More Scams Targeting Seniors
Fraudulent telemarketers direct 56 percent to 80 percent of their calls to senior citizens, the National Crime Prevention Council recently noted. Nearly 5 million seniors succumb to financial abuse each year, according to the Securities Exchange Commission.
The following are some tactics that scammers are attempting and how to avoid them:
Bogus charities. If someone asks for a charitable donation, Ted Sarenski, chairman of the American Institute of Certified Public Accountants Prime-Plus/ElderCare committee, recommends checking out the organization at guidestar.org or with the Better Business Bureau before donating. Be particularly wary of the telemarketers that use high-pressure tactics. It's best to donate to charities you are familiar with.
E-mail solicitations. Be aware that Banks don't e-mail you about your account status. They are scams set up to resemble legitimate companies so they can obtain your personal account information. Some common companies that are often imitated are Chase, eBay and PayPal. If you get these and other hoax e-mails such as foreign pleas, immediately delete them from your inbox.
Powers of Attorney. There has been an increasing number of cases where seniors are losing their assets to someone who befriended them and earned their trust. These scammers persuade seniors to sign a power of attorney so they can "help" manage bank accounts and other financial transactions. What is so terribly sad is that some of these scammers have been family. Seniors should always get a second opinion from at least one other family member or trusted adviser before signing anything. If they feel they are being coerced, they should contact the police.
Salespeople and Free Dinners. Seniors should check the credentials of anyone offering an investment product, advises Craig Carnick, a certified financial planner with Carnick & Co. in Colorado Springs, Colorado. "All salespeople pushing securities are required by law to state the broker/dealer with whom they are affiliated," Carnick said. "A mutual fund salesperson at XYZ Brokerage firm must have the tag information, 'Securities Offered Through XYZ Brokerage, Member NASD, SIPC.' " That is pretty much confirmation that a salesperson is behind the securities and they have a public record to check for any complaints. This rule doesn't include a sales disclosure by insurance and annuity salespeople, Carnick noted, so consumers are often unaware they are being sold to. Carnick's rule pertaining to "free dinner" offers by investment salespeople is: "If you don't know what the promoter is selling, if the promoter refuses to tell you what product or company he/she represents, if the promoter refuses to provide their name and just gives an RSVP phone number, don't go.
