Avoiding Elderly Fraud

Elderly fraud continues to be a major obstacle for today’s senior citizens.  This is why we feel it’s essential to do our best to spread awareness about this topic and provide tips of how to avoid these scams in the future.  One of our partners, Chad Smith, CFP®, recently spoke, for the second time, to seniors at the Cary Senior Center.  He described specific techniques and characteristics of scammers, and gave several examples of actual cases, such as fake checks & “sucker lists” that are being used by scammers to lure senior citizens in.

This issue is actually gaining more momentum in the media and in Congress of late.  We’ve provided some information below on recent progress in the efforts being taken to fight this predatory fraud. The following article, published in the Wall Street Journal, provides a real example of elderly fraud and tips of how best to avoid incidents in the future.

A Family’s Fight to Save an Elder From Scammers

Tips for Avoiding Telemarketing Criminals

Some telemarketing pitches are blatantly fraudulent, and you should know the signs, which include:

• Asking you to pay for a prize you’ve won. It’s illegal for any company to ask you to pay or buy something to win a prize, or to claim that paying will increase your chances of winning.
• Asking for upfront fees. It’s illegal for telemarketers to ask for a fee upfront if they claim it’s likely they’ll get you a credit card, loan, or to “repair” your credit.
• Pressure to act immediately.
• Refusal to send written info. Legitimate agencies, charitable or otherwise, should not be reluctant to send you written information about their program or organization.
• Requests for personal financial information. Requests for your personal bank account numbers, or other private information, is a huge warning sign. Never give out your information to an unknown caller.

Ways to fight Elderly Fraud

NC Attorney General’s Consumer Protection Office 1-877-5-NO-SCAM

Fraud Fighter Line 1-800-646-2283

NC Task Force Chair 919-716-6000

Website that compiles recent scams:

The NC Division of Aging and Adult Services Senior Consumer Fraud Task Force

New legislation has also been introduced recently in Congress that would accomplish the following objectives to fight elderly fraud…

• Charge an additional $50,000 civil fine for each violation that is targeted or is committed against a senior.
• Create a national grant program for states to protect seniors from misleading financial advisors claiming to specialize in seniors
• Direct the FTC to establish a one-stop-shop for consumer education on mail, telemarketing and Internet fraud against seniors.
• Establish a grant program to give states and local organizations the resources they need to initiate local mail, telemarketing and Internet fraud prevention and education programs for seniors.
• Declare a “National Senior Fraud Awareness Week” in May – coordinated with Elder Abuse Awareness Month – to increase public awareness of the enormous impact that mail, telemarketing and Internet fraud have on senior citizens in the U.S.
• Initial workshops to educate seniors on how to recognize risk factors and learn about who can help them if they are exploited.

Remember if something sounds too good to be true, it probably is!

“Seniors should be aware that the issue is not if, but when they will be targeted by sophisticated scam artists. Sharing information about how best to prevent these communications and where to report it when they occur, empowers seniors with the tools to fight back.” Chad Smith, CFP®

To request Chad as a speaker at your event, contact him at csmith@finsym.com.