million - it's reasonable to believe such swindles will only grow in numbers. In addition, even those willing to acknowledge they've been scammed may never see their money again because more and more con artists are operating outside the U.S. and thus are more difficult for law enforcement to track down.
Among the many types of scams commonly used to defraud seniors are: identity theft; home repair schemes; health insurance fraud; foreign lotteries and sweepstakes; advance fee, credit card and investment scams.
Though the FBI does not handle isolated cases, they offer the following recommendations to avoid becoming a victim. Many of these suggestions will be familiar to regular readers:
Do not give out personal information to anyone via telephone, Internet or mail unless you personally initiated the contact.
Shred credit card receipts and old bank account statements. Close credit card and bank accounts you no longer use.
If you don't understand the offer, do not respond. Even if you do have some interest, ask that all information be provided to you in writing.
Do not pay for any services in advance.
If you are not sure about a particular offer, talk to your family or a trusted friend. Let them review the paperwork and give you the benefit of their opinion.
Should you become a victim of fraud, don't allow yourself to go into denial. Contact local law enforcement immediately and follow their recommendations.
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