Welcome to the Senior Scam Alert, a column designed for seniors, in order to inform them of scams and cons that are regularly committed against senior citizens. Seniors are victims of cons more often than any other age group. Seniors tend to be more trusting, and less apt to question someone who portrays himself as an expert. Beware of Door-to-Door Repair Scams! People over 65 are targeted for these scams more than any other age group, and account for 56% of all fraud cases, even though they are only about 13% of the US population. There are hundreds of variations on this scam, but here are a few examples. Individuals who grew up in the 1930s, 1940s, and 1950s were generally raised to be polite and trusting. Two very important and positive personality traits, except when it comes to dealing with a con-man.- Federal Trade Commission 1. Snow-Shoveling Scam
Two nice-looking repairmen seek out an elderly couple, and knock on their door, offering snow-shoveling service for the winter. The couple is given an official-looking flyer with a business number and physical address. The cost of the service is $500, payable immediately, but they are offered a substantial discount if they pay the fee upfront. The couple gladly pays the fee, which is usually about $400, and the repairmen promise to come back tomorrow with their tools and begin working. A week passes and the unsuspecting couple tries the number on the flyer, which belongs to a dry cleaning business downtown. They are victims of a crime, and their money is long gone. 2. Tree-Trimmer Bait n Switch
This scam is a classic bait and switch scam. An official-looking contractor in a hardhat will come to the door, and claim to be from PG&E, or the cable company. They say that the electric company must trim trees in the backyard, and they need the homeowners authorization in order to do so. The contractor will ask the homeowner to point out which trees are his, and then go into a lengthy conversation about tree-trimming and power lines. In the meantime, his accomplice has entered the house, and is ransacking all your valuables. In ten minutes, thousands of dollars in cash, jewelry, and silver are gone, and the homeowner is clueless to the crime until he goes back into the house much later. 3. Funeral and Cemetery Fraud
This con scheme may be the most shocking of all. Seniors are conned into buying expensive funeral plots, caskets, or other funeral services. Often, they are told that they are helping by paying for funeral services in advance, thereby avoiding an unwanted future burden on family members. Often, the contracts are confusing, and the plots and caskets are sold at highly inflated prices. Many times, plots will be sold in parking lots, where no actual plot exists. Sometimes, buyers are told they are purchasing two side-by-side plots, when in fact they are purchasing a single plot, and two caskets will be stacked on top of each other. These scams are successful, because the issue of funeral costs is so sensitive for seniors. They do not want the burden of their funeral costs to cause more heartache to an already difficult decision. The truth of the matter is that almost 30% of pre-paid funeral plots are never used, and the money is often completely wasted. A better investment would be a stable CD or government bond, where the money could be earmarked for funeral expenses when the need eventually arose. Funeral wishes should be outlined in writing and notarized, then given to several family members and your family physician. Four Essential Tips! Here are some essential tips that can protect you from fraud. If you do need a handyman, use the phone book, and find a licensed contractor. Do not pay for materials and labor before work begins. If a down payment is required, it should not be more than 10%. This is the maximum in many states.
If workers will be in your home, secure your personal documents, such as passports and social security cards, and put away any jewelry and other valuables.
Always lock your doors.
Beginning January 1, 2006, all home improvement contractors engaged in the business of selling or making home improvements must be registered with the Division of Consumer Affairs. Registration began in May of 2004, and many contractors have already registered with the State. Violators are subject to civil fines of $10,000 for the first offense and $20,000 for additional offenses, and possible criminal prosecution. Look for a contractors registration number before entering into a contract. If you feel that you have been a victim of fraud, do not be ashamed. Report it! You can report fraud at the address below, and also online at www.FTC.gov. Consumer Response Center
Federal Trade Commission
Washington, DC 20580
(202) FTC-HELP [382-4357]; TDD: (202) 326-2502 You can also call the Attorney General's Senior Hotline at 1-800-660-7787. Seniors also may call that number if they would like to be placed on the mailing list for The Senior Advocate, a consumer newsletter produced by the Senior Volunteer Assistance Program. Sources: Federal Trade Commission, US Census Bureau, Ohio State University Extension Senior Series, Federal Bureau of Investigation |
