The elderly are the target of a growing number of scams. These scams take a tragic toll on the financial and emotional lives of elderly people with limited means, and many times they involve a drain on insurance resources, for the individual and society.
There are a number of common sense reasons why the elderly are often victimized. They are more likely than others to be at home to answer the phone; they often have health problems that make them vulnerable to false health cures; and they live in older housing.
The con artist preys upon the elderly’s desire to cure their health problems. Money is demanded up front for the miracle cure. The victim is out the money for the cure and may actually have more health problems as a result. In addition to the individual’s loss, the effect of such scams is an additional strain on already overtaxed Medicare and Medicaid health services.
Close to three-fourths of the elderly own their own homes. Many of these homes were built 40 to 50 years ago and have not been well maintained in recent years.
After a hurricane, tornado or other storm has passed through an area, con artists contact the elderly victim, making a convincing argument that the home has storm damage that must be repaired--and paid for--immediately. The victim pays money up front, thinking the claim can be turned in to the insurance company for reimbursement.
The insurance company is then contacted by the victim with a claim for work that is often poorly done, overpriced, and unauthorized by the company. In some cases, the work is never done at all. Meanwhile, the con artist has moved on to victimize others at the scene of the next weather disaster.
The elderly are often distrustful of mass media messages. Individuals they know have the best opportunity to educate them on how to avoid being the victim of the latest telephone or door-to-door scam artist. The insurance agent, the cop on the beat or the local deputy sheriff are just some of the trusted people who can help them understand they are likely targets of fraud.
Below is a list of tips the elderly can be given to help them avoid fraud. The tips will work equally well for the rest of us who often think we are above being conned until it is too late.
Ways to avoid fraud and safeguard your health and home:
1. Don’t be too polite. If a stranger calls you on the telephone or comes to your door with a wonderful offer you must accept right away, don’t believe it. A reputable salesman or contractor will give you time to make a well reasoned decision.
2. Check references. Don’t just ask for identification, which can be faked. Call your Better Business Bureau to check out an unknown person offering a deal on home repairs.
3. Check with the professionals. Don’t assume your insurance company will authorize repairs. Contact your insurance representative as soon as possible.
Even if there has been a terrible storm and the roof is leaking, at least check one more local contractor or other trusted person before allowing strangers to make repairs on your home.
Before agreeing to buy the latest health cure, call your doctor or the local medical society to check out the salesman and the product.
4. Count to 10 and wait. Don’t pay out money or give out any financial information, such as credit card numbers, before checking out the seller and the product.
5. Read before you sign. Even if you are convinced you are dealing with a legitimate person or company, do not sign anything you have not read and understood.
It is a good idea to ask to keep any documents you are asked to sign overnight. This will give you time to read them carefully.
Even when you are dealing with local, established business people, you need to know exactly what you are agreeing to before you sign anything.