Senior Scams
Posted by Donna Mae Scheib on December 06, 2016
Knowledge is Power: 3 Common Scams You Should Avoid
With the rise of technology unfortunately comes the rise of scams. Technology, especially the rise of social media networks, makes it increasingly easier for scammers to solicit personal information which may lure seniors to trust the mailing or voice on the other end of the phone.
So how can you prevent falling for a scam? Several ways! First, remember that knowledge is power. Familiarize yourself with local and international scams; talk with friends and neighbors and use your social network to share information. Here are three common scams you should be aware of:
Traveling Relative in Jail
Scammers around the world, but particularly those in the islands, are reaching out to seniors. You’ll receive a call that your granddaughter or grandson, who is actually traveling in the Bahamas or surrounding area has been jailed for public intoxication or other minor offense. Your relative needs bail in the amount of $2,000 or so dollars. They ask that the money be wired immediately so your relative won’t have to spend any more time in jail. Many seniors have fallen for this scam because the people behind it use real people traveling. The scammers befriend traveling tourists, learn their names, research them online, and track down older relatives. When seniors ask to talk to their relative, they are often told they are too intoxicated to speak on the phone, or that they’ve passed out due to alcohol. When questioned why the grandparent is being called, scammers reply that the grandchild is too embarrassed to ask their parents for help and requested that a call be made to you.
A Call from the IRS
The most important truth to remember here is that the Internal Revenue Service never calls people directly. Many seniors have reported receiving calls from the IRS in which the voice on the other end informs the senior that the IRS is filing a lawsuit against them. This tactic is meant to inspire fear in order to gain personal information. Providing personal information such as social security numbers, driver’s license, bank accounts, and other key numerical data is the first step in identity theft. These calls may seem legit, with scammers using legal terms such as “case number” or “grand jury” or “criminal charges pending” but they are not legit. Callers often use increasingly fearful rhetoric, citing steps the IRS will take such as freezing bank accounts, repossessing cars, or jail time. Such escalation is meant to create panic to obtain key personal information. Remember: the action taken by the IRS in review of your previous taxes must begin with an audit, which will arrive in letter form. Any caller stating they are from the IRS is a scammer.
You’ve Won!
This scam is likely older than you are! While it may not always revolve around winning something, it always involves some type of processing fee. You may receive an email claiming you have unclaimed funds and in order to release the funds, you must send a check for $200 to claim your $5,000. It may be a phone call from the U.S. Department of Grants stating you’ve been selected to receive a grant of $10,000 that you don’t need to repay, but you’ll need to cover the administrative costs of the grant—however there is no U.S. Department of Grants! It may be a call stating you’ve won a car, but you need to pay transportation costs since it is must travel across state lines. Remember: if it seems to be too good to be true, it most likely is. Never write a check or wire money in order to receive money from another source.
With the increase of scams across the United States, the AARP has organized a Fraud Watch Network. Within this network, seniors can submit scams they’ve experience on a scam-tracking map. Scams range from phone calls from phony customer service reps asking for personal information, to website scams found on Craigslist to fake IRS and other agency calls. Members often list scamming numbers as well as detail the type of scam they experienced. You can search the map by zip code to see what fellow seniors have been reporting in your local area. The most important tool in avoiding scams is vigilance: know the current scams, and most importantly, trust your instincts. If it sounds too good to be true, or the voice employs fearful rhetoric, it’s a scam. Hang up and go about your day.