Tips to Avoid Senior Fraud

By: Carey Fitzgerald

This previous Wednesday, I recently gave a presentation to the residents of Birch Heights (Independent Living Community) in Derry, NH on tips to avoid senior fraud. In the audience I was not suprised to note that about half the audience had been scammed or that someone had attempted to scam them.

Not enough education can be done on the subject. The Securities Exchange Commission revealed that even though seniors are currently about 15% of the United States population they make up about 35-40% of the population that falls victim to fraud each year.

Education is the only way to decrease the population being scammed. Rule #1 to remember...Trust your instincts, if something seems too good to be true, it probably is!

Why Target seniors?

Individuals 55+ are more likely to have a "nest egg", own their own home and/or have excellent credit. Americans born in the 20's, 30's, 40's, 50's were raised to be polite and very trusting. Due to cognitive decline, memory loss, Alzheimer's disease which seniors are more likely to be effected they are less likely to remember critical details and/or report it. Many times when a senior discovers that he/she has been scammed they feel a sense of sham or guilt and may be fearful that a relative with view them as incompetent if the scam is discovered. Also, as we age we become more interested in products/services that promise cognitive function, physical conditioning, anti-cancer, etc. This is due to our investment of the American dream of all wanting to live long, healthy and financially stables lives.

What This Means for the Scammer?

A con-artist is likely to view someone 60+ as an attractive target who is easy to exploit. Considering that a senior acts as a poor witness and/or is unlikely to report any fraud this increases their chances of not getting caught. Since older Americans are so focused on staying young, living healthy, and being financially stable it is easy for a scammer to create a pitch/product/story that is attractive to seniors.

Common Frauds Affecting Seniors

• Healthcare/Medicare Fraud
• Counterfeit prescriptions
• Lottery Scams
• Funeral/Cemetery Fraud
• Fraudulent "Anti-Aging" Products
• Telemarketing Fraud
• Internet Fraud
• Investment Schemes
• Reverse Mortgage Schemes

Senior Scams are costing older adults their life savings, their homes, or even their lives!

Tips to Avoid Fraud

• Everyone, regardless of age, sex, education level, financial situation or where they live, is a potential victim—including seniors.
• Don’t be afraid to hang up—it’s okay to be rude.
• Seniors may be targeted more because they are perceived by scam artists to have more free time and tend to be alone more.
• Educate yourself and talk to others. These are the most effective ways to prevent scams.
• There will never be a solution to eliminate scam artists—they are constantly changing their methods to keep from getting caught.
• Don’t be afraid to ask a neighbor, family member, friend, banker, or trusted advisor if you have doubts about an offer or business.
• Call law enforcement immediately if you think you have been victimized.
• Never accept the help of someone who calls you and offers to help recover the losses in a scam “for a small fee”. Odds are, it’s the same scam artist coming back for more.
• Shred all personal information

To report a fraud, please contact your states:

Office of Attorney General
The Consumer Protection Bureau
The Better Business Bureau
Local Law Enforcement

To report a fraud, in New Hampshire:

Office of Attorney General
22 Capitol Street
Concord, NH 03301
(603) 271-3658

The Consumer Protection Bureau
(603) 271-3641

The Better Business Bureau
(603) 224-1991

How Home Instead Senior Care Can Help

Many of our clients do not have families close or cannot be with their senior loved ones 24/7 as a result our caregivers can act as the eyes and ears for your senior loved one.
In the last 6 months alone, Home Instead Senior Care of Seacoast & Southern NH have helped prevent over 6 attempted scams on seniors in the Seacoast and Southern region. Clients have been harassed via phone regarding a fraudulent outstanding credit card bill that was "overdue" and they needed to pay it over the phone immediately. Handy-men have approached homes stating they arrived to help with home maintenance. Client have also been contacted via email, phone and mail stating they have won lotteries and but to receive the winnings they would need to pay for shipping and handling.

Our caregivers have been with our clients during these incidients and were able to act as their sound boarding, support and friend to prevent them from being scammed.