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Fraud Artists Target The Elderly
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Subject: AGING; CONSUMER: FRAUD ARTISTS TARGET THE ELDERLY
FRAUD ARTISTS TARGET THE ELDERLY
(Consumer News 04/94)
by Jeanne Mackin
"Three-quarters of all people who report problems with fraud are
elderly," says Lois Morton, consumer economist with Cornell Cooperative
Extension. "Fraud is a growing problem for the elderly and one which they
need to be aware of, so they can protect themselves."
There are many reasons why con artists target the elderly. Older
consumers, especially those living alone, may be lonely and willing to
listen to, and trust, persuasive sales pitches. They may be facing
difficult circumstances such as home repair problems and serious health
issues that make them vulnerable to promises of assistance.
But there is one major reason why older consumers should be wary of
possible fraud: one bad decision can jeopardize their financial well-being
and, perhaps, their health as well.
Eighty percent of people aged 65 and older have at least one major
health problem and spend much of their budget on health care. Seventy-one
percent of the elderly own their own homes, many of which are of pre-1940
vintage and need serious repair and maintenance. Those two factors alone
can make the elderly vulnerable to fraud tactics such as these:
- A "city inspector" arrives at the home, stating he needs to check the
plumbing, furnace, or wiring, and when problems are found states that he
will call a "friend" to make the repairs. The work is overcharged and done
poorly, if at all.
- The older consumer receives in the mail newspaper clippings about a
new miracle health product with a "personal" note saying, "Try this! It
works!" But when money is sent, the product never arrives, is overpriced,
or is useless, if not just plain harmful.
- A product demonstrator arrives at the home and asks the resident to
sign a paper just saying that the demonstrator visited. In fact, the
trusting consumer, who hasn't read the form, signs a contract ordering the
product.
There are dozens of such scams, with new ones being invented every
day, and they cost the elderly millions of dollars in addition to emotional
distress and, sometimes, health consequences arising from unsafe products.
"Con artists are good at what is called the 'personality sell,'" Morton
says. "They appear friendly, sympathetic, honest, and willing to listen to
and spend time with their targets. Sometimes they even use fear tactics,
such as convincing older homeowners that their roof will collapse if the
contract to fix it is not signed immediately."
The sympathetic attention, false hopes for health cures, and scare
tactics used by con artists can be difficult to see through and resist.
Morton says there are steps consumers can take to protect themselves
from con artists.
First, and most important, always follow good, basic consumer
techniques. Read everything before you sign. Don't be pressured into
making hasty decisions and purchases. Remember that if something sounds
too good to be true, it probably isn't true.
If someone or an organization is pushing a new health care product,
check with your doctor before sending money. Unproved products can be
dangerous as well as a waste of money.
"Be wary of salespeople who initiate transactions," Morton says. "If
you call or write them, that's one story. But if they initiate contacts,
you have the right to be suspicious."
Even if you believe the person and the product are legitimate, take
your time to read all the forms before making a decision. Ask the person
to come back another day. A delay, during which time you are checking
credentials and references, may dissuade con artists from targeting you.
Take the time and precaution of checking references as well as
identification. Identification is easy to forge; a recommendation from the
Better Business Bureau is not.
Be especially wary of any salesperson who requests secrecy. If a
"deal" is so good you can't tell your family or friends, it's probably not
a legitimate financial venture.
Never, ever, give money up front. Pay for services when they are
complete, not before they are begun.
If you sign a contract with a door-to-door salesperson in your home,
you have three days to change your mind. This is called a "cooling off
period" which gives you time to think through a high-pressure transaction.
When possible, deal with local, established business people who can
provide local references and must keep a good reputation within the
community.
Finally, and unfortunately, Morton says, "The elderly must always keep
in mind that they are prime targets for fraud and con artists who keep and
pass around 'sucker lists.' You don't want to get on their lists, so you
must be wary and even a little suspicious at times."
Resource: Lois Morton, Department of Consumer Economics and Housing, New
York State College of Human Ecology, Cornell
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