With a little help from my friends

 Why is it Important to Have Friends?

Friends play a key role in a happy and fulfilling life. They provide emotional support, reduce feelings of loneliness, and contribute to a sense of belonging. Having friends can also lead to a healthier lifestyle, as social interactions encourage activities and engagement that are beneficial for mental and physical well-being. For seniors, maintaining friendships is crucial for combating social isolation and fostering community and connection.

Why is it Hard to Meet New Friends?

As we age, several challenges can make it difficult to meet new friends:

Retirement, limited mobility, and the cessation of regular social activities can reduce opportunities for social interactions.

Relocation, the death of a spouse, or the loss of friends can shrink social circles, making seniors feel isolated.

Physical or cognitive health problems can hinder participation in social events, reducing chances of meeting new people.

Difficulty with technology can prevent seniors from connecting online, where many social interactions now occur.

Ageism and negative stereotypes about aging can make seniors feel undervalued in social settings, discouraging them from seeking new friendships.

The fear of not fitting in or being rejected can deter seniors from initiating new social connections.

Life changes such as retirement or health issues can impact self-esteem, making it harder to reach out and sustain new friendships.

Overcoming Challenges to Make New Friends

Addressing these challenges involves creating accessible social opportunities, providing support for seniors, challenging ageist attitudes, and fostering an inclusive environment. Here are some strategies to help make new friends:

Identify hobbies or interests and join clubs, classes, or groups that you are interested in, these activities will bring together people who have a common interest. Activities like book clubs, volunteer groups, fitness classes, and workshops are great for meeting people with similar interests.

Work colleagues, neighbours, fellow pet owners, and grandparents of grandchildren's classmates are potential friends who already have something in common with you. Find a connection with them through your shared experiences:

One of the best ways to make friends is through existing friends. Use your current relationships to expand your social circle. Don’t be shy to leverage your existing relationships. Friends of friends have common interests and values.

For group gatherings, pick a day that works for most people instead of delaying finding a perfect date. Remember there is no perfect date or time, while you are trying to find that perfect time, life slips on.

Even brief interactions like a quick coffee date or a casual text can help maintain and grow friendships. It is the connection that is important not the length of the engagement.

Reaching out to old friends you've lost touch with and reviving old friendships or reconnecting with dormant friends is a challenge, but it is worth doing. They may be feeling the same hesitation, so a simple message to reconnect can revive the friendship.

Engage with current media like popular shows, books, or podcasts. This provides easy conversation starters and helps you join in general social discussions. I have noticed that many young people spend time talking about the latest Netflix or Amazon streaming shows they are watching.

Contrary to the belief that talking less makes you more likable, research suggests that engaging more in conversations makes you appear more interesting and likable. One way to do this is to ask questions about the other person. Everyone has a story to tell and they are just waiting for someone to ask them.

Maintaining Friendships

Once you've established new friendships, it's essential to maintain them:

Keep in touch regularly, even if it's through brief messages or calls.

Schedule regular meetups or activities to ensure continued interaction.

Show interest in your friends' lives and offer support when needed.

Building and maintaining friendships as a senior requires effort and persistence, but the rewards are invaluable.

Can you see the difference

One of these links if it was live would take you to a legitimate web page, and the other would take you to a scammers page. Can you see the difference? Be careful out there. 

Robo Calls

 Many scammers rely on Robocalls to scam their victims. Robocalls are pre-recorded calls that are made using an automated system. Unfortunately, they are often used for fraudulent purposes, including investment and pension scams. Here are some ways to protect yourself from robocall scams:

If you receive a call from a number you do not recognize, let it go to voicemail. Do not answer calls from unknown numbers. Legitimate callers will often leave a message, whereas robocalls typically will not.

If you answer a call and suspect it is a robocall, hang up immediately. Do not press any buttons or engage with the caller, as this could lead to further harassment or scams.

Consider using call-blocking software or apps that can help to identify and block known robocallers.

In some countries, such as the United States, you can register your phone number with the National Do Not Call Registry. This can help to reduce the number of telemarketing and robocalls you receive.

If you receive a robocall scam, report it to the relevant regulatory body or law enforcement agency. This can help to identify and shut down the scammers and prevent others from falling victim to the same scam.

Remember, legitimate organizations will not contact you via robocalls to solicit investments or pensions. If you receive such a call, it is likely a scam, and you should take steps to protect yourself.

Investment and Pension Scams

Investment scams usually involve someone unexpectedly calling and inviting you to invest quickly in a scheme with very attractive returns and low risk.

