fbpx

Fraud alert: Protect seniors from online scams by following these simple rules

[additional-authors]
July 28, 2015

My parents are senior citizens now, and like many people their age, they are increasingly becoming a target of online fraud. Older Americans are more susceptible as they learn how to negotiate the internet and social media. They are more trusting of what they read online and often fail to vet these seemingly legitimate rip-offs. It’s become such a problem that some consider it the crime of the 21st century.

According to CNBC recently, older Americans are especially at risk of online scams. Those over 65 are 34 percent more likely to be swindled than people in their 40s. What is even more alarming is that one estimate indicates that only 1 in 44 financial elderly fraud victims ever report the scam, usually out of embarrassment or for fear of their children’s reprisals and a subsequent loss of control of their finances.  We need to protect our elderly parents, for their benefit, and for the benefit of society.

The following are some of the common online scams wreaking havoc on our older American parents:

Sweepstakes or Coupon Scams

My mom loves coupons. She also loves enticing offers and she’ll often forward them on to me through email or Facebook. I never open them and I beg her to do the same.

There has been a rash of scams out there lately. These emails usually announce that you’ve won a large sum of money or a prize (sometimes through a foreign lottery). Gaining your trust, the scammer then explains that there is a fee for shipping/processing or for taxes and you must first pay the fee in order to receive the prize. Sometimes these too good to be true offers, or coupons that offer an unbelievable discounts, contain malware or viruses that attack your computer and sometimes access your personal information, leading to identity theft.

There are many reputable coupon sites out there offering legitimate savings and discounts. These sites like Coupon Buddy, The Krazy Koupon Lady, and Coupon Box among others, offer aggregated code-based discounts that are authorized by the companies represented there. You don’t have to worry about getting a virus when you access deals through these sites.

Sweetheart Scam

Thankfully, my parents are still happily married, but I’ve been hearing too many heartbreaking stories about this “sweetheart” scam lately.

Like the lovely old ladies swindled in the uproarious movie, The Producers, the lonely widow is a common caricature in our culture. But they are easy targets.

Single seniors are increasingly turning to online dating sites, where scammers start to develop an online relationship, plying them with compliments and wooing them with romance before hitting them up with a sob story of financial distress and ultimately a plea for money. These types of scams occur most frequently around Valentine’s Day and tax season.

Medicare and Insurance Fraud Scams

Scammers posing as Medicare or insurance representatives introduce a “new plan” or the necessity of a new card and require their personal information to facilitate it. Sometimes they’ll state that an initial payment must be made. They should avoid responding to an email request like this without first investigating.  

Counterfeit Prescription Drug, Anti-Aging, or Weight-loss Scams

Seniors seeking lower prescription prices or products that offer the promise of youthful beauty are often duped by these fraudulent online promotions. Many of these prescription and beauty products are counterfeits that either do nothing or, worse, can actually have harmful effects. Consult the National Association for Boards of Pharmacy for accredited online pharmacies which must comply with federal and state laws and regulations. Homeopathic remedies or alluring beauty or weight-loss products are usually backed by little or no scientific evidence, even when they are presented with a celebrity endorsement. Beware of free trials if personal information is requested.

Tech Support Scam

Scammers are getting rather sophisticated with the ways that they are able to push fake security software online, and my parents have been the victim of this scare tactic.  It starts with an alarming tech support pop-up or a hijacked browser alerting the user that their computer has been infected by a virus. The user is then instructed to call a number or go to a bogus website where they provide personal information and payment for software to correct the problem. The software is either useless or available elsewhere for free or could contain malware that will give scammers access and control of your computer or personal information. It is important to understand that your browser can not detect suspicious activity on your computer, it can only alert you to the fact that a site you are about to visit is bad.

Investment Schemes

As planning for retirement during the senior years becomes all the more critical, it is important to beware of all types of investment schemes that promise quick returns or returns that are too good to be true. Seniors, are easy targets for these schemes and should be reminded of the old adage that if it sounds too good to be true, it probably is.

Travel Scams

Email travel promotions that offer incredibly cheap rates, free stuff, travel packages or vacation clubs should be considered suspect or fully investigated for their validity. Sometimes these offers come with gifts (gas cards, restaurant gift certificates, hotel stays) if you sit through a sales presentation ending in a high pressure pitch to get you to sign a contract before you have a chance to think about it.

Mystery Shopper Scams

The victim is sent an email and is presented with and opportunity to assess the customer service of money transfer company such as Money Gram or Western Union. A check is sent to be deposited into a personal account and they are asked to withdraw the money and wire the amount in cash to another account (usually in another country). They are then asked to fill out a customer service report about the money transfer service and are told they would be awarded a portion of the amount wired. It seems legit because the original check clears, but it eventually turns out to be a fake check and the victim is ultimately responsible for the funds.

Never deposit a check from someone you don’t know.

Important Things You Can Do to Avoid Scams

The above is just a partial list of the many ways that scammers can take advantage of senior citizens. Scams involving medical alert devices, reverse mortgages, and funeral planning fraud all prey on the elderly. There are also all sorts of phone scams that are gaining traction. Scammers are getting more convincing and their tactics are more sophisticated. Scammers also look for people who have already been scammed. So, if you’ve been a victim once, chances are you’ll be preyed upon again.

 

  • Avoid opening up emails or attachments from unknown senders. Also be wary of coupons or offers that come from people you know. Their email may have been hacked, or they could be passing on a promotion that hasn’t been properly vetted.

     

  • Never access a website from a link in an e-mail especially an email that asks for personal information.

     

  • Never include your personal information in an email or provide this information through an unsolicited request.

     

  • Avoid clicking on “pop up” alerts, which may carry malicious software.

     

  • Choose a safe password. Passwords should be at least eight characters long and contain upper and lowercase letters as well as numbers and symbols. Write your password down and keep it in a safe place.

     

  • Always monitor your financial accounts and report suspicious activity immediately.

     

  • Type the company or promoter’s name into Google with a word like review, complaint, or scam.

     

  • Check out the company with your local consumer protection agency to see if anyone else has reported on their experience with them.

     

  • Report scams and sign up to receive scam alerts with BBB Scam Stopper.

     

  • Sign up for AARP’s Fraud Watch Network, which sends out a monthly alert about currently prevalent scams. It also offers an interactive map, so users can click on a state and find out which frauds are trending there.

     

 

Once again, remember that if it seems too good to be true, it probably is.

Consult these online resources:

Better Business Bureau Savy Seniors Program

Coupon Information Corporation 

OnGuardOnline.gov


Clinton Wilson is an inveterate traveler, enthusiast of anything related to technology, music, and cinema, and has written for Just Out Newsmagazine and Black Lamb in Portland, Oregon; PragueOne in the Czech Republic; and for Penguin Group in New York City. He recently relocated to Boise, Idaho from New York where he lives with his wife and three kids…and a rambunctious dog and irascible cat.

 

Did you enjoy this article?
You'll love our roundtable.

Editor's Picks

Latest Articles

More news and opinions than at a
Shabbat dinner, right in your inbox.

More news and opinions than at a Shabbat dinner, right in your inbox.

More news and opinions than at a Shabbat dinner, right in your inbox.