While we would all like to believe that people are inherently good and honest (especially around the holidays!), the ugly truth is that some individuals make their living through scams and frauds. Unfortunately, a substantial group targeted by con-artists is senior citizens. According to the Federal Trade Commission, Americans lost in excess of $73 million in scams in 2013. Fraudulent schemes take a variety of forms, and in the past four years, impostor scams – where individuals or groups pretend to be something that they aren’t, such as a government official or charitable group – have doubled. Fortunately, the government is taking action to stop fraud. In July, the U.S. Senate Special Committee on Aging held a hearing that focused on the rising trend of scams affecting the senior citizen population. Representatives from the Federal Bureau of Investigation spoke, as well as officials from the FT and the United States Telecom Association. The National Council on Aging (NCOA) has a list of some of the most common scams that target seniors. Here are a few:
- Health care fraud. Seniors understand that they become eligible for Medicare once they turn 65 years of age. Scammers are quite aware of this as well, and as a result will often call beneficiaries, posing as government representatives or insurance agents that offer the program. If seniors are tricked into supplying these fakes with their personal information, they’ll frequently bill Medicare for fraudulent services that were never performed. Tips: Make sure you buy from a licensed agent with credentials. Never give out personal information such as your Social Security, bank account or credit-card numbers over the phone, unless you have initiated contact. Be wary of a sales person who claims to be from Medicare, as Medicare typically does not send sales people to solicit your business.
- Bogus prescription drugs. One of the reasons why health care is so important to seniors is that it usually provides for the cost of a variety of pharmaceuticals. But in an effort to lower costs further, seniors will occasionally try to shop for prescriptions online. The problem is that some of these “providers” turn out to be counterfeit. Tips: Don’t buy from sellers who don’t require prescriptions, as this is illegal and most likely indicates a scam. Do not substitute an online questionnaire for an in-person physical, as only your physician will be able to understand you medical history and what medicines you should take/avoid. Steer clear of anything that advertises a “miracle drug” or cure.
- End-of-life services. Life insurance is a great resource to have because it provides for any expenses someone who recently passed away may have had, such as back payments or debt. NCOA noted that there have been many instances in which widows and widowers are fooled into believing their loved one didn’t pay a debt, and are scammed out of their out of their money at a time in which they’re vulnerable. Tips: Consult with your bank for questions regarding debt or financial issues after the death of a loved one.
- Grandchild in Distress. Scammers will call senior citizens, posing as a Grandchild. They claim they are in a dire situation and need money immediately for a car payment, rent, or even bail money. They may ask for money to be paid via Western Union or Moneygram, which do not always require identification. Tips: Confirm the situation with at least one other family member. Scammers will try to avoid being caught in a lie by claiming “Please don’t tell my mother/father, I don’t want to get in trouble!” This is a tell-tale sign you may be victim of a scam.
What can seniors do? AARP has a Fraud Watch Network, allowing consumers who want to report a scam an outlet to do so. There are also several tips for how to avoid being victimized.
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