They often add pressure by making it a ‘limited-time offer’ so that they tempt you into a quick decision.

They also use authentic-looking paperwork.

How does it work?

Scammers usually promise to help you ‘unlock’ your pension by transferring money to a ‘different pension scheme.

The pension scheme doesn’t exist. It is just a way for scammers to steal your money.

They targeted retirees and people nearing retirement because they’re able to access enormous sums of money.

How do I protect myself?

Investment and pension scams are unfortunately quite common, and they can be very damaging to those who fall victim to them. Here are some ways to protect yourself:

Be cautious of unsolicited calls, emails, and messages because scammers often use cold-calling or unsolicited emails and messages to contact potential victims.

If someone contacts you out of the blue with a too-good-to-be-true investment opportunity or pension scheme, it is likely a scam.

Be wary of such approaches and always double-check the legitimacy of the organization or individual contacting you.

Before investing, do a thorough background check of the organization or individual offering the investment or pension scheme by researching the organization and individual.

As part of your research, check if they registered with regulatory bodies such as the Financial Conduct Authority (FCA) or the Securities and Exchange Commission (SEC) in your country.

Also, try to find independent reviews or opinions about the organization or individual from reliable sources.

Always read the investment or pension scheme documents carefully, and make sure you understand the terms and conditions. Make sure you check the investment or pension scheme details. Look out for any unusual or confusing clauses and ask questions if something is unclear.

Scammers may use high-pressure tactics to convince you to invest quickly or offer incentives. If you feel rushed or pressured to decide, it’s usually a red flag. Beware of high-pressure tactics.

Get professional advice: Consider seeking the advice of a financial advisor or accountant before making any investment or pension decisions. They can help you understand the risks and benefits and provide guidance on whether an investment or pension scheme is legitimate and suitable for your needs.

If you suspect that an investment or pension has targeted you in a scam, report it immediately to the relevant regulatory body or law enforcement agency. By reporting suspicious activity, you can help to prevent others from falling victim to the same scam.

Always take the time to make proper checks before investing your money.

Check all names and contact details against the Financial Conduct Authority’s Register to make sure you’re dealing with a genuine person and firm.

Never share your investment, pension, or personal details with someone you are unsure about.

Frauds and Scams 1

 Summertime and the living is easy and the scammers are out to get you.  Seniors lose more than $3 billion to fraud each year. One of our most popular workshops is about scams and frauds. 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.

Here’s a breakdown of how these elderly scams work, along with what to do to avoid falling prey to an attack.

Charity Scams

If there’s a hurricane or other natural disaster in your area, a criminal might call you and ask for donations to a non-profit that is working to rebuild the region or help needy families.

Protect Yourself: Don’t agree to give to charities over the phone or when first approached. Instead, investigate the organization and find a number to call if you are interested in giving a donation.

Funeral Scams

If you place an obituary in a local publication after a loved one dies, a thief might contact you and insist that your deceased relative left behind a debt that needs to be paid. In another variation of this scam, the criminal might attend the funeral service to gather information about you before asking for money to cover an unpaid debt. Someone pretending to be from the funeral home could call you and insist that there are extra charges that didn’t get paid yet.

Protect Yourself: For all these attempts, refuse to send money immediately and ask for written documentation of the expense.

Government Imposter Scams

You might receive phone calls from people pretending to be from the IRS or Social Security Administration that demand immediate payment of unpaid taxes or ask for personal information in order to continue your Social Security or Medicare benefits. The scammer could be using a technique called spoofing which makes it appear as if the incoming phone number is legitimate. The caller is likely to ask you for information or demand you make a payment, which might need to be in the form of a gift card.

Protect Yourself: “These government agencies will never initiate contact with people through a phone call, so you can be sure that the person calling you is a scammer.

Grandparent Scams

In this scenario, a person will pretend to be the grandchild of the person who answers the phone and ask for money. The caller might claim they are having an emergency, such as a car accident or problem with the law, and don’t want anyone to find out. They might ask you to send them money or gift cards.

Protect Yourself: Setting up a code word for your grandchildren to use in a real emergency is a good thing to do.

Internet Scams

If you share information about yourself through social media, you could be targeted by scammers online. Internet scammers can find out personal information about you that is available online and use that to craft a scenario that might motivate you to provide funds or share more information.

Protect Yourself: If you receive a message that asks you to click on a link or share details about your identity or make a payment, press “delete.”

Frauds and Scams oh no!

