“The scammers are out there
and they’ve got a pretty deep bag of tricks,” said Gary Johnson, the Outreach
Manager for the BBB’s Senior Program. “Our goal is to beat them to the punch
and explain to seniors how these schemes work so that they can not only
identify them, but use that knowledge to help others in their age group avoid
them and also report them to law enforcement and agencies such as ours.”
The BBB warns against the
following six scams that commonly target senior citizens:
Grandparent scam — Victims
receive a phone call from someone claiming to be a family member stranded far
from home. They usually beg to have the matter kept private and say they are
being held in jail, need car repairs or other assistance and money has to be
wired to them immediately. These scammers may lace the conversation with
correct references to other family members, increasing their credibility.
· BBB Advice: Remain calm and
confirm the identity of the individual by calling him or her directly or
verifying the story with other family members before taking any further action.
Never provide scammers with information they can use against you. For instance,
don’t venture a name when an unknown caller says, ‘It’s your grandson!’
Instead, make them “fill in the blanks.”
Sweepstakes and Lottery Scams
–Typically, the victim receives a letter in the mail stating they have won a
lottery or sweepstakes. The letter instructs the victim to deposit an enclosed
check and then wire a portion back to cover taxes, insurance or administrative
fees. While these checks clear initially, the money will be removed when the
bank discovers the check is phony. The victim is out whatever they wired back
to the scammers – often thousands of dollars. These scams are also attempted
over the phone. Remember, you can’t win a contest you didn’t enter, and if
something sounds too good to be true, it usually is.
· BBB Advice: Never wire
money to someone you don’t know. You should never have to pay a fee to collect
winnings from a lottery or sweepstakes. Also, participation in a foreign
lottery over the phone or through the mail is illegal. Some newer scams ask
people to purchase Green Dot MoneyPaks and then get people to share the number
on the back, which allows scammers to siphon funds that have been loaded onto
these MoneyPaks, leaving victims empty-handed.
Medicare Scams – Scammers
often claim to be with Medicare and ask for personal information such as
Medicare, Medicaid, Social Security, credit card or bank account numbers.
Potential victims might be given any number of excuses to provide this
information including that an error needs to be fixed, that he or she is part
of a survey or eligible to receive free products or can sign up for a new
prescription drug plan.
BBB Advice: Medicare will
never call to ask for sensitive personal financial information. If you suspect
fraud, contact your local police or the Health and Human Services Office of
Inspector General at 800-447-8477.
Bereavement Scams – Scammers
will go so far as to try to take advantage of seniors who have recently lost a
loved one, such as a spouse. They call the widow or widower and claim that their
spouse had outstanding debts that need to be paid immediately.
BBB Advice: If you are
uncertain about owing a debt when collectors call, always ask for written
confirmation. Don’t be intimidated by unknown callers or letters claiming a
debt is owed. Be aware of your rights under the Fair
Debt Collection Practices Act.
Deceptive Professionals – While
many scams targeting senior citizens are “faceless,” some scammers knock on the
front door, claiming to be experts in their fields. These so-called
professionals will lie about the extent of problems with your home or furnace,
and then inflate prices in an attempt to profit off trusting seniors.
BBB Advice – Find
professionals you can trust by researching them at bbb.org.
Report any deceptive offers to your BBB, local law enforcement and the state
Attorney General.
Investment Opportunities - These
schemes promise big returns but offer few details.
BBB Advice: Beware of
investment or money-making offers that seem too good to be true or use high
pressure sales tactics. If you have questions about any offers you receive,
contact the BBB at 1-800-646-6222.
For more advice on avoiding
scams visit: bbb.org/us/consumer-tips-scams/.
