Scams Targeting Seniors - On the Rise Using Internet Information and Web Sites
by Don Drake, Connelly Law Offices, Ltd. 8.25.24
"Scams targeting seniors are on the rise using email, postal services, fraudulent websites, internet information, and the old standby - phone calls," stated professional fiduciary and certified elder law Attorney RJ Connelly III. "These deceitful actions aim to get individuals to reveal personal information or send money. Regardless of the method, fraudsters seek to obtain money or sensitive financial information through trickery or coercion."
Perpetrators typically use two main methods:
Luring the victim with promises of financial gain, such as winning a prize, while the other uses intimidation.
Making the victim believe that not complying will lead to negative consequences, like foreclosure or arrest.
"Legitimate government entities, businesses, or organizations will not request personal data through unsolicited communication," said Attorney Connelly. "Similarly, authentic prize awards, government aid, lotteries, or contests do not require upfront payments to claim prizes."
Staying Aware
It is important to remain aware of how fraudulent individuals target and victimize seniors and others. Being vigilant and informed about these potential threats can help protect oneself and others from falling prey to these deceptive practices. Let's look at some of the more common senior frauds.
Healthcare Scams - Scammers often target elderly individuals by pretending to be Medicare or health insurance representatives. They typically request personal information from the victim, promising discounted medical supplies, tests, or equipment. Once they have obtained the personal information, the scammer submits fraudulent claims to Medicare or the victim's insurance company using the elderly person’s name. This type of fraud can result in financial loss and potential identity theft for the victim.
Online Prescription Drugs - Scammers often target elderly individuals who purchase medication online by creating deceptive websites that closely resemble legitimate ones. These fake websites aim to illicitly obtain personal information or distribute counterfeit medications instead of the required ones. Additionally, some exploit concerns related to pandemics and outbreaks by selling fraudulent cures or vaccines. This poses a significant risk to vulnerable individuals seeking legitimate medications and treatments.
Funeral Scams - Scammers often exploit the online obituary to prey on vulnerable seniors who have recently lost a spouse. These scammers may even attend the funeral and later attempt to manipulate the grieving widow or widower by falsely claiming that they are owed money or are long-lost relatives in need of urgent financial assistance.
Sweepstakes Scams - Scammers often target seniors by calling them and falsely informing them that they have won a contest or prize. The scammers then ask the senior for personal information, such as their social security number, bank account details, or other sensitive information. Sometimes, the senior may also be asked to pay a service charge or upfront fee to claim or "unlock" the supposed prize. This type of fraud preys on the trusting nature of seniors and their desire to believe that they have won something valuable, putting them at risk of financial loss and identity theft.
Investment Scams - Many older individuals experience concerns about their financial security or desire to leave a legacy for their loved ones. Unfortunately, scammers exploit these vulnerabilities by promoting fraudulent business ventures, imposing high fees for bogus investment tactics, peddling deceptive multi-level marketing schemes as business opportunities, or hosting seminars on real estate investment strategies. Typically, these scammers fail to deliver on their promises, or they prolong the deception by presenting increasingly elaborate sales pitches to their targets.
Fake Charities—Scammers prey on seniors' generosity and willingness to help others by setting up fraudulent charities or posing as representatives of established organizations. They often use this guise to deceive people into sharing personal information or making donations. These swindles tend to increase during periods of crisis or disaster when people are particularly inclined to offer support.
Property Tax Scams - Beware of deceptive tactics used by scammers targeting homeowners. They often send seemingly official letters or emails from government agencies or tax authorities. These communications claim that property taxes are overdue and threaten dire consequences, such as foreclosure, if immediate payment is not made. Another tactic involves companies promising to reduce your property tax bill for a fee, often by claiming exclusive insider knowledge or special relationships with tax authorities. However, such services are frequently overpriced or outright fraudulent. Some fraudsters may masquerade as tax relief organizations, falsely offering to help homeowners reduce their property tax burdens through loopholes or tax evasion schemes. Individuals may also falsely present themselves as property tax assessors, offering to reassess a property at a reduced value for a fee. These reassessments are generally unreliable and could result in legal repercussions. Scammers may request payment via wire transfer, prepaid cards, or cryptocurrency, making tracking the money once it's been sent challenging.