I received a call on my landline this morning about 10:30 AM that started “New customer” and went on claiming to be working in the security and fraud department of your bank or credit card company. Evidently, I had purchased something at 5:30 AM that they thought was suspicious and asked me to phone a number to verify the purchase. I didn’t phone because I am not a “New customer” This is a fraud, once you phone back they then ask if you’ve made a particular purchase; once you reply that you haven’t, they assure you they will credit your account for the amount. The fraud works as follows:

To verify the credit, the caller recites your home address (correctly) and says you can call the 1-800 number on the back of your card later if you have questions. Finally, they ask you to prove that you are in possession of the credit card by asking you to read out the three- or four-digit CVV (Card Verification Value) security number on the back of your card. After you do this, they respond that you are correct, thank you and hang up.

Unfortunately, the caller now has all the information required — your name, address, card number and CVV — to commit fraud.

Here are a few other versions of the scam:

·         Call-back request: The caller may ask you to call the 1-800 number on the back of your card to prove to you the call is legit. When you hang up, however, the call is not immediately disconnected because there is a 5 to 25 second disconnect delay on landline calls in Canada. To really fool you, the caller even plays a recording of a dial tone to make you think you are placing a new call but — make no mistake — the scammers are still on the line. When they “answer” your call, they redirect you to an imposter who may ask you to transfer funds to an external, supposedly “safer”, bank account (that belongs to them) while the “investigation” is taking place.

·         Transaction-review request: Some victims are duped into providing remote access to their computers and online banking records so the “investigator” can review any suspicious transactions.

·         Investigation-assistance request: Other victims are asked to “help” catch the criminal by accepting a deposit and transferring on it to another account. The deposit, however, is fake — which means victims end up transferring their own money to the scammers.

So, how did the caller get your name, address and/or credit card number to begin with? Unbelievably, there are lead lists for sale online that contain this information for marketers. Unfortunately, criminals can purchase the lists as well. Other methods include going through your garbage or mailbox for credit card statements, hacking companies that have your card information, or through phishing scams.

 

It is "Free" or so you thought

Have you ever been tempted to try a new product or service on a “free trial” The nation’s consumer protection agency, wants you to know that some companies use free trials to sign you up for more products – sometimes lots of products – which can cost you lots of money as they bill you every month until you cancel.

Or, the “free trial” might come with a tiny shipping and handling charge.  You think you’re only spending a few dollars, but you’re really giving up your credit card information, ending in much higher charges after the trial.

Other “free” plans enroll you in clubs or subscriptions.  For example, a company might offer you an introductory package of free books, CDs, magazines or movies. If you sign up, you may be agreeing to enroll in a club that will send you more products and bill you until you cancel, or to a subscription that’s automatically renewed each year.

So how can you avoid the costs that might be hiding in free trials?

•      Research the company online.  See what other people are saying about the company’s free trials – and its service. 

•      Find the terms and conditions for the offer. That includes offers online, on TV, in the newspaper, or on the radio.  If you can’t find them or can’t understand exactly what you’re agreeing to, don’t sign up.

•      Look for who’s behind the offer.  Just because you’re buying something online from one company doesn’t mean the offer or pop-up isn’t from someone else.

•      Watch out for pre-checked boxes.  If you sign up for a free trial online, look for already-checked boxes.  That checkmark may give the company the green light to continue the offer past the free trial or sign you up for more products – only this time you have to pay.

•      Mark your calendar.  Your free trial probably has a time limit. Once it passes without you telling the company to cancel your ‘order,” you may be on the hook for more products.

•      Look for info on how you can cancel future shipments or services. If you don’t want the, do you have to pay? Do you have a limited time to respond?

•      Read your credit and debit card statements. That way you’ll know right away if you’re being charged for something you didn’t order.

•      If you see charges you didn’t agree to, contact the company directly to sort out the situation.  If that doesn’t work, call your credit card company to dispute the charge. Ask the credit card company to reverse the charge because you didn’t actively order the additional merchandise.

Where to complain

If you’ve been wrongly charged for a free trial offer, report it to the FTC, your local or state consumer protection agency, and file a complaint with the Better Business Bureau.

The 10th fraud used against seniors

The 10^th fraud used against seniors is the Income Tax Scams

Scammers, who pose as Canada Revenue Agency agents, will use emails, phone calls and regular mail and even text messages to get money and personal information. Often the phone calls seem urgent and the scammers will use aggressive language or threats to scare people into making payments. 

To protect yourself from this type of fraud, do not respond; report the call to the police. My simple rule is that if the phone rings, and I do not know the number, I don’t answer the phone. If you receive an email from Revenue Canada, delete it. Remember that Revenue Canada will only contact you by letter. 

