Question: Are the elderly more likely to be the victim of money scams?
Answer: It depends on the type of money scam. While many seniors do fall victim to sweepstakes, lottery and telemarketing scams, there are many younger adults who fall victim to investment frauds and product-type scams.

Q: Why do criminals target the elderly?
A: There are many reasons that con artists target seniors. They tend to be more trusting, polite and have a difficult time saying no. Often seniors have a “nest egg,” which is very attractive to criminals, which make these types of crimes all the worse as seniors no longer are able to rebuild their savings once they are lost to a scammer.

Q: What are some of the most common scams aimed at the elderly?

MEDICARE FRAUD

A: Navigating the Medicare system isn’t easy, and some scammers will look for any opportunity to take advantage of the confusion. Commonly, a scammer will claim to be with Medicare and ask for personal information such as Medicare, Medicaid, Social Security, credit card or bank account numbers. The victim might be given any number of excuses to provide this information, including that an error needs to be fixed, that he or she is part of a survey or eligible to receive free products, or can sign up for a new prescription drug plan.

TELEMARKETING

Perhaps the most common scheme is when con artists use fake telemarketing calls to prey on seniors, who as a group make twice as many purchases over the phone than the national average.

While the image of the lonely senior citizen with nobody to talk to may have something to do with this, it is far more likely that older people are more familiar with shopping over the phone and therefore might not be fully aware of the risk.

With no face-to-face interaction and no paper trail, these scams are incredibly hard to trace. Also, once a successful deal has been made, the buyer’s name is then shared with similar schemers looking for easy targets, sometimes defrauding the same person repeatedly.

SWEEPSTAKES AND LOTTERY SCAMS

Typically, the victim receives a letter in the mail stating they have won a lottery or sweepstakes; it might even claim to be from Publisher’s Clearing House or Reader’s Digest. The letter instructs the victim to deposit an enclosed check and then wire a portion back to the company to cover taxes or administration fees. While the funds will initially show up in the bank account, the money will be removed when the bank determines the check is fake. The victim is out whatever they wired back to the scammers — often amounting to thousands of dollars.

Q: What can people do to avoid becoming the victim of a scam?

A: For seniors who are at home alone during the day, don’t answer a call from a number you don’t recognize. Telemarketing scammers often prey on the elderly, confusing them into thinking they have won something or offering to send someone to the home for a free visit. If you do pick up the phone and start feeling pressured, hