Do you know anyone who has been affected by elder fraud?
Seniors are certainly not the only people who fall prey to scams and schemes, but they are attractive targets for fraudsters-for a number of reasons: They often own their homes, have a nest egg of savings, and are more trusting of strangers than younger generations. Plus, elderly fraud victims are frequently reluctant to admit they’ve been scammed because they are ashamed or fearful of being seen as incapable of managing their own affairs. Every year, hundreds of thousands of people of all ages get duped by cunningly deceitful con artists. And according to one study, nearly one in 20 adults over age 60 have been financially exploited at some point in their senior years. However, by arming yourself with information and being aware of common scams, you can take steps to avoid becoming an unfortunate statistic.
Here are 3 of the top scams:
1. IRS imposter scams – this is the top scam that gets reported each year to the Fraud Hotline set up by the U.S. Senate Special Committee on Aging. More than 2.1 million people have been approached by fraudsters pretending to be Internal Revenue Service (IRS) agents. This is typically a phone scam, but it is also among the most common email scams. The con artists claim that the victims owe back taxes and penalties, and unless payment is made immediately, arrest, foreclosure, or other legal consequences could result Victims are often instructed to pay by wire transfer, credit card, certified check, or even gift card. Collectively, Americans have lost almost $65 million to this scam.
How to protect yourself – Remember that the IRS always sends bills to taxpayers through the postal service before calling about taxes that are owed. Legitimate IRS agents will never insist on
immediate payment, ask for banking information over the phone, or threaten legal action against taxpayers. If you get one of these calls or emails, the best thing to do is just hang up or delete the message (without clicking on any links provided in such emails). To confirm whether you really do owe taxes, contact the IRS at 1-800-829-1040.
2. Medicare phone scams – According to a survey by the AARP, scams related to Medicare are a source of concern for most American Adults over age 65. Popular scams involving Medicare feature callers who say:
• You must purchase Part D prescription drug coverage or you will lose all of your Medicare coverage. (The truth is that Part D is completely voluntary.)
• You are entitled to a refund and you need to supply your Medicare number and banking information in order to collect your money.
• You qualify for a free medical device such as a back brace, but you need to provide your Social Security number for coverage verification and give your credit card information to
cover shipping costs.
• You are eligible for additional Medicare benefits, but you need to update your file with Social Security or credit card information.
How to protect yourself – Safeguard your personal information carefully. Most Medicare scammers perpetrate their hoaxes by phone, but some use email or even show up at your door. It’s important to know that real Medicare representatives contact people through regular mail. They will never come to your home uninvited, call you to try to enroll you in a drug plan or ask for payment information over the phone. If you have concerns, call the customer service number found on the back of your Medicaid card.
3. Silent calls and robocall scams – Have you ever answered your phone, only to find there’s no one on the other end? It might simply be a wrong number, but it might also be an automated system testing out phone numbers to see which ones are answered by real humans. What’s more, scammers can easily spoof the number that appears on your caller ID to make it look like the call from a legitimate company or from your local area code (when in fact it might originate overseas).
How to protect yourself – Get on the U.S. National Do Not Call Registry, screen your calls, and don’t pick up I the number doesn’t look familiar. If you get fooled and do answers, just hang up. Be sure not to react to anything in the message (such as a statement like “press 3 to be taken of the list”) as that will probably just lead to more calls. You may also want to look into call-blocking services from your phone provider or companies like Nomorobo. These services can intercept and block calls from numbers that are known to be used by robocallers.
Where to Report a Scam
- The Fraud Hotline – 1-855-303-9470.
- The consumer protection office in Oklahoma can investigate and mediate complaints filed by consumers.
- The Treasury Inspector General for Tax Administration collects complaints about scammers pretending to be IRS agents. Contact 1-800-366-4484.
- The Office of Inspector General of the U.S. Department of Health and Human Services investigates complaints of Medicare fraud. You can file a report online or call 1-800-447-8477.
