- Senior Citizens – Fraud Target
- The Grandparent Scam
Senior Citizens – Fraud Target
The FBI’s Common Fraud Schemes webpage provides tips on how you can protect yourself and your family from fraud. Senior Citizens especially should be aware of fraud schemes for the following reasons:
- Senior citizens are most likely to have a “nest egg,” to own their home, and/or to have excellent credit—all of which make them attractive to con artists.
- People who grew up in the 1930s, 1940s, and 1950s were generally raised to be polite and trusting. Con artists exploit these traits, knowing that it is difficult or impossible for these individuals to say “no” or just hang up the telephone.
- Older Americans are less likely to report a fraud because they don’t know who to report it to, are too ashamed at having been scammed, or don’t know they have been scammed. Elderly victims may not report crimes, for example, because they are concerned that relatives may think the victims no longer have the mental capacity to take care of their own financial affairs.
- When an elderly victim does report the crime, they often make poor witnesses. Con artists know the effects of age on memory, and they are counting on elderly victims not being able to supply enough detailed information to investigators. In addition, the victims’ realization that they have been swindled may take weeks—or more likely, months—after contact with the fraudster. This extended time frame makes it even more difficult to remember details from the events.
- Senior citizens are more interested in and susceptible to products promising increased cognitive function, virility, physical conditioning, anti-cancer properties, and so on. In a country where new cures and vaccinations for old diseases have given every American hope for a long and fruitful life, it is not so unbelievable that the con artists’ products can do what they claim.
What to Look For and How to Protect Yourself and Your Family
Health Care Fraud or Health Insurance Fraud
Tips for Avoiding Health Care Fraud or Health Insurance Fraud: …read more
- Medical Equipment Fraud:
- “Rolling Lab” Schemes:
- Services Not Performed:
- Medicare Fraud:
Medicare fraud can take the form of any of the health insurance frauds described above. Senior citizens are frequent targets of Medicare schemes, especially by medical equipment manufacturers who offer seniors free medical products in exchange for their Medicare numbers. Because a physician has to sign a form certifying that equipment or testing is needed before Medicare pays for it, con artists fake signatures or bribe corrupt doctors to sign the forms. Once a signature is in place, the manufacturers bill Medicare for merchandise or service that was not needed or not ordered.
Counterfeit Prescription Drugs
Tips for Avoiding Counterfeit Prescription Drugs: …read more
Funeral and Cemetery Fraud
Tips for Avoiding Funeral and Cemetery Fraud: …read more
Fraudulent “Anti-Aging” Products
Tips for Avoiding Fraudulent “Anti-Aging” Products:
- If it sounds too good to be true, it probably is. Watch out for “secret formulas” or “breakthroughs.”
- Don’t be afraid to ask questions about the product—find out exactly what it should and should not do for you.
- Research a product thoroughly before buying it. Call the Better Business Bureau to find out if other people have complained about the product.
- Be wary of products that claim to cure a wide variety of illnesses—particularly serious ones—that don’t appear to be related.
- Be aware that testimonials and/or celebrity endorsements are often misleading.
- Be very careful of products that are marketed as having no side effects.
- Question products that are advertised as making visits to a physician unnecessary.
- Always consult your doctor before taking any dietary or nutritional supplement.
If you are age 60 or older—and especially if you are an older woman living alone—you may be a special target of people who sell bogus products and services by telephone. Telemarketing scams often involve offers of free prizes, low-cost vitamins and health care products, and inexpensive vacations.
There are warning signs to these scams. If you hear these—or similar—phrases from a telephone salesperson, just say “no thank you” and hang up the telephone:
- “You must act now, or the offer won’t be good.”
- “You’ve won a free gift, vacation, or prize.” But you have to pay for “postage and handling” or other charges.
- “You must send money, give a credit card or bank account number, or have a check picked up by courier.” You may hear this before you have had a chance to consider the offer carefully.
- “You don’t need to check out the company with anyone.” The callers say you do not need to speak to anyone, including your family, lawyer, accountant, local Better Business Bureau, or consumer protection agency.
- “You don’t need any written information about the company or its references.”
- “You can’t afford to miss this high-profit, no-risk offer.”
Tips for Avoiding Telemarketing Fraud:
It is very difficult to get your money back if you have been cheated over the telephone. Before you buy anything by telephone, remember:
- Don’t buy from an unfamiliar company. Legitimate businesses understand that you want more information about their company and are happy to comply.
- Always ask for, and wait until you receive, written material about any offer or charity. If you get brochures about costly investments, ask someone whose financial advice you trust to review them. But beware, not everything written down is true, unfortunately.
- Always check out unfamiliar companies with your local consumer protection agency, Better Business Bureau, state attorney general, the National Fraud Information Center, or other watchdog groups. Unfortunately, not all bad businesses can be identified through these organizations.
