May is Older Americans Month so this is a good time to reflect upon the greatest generation and redouble our efforts to protect elderly Texans. The Office of the Attorney General is proud to work with law enforcement to achieve this goal.
Con artists and criminals often target older Texans because seniors are more likely to have retirement savings their own homes and great credit. Scam artists also know older Texans may be less likely to report fraud. In fact some estimates indicate that only one in 25 cases of financial fraud against senior citizens is reported.
The OAG receives complaints from seniors about a wide array of scams. Here are a few examples:
Grandparent" scam. The scam begins with a telephone caller who claims to be a grandchild in trouble and in urgent need of money. Often the caller claims to be traveling in Canada.
The grandchild" also requests secrecy hoping to increase the odds that the fraud will be successful. If all goes according to the con artists plan the victim wires money to the grandchild." By the time the worried grandparent realizes the scam the money is long gone and most likely not recoverable.
Home repair and door-to-door scams. In one ploy a repairman" approaches a home owner often after a bad storm and insists that the home needs repairs. Once the repairman gets a check he disappears without making or finishing repairs.
Other times a contractor" will approach a senior citizen saying he has extra materials from a job and will perform a service like sealing a driveway for less than the typical cost. The work if done at all is usually substandard. In a variation of these scams the con artist uses the construction ruse to gain entry into the victims home where he steals valuables from the home while the owner is distracted.
Texans should always be suspicious of unsolicited contractors who approach their homes and they should always be wary of people they do not know. Legitimate workers such as utility company representatives or professional repairmen will not be offended if a homeowner asks for proof of identification.
Foreign lottery / sweepstakes scams. In this scam which often originates in Canada the operators claim that potential victims have won another countrys lottery. The scam artists often claim they need the victims bank account information in order to wire the lottery proceeds. Then armed with the victims account number the thief drains the bank account. In other cases the scammer claims the victim must pay taxes and processing fees" in advance to receive their winnings.
Sometimes the criminals even send a convincing counterfeit check in an attempt to lend legitimacy to the scam. The counterfeit check is denied by the victims bank but often after the victim has sent the taxes and processing fees." Another variation solicits its victims to buy entries into a foreign lottery. Of course no lottery tickets are really purchased and the con artists pocket the victims money. Anyone with friends or relatives who think they won a foreign lottery should keep this in mind it is illegal to participate in another countrys lottery.
Miracle" health scams. As a population older citizens typically suffer from greater health problems such as cancer or arthritis than younger segments of society. Unfortunately some seniors can be increasingly vulnerable to unscrupulous sellers preying on seniors health and wellness fears to sell worthless healthcare products that they falsely claim can cure chronic or terminal diseases.
Senior citizens seeking medical treatment or a cure for ailments should think twice before spending their money on products and treatments that are not approved by the Food and Drug Administration. Anyone who purchases unapproved products may be wasting their savings or worse exposing themselves to health risks. Texans should always consult a healthcare professional about their health problems and should never rely solely on a salesmans advice about a product.
Investor free lunch" scams. Senior citizens should also be wary of free lunch" investment seminars. Potential investors are often invited to free seminars that promise to educate them on money strategies or management. Promoters provide a fancy meal in hopes of receiving seniors retirement savings to invest.
These luncheon investment seminars usually are more about recruiting new clients or selling investment products than investor education. Many legitimate investment advisors use this technique to meet and recruit new clients which is perfectly ethical. However scam artists and identity thieves also use these events to steal attendees personal information.
Other salesmen such as those selling timeshares or vacation packages may also use these seminars to sell their products. Seniors should always remember that a good show doesnt always offer a good deal. Texans should never make an on-the-spot decision after attending a seminar. It is important to conduct independent research about the sales product before making a purchase.
Awareness and vigilance are the keys to avoiding scams. By working together to raise awareness law enforcement agencies can help Texas seniors protect their finances their identities and most importantly their dignity.
