Here's what
to watch for to make sure you don't fall prey to some of the biggest rip-offs
targeting seniors.
Brandon
Ballenger • October 9, 2019
It’s a
sad fact that scammers often target the people with the most to lose, and the
least chance to catch on or fix things.
People
in or near retirement have to be especially vigilant because wealth and age
come with several risk factors.
Seniors
are likely to have strong
credit and a large nest egg for scam artists to go after. They
also may be more trusting or less likely to report scams because they fear
friends and family will take that as a sign they can’t manage their own affairs
anymore.
“People
who grew up in the 1930s, 1940s and 1950s were generally raised to be polite
and trusting,” says the FBI.
“Con artists exploit these traits, knowing that it is difficult or impossible
for these individuals to say ‘no’ or just hang up the telephone.”
And it
costs seniors $3 billion every
year. That’s how much the U.S. Department of Justice estimates criminals
defraud seniors of or steal from them annually.
Following
are several major recent and ongoing scams to guard against.
1. Social Security scams
Some
35,000 people reported losing a total of $10 million to Social Security phone
scams in 2018, according to the
Federal Trade Commission (FTC). And remember, that’s just the people who both
realized they had been defrauded and reported it to the federal government.
A
typical version of the scam goes like this: You get a phone call that appears
to be from the real phone number for the Social Security Administration
(1-800-772-1213). A voice tells you that your Social Security number has been
suspended because of suspicious or criminal activity.
The
voice asks you to confirm your Social Security number. It warns you that your
bank account will be seized, and suggests you move money onto gift cards and
share the numbers and PINs for those.
The
call is not really from the SSA. Someone just made it appear as if the call
were coming from the real number — a practice known as “spoofing.”
The
caller likely won’t know your Social Security number until you tell them. Your
bank account isn’t going to be seized, and your money is safer in the bank than
on gift cards, in cash or wired to anywhere else.
You
should know that the SSA will never call to threaten your benefits or suggest
you move money.
Never
give your Social Security number, bank information or credit card number to
anyone who contacts you unexpectedly.
If you
have any doubts about whether the SSA is actually contacting you, you can
always go to the official government website, SSA.gov. Click on “Contact Us” (at the bottom
of the page) and directly contact the agency yourself.
Once
you’re certain it was not the SSA calling you — and this goes for any of the
following scams as well — you should report the call via the FTC’s Complaint
Assistant website.
2. Medicare card scams
Over
the past year or so, the federal government has replaced old Medicare cards and
Medicare identification numbers with ones that do not reflect seniors’ Social
Security numbers, as we detailed last year in “What You Must
Know About the New Medicare Card You Will Get Soon.”
The
goal of that change was to thwart scammers who could use your Social Security
number for fraud, but ironically, it led to a new scam opportunity.
Variations
of this scam include a purported “Medicare representative” calling to ask you
to verify your Medicare number — new or old — to send you a new card for a fee.
Note
that both old and new Medicare numbers can be used for identity theft, as we
reported in “How to Avoid
Scams That Target Your New Medicare Card.”
Medicare
won’t call you unsolicited, however, and they will likely communicate by mail.
3. Vacation rental scams
This
scam is another one the FTC has been warning about in
recent years: imitation vacation rental listings.
Scammers
might steal actual listings and simply change the contact information, assuming
the identity of the real lister. Or they might invent property listings of
their own, then advertise unbelievable rates and try to convince travelers
they’ve found a hidden deal.
Be
suspicious of listings well below the going rate, and always look up the
address on a map — preferably a map with a street view of the property that you
can compare with any listing photos.
Don’t
let anyone rush you into paying, or convince you to use a payment method with
inadequate protections, such as a gift card or wire transfer. And stick to well-known,
reputable vacation rental websites like Homestay and Vrbo.
4. Computer security scams
While
anybody can fall victim to this type of scam, the FTC has warned of
organized tech support scams targeting seniors in recent years.
A
typical scenario involves a telemarketing call from someone claiming to be from
an established technology company — usually a household name, even if they’re
not necessarily known for computer security specifically.
The
caller will warn that hackers are likely to break into your computer and rob
your bank account, and the caller offers a victim the sale and installation of
security software.
Once a
victim agrees, the caller will give instructions that allow the scammer to
remotely connect to the victim’s computer, supposedly to install that security
software. But while the scammer is doing that, they help themselves to personal
information. They may even create new “security threats” on your computer so
they can call back later and offer to “fix” them for an additional fee.
The
advice here is to ignore unsolicited offers to help beef up your computer
security, especially if they involve letting someone remotely access your
computer.
If you
aren’t confident that your computer is safe, find a reputable service where you
can get face-to-face assistance and ask questions about what software you
should install and safety procedures you should follow.
5. Grandparent scams
The FTC reported a
“striking increase” in the typical amount of money lost to this type of scam in
2018. People age 70 or older who were conned into sending cash reported losing
an average of $9,000 per person.
This
type of scam usually starts with a phone call from someone pretending to be the
victim’s grandchild who is in need of cash due to legal trouble.
The
caller might offer an embarrassing sob story about being caught drinking while
driving — literally sobbing, to draw attention away from the unrecognized voice
of a stranger.
Then
the caller pleads for help and asks the victim not to tell anyone, and to send
cash in a particular way.
The
scammer might cull information about actual grandkids from social media, or
wait for the confused victim to give a cue as to whom they should be
impersonating.
So, one
of the best strategies here is to carefully guard your privacy, leaving it to
callers to identify themselves. Don’t say things like, “Is that you, Joey?”
Limit
your social media profiles to actual friends and family, and don’t accept
unexpected friend requests. That includes ones from people you know, because
scammers often impersonate others’ names and photos to gain access to your
social media profiles. Verify that an actual friend or relative sent the
request, such as by calling the person to confirm.
If you
get a call and are uncertain about the caller’s authenticity, you can simply
offer to “see what you can do” and end the call. Then, try to contact the
alleged victim directly to see if it was a legitimate call.
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