If you receive, either by telephone, mail, text message or email, a communication that claims to be from the Canada Revenue Agency (CRA) requesting personal information such as a social insurance number, credit card number, bank account number, or passport number, it is a fraud.

These communications may insist that this personal information is needed so that you can receive a refund or a benefit payment. The communication could also involve threatening or coercive language to scare individuals into paying a fictitious debt to the CRA. Other communications may urge you to visit a fake CRA website where you are asked to verify their identity by entering personal information. These are scams and you should never respond to these communications or click on any of the links provided.

To identify communications, not from the CRA, be aware of these guidelines (taken from Revenue Canada Website).

If you receive a call saying you owe money to the CRA, you can call us or check My Account to be sure.

If you have signed up for online mail (available through My Account, My Business Account, and Represent a Client), the CRA will do the following:

• send a registration confirmation email to the address you provided for online mail service for an individual or a business; and
• send an email to the address you provided to notify you when new online mail is available to view in the CRA's secure online services portal.

The CRA will not do the following:

• send email with a link and ask you to divulge personal or financial information
• ask for personal information of any kind by email or text message.
• request payments by prepaid credit cards.
• give taxpayer information to another person, unless formal authorization is provided by the taxpayer.
• leave personal information on an answering machine.

Exception:

If you call the CRA to request a form or a link for specific information, a CRA agent will forward the information you are requesting to your email during the telephone call. This is the only circumstance in which the CRA will send an email containing links.

When in doubt, ask yourself the following:

• Did I sign up to receive online mail through My Account, My Business Account, or Represent a Client?
• Did I provide my email address on my income tax and benefit return to receive mail online?
• Am I expecting more money from the CRA?
• Does this sound too good to be true?
• Is the requester asking for information I would not provide in my tax return?
• Is the requester asking for information I know the CRA already has on file for me?

The 8th and 9th Frauds used against seniors

The 8th fraud used against seniors  are the Anti-aging Scams

Anti-ageing scams take many forms and the wording and specifics of the scams change all the time. If a product claims to reduce ageing, or make you feel or look younger, it is more likely a scam. The following is taken from an article, Some Notes on "Anti-Aging" Programs by Robert N. Butler, M.D.

Some individuals and organizations would have us believe that ageing is not inevitable and that "immortality is within our grasp." These same individuals believe that there exist well-validated biomarkers of ageing that can be used to design individualized "anti-ageing" programs. This approach is expensive and includes poorly validated interventions such as improving antioxidant status and replacing growth hormone (GH), testosterone, dehydroepiandrosterone (DHEA), and melatonin.
Although growth hormone levels decline with age, it has not been proven that trying to maintain the levels that exist in young persons is beneficial. It is conceivable that age-related hormonal changes may serve as useful markers of physiological ageing. However, this has not been demonstrated experimentally for either humans or animals. Although hormone-replacement trials have yielded some positive results (at least in the short term), it is clear that negative side effects can also occur in the form of increased risk for cancer, cardiovascular disease, and behaviour changes.
It might even turn out that lower growth-hormone levels are an indicator of health. Research findings indicate that mice that overproduce growth hormones live only a short time, suggesting that growth-hormone deficiency itself does not cause accelerated ageing, but that the opposite may be true.

 Remember there is no way to reverse ageing no matter what you may read.

The #9 fraud used against seniors is the Cemetery, Funeral and Cremation Scams.

Scammers read obituaries and take advantage of the grieving survivor by claiming the deceased owes an outstanding debt and then extorts money to settle the false claim.

Disreputable funeral homes prey on the unfamiliarity of family members with the considerable costs of services by adding unnecessary charges to the bill.

To protect yourself from this fraud, remember that it’s hard to make rational business decisions in grief. If there is a calmer, more stoic family member who has good business sense, it may be best for this person to make the funeral arrangements.

The 7th fraud used against seniors.

The 7th fraud use against seniors is the Shady Contractor Fraud

This fraud is used to swindle both homeowners and renters. The first variation is a Home Repair Rip-off.  Fraudulent contractors may knock on the door and offer a special price because (they are working in the neighbourhood, they are new to the area, etc.). They may offer the senior a discount to use the home to advertise their product. A contractor may conduct a free inspection and then suggest you need MAJOR repairs (e.g. due to asbestos, radon, termites or structural flaw). The free inspection may be in order to plan a theft. The free inspection scam is also used at garages where a free inspection is offered for your vehicles and then it is discovered that you have major repairs which you pay for but they are not done.

