Frauds and Scams 2

Seniors lose more than $3 billion to fraud each year. One of our most popular workshops is about scams and frauds. Yesterday I talked about the first five scams, today here is more detail about the second five. If you haven’t yet been approached by a scammer, you could face a scheme in the coming years. Sometimes family members, especially relatives caring for the elderly, are even the ones behind the attack. Some of the most common senior scams include:

1.     Charity scams.

2.     Funeral scams.

3.     Government imposter scams.

4.     Grandparent scams.

5.     Internet scams.

6.     Investment scams.

7.     Medicare scams.

8.     Reverse mortgage scams.

9.     Romance scams.

10.   Sweepstakes scams.

Investment Scams

You might get contacted by a person claiming to be a financial advisor, real estate investor or wealth manager who promises an exciting investment opportunity or big returns if you send them funds. These scams will take your money and not return anything to you.

Protect Yourself: Before sending any contributions to new investment, consult a trusted advisor with appropriate credentials and avoid fast decisions.

Medicare Scams

Someone may contact you claiming to be a Medicare representative who can help you save money by getting some form of additional coverage. The caller might ask for personal information or checking account numbers, and even have some information about you.

Protect Yourself: If you get a Medicare-related call, email or text, ignore it. If you have questions about your health coverage, contact Medicare directly.

Reverse Mortgage Scams

If you own your own home, you could be contacted by an individual claiming that you could access some of the equity in your residence with a reverse mortgage. They may offer to appraise your home for a fee, give you an invalid home value and ask you to sign up with inaccurate loan documents.

Protect Yourself: Don’t respond to any requests that ask you to share details about your home or make a payment for a reverse home mortgage. If you’re interested in getting a reverse mortgage, reach out to a reputable lender or advisor in your area and talk about your options.

Romance Scams

If you sign up for an online dating site, you could be approached by imposters who express interest in starting a relationship. After you talk on the phone or start dating, the scammer will ask for money to help pay for their utility bill, a parking ticket, home repair or something else. The scheme could go on long-term, especially if you date for a year or more.

Protect Yourself: To avoid falling victim, research the people who contact you via an online dating site. If you aren't sure, ask someone you trust to evaluate the situation and steer clear of money requests.

Sweepstakes Scams

A fraudster could contact you to congratulate you for winning a lottery. They might send you a fake check, which may initially look real until it is rejected by the bank, and you might be asked to pay for fees or cover taxes.

Protect Yourself: If you are asked do not pay any fees or cover taxes. If you are told that someone who is incompetent has either won a prize or incurred an obligation, look into it carefully. Do not allow anyone to forward you money of any kind in any way that you must pass on to anyone else.