Three-quarters of all people who report problems with fraud are elderly,” says Lois Morton, consumer economist with Cornell Cooperative Extension. “Fraud is a growing problem for the elderly and one which they need to be aware of, so they can protect themselves.”
There are many reasons why con artists target the elderly. Older consumers, especially those living alone, may be lonely and willing to listen to, and trust, persuasive sales pitches. They may be facing difficult circumstances such as home repair problems and serious health issues that make them vulnerable to promises of assistance.
But there is one major reason why older consumers should be wary of possible fraud: one bad
decision can jeopardize their financial well-being and, perhaps, their health as well.
Eighty percent of people aged 65 and older have at least one major health problem and spend much of their budget on health care. Seventy-one percent of the elderly own their own homes, many of which are of pre-1940 vintage and need serious repair and maintenance. Those two factors alone can make the elderly vulnerable to fraud tactics such as these:
- A “city inspector” arrives at the home, stating he needs to check the plumbing, furnace, or wiring, and when problems are found states that he will call a “friend” to make the repairs. The work is overcharged and done poorly, if at all.
- The older consumer receives in the mail newspaper clippings about a new miracle health product with a “personal” note saying, “Try this! It works!” But when money is sent, the product never arrives, is overpriced, or is useless, if not just plain harmful.
- A product demonstrator arrives at the home and asks the resident to sign a paper just saying that the demonstrator visited. In fact, the trusting consumer, who hasn’t read the form, signs a contract ordering the product.
There are dozens of such scams, with new ones being invented every day, and they cost the elderly millions of dollars in addition to emotional distress and, sometimes, health consequences arising from unsafe products. “Con artists are good at what is called the ‘personality sell,’” Morton says. “They appear friendly, sympathetic, honest, and willing to listen to and spend time with their targets. Sometimes they even use fear tactics, such as convincing older homeowners that their roof will collapse if the contract to fix it is not signed immediately.”
The sympathetic attention, false hopes for health cures, and scare tactics used by con artists can be difficult to see through and resist. Morton says there are steps consumers can take to protect themselves from con artists.
First, and most important, always follow good, basic consumer techniques. Read everything before you sign. Don’t be pressured into making hasty decisions and purchases. Remember that if something sounds too good to be true, it probably isn’t true.
If someone or an organization is pushing a new health care product, check with your doctor before sending money. Unproved products can be dangerous as well as a waste of money.
“Be wary of salespeople who initiate transactions,” Morton says. “If you call or write them, that’s one
story. But if they initiate contacts, you have the right to be suspicious.”
Even if you believe the person and the product are legitimate, take your time to read all the forms before making a decision. Ask the person to come back another day. A delay, during which time you are checking credentials and references, may dissuade con artists from targeting you. Take the time and precaution of checking references as well as identification. Identification is easy to forge; a recommendation from the Better Business Bureau is not.
Be especially wary of any salesperson who requests secrecy. If a “deal” is so good you can’t tell
your family or friends, it’s probably not a legitimate financial venture.
Never, ever, give money up front. Pay for services when they are complete, not before they are begun.
If you sign a contract with a door-to-door salesperson in your home, you have three days to change your mind. This is called a “cooling off period” which gives you time to think through a high-pressure transaction. When possible, deal with local, established business people who can provide local references and must keep a good reputation within the community.
Finally, and unfortunately, Morton says, “The elderly must always keep in mind that they are prime targets for fraud and con artists who keep and pass around ’sucker lists.’ You don’t want to get on their lists, so you must be wary and even a little suspicious at times.”
by Jeanne Mackin
Mail this post
Posted under Other Scams
This post was written by admin on December 18, 2008