Home Repair Scams - Protecting yourself from home improvement frauds is crucial as they can have devastating effects, including financial loss, diminished home equity, and compromised safety. Scammers often target older homeowners, posing as reputable officials or building inspectors. They use aggressive tactics to pressure immediate repairs, usually for roofing, sidewalks, or driveways. These con artists charge exorbitant prices for shoddy workmanship. They typically operate door-to-door, claiming to be servicing other homes. They coerce homeowners into making quick decisions and insist on cash payments upfront with the false promise of securing financing through a supposed affiliated lender.
To safeguard against falling victim to these scams, it's essential to seek recommendations from trusted individuals and verify the licensure and insurance of any potential contractors. It's advisable to obtain three written estimates before deciding and refrain from commencing any work until a written contract has been thoroughly reviewed and signed. Additionally, avoiding cash or wire transfers for payment is crucial.
Reverse Mortgage Scams - Like in any con job, Perpetrators of reverse mortgage frauds often begin by gaining the trust of homeowners. They possess a skill for honing in on the needs of desperate individuals. They deceive homeowners about the benefits of a reverse mortgage and omit crucial information about its costs. Scammers sometimes frighten elderly homeowners into undertaking unnecessary and expensive repairs. Given the alarming number of homeowners who have fallen victim to this fraud, scammers tend to prey on individuals less inclined to ask probing questions. Consequently, they often target non-English-speaking individuals or older homeowners whom they can easily confuse.
Email and Phishing Scams - Scammers often employ deceptive tactics, such as sending forged emails or text messages that appear to be from reputable companies, to deceive elderly individuals into divulging sensitive personal information. In addition, they might also implant malicious software, known as malware, onto the victim's computer. This malware can operate surreptitiously, quietly collecting additional personal data, or even disseminating further fraudulent emails to the elderly person's entire contact list.
Recognize the Warning Signs of Fraud
Scammers are constantly evolving and using technology to appear more legitimate and to evade detection. The Federal Deposit Insurance Corporation (FDIC) has identified several "red flags" that indicate a potential fraud:
Be cautious of any unexpected demands for a substantial payment before providing goods or services, whether through phone calls, emails, or mail.
Be cautious of unexpected requests for sensitive information, such as bank account numbers, credit card details, passwords, and other personal data, whether sent via email, phone call, or other communication.
Be wary of investment opportunities that seem "too good to be true" and promise high returns with minimal risk. High returns typically come with substantial risk, and it's important to thoroughly research and understand any investment opportunity before committing your money.
Beware of unexpected or unusual communications from people who demonstrate sudden or peculiar curiosity about your financial matters.
Be cautious of urgent requests to send money via wire transfer, even if it is from someone you know. Always verify the request through a separate form of communication to ensure it is legitimate.
Requests for confidentiality regarding the conversation or transaction.
A Final Word
"It's important always to be cautious when sharing personal information, so if someone requests your checking or credit account numbers, Social Security numbers, or account passwords, it's best to decline," said Attorney Connelly. "Even if the offer appears legitimate, refrain from sharing any information until you've consulted with a family member or trusted advisor. Legitimate individuals will understand the need for caution and will be willing to wait. If someone is pressuring you for information or becomes evasive when you ask questions, it's best to err on the side of caution and avoid sharing sensitive details."
Please note that the information provided in this blog is not intended to and should not be construed as legal, financial, or medical advice. The content, materials, and information presented in this blog are solely for general informational purposes and may not be the most up-to-date information available regarding legal, financial, or medical matters. This blog may also contain links to other third-party websites that are included for the convenience of the reader or user. Please note that Connelly Law Offices, Ltd. does not necessarily recommend or endorse the contents of such third-party sites. If you have any particular legal matters, financial concerns, or medical issues, we strongly advise you to consult your attorney, professional fiduciary advisor, or medical provider.
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