In this home Repair Rip-off scheme, the contractors may, demand a large down payment for materials. They will be reluctant to give you a written contract, or they may take your deposit and never return to do the work.

In some cases, the contractor will start and then do only part of the work and then refuse to continue unless you pay more. If you are not careful in checking the contractor may do shoddy work or will tell you they are using high standard materials when in fact they are using inferior materials. Some contractors will complete the job but significantly overcharge for unforeseen expenses.

A second variation of this fraud is called the Public Utility Imposters.

The fraud works this way. Two people arrive at your door claiming to be from a public utility company inspection service.

One asks you to accompany her to the water-metre or electrical panel elsewhere in the house while the other one waits by the door or asks to use the washroom.

To protect yourself from this type of fraud always ask for ID and if no ID is produced call the police. If you talk to a contractor ask to see their business license and insurance coverage. Always ask for at least 3 to 4 references and check them. Check the name of the company and the name of the contractor with your local Better Business Bureau. If any work is going to be done on your house or apartment, always get the proposal in writing and compare with other companies and do not be pressured into signing anything.

If you are approached by someone claiming to be from a Public Utility company, to protect yourself, tell them you will arrange an appointment for another time; do not let them in. Immediately contact the utility company to check the legitimacy of the visit. If it was not legitimate, contact the police.

Frauds used against seniors 5 and 6

The fraud artists are merciless and without conscience. Victims of these cheaters are so embarrassed to admit they have been so gullible that they refuse to report what happened to them. The cheaters count on this. Don’t forget that you what happened to you probably has happened to lots of people. Sometimes the losses are so large that the victim has to adopt a different lifestyle. 

The number five used against seniors is the Counterfeit Prescription Drugs fraud.

Many seniors cannot afford some of the medications they are prescribed. To reduce costs, many will search the Internet to find cheaper drugs or more specialized medicines. Fraudsters set up fake online websites to cater to this need. Seniors pay for medications that do not work.

To protect yourself from this fraud, check out sites and be careful of fake sites where you pay for something and it never arrives. If you use online pharmacies, use only the ones that have a storefront as well. For example, Costco Pharmacy online (Canadian site).

The sixth fraud used against seniors is Charity Cheaters.

The fraud works as follows, callers claim to represent charities to help pay for disaster recovery or to provide aid for victims of a natural or man-made disaster. After a natural disaster, the fraudsters will create fake websites, go fundme pages and other online fake sites to get people to give money to help those affected by the disaster. Many seniors are very giving people and they want to help so they will respond to a request to help.

To protect yourself from this type of fraud, and you receive a phone call requesting money, ask that they send you the information by mail, not by email, and do not give credit card information. Also, ask if you will get an official donation receipt for tax credits.

Frauds used against seniors 3 and 4

The more you know about frauds and scams, the less chance you have of becoming a victim. Technology is playing a bigger part in fraud schemes, but many seniors do not have the latest technology but we do use email.

The number three fraud used against seniors is email fraud.

In the first variation, a senior will receive an email that mimics trusted business and government agencies, asking for personal information.  In the second variation called Spearphishing, an email appears to be from business or person you know as the email starts with “Hi (your name)” instead of “Dear sir/madam.” The email will ask for information or it will have an attachment which it wants you to open. If you open the attachment your computer will be infected with spyware or malware. (These are computer programs that can search for and send personal information to the fraudster.)

To protect yourself from giving away personal information, remember that no genuine financial company will ask you to provide sensitive information online (or by phone). Be smart, verify any requests from a friend to send passwords or other personal information. Also, when you get a notice to update your software, do it.

Fraudsters will also go onto your social media accounts to get information, so keep secrets secret – limit what information you put on social media. It is a good idea to change passwords often; avoid using variations of just one. Avoid these common passwords that are used by seniors both for their PIN and computer passwords:

·       Birthdates

·       1234

·       Phone numbers

·       Addresses

·       Social Insurance Number

·       Your spouse’s or dog’s name!

A third variation of the email scam is a Travel Scam. These can also be done by Telephone, but as they are more commonly attempted through email now than telephone, I am putting this fraud here. The fraud works as follows:

 A senior gets an email or a telephone call claiming that they have won a free vacation and they don’t remember entering any contest!

Or the senior went to a fair or an exhibition and completed a prize form. A few days later they receive a phone call or an email stating they have won and all they have to do is give some credit card or personal information or cash to hold the prize.

