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Scammers use confusing stereotypes, it's almost a cliché now that parents give their money to scammers. Unfortunately, few people question this idea, which makes me wonder why older people fall for scams. Maybe it's better to ask, why fool someone?
Some experts suggest that the isolation and intense loneliness experienced by many retirees makes them victims of scams. Others suggest that some degree of cognitive decline may play a role in older adults' greater belief in outlandish claims.
However, it may surprise you that the trope that "elders are always deceived by crooks" is actually a myth. In fact, the annual survey shows that each year, young people fall into the trap of scammers and scammers more often than their parents - losing more money each year to unscrupulous bad actors.
However, people are targeting retirees for scams that attempt to deprive them of their limited funds and income. Therefore, it is very important to protect your assets, avoiding a financial crisis that will be difficult to solve later. Here are the top 12 scams targeting seniors.
Summary
1. Pyramid scheme
Pyramid schemes (or Ponzi schemes) rely on the entry of new participants, whose "investments" are then used to pay off former participants. In many cases, only the promise of easy money is sold, not the actual product. This is what makes pyramid schemes so attractive to many seniors.
In another version of the pyramid, goods are sold by companies that pose as multi-level marketing companies. People tell victims that they can make easy money by selling someone a downline. The inherent disadvantage of a pyramid scheme is that if there are not enough new customers to cover the financial obligations of the scheme for all participants, it eventually collapses.
2. Investment Fraud
In addition to traditional pyramid schemes, there are other investment scams that are regularly tracked by fraud experts. There are many ways unethical scammers plan to get your money through investment scams.
Even savvy investors can fall for fraudulent schemes such as promissory note fraud, where an investor sends an amount in exchange for a written agreement obliging the other party to provide a larger sum of money (principal plus interest ). . certain date. If the signatories really intend to fulfill their obligations, that's fine, but in most cases they don't. You will never see money or scams again. This is another reason to only deal with reputable and licensed professionals with many reliable references.
3. Phishing emails
Anyone can fall victim to phishing emails. In this simple but effective scam, someone sends you an official email asking you to take action to keep your account's reputation in good standing.
The standard version consists of an email from your bank asking you to verify some personal information and providing a handy link that will take you to a website very similar to your real bank's website. But of course, this is not your bank's website, so enter your login details on this fake website. Now the fraudster has full access to your account and can quickly empty it.
4. The Home Renovation Scam
If someone you've never met knocks on your door and offers to renovate or decorate your home, be careful. In home renovation and repair scams, people ask the victim to pay a certain amount of the total cost in advance. Employees leave unfinished jobs, go wrong, or don't finish at all, and "employees" disappear with your money. Reputable home improvement companies usually don't go door to door asking for help. Always ask for local references and check the company's online and local presence.
5. Health/Insurance Fraud
Let's say you receive a call or email from someone claiming to be Medicare or an insurance company. In this case, it is very easy for someone to ask for your personal information. They can steal your identity with this information. Or, they may offer to send you free medical supplies if you provide your credit card number for shipping and handling.
Once you have given your information to someone with malicious intent, it is almost impossible to avoid negative consequences. It is easier to establish strict rules so that such information is never leaked over the phone.
6. Grandparent trick
Of all the retirement scams, the grandparent scams are the most heinous. Because these scammers take advantage of the natural love of grandparents and take care of their family members.
Typically, these scams start with a late night call from a child claiming to be an annoying grandchild. For example, they may claim to have been kidnapped or illegally detained and need the help of their grandparents by sending large sums of money (sometimes cash, sometimes bank transfers, sometimes gift cards) to unknown in some places. Place and time.
Of course, your nephew is fine. But late-night calls and high-pressure environments can create the impression of real urgency and defy suspicion.
7. Fraud with the IRS
Each year, the IRS publishes a Dirty Dozen list of the 12 biggest tax scams that target taxpayers. One of the most common IRS scams is a variation of identity theft, where a caller or emailer poses as an IRS agent and asks the person to "verify" (i.e. say to provide) personal information such as full name, date. birth and guarantee number or tax code.
It gives fraudsters everything they need to steal victims' identities and make bulk purchases on new credit card accounts that victims won't know about until they check their credit reports or received silly letters from debt collection companies.
8 Jury Tampering
A call or email could mean you're in big trouble for ignoring a jury summons you never received. Of course, you can avoid prosecution by paying your fine today by credit card or bank transfer. Alternatively, the caller or sender may offer to disclose sensitive personal information that could potentially steal your identity. US courts will never ask you to pay a fine or disclose your personal information in this way.
Incidentally, this scam is so widespread that the US federal court system has warned the public about how it works and how to avoid it.
9. Utility Fraud
A variant of the fake debt collection scam is the late night scam, where you can be the victim of a high pressure phone call or even a personal visit from someone posing as an employee of the company. utility company threatening to cut off your power. immediately if you do not pay the overdue amount. They can also manipulate your phone's caller ID feature to make it look like the utility company is actually calling you.
Your best bet is to end the call or postpone the trip and call your utility company's help desk yourself to find out how much you owe them.
10 fake charities
This scam tries to take advantage of the natural compassion and generosity of people who want to help in some way. Whether in response to a recent natural disaster or a more localized charitable need (such as helping to fight disease or poverty), fake charities are unfortunately numerous and do not hesitate to solicit donations for retirees. and others. They can request cash at the front door or credit card transactions (or bank transfers) over the phone.
Use the IRS website to research tax-exempt charities and see how they rank on monitoring sites like Charity Navigator before taking any action.
11. Lottery and lottery scams
If you get a phone call congratulating you on having recently drawn or won the lottery, but don't remember entering such a contest, consider that a huge red flag. You may even receive a check in the mail showing your so-called winnings, only to find that your bank refuses to honor the bogus check and asks you to pay fees or even taxes on the loss. Or, you may be asked to provide your credit card number for processing or tax payment in advance.
This is not how legitimate lotteries work.
12. Counterfeit health and wellness products
From fake drugs to bogus anti-aging skincare, you can fall victim to health and wellness product scams by staying up all night in front of the TV or surfing the internet. A common or "optional" variation of this scam is a big "subscription" or scheduled delivery contract. This is when you may receive regular shipments of these counterfeit products, as the scammers charge your credit card exorbitant fees, plus shipping of course.
Save your money for retirement
The specifics of each specific fraud may vary from case to case. However, there are some high-level features that you should pay attention to in order to avoid being scammed or scammed in the first place. Remember that it is easier to avoid a scam than to escape its clutches later.
To avoid retirement scams and protect valuable funds and other assets, develop the habit of being skeptical of an emergency involving money, other assets, or investments.
Question any deal that seems too good to be true. Also ask any requests that seem particularly serious or urgent, such as grandparent scams. Now decide to take the time to thoroughly investigate the situation, including any background checks that might be helpful.
Finally, don't be afraid to run scripts from a trusted friend, colleague, or family member. It never hurts to get a more objective second opinion, and it can save you from losing valuable assets to fraud.
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