May is Older Americans Month so this is a good time to reflect upon the greatest generation and redouble our efforts to protect elderly Texans. The Office of the Attorney General is proud to work with law enforcement to achieve this goal.
Con artists and criminals often target older Texans because seniors are more likely to have retirement savings their own homes and great credit. Scam artists also know older Texans may be less likely to report fraud. In fact some estimates indicate that only one in 25 cases of financial fraud against senior citizens is reported.
The OAG receives complaints from seniors about a wide array of scams. Here are a few examples:
Grandparent" scam. The scam begins with a telephone caller who claims to be a grandchild in trouble and in urgent need of money. Often the caller claims to be traveling in Canada.
The grandchild" also requests secrecy hoping to increase the odds that the fraud will be successful. If all goes according to the con artists plan the victim wires money to the grandchild." By the time the worried grandparent realizes the scam the money is long gone and most likely not recoverable.
Home repair and door-to-door scams. In one ploy a repairman" approaches a home owner often after a bad storm and insists that the home needs repairs. Once the repairman gets a check he disappears without making or finishing repairs.
Other times a contractor" will approach a senior citizen saying he has extra materials from a job and will perform a service like sealing a driveway for less than the typical cost. The work if done at all is usually substandard. In a variation of these scams the con artist uses the construction ruse to gain entry into the victims home where he steals valuables from the home while the owner is distracted.
Texans should always be suspicious of unsolicited contractors who approach their homes and they should always be wary of people they do not know. Legitimate workers such as utility company representatives or professional repairmen will not be offended if a homeowner asks for proof of identification.
Foreign lottery / sweepstakes scams. In this scam which often originates in Canada the operators claim that potential victims have won another countrys lottery. The scam artists often claim they need the victims bank account information in order to wire the lottery proceeds. Then armed with the victims account number the thief drains the bank account. In other cases the scammer claims the victim must pay taxes and processing fees" in advance to receive their winnings.
Sometimes the criminals even send a convincing counterfeit check in an attempt to lend legitimacy to the scam. The counterfeit check is denied by the victims bank but often after the victim has sent the taxes and processing fees." Another variation solicits its victims to buy entries into a foreign lottery. Of course no lottery tickets are really purchased and the con artists pocket the victims money. Anyone with friends or relatives who think they won a foreign lottery should keep this in mind it is illegal to participate in another countrys lottery.
Miracle" health scams. As a population older citizens typically suffer from greater health problems such as cancer or arthritis than younger segments of society. Unfortunately some seniors can be increasingly vulnerable to unscrupulous sellers preying on seniors health and wellness fears to sell worthless healthcare products that they falsely claim can cure chronic or terminal diseases.
Senior citizens seeking medical treatment or a cure for ailments should think twice before spending their money on products and treatments that are not approved by the Food and Drug Administration. Anyone who purchases unapproved products may be wasting their savings or worse exposing themselves to health risks. Texans should always consult a healthcare professional about their health problems and should never rely solely on a salesmans advice about a product.
Investor free lunch" scams. Senior citizens should also be wary of free lunch" investment seminars. Potential investors are often invited to free seminars that promise to educate them on money strategies or management. Promoters provide a fancy meal in hopes of receiving seniors retirement savings to invest.
These luncheon investment seminars usually are more about recruiting new clients or selling investment products than investor education. Many legitimate investment advisors use this technique to meet and recruit new clients which is perfectly ethical. However scam artists and identity thieves also use these events to steal attendees personal information.
Other salesmen such as those selling timeshares or vacation packages may also use these seminars to sell their products. Seniors should always remember that a good show doesnt always offer a good deal. Texans should never make an on-the-spot decision after attending a seminar. It is important to conduct independent research about the sales product before making a purchase.
Awareness and vigilance are the keys to avoiding scams. By working together to raise awareness law enforcement agencies can help Texas seniors protect their finances their identities and most importantly their dignity.