- Obtain a salesperson’s name, business identity, telephone number, street address, mailing address, and business license number before you transact business. Some con artists give out false names, telephone numbers, addresses, and business license numbers—verify the accuracy of these items.
- Before you give money to a charity or make an investment, find out what percentage of the money is paid in commissions and what percentage actually goes to the charity or investment.
- Before you send money, ask yourself a simple question: “What guarantee do I really have that this solicitor will use my money in the manner we agreed upon?”
- Don’t pay in advance for services. Pay only after they are delivered.
- Be wary of companies that want to send a messenger to your home to pick up money, claiming it is part of their service to you. In reality, they are taking your money without leaving any trace of who they are or where they can be reached.
- Always take your time making a decision. Legitimate companies won’t pressure you to make a snap decision.
- Don’t pay for a “free prize.” If a caller tells you the payment is for taxes, he or she is violating federal law.
- Before you receive your next sales pitch, decide what your limits are—for example, the kinds of financial information you will and won’t give out over the telephone.
- Be sure to talk over big investments offered by telephone salespeople with a trusted friend, family member, or financial advisor. It is never rude to wait and think about an offer.
- Never respond to an offer you don’t understand thoroughly.
- Never send money or give out personal information such as credit card numbers and expiration dates, bank account numbers, dates of birth, or social security numbers to unfamiliar companies or unknown persons.
- Be aware that your personal information is often brokered to telemarketers through third parties.
- If you have been victimized once, be wary of persons who call offering to help you recover your losses for a fee paid in advance.
- If you have information about a fraud, report it to state, local, or federal law enforcement agencies.
As web use among senior citizens increases, so does their chances to fall victim to Internet fraud. Internet Fraud includes non-delivery of items ordered online and credit and debit card scams. Please visit the FBI’s Internet Fraud webpage for details about these crimes and tips for protecting yourself from them.
As they plan for retirement, senior citizens may fall victim to investment schemes. These may include advance fee schemes, prime bank note schemes, pyramid schemes, and Nigerian letter fraud schemes. Please visit the Common Fraud Schemes webpage for more information about these crimes and tips for protecting yourself from them.
Reverse Mortgage Scams
Tips for Avoiding Reverse Mortgage Scams: …read more
Source: FBI Senior Scams
The Grandparent Scam
Don’t Let It Happen to You
You’re a grandparent, and you get a phone call or an e-mail from someone who identifies himself as your grandson. “I’ve been arrested in another country,” he says, “and need money wired quickly to pay my bail. And oh by the way, don’t tell my mom or dad because they’ll only get upset!”
This is an example of what’s come to be known as “the grandparent scam”—yet another fraud that preys on the elderly, this time by taking advantage of their love and concern for their grandchildren.
The grandparent scam has been around for a few years—our Internet Crime Complaint Center (IC3) has been receiving reports about it since 2008. But the scam and scam artists have become more sophisticated. Thanks to the Internet and social networking sites, a criminal can sometimes uncover personal information about their targets, which makes the impersonations more believable. For example, the actual grandson may mention on his social networking site that he’s a photographer who often travels to Mexico. When contacting the grandparents, the phony grandson will say he’s calling from Mexico, where someone stole his camera equipment and passport.
Common scenarios include:
- A grandparent receives a phone call (or sometimes an e-mail) from a “grandchild.” If it is a phone call, it’s often late at night or early in the morning when most people aren’t thinking that clearly. Usually, the person claims to be traveling in a foreign country and has gotten into a bad situation, like being arrested for drugs, getting in a car accident, or being mugged…and needs money wired ASAP. And the caller doesn’t want his or her parents told.
- Sometimes, instead of the “grandchild” making the phone call, the criminal pretends to be an arresting police officer, a lawyer, a doctor at a hospital, or some other person. And we’ve also received complaints about the phony grandchild talking first and then handing the phone over to an accomplice…to further spin the fake tale.
- We’ve also seen military families victimized: after perusing a soldier’s social networking site, a con artist will contact the soldier’s grandparents, sometimes claiming that a problem came up during military leave that requires money to address.
- While it’s commonly called the grandparent scam, criminals may also claim to be a family friend, a niece or nephew, or another family member.
What to do if you have been scammed.
The financial losses in these cases—while they can be substantial for an individual, usually several thousand dollars per victim—typically don’t meet the FBI’s financial thresholds for opening an investigation. We recommend contacting your local authorities or state consumer protection agency if you think you’ve been victimized. We also suggest you file a complaint with IC3, which not only forwards complaints to the appropriate agencies, but also collates and analyzes the data—looking for common threads that link complaints and help identify the culprits.
Avoid being victimized in the first place:
- Resist the pressure to act quickly.
- Try to contact your grandchild or another family member to determine whether or not the call is legitimate.
- Never wire money based on a request made over the phone or in an e-mail…especially overseas. Wiring money is like giving cash—once you send it, you can’t get it back.
Source: FBI Gandparent Scams
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