Senior Scams and How to Stop Them

Senior citizens make a good target for scammers; not because they are old and feeble, but because they have accumulated a lifetime's savings and have money to steal. In addition, the seniors of today came of age in a less complicated world where a handshake was your bond and shopping was done in person. Scammers target seniors for these reasons, but armed with the right knowledge and resources, these predators can be stopped in their tracks.

One of the more common scams targeting senior citizens are phony Medicare discount cards. These cards supposedly are issued by the U.S. Government and offer prescription drugs at discount rates. In fact, the government does not issue prescription drug cards. Private companies are authorized by the government and charge either nothing or a nominal fee. Always research any company offering such a plan through the Better Business Bureau and any card claiming to be issued by the government is definitely a scam.

Another scam targeting seniors is the charity scam. Never give money to any organization that you have not thoroughly investigated. Never give money to someone who just shows up at your door unless you are thoroughly familiar with the charity they represent and they can document their connection to the charity. Charitable giving should be as carefully considered as any other financial investment. Don't let your generosity be your undoing.

Whatever our age, we are all vulnerable to telemarketers. Many telemarketing companies are legitimate, but it sure is hard to separate them over the phone. Never purchase anything over the phone; if the company will not send you sales material in writing do not do business with them. To eliminate many sales calls, go online to add your number to the National Do Not Call Registry. Do not give your personal information over the phone to anyone. Most importantly, never purchase anything that you do not want or need simply because you are pressured to do so.

One common scam targeted at seniors is called the Nigerian scam. The victim receives an email or letter, purporting to be a Nigerian or other foreigner with funds in the United States which they cannot access. A cut of the money is offered if the victim will cash a check on their banking account and transfer it to the scammer. No legitimate person or business is unable to draw on funds in our country. This is always a scam.

One of the more ruthless scams targeting seniors has become a real problem since Hurricane Katrina. This is the Home Improvement scam. The perpetrator approaches the victim offering special discounts on home repairs or improvements. Money is exchanged up front and then the scammer disappears into the sunset and the work is never completed. To prevent being a victim, always do your homework. Research the repairman through the Better Business Bureau and make sure that he is licensed. Remember the old saying from Cuba: "The cheap becomes expensive."

It is not possible to keep up with all the newest traps that devious scammers set for their victims. How do we assess each business offer and recognize a potential scam? Here are some points to remember.

1. If it sounds to good to be true, it probably is. You are not going to make $10,000 a month working from home. The more outrageous the promise, the more likely it is to be a lie.

2. If the salesman tells you it is now or never, choose never. Do not make financial decisions under pressure.

3. Never give your personal identifying information over the phone or to anyone without careful research and documentation. Shred all personal papers and bills before throwing them in the garbage. Personal shredders cost about $100 and are far more economical than the consequences of identity theft.

4. If you believe you have been the victim of a scam, do not be ashamed. Call 911 and report it. You will be protecting others and yourself when you do.

Predators abound with schemes to take your money. Armed with the right knowledge and tools, you do not have to be a victim. Protect yourself and your money; fight the criminals and beat them at their own game. Research those with whom you do business, keep your private data private , use common sense and all the resources below to educate yourself. Keep what belongs to you.

Resources

Consumer Action (www.consumer-action.org/archives/English/library/frauds_scams/2005_senior_scams/index.php)

AARP
www.aarp.com
Click on the AARP web site's "Money and Work" section to find "Be a Wise Consumer." There you will find news and tips on many scams that target seniors.

THE FEDERAL TRADE COMMISSION (FTC)
www.ftc.gov, 877-382-4357
The FTC provides free information to help you spot and prevent fraudulent, deceptive and unfair business practices. The FTC accepts and tracks individual complaints, but does not provide direct assistance to individuals.

NATIONAL DO NOT CALL REGISTRY
www.donotcall.gov, 888-382-1222
The National Do Not Call Registry allows you to block telemarketing calls. You can call or visit the web site to add your landline and cell numbers. Your registration will be effective for five years. (Charities, political candidates and companies with whom you do business may call you even if your number is on the list.)

THE NATIONAL FRAUD INFORMATION CENTER
www.fraud.org, 800-876-7060
A project of the National Consumer League, the National Fraud Information Center has tips and articles to help you recognize fraud and an online form to file a complaint.

BETTER BUSINESS BUREAU (BBB)
www.bbb.org
Visit the BBB site to find your local BBB agency, read its extensive scams listings and check out charities before you give.

U.S. Administration on Aging
www.aoa.gov
The Administration on Aging is the federal agency that advocates for older persons.

THE NATIONAL CENTER ON ELDER ABUSE
www.elderabusecenter.org
The U.S. Administration on Aging funds this gateway site to resources on elder abuse, neglect and exploitation.

SECURITIES AND EXCHANGE COMMISSION (SEC)
www.sec.gov, 800-SEC-0330
You can file a complaint or provide tips on potential securities law violations using the SEC web site. You can write a letter to the SEC Complaint Center, 450 Fifth Street, NW, Washington, D.C. 20549-0213. You can also send your complaint by fax to 202-942-9634. If you receive unsolicited e-mails on investments, forward them to the SEC at enforcement@sec.gov.

Consumer Action Organization

www.consumeractioninfo.org