To protect yourself from these frauds, do not let anyone pressure you into an immediate agreement. In BC, if you have signed up for a travel club or holiday certificate, you have 7 days to cancel. Check your location, there may be similar laws in place to protect yourself.

Here are a few tips to protect yourself from email and other frauds.

Hover your cursor over any link you are asked to click on before you click; then look at the URL to confirm that it is a legitimate address

e.g. You get an e-mail from your municipal government office but when you hover over click here, what you see in the bottom left screen is http://smithjones.ca/securemessage.html

What you should see is https://nameof municipality.ca/

If the address does not look ok to you DO NOT CLICK – unless you are 100% sure the address is legitimate. I recommend that you delete the e-mail immediately. 

If you buy online make sure you are sending credit card information to a secure site. This is one way to make sure the site is secure:

On the page where you enter your credit card information, the URL in your browser's address bar should begin with “https://” not HTTP://.  Hyper Text Transfer Protocol Secure (HTTPS) is the secure version of HTTP, the protocol over which data is sent between your browser and the website that you are connected to. The 'S' at the end of HTTPS stands for 'Secure'. It means all communications between your browser and the website are encrypted.

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The fourth largest fraud used against seniors is the Sweepstakes and Fake Lotteries Scams

The senior receives an email or a telephone call that tells the senior that they are a WINNER!!!! – all they have to do is:

• Pay a shipping fee and taxes

• Buy something

• Give your credit card number

• Attend a presentation

Generally, the prize is of little value; it is worth less than you pay to get it on your own, or it never arrives.

To protect yourself from this fraud, do not buy lottery tickets through telephone solicitation. Remember, if the win is legitimate, you do not have to purchase something nor must you pay to get the prize or winnings.

Frauds used against seniors 2

There is a lot of information about frauds and scams and how to protect yourself. What I found is that there is not a great deal of information about the frauds and scams that target seniors. So, as I was working on creating a workshop on this topic for seniors, I thought I would add the information to the blog. The more you know about frauds and scams, the less chance you have of becoming a victim.

Financial Fraud is the number two fraud used against seniors, and there are many variations of how this fraud works. The first scam is called a Pyramid Scheme

This fraud works as follows:

The senior is recruited and invests in a scheme, and is initially very successful and the fraudster starts to pressure the senior to recruit new investors who are expected to bring in more investors. Recruiting newcomers is more important than selling products. Investors who get in early take their profits from those who join later until finally there are no new investors and the most recent people to join lose their money.

The second variation on this fraud is called a Ponzi Scheme. This is very similar to the Pyramid Scheme. It works as follows:

The fraudster entices the senior by offering consistently higher returns than one would normally make at the bank or in the stock market. The senior places an investment with the fraudster and is encouraged to invest more and more of their savings. They are also encouraged to tell friends and family about the investment opportunity. What the fraudster is doing is paying returns to early investors from their own money or the money paid by subsequent investors rather than from genuinely earned profit.

The third variation of Financial Fraud used against seniors is called the Cryptocurrency Scams

The fraud works this way:

The senior is notified that they have won a prize, and all they have to do is pay a shipping fee and taxes. They may be told they have to pay a fine due to an error in their Income Tax. The fraudster asks you to send the money using Bitcoin. Once their cash is converted to Bitcoin they cannot get it back.

To protect yourself against Cryptocurrency, do not convert your cash to Bitcoins to give to anyone.

The fourth variation of Financial Fraud used against seniors is called the Inheritance Scheme

The fraud works this way:

The senior is told that someone very rich has died and they are in line to receive a huge inheritance (details vary). All they have to do is provide bank account details . . . and maybe pay a fee for administration or taxes.

To protect yourself against the Inheritance Scheme, if you are asked for personal information or bank information or asked to send money, don’t.

The fifth variation of Financial Fraud used against seniors is called the Cheque Overpayment Scam

Many seniors may have to sell goods to make expenses and the fraudster asks the senior if they would accept a cheque from the “them” in excess of the amount owed. The pitch may be similar to this, “I love the (item) and would like to buy it, however, I am short on cash, but I just received my paycheck from (names a legit company). The fraudster shows the senior the check and says, “I can give you my check and you can give me the difference back to me.” The fraudster asks the senior to go to his/her bank and deposit the check and give the excess funds back to the purchaser. In about six weeks the check is returned for not enough funds or is a rejected as it is flagged as a fraud and the senior is out the item and the money.

To protect yourself when you are selling “stuff”, never let the buyer pay more than the agreed price by cheque and then ask for the balance in cash.

