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Popular Scams Targeting Seniors B Y J ANET B. G ILL , CPA A LDRIDGE B ORDEN & C OMPANY S CAMS ARE ON THE RISE , PARTICULARLY FOR THE ELDERLY . M ONEY M AGAZINE ESTIMATES THAT ONE IN FIVE A MERICANS OVER 65 HAVE BEEN THE VICTIM OF A SCAM , WITH THE AVERAGE REPORTED LOSS AT $120,300. M ANY FINANCIAL SCAMS GO UNREPORTED , THEREFORE THESE SCAMS ARE CONSIDERED A “ LOW RISK ” CRIME . Y ET ESTIMATED FRAUD LOSSES SUFFERED BY OLDER ADULTS RANGE FROM $3 BILLION TO OVER $37 BILLION ANNUALLY . lder adults are often targeted because they are viewed as being financially secure. With children raised and homes paid off, many have built up savings to see them through retirement. However, the wealthy are not the only victims. Low-income older adults are also at risk. Scam- mers target the vulnerabilities of seniors, preying on their trusting nature or unfamiliarity with technology. The following are some of the more popular scams: • Telemarketing or Phone Scams – This may be one of the most common schemes. Scammers draw victims in with offers of free prizes, inexpensive vacations, bogus products or services. Per the National Council on Aging, older people as a group make twice as many purchases over the phone than the national average, which increases the risk that they will be the victim of fraud. • County Clerk Call Scam – In this scam, callers say they are from the local county clerk’s office and claim there is a warrant for the victim’s arrest or that a fine has been issued. The scammer will ask for immediate payment to avoid jail or pay the fine. • Fake IRS Calls – This call plays on the fear of the victim. The scammers may know personal information about the victim. Common tactics of this scheme include threatening arrest or de- portation if the victim does not comply. Know that the real IRS initiates contact through the U.S. mail. If you’ve never received a letter from the IRS, the call is likely a fraud. • Sweepstake Scams – Recipients of this scam get notification that they have won a lottery and to claim the prize they only need to send payment for fees and taxes. Often, seniors are sent a fake check of the winnings to deposit, but by the time the victim pays the fees, the bogus check bounces and they are out the money for the fees. • Grandparent Scam – This simple scam relies on emotions. The caller claims to be a grandchild and asks for money to handle an unexpected financial or legal difficulty. Often they will ask that the “grandparent” not tell their parents and request that the money be wired to them. • Medicare Fraud – These scammers pose as Medicare repre- sentatives in order to steal the victim’s identity. Once they have their victim’s personal information, they are able to file fraudulent Medicare claims and pocket the money. Here are some tips on spotting a scammer. First, how do they ask you to pay? If they say you can only pay by wire transfer (which often does not require identification to collect), a gift card or a prepaid debit card, that’s a scam. Secondly, remember if it sounds too good to be true, it probably is. If someone tells you that you have won free money, but you have to pay to get it, then it’s prob- ably a scam. To avoid being a victim of scams, be skeptical of unusual requests for money. Do your research. Check with a trusted advisor before committing to send money to an unsolicited request. Use the in- ternet to stay abreast of current scams. Above all, if you suspect you’ve been the victim of a scam, don’t be afraid to report it. Con- tact your local police or the State Attorney General’s Office for as- sistance. Other agencies available to help include the Federal Trade Commission, the FBI, and the Securities and Exchange Commis- sion. Remember you are not alone and there are people who can help. n Janet B. Gill, CPA works with Aldridge Borden & Company, a Mont- gomery accounting firm, celebrating its 100 year anniversary this year. Aldridge, Borden & Company has developed dedicated service groups in the areas of Attestation, Taxation, Consulting, One Source, Information Technology, and Bookkeeping — reflecting the diverse talents of their ex- perienced group of professionals. 52 AL/ Metro 360 www.almetro360.com MONEY MATTERS .............................................................................................................. O