Avoiding Senior Scams

According to a new study conducted by the Center for Retirement Research at Boston College, con artists have utilized the Internet to find new selling opportunities to scam individuals. The study also indicates that the median loss per person as result of online scams has almost tripled from $218 in 2002 to $549 in 2010.

One group of people particularly susceptible to online scams is seniors. Determining how many seniors are conned a year can be difficult as many of those conned are embarrassed that they were duped and never tell anyone about the scam. Scams by family members or “friends” also pose potential threats to seniors.  Eight red flags that may indicate a scam is afoot are below:

1. Anytime a website or individual asks for personal information like Social Security numbers, bank accounts, and driver’s license numbers
2. Any email, phone call, or paper mail that demands the recipient act immediately for a “limited-time offer”
3. Anytime a fee is required up front or other special action is needed
4. Anything that may come with “free” perks like meals, trips, or gifts
5. “Dept settlement” offers that claim all debts will be cleared up
6. Aggressive solicitors who urge individuals to not tell friends or family about the discussion
7. Anytime a product takes more than one sentence to explain
8. Any non-fiduciary “senior/retirement specialists” (i.e. those who are not certified financial planner, attorney, or chartered financial analyst) who claim to be a financial advisor

See Carolyn Rosenblatt, Why Elder Financial Fraud Is on the Rise, Forbes, Feb. 28, 2012.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.