The fifth Financial Fraud used against seniors is a Real Estate Fraud

The fraud works this way:

A fraudster assumes the identity of an individual homeowner and then uses that false identity to:

·       Assume the title on your home

·       Sell the property

·       Obtain a mortgage on your property

·       Obtain a mortgage or other properties in your name

To protect yourself from this fraud, you could take out Title Insurance. In my community, I can buy title insurance for a $500,000 home, for around $300 payable only once with no deductibles and no additional annual fees, check this out in your community as each area is different.

Frauds used against seniors 1

There is a lot of information about frauds and scams and how to protect yourself. What I found is that there is not a great deal of information about the frauds and scams that target seniors. So, as I was working on creating a workshop on this topic for seniors, I thought I would add the information to the blog. The more you know about frauds and scams, the less chance you have of becoming a victim. Over the next few posts, I will highlight the top 10, (in my opinion) frauds against seniors and how to protect yourself from falling victim to the fraud.

There are many reasons why seniors are vulnerable to fraudsters and scam artists. Here are a few:

·       As a group, we are too trusting; too polite as we were raised in a culture that valued these attributes and so we believe in the best of people.

·       Many seniors are isolated and look forward to any type of interaction with others, so when we start to get phone calls and letters, we welcome them. But after a while, we become worn down by calls and letters so we give the callers and letter writers what they want.

·       Many seniors do not have the experience to be aware that they are a victim of a fraud or a scam.

Fraudsters are very, very convincing; cheating people is their profession and they are well-trained. What follows are the frauds and scams used almost exclusively against seniors. 

The number one fraud is a telephone fraud called, The Grandparent Scam. This fraud is a variation of a class of frauds called Telephone and Email Scams.

What happens is a senior receives a telephone call, and the voice is garbled or hard to hear. The caller identifies themselves as a grandchild or a nephew or niece and talks about the bad connection and then says something along the following lines:

 “Hi, this is your favourite grand(son)(daughter) or nephew/niece.  I need you to send me money (for a flight ticket, rent or bail) but please don’t tell mom.  She’ll be so disappointed in me.”

If you receive a phone call with any request to wire or send money it should immediately raise a red flag, so hang up and report the fraud to the police.

There is a variation of this phone scam called the Bogus bank inspector. The senior is asked to withdraw a large amount of cash from your account to use as evidence. The senior is told not to tell the staff why they are withdrawing money. They are asked to meet the “investigator” at a pre-determined destination where the money is handed over for investigation.

Once the money changes hands, the senior is instructed to return home and wait for a phone call confirming that the money has been re-deposited . . . no call ever comes and they never see their cash again.

Seniors can take steps to protect themselves from this fraud.  My rule is simple, if you have caller ID and do not recognize the number, let it go to voicemail. If you make a mistake and answer the phone, politely say, “I am not interested!” and hang up.

Never give personal information over the phone. Take the time to register on a “Do not call” list.

Protect yourself from Frauds and Scams

To avoid being scammed you have to remain diligent and follow these steps: 

• Assess the validity of all messages that you receive from people and business that you do not know. That includes any unsolicited phone calls, people knocking on your door, emails sent you—even those that look like they are from a company you do business with, or family and friends—and letters received in the mail that look like they are official.
• Any emails and links sent to you that seem off should be checked first, by rolling your cursor over them with your mouse before actually clicking on the link. Look at the destination URL is to see if it looks legitimate or not.
• Scammers will also pose as imposters from businesses or organizations and call or approach you in person. The Consumer Financial Protection Bureau (CFPB) recently warned people about scammers posing as CFPB employees.
• Criminals will go to great lengths to try to pressure you with demands for money or payments. If you feel you are being victimized, make sure to report the scam to the proper government agency, your local Better Business Bureau office, and your local police department.

Here are some resources in Canada to help
PhoneBusters: 1-888-495-8501 www.phonebusters.com  
Canadian Antifraud Centre: 1-888-495-8501 www.antifraudcentre.ca
Canada Revenue Agency: 1-800-267-2384 

www.cra-arc.gc.ca/charities
Better Business Bureau of Mainland BC: 604- 682-2711 http://mainlandbc.bbb.org

Frauds and Scams Part 4

Scams are repeated because they work. The ones that work are often driven by financial life moments such as taxes, holiday shopping, and utility scams. Identity thieves and scammers often try new twists on old scams that worked in the past. So far this year, a number of different and new scams have made the news, listed here in alphabetical order, not by ranking.

