by Karen Stegenga
Fraud schemes and con games take many forms, including fake check scams, phony sweepstakes, foreign lotteries (Canadian, Spanish, etc.), chain letters, fake charities, work-at-home schemes, discount travel, or home repair. The criminals who perpetrate these crimes are not easy to spot, as they are friendly, persuasive, and experienced in gaining trust. Some people feel that they are too smart to fall for a fraud scheme but the fact is that people from all walks of life lose billions of dollars each year to these criminals. Although consumers of all ages are potential victims of fraud, older adults are consistently the most targeted age group.
No matter what form the fraud, scheme, or con game takes there are similarities in their methods of operation. The next time you receive a call or letter, watch for these warning signs:
- You have to pay money in advance for fees or taxes to collect your prize; some callers even pose as federal tax agents or agents with U.S. Customs.
- You have to purchase something such as a magazine to collect your prize.
- You are pressured into making a decision with phrases like "act now" or "today only"
- You won a contest or lottery you did not enter
- You are offered a "low risk, high profit" investment opportunity
- Someone comes to your door and offers you a discount price on home repair services
- Someone, possibly a 'detective' or 'bank executive', asks you to withdraw money from your bank account to catch a dishonest bank employee
- You request further information about a company or charity and they refuse to provide it
If you unknowingly participate in a fraud scheme you will find that your mail and telephone calls will increase as your name is passed around to many other con artists. Protect your personal information and remember the advice that we give to children: "don't talk to strangers." It's best to hang up on these callers, shred the offers you receive in the mail, and take the following steps to safeguard your money:
- You receive a check in the mail that represents your winnings but you're asked to wire a portion of the check back to the sender to pay fees.
- Do not participate in foreign lotteries; participation is prohibited by U.S. federal law.
- Do not give personal information over the telephone unless you initiated the call.
- Beware of e-mails that request personal information.
- Do not be pressured into making a decision.
- Do not pay money in advance to claim a prize.
- Be cautious of home repair contractors who come to your door offering a great deal; use licensed contractors only.
- Be cautious of loans and credit card offers that require an advance fee.
- Investigate a company before you do business with them.
- Research a charity before you donate money. Call the charity and request a financial statement that shows what percent of your donation is distributed to the needy.
- Do not let someone into your home until you verify their identity.
- Do not sign blank forms or forms you don't understand.
- Beware of people who approach you with offers of money or who have hard luck stories.
Many victims of fraud are reluctant to report it to authorities because they are embarrassed, ashamed or afraid of what their family and friends will think. But those who choose to report these crimes help prevent others from being victimized and help law enforcement put these criminals out of business.
Please report fraud to law enforcement or to one of the following agencies:
Arizona Department of Insurance
602-364-4457
Arizona Corporation Commission -Securities Division
602-542-4242
Registrar of Contractors
602-542-1525
Attorney General Consumer Information Complaints
602-542-5763
U.S. Postal Inspection Service
Mail fraud
1-800-275-8777
www.postalinspectors.uspis.gov
This article is not intended to replace sound legal advice. Elder law attorneys are a valuable resource and have the experience to respond to more specific inquiries in this area.
Used with permission by:
Area Agency on Aging-Region One
Elder Abuse and Late Life Domestic Violence 2008
Phoenix, Arizona
Author: Karen Stegenga, Crime Prevention Officer