Top Five Senior Fraud Scams

According to 2005 statistics from the National Fraud Information Center, 22 percent of telemarketing scam complaints were logged by those over the age of 70. That’s the highest percentage of any demographic group that year. Yet, that could be just the tip of the iceberg. The National Center on Elder Abuse tells us that only one in every 25 financial exploitation cases against seniors is reported. That means there could be in excess of five million senior victims each year. And though seniors represent only about 12 percent of the U.S. population, they account for about 35 percent of all financial fraud victims, according to the Securities and Exchange Commission.

Criminals use many avenues to get to seniors including telemarketing, direct mail, free seminars and the Internet. According to HISC research, here are the five top scams for us to look out for:

1. Sweepstakes scams

A senior is told he or she has won a sweepstakes and all that’s needed is a check to cover the taxes. Or, this individual will receive a fake check for $5,000 and be encouraged to deposit the money and send back $2,000 to cover the taxes. By the time the senior figures out the check is no good, his or her money is lost.

2. Home-Improvement frauds

Criminals will knock on a senior’s door offering to fix a driveway; then they’ll merely paint the pavement black and charge the senior $3,000 for “repairs.” Or a senior will be asked to pay up front for home renovations, never to see the alleged repairman again.

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