Common Fraud Practices

If the elder for whom you are caring is reasonably independent and still living alone at home, it is important to speak with him or her about the array of scams that are out there and how to avoid being victimized by them. Below, we’ve included some of the more common illegal practices. Specifics for each type of fraud are listed in individual categories. One of the most important things you can do is to raise your senior’s awareness of fraudulent practices by talking together about them. Then, if he or she will agree to speak with you before making any purchase — whether over the phone, via the Internet or in any other way, you’ll have a much better chance of avoiding a potential loss.

Common Fraud Practices Affecting the Elderly:

Purchase Anti-aging Products or Miracle Cures
Telemarketing Fraud
Internet Fraud
Investment Schemes/Reverse-Mortgage Scams
Non-existent Charities
Prizes/Free Vacations

The Schemes in Detail
Just say ‘no’ to these things. There are no miracle cures, there are no free vacations (at least not that an elder will enjoy and be cared for on) and there is no get-rich-quick scheme. Fraud is everywhere and it’s nearly impossible to train a senior to recognize all the “crafty” language that is used by scammers. However, you can teach a senior the basics and that is that none of these things being “sold” are real. You also want to educate the senior to NEVER give personal information to strangers over the phone. It’s nearly impossible to get your money back if you’ve been cheated over the telephone.

The best line of defense is education. You, the caregiver, must be educated and alert so you can determine the best way to protect your loved one. The Care Company has armed you with the most current information available and how these scammers operate. Educate yourself and your loved and together you can become Empowered!

Anti-Aging Products & Miracle Cures

If your senior is interested in buying a product through the mail, via telephone from the Internet or on television, follow these guidelines.

If it sounds too good to be true, it probably is. Watch out for “secret formulas” or “breakthroughs.”
Ask questions about the product. Find out exactly what you should be able to expect of it – and what not to expect.
Research a product thoroughly before buying. Call the Better Business Bureau to find out if the product or the company has any complaints against it.
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 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 purchasing any dietary or nutritional supplements for your senior.

Telemarketing Fraud
Those who are 70 or older — and especially older women living alone — are more likely to be targeted by 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 or free vacations.

Some of the pitches a senior might get over the phone are:

“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 caller doesn’t want you speaking to anyone, including your family, your lawyer, your accountant, or the 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.”

Internet Fraud
As Web use among senior citizens increases, so do their chances of falling victim to Internet fraud. Internet fraud includes non-delivery of items ordered online and credit- and debit-card scams. The same rules apply to the Internet as to Telemarketers. Do not give out any personal information and don’t accept any Internet offers without checking with a trusted family member or friend. It’s so much easier to handle fraud in this manner. It’s too overwhelming to teach the senior all the language he/she needs to be aware of.

Investment Schemes
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 overseas letter-fraud schemes. Again, encourage caution and explain to the senior that a conversation with a trusted family member or friend is always a good idea.

Reverse-Mortgage Scams

The same is true for reverse-mortgages. In no way should you or the senior take out a reverse-mortgage without first speaking to a trusted financial adviser.

Tips for Avoiding Reverse Mortgage Scams: