Belmont Village Quarterly Newsletter
on Senior Living

Senior Scams - Just Say No

During tough times, our true characters emerge.  We’re often inspired by stories of neighbors helping neighbors, and people looking out for one another.  The other side of the story is that, unfortunately, the unscrupulous among us will invariably find new and inventive ways to take advantage of the uncertainty created by financial adversity.  More often than not, they target the elderly.  

Several forms of financial fraud are especially aimed at elderly people. Consider the following examples:

• The “bank examiner” scheme. Posing as bank examiners or police officials, the swindler calls the senior and reports that his or her checking or savings account has had some unusual withdrawals. Explaining that the bank is attempting to catch an embezzler, the con artist requests that the victim withdraw money and turn it in for marking and recording serial numbers. The “official” promises that the money will be returned when the suspect has been caught, but the victim never sees that money again.
• Investment fraud. Fraudulent investors make use of computer-generated lists of newly retired employees or elderly people who have just sold a home. Sophisticated investment con artists try to sell shares in gold, gemstones or rare coins that are legal, but not appropriate for the elderly because the risks are too high. Many of the investments lose their value rapidly and are not marketable shortly after purchase. The best advice here: don’t.
• Pyramid schemes. Be skeptical of any program that promises quick money for recruiting new members. Although some multilevel or “network” marketing plans are legitimate ways of selling goods or services through distributors, beware of plans that promise enormous earnings, sell “miracle” products, or ask new distributors to spend money on costly inventory and marketing materials. The plan’s promoter might pay false references to lie about their earnings through the plan. The vast majority of participants end up losing money to pay for the lucky few. If your elder is considering a multilevel marketing opportunity, suggest he or she call the local Better Business Bureau or state Attorney General about the plan.

These are just a few examples of current fraud schemes that specifically target seniors.  Several organizations target and document senior scams. Links to reliable sources of information about senior scams and financial alternatives can be found at the end of this article.

The National Consumers League warns senior citizens that fraudulent businesspeople are criminals, not shrewd people who have simply outfoxed them. Some salespeople are brilliant manipulators who continue to prey upon victims again and again.  All fraud should be reported.

Federal Bureau of Investigation:
http://www.fbi.gov/majcases/fraud/seniorsfam.htm

Philadelphia Corporation for Aging:
http://www.stopseniorscams.org/

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