Tax Prep Scam

Not only are U.S. taxpayers the targets of scammers this tax season, so are the tax professionals that prepare tax returns. Tax fraud is big business for fraudsters that can steal the tax preparers information and turn around and sell it on the dark web for money.  This year scammers are sending a lot more phishing emails in an attempt to gain access to the accountant’s computer. By doing so, the scammer can get access to that tax professional’s client list and computer IP address to file fake tax returns on their behalf. Once submitted, the scammer will have the refund check sent to an address that they can pick up the check.

Tech Support Fraud

In 2017 there were 11,000 complaints related to tech support fraud that resulted in claimed losses of nearly $15 million – an 86% increase in losses from 2016. These tech support scams have prompted the Internet Crime Complaint Center (IC3) to warn consumers about criminals claiming to provide a customer, security, or technical support as a cover in an effort to defraud individuals.  The scam can take place through a phishing email, phone calls, pop-up ad or even a locked screen on your device with a phone number to call to fix. The IC3 offers several tips and guidance on how to handle situations like this and reminds people that legitimate customer, security, or tech support companies will not initiate unsolicited contact with individuals.

Veterans Scams

Fake charity scams are nothing new, and the Veterans Affairs Department and U.S. Postal Inspection Service warn that veterans of the armed forces are particularly vulnerable. The scammers reportedly offer pension buyouts to veterans or ask veterans to donate to a charity that sounds and looks real but isn’t. The scammers use the donations or cash the pension checks.

The scammers will also take the donor’s personal information to create a new fake identity or commit more crimes under that person’s name. According to an AARP survey, 16% of veterans have lost money to fraudsters, compared to 8% of non-veterans.

Frauds and Scams Part 3

Scams are repeated because they work. The ones that work are often driven by financial life moments such as taxes, holiday shopping, and utility scams. Identity thieves and scammers often try new twists on old scams that worked in the past. So far this year, a number of different and new scams have made the news, listed here in alphabetical order, not by ranking.

Porting Scams

The scam called “porting” involves criminals stealing your phone number and your phone service in order to get access to your bank account through confirmation text messages. Scammers start by collecting your name, phone number and then gather any other information they can find about you such as your address, Social Security number, and date of birth.

Then they contact your mobile carrier and state that your phone has been stolen and ask that the number be “ported” to another provider and device. Once your number has been ported to a new device, scammers can then start accessing your accounts that require additional authorization such as code texted to your phone.

Romance Scams

Though Valentine’s Day is over, romance scams will continue to pop up throughout the year. A romance scam typically involves a criminal setting up an account on a dating site with fake information and photos for a profile that is too good to be true.  Once a target has been established, the scam usually escalates to the thief’s unveiling of a money problem. Typical scenarios include the request for funds so he or she can travel to meet you in person or to help a sick relative.

Unfortunately, seniors are the primary targets for romance scams, since they often spend more time alone as they age. Romance scams cost Americans more than $230 million as nearly 15,000 people were conned in 2016, according to the Federal Bureau of Investigation.

Secretary of State Scam

This scam starts when you receive an email claiming to be from Secretary of State Rex Tillerson, who says you’re owed a payment he knows about because of an investigation by the FBI and CIA.  The scam reportedly states that you will receive an ATM card with more than $1 million dollars on it, but first you have to send $320 along with personal information to receive it. The Federal Trade Commission (FTC) says this is false—warning Americans to not fall for this—or anytime you’re told you have won a prize, owe money, or may go to jail.

Shimmer Scams

A shimmer scam is an update on skimming except that thieves are using “shimmers” to target chip-based credit and debit cards. A shimmer is a very thin piece of paper that can read your card number and access your credit or debit card’s EMV chip—the chip designed to help make your card more secure.

A thief will put a shimmer into an ATM and let it collect information from each card that is used, allowing them to then create a non-chip version or magnetic strip credit card. Shimmers have been showing up more recently despite first being reported on in 2015. In 2017, the number of debit cards compromised at ATMs and merchant card readers—typically via skimming devices that capture card data—rose 10%, according to FICO.

Tax Arrest Scam

The Internal Revenue Service (IRS) recently warned the public about “sophisticated phone scams” targeting taxpayers by claiming to be IRS employees. The scammers demand that the victims owe money to the IRS and to pay them promptly or be arrested, deported or have their driver’s license suspended.

Sometimes, the caller becomes aggressive, warning people that a Sheriff or local law enforcement will show up at their door if they don’t pay immediately. The IRS warning also reminded consumers that the IRS will never call to demand immediate payment over the phone, threaten to bring in local police, ask for credit or debit card numbers over the phone, or require you to use a specific payment method for your taxes.