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Community Bank News

Seniors Make Rich Targets

Featured in Senior News January 2007
By Randall E. Snider, Community Bank of Parkersburg
President and Chief Executive Officer

Scams targeting seniors are on the rise. These fraudsters go after your money, your identity and your self-respect.

It is common to turn on the six o’clock news or open the newspaper and learn about a new con aimed at the elderly. From direct mail to telemarketing, seniors are often seen as an easy target for fraud schemes.

Americans who are 65 years or older represent about 13 percent of the country’s population, and their population continue to grow as the Baby Boomer generation begins to enter that age range.

Fraudsters prey on the swelling retiree population. They take advantage of seniors’ financial fears, violate their trust and threaten their retirement funds. Lots of them pitch what they call high-return, low-risk investments. But in many cases, the products are inappropriate for seniors, if they exist at all.

According to the Federal Bureau of Investigation, seniors are targeted for fraud for several reasons. They are more likely to have a “nest egg,” own their home and have excellent credit, which the fraudster will try to tap into. Because they grew up in the 30s, 40s and 50s, seniors are generally more polite and trusting. While this personality trait is positive in most cases, fraudsters exploit it knowing that it is difficult for the individuals to say no or just hang up the phone. Lastly, older Americans are less likely to report a fraud because they don’t know who to report it to or are too ashamed at having been scammed. In some cases, they don’t even know they have been scammed.

The following are common cons designed to trick elderly consumers into giving up money, property or valuable personal information. These scams often are committed by strangers posing as legitimate business people, government officials or other "trusted" individuals.

• Prize and Sweepstakes Frauds: This type of scam may involve a congratulatory phone call or letter informing a consumer that he or she has won a prize or a large sum of money in a lottery or sweepstakes. But before any "winnings" are delivered, they are told they must pay for fees, taxes, shipping and handling or other charges. Of course, any product that arrives is essentially worthless or the prize never comes.
• Fraudulent Investments: A firm or individual "guarantees" fantastic returns on investments, business opportunities, gems and other "no-risk" deals. These will sound attractive compared to what local banks are paying on deposits. At some point the seller takes the money and runs, leaving the investor with a big loss.
• Charitable Donation Scams: Fraudsters disguised as a charity collect donations or money for raffles. While seniors think you're helping people in need, they are really helping con artists pad their pockets. Make donations only to charities you are familiar with or check out charities at www.give.org.
• Home or Auto Repair Scams: Someone calls or knocks at the door offering a super deal to fix your roof or driveway or repair your car. After the individual hands over the funds you discover the work hasn't been completed, is of poor quality or wasn't needed in the first place. Some scammers have billed consumers for maintenance or repairs that were never performed.
• "I-Need-Your-Help" Scams: Unlike the previous scams that involve selling or giving something to the victim, here the con artist is asking to receive some assistance... and in the process obtains account information or access to funds. Example: Someone claiming to be a bank examiner, bank security officer or police officer calls asking for help investigating a possible fraud by withdrawing cash from your bank account or providing account information. If the trick works, the bogus investigator can walk away with the money or use the confidential information to raid the victim's bank account.

To safeguard against fraudulent predators, we recommend seniors get registered on the federal Do Not Call list and request to remove their names from national marketing mailing lists. This is one way to know immediately that the calls and mailings you are getting are more than likely a scam.

We also offer the following tips to help seniors avoid scams:

• Offers too good to be true usually are. Ask to receive the “unbelievable deal” or the “amazing prize offer” in writing so you can read it carefully before making a commitment.
• Never give out your personal information over the phone or Internet unless you have initiated the contact. Legitimate business callers will never ask you for this information over the phone.
• If a caller asks you to pay for an offer in advance or asks for your credit card number or Social Security number, tell the person you don’t give out personal information over the telephone.
• Walk away or hang up if something sounds questionable. Con artists will exploit your good manners.
• Stay in charge of your money. Beware of anyone who suggests you invest in something you don't understand or who urges you to leave everything in his or her hands.
• Don't let embarrassment or fear keep you from reporting fraud or abuse. Every day you delay reporting fraud or abuse, the fraudster could be spending your money and finding new victims.

For the latest information about fraudulent schemes and tips to protect yourself, visit Community Bank’s website at www.communitybankpkbg.com and click on the Protect Yourself link on the left side of the page.

About Community Bank

Community Bank has assets in excess of $195 million and total deposits of $130 million. Founded in 1917, Community Bank offers full-service banking, including investment services, as well as making loans to consumers and local businesses. Community Bank delivers customized, personal service and local decision-making combined with the convenience of four Wood County banking offices and cutting-edge technology. For more information, visit www.communitybankpkbg.com.