Senior Con Games

While con games have changed with the times, the practice of defrauding consumers of all ages is nothing new. When the target is a senior, however, the stakes have never been higher, say senior care experts. Senior scams are costing older adults their life savings, their homes and even their lives.

From investment fraud to lottery and sweepstakes scams to home improvement schemes, seniors often are sitting ducks for a criminal looking to make fast cash. 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, which represents the highest percentage of any demographic group that year.

What makes older adults so vulnerable to tricksters, scammers and con criminals? It appears that physical and psychological needs are at the heart of this issue, according to research and anecdotes from senior experts.
“Seniors often worry they will outlive their money and are concerned that they might not be able to continue to live the lifestyle to which they have become accustomed,” said Tiffany Alcantara from the Home Instead Senior Care® office serving San Lusi Obispo . “That’s among the concerns that we’ve heard seniors express and one reason we believe they are so vulnerable to scams,” she added. “Some may get caught up in these schemes because they are looking for ways to improve their financial situations.”
Research confirms that criminals may cater to these types of worries. Off the Hook Again: Understanding Why the Elderly Are Victimized by Economic Fraud Crimes, a report prepared just months ago by the Consumer Fraud Research Group for WISE Senior Services and the NASD (National Association of Securities Dealers) Investor Education Foundation, revealed that fraud pitches are tailored to meet the psychological needs of a potential senior victim.

“Audiotapes of pitches showed that the con criminal will use one kind of appeal for the lottery fraud victim that may prey on the fact that person is a widow and feels deprived in life,” the report said. “But con criminals will use a different kind of pitch for the investment fraud victim who is more likely to be male, self-reliant and knowledgeable about finances.”
It was that kind of psychological need that attracted a woman in her late 80s living in a metropolitan area on the East Coast and suffering from dementia to the automobile dealership that sold her a car she could never drive.

Here’s what happened: The woman, unhappy that her driver’s license had been suspended after three accidents, spotted a promotional ad from a car dealership. She called the dealership, and a sales representative arranged for the woman and her 92-year-old husband to be transported to the car lot where they were sold an automobile for $5,000 above the sticker price. Because her hands were shaking, the dealership actually wrote the check for her.

Home Instead CAREGiversSM, who had been hired by the couple’s family to help watch out for them, called the family when they spotted the new car. Home Instead Senior Care then worked with the couple’s relatives to force the car dealership to return the car and reimburse the seniors their money.

“Sadly, seniors and their families must be on guard for cons like this and many others,” said Alcantara. “Families of seniors who sometimes live in other cities will call upon our CAREGivers – who are screened, trained, bonded and insured – to serve as a second set of eyes to help protect their loved ones.”

Because scammers often target seniors who are alone or appear lonely, just knowing that a senior has someone to look out for him or her can be an important deterrent and help prevent devastating consequences. “If a con criminal can call seniors and get them to give up their Social Security number, they can create any type of transaction,” said
Edward Hutchison, program director of the National Association of Triads, Inc., an 18-year-old organization that is part of the National Sheriffs’ Association.

The national organization has spawned 847 state triads, which have created SALT (Seniors and Law Enforcement Together) Councils in their communities. These local chapters, designed to bring together senior volunteers, law enforcement and the community, have 17,000 volunteers who go into the homes and organizations of seniors to talk about safety. The organization, whose mission is overall senior safety, is devoting more of its time to these types of issues. “Within the last three years, we’ve been focusing predominately on senior fraud, scams and elder abuse,” Hutchison said.

“We’ve seen how individuals have taken out mortgages on seniors’ homes and who have filed quitclaim deeds on property and taken over to remove seniors from their homes. Or they open up joint checking accounts with the criminal’s and senior’s name,” he added.

What’s worse, seniors can get on a “sucker’s list” where they continue to be the victims of unscrupulous people. And that can result in legal issues that may outlive even the
senior. One Journal of the American Medical Association study showed that victims of elder mistreatment, including exploitation, have a three times higher mortality rate than non-victims.1 When con criminals infiltrate, tragedy can result for a senior who is often just looking out for the best interests of his or her family. And that consequence can be the biggest crime of all. “Most seniors just want to leave a legacy to their children and grandchildren,” Hutchison said. “Criminals prevent some from doing just that.”

To arrange interviews with local sources about this topic, visit us on the web at www.homeinstead.com/345 For interviews with Ed Hutchison, contact Georgene Lahm at pr@glahm.com. For additional information about the study “Off the Hook Again: Understanding Why the Elderly Are Victimized by Economic Fraud Crimes,” log on to http://www.nasdfoundation.org/research.asp.
1The Mortality of Elder Mistreatment, Mark S. Lachs, MD, MPH; Christianna S. Williams, MA; Shelley O'Brien, MS; Karl A. Pillemer, PhD; Mary E. Charlson, MD; JAMA. 1998; 280:428-432.