Scam artists do not take a summer vacation

Statistics say that one in five older Americans have been taken advantage of financially according to the elder investor fraud survey that was released by Investor Protection Trust on June 15, 2010. My feeling is that this number may be low because of underreporting. Many older people who’ve been duped are too embarrassed to admit it. Seniors are often the target of crooked individuals but that does not mean that they do not target people of any age.

Swindlers will attempt to appeal to two emotions, fear or greed.  Many scams surface during a disaster such as Katrina and currently the BP oil spill. The perpetrator will exaggerate the cost for repairs that need to be done or suggest that they have the answer to cleaning up the oil. The appeal to greed often involves an investment that pays unusually high interest or that promises substantial profits in a short time frame. Can you say Bernie Madoff?

Shady characters who often sit in telephone boiler rooms are not the only unscrupulous characters that will take advantage. People who work for what appear to be reputable companies may try to push inappropriate investments or impose exceptionally high fees. And there are also unscrupulous family friends or family members who may try to take advantage.

Common types of scams

Telemarketers
Simply to hang up after asking to be removed from their call lists. Enroll in the National Do Not Call Registry to prevent many of these calls from occurring again. Request that information be mailed to you before you make any decisions.

Lately, scam artists have captured numbers from credit cards and are looking for another identifier such as your mother’s maiden name or social security number. If they claim to be from your bank then ask for a call-back phone number. Then check to see if the number matches the one on your statement or credit card.

Advertisements
A company that advertises on radio, television or in the newspaper doesn’t necessarily mean that it’s legitimate. Media outlets are under no obligation to investigate an advertiser. The majority of ads for credit counseling, gold coins and buying real estate are bogus. The old adage, “If it seems too good to be true….”

Emails
Don’t believe anything you read in an unsolicited e-mail, and never respond to requests for personal information such as account numbers, Social Security numbers or your date of birth. Legitimate companies don’t ask for this type of information by e-mail.

? Children, grandchildren, friends and trusted advisers can help seniors avoid financial scams.

• Use the one of the internet search engines to see if the company has a reputation for causing trouble for consumers. Type the name of the company into an Internet search engine along with the word “scam” or “rip-off.”
• Ask to receive information in writing. Review the information together with a trusted friend or adviser before making any decisions.
• Agree to a “$200 rule”.  If parents or an elderly friend or relative are going to spend more than $200 on anything that someone else has suggested, they first check with someone they trust.