By Allen Riggs
There is a ring at the front door and you answer. A
kind-hearted gentleman informs you that he has just fixed
your neighbor’s roof and he has a lot of material left over.
He tells you that your roof is in bad shape and there is a
bad storm brewing. He says that your house could get damaged
and cost you thousands if you don’t act now. In fact,
he will give you a special rate if you pay up front in cash.
You don’t want to have a leaky roof and you can’t pass up
such a great deal. You agree to have your roof fixed
and hand over a large sum of money on the spot. You later
find out that nothing is wrong with your roof and you have
just been swindled out of thousands of dollars.
If this scenario sounds all too familiar, you may be one
of the 25 million Americans that were victims of fraud last
year, according to the Federal Trade Commission.
Seniors are one of the top targets for a wide variety of
scams. In fact, seniors make up 11 percent of the U.S.
population, but constitute 30 percent of consumer fraud and
50 percent of all phone scam victims.
Why are seniors so heavily targeted by scam artists?
Many seniors grew up in a time when business was based on a
handshake and trust. According to a study done by the
American Association of Retired Persons (AARP), older people
are quicker to believe promises and slower to take action to
protect legal rights. Plus, many seniors live alone
and are susceptible to “friendly” callers, whoever they may
be. Add this to the fact that older people own more
than half of all financial assets in the U.S. and it becomes
clear why scam artists aim at seniors.
TELEMARKETING FRAUD
While telemarketers call people of all ages, backgrounds
and incomes, they often make up to 80 percent of their calls
to older consumers (according to the AARP). These
telemarketers often prey upon older people who are well
educated, have above-average incomes and are socially active
in their community. Their sales pitches are sophisticated
and include phony prizes, illegitimate sweepstakes, fake
charities, and bogus investments.
STEPS TO TAKE:
- Never send money or give out personal information
such as credit card numbers, bank account numbers, dates
of birth, or Social Security numbers to unfamiliar
companies or unknown persons.
- If you have doubts about a telemarketer’s
legitimacy, be sure to ask for their company’s name and
address, along with a phone number where they can be
reached at a later time.
- For elderly widows, if a caller asks for the man of
the house, be sure not to say that there isn’t one or
indicate that you live alone.
- Talk to family and friends or call your lawyer,
accountant or banker and get their advice before you
make any large purchase or investment over the phone
with a stranger.
- Check out unfamiliar companies with your local
consumer protection agency, Better Business Bureau, the
National Fraud Information Center, or other watchdog
groups.
- Be sure to sign up for the Federal Trade
Commission’s Do-Not-Call-Registry. Telemarketers
who continue to call you after you have registered are
subject to penalties. You can sign up at
www.donotcall.gov or at (888) 382-1222.
- Don’t forget the power to simply hang up the phone
when a stranger calls trying to sell you something you
don’t want!
HOME IMPROVEMENT FRAUD
Home improvement contractors use several methods of
targeting seniors: high pressure phone calls, flyers,
advertisements, and door-to-door-sales. Fraudulent
contractors can be very effective in making people think
their services are needed, and then defrauding their
victims.
STEPS TO TAKE:
- Use a local well-established contractor. Ask
for references and check them.
- Get competitive bids on all work and be wary of any
bids that seem too good to be true. Don’t accept
high-pressure offers or offers that force you to make a
quick decision.
- Determine exactly what work you want done.
Make sure the project is explicitly described in your
contract, including materials and labor specifics and
dates for estimated start and completion.
- Never say yes to someone who wants money up front
before the job is done or wants you to withdraw a large
amount of money from your bank.
- Check to see that the work is complete and done
correctly before paying.
- Find out when and how payment and/or billing will
take place before the work begins.
DOOR-TO-DOOR SALES
Seniors are frequent victims of door-to-door scams and
high-pressure sales tactics. While some
door-to-door salespeople are honest, the chances are likely
that whoever answers the door is about to be swindled.
Con-artists often try to coax seniors into buying
unnecessary products or services ranging from living trusts
to encyclopedias to household cleaning supplies. They
usually appear friendly and appear sincere in their desire
to help. In fact, they are successful because they
seem so honest.
STEPS TO TAKE:
- Never allow anyone you don’t know into your
home. It is easier to close the door on them
before they get in than to get them out once they are
inside.
- Don’t buy on impulse. Tell the salesperson you
will get back in touch after you have had a chance to
carefully read all the materials given to you.
- Ask to see the salesperson’s credentials and
identification and request their business card.
Many communities require door-to-door salespersons to
have a permit.
- Never give cash up front to a salesperson or rely on
verbal promises for delivered goods.
- If you sign a contract, make sure that it is
complete, signed and dated. Get all terms in
writing, including the total price, warranties, return
policy, and all conditions of sale.
- Know that you can get out of a door-to-door sales
contract within three business days. According to
the FTC’s Cooling Off Rule, you have the right to cancel
your contract for a full refund until midnight of the
third business day after the sale, provided that you
have a signed contract and the sale was over $25.
You don’t have to have any reason to cancel.
Allen Riggs is the president and CEO of Comfort Keepers,
a leading non-medical, in-home service. Comfort
Keepers is a national franchise that offers companionship
and other non-medical services for aging adults, new mothers
and others needing assistance.
Fraud Assistance Resources
Federal Trade Commission – www.ftc.gov or 877-FTC-HELP
(382-4357) – The FTC enforces federal consumer protection
laws that prevent fraud, deception and unfair business
practices. Whether combating telemarketing fraud,
Internet scams or price-fixing schemes, the FTC’s primary
mission is to protect consumers.
Better Business Bureau – www.bbb.org – The BBB’s mission is
to promote and foster the highest ethical relationship
between businesses and the public through voluntary
self-regulation, consumer and business education, and
service excellence. You can find your local office on
the BBB’s Web site.
The National Fraud Information Center– www.fraud.org or
(800) 876-7060 – The NFIC is a project of the National
Consumers League and was designed to help people learn about
fraud and file complaints.
American Association of Retired Persons - www.aarp.org – AARP
provides seniors with information on financial planning,
using home equity, avoiding fraud, and consumer rights.
Allen is a Director of First Light Home Care which
provides quality, affordable, non-medical in-home care for
seniors, mothers just home from the hospital, those
recovering from surgery and other clients with need for
companionship and/or personal care. Allen was an
invited delegate to the White House Council on Aging in 2005
(held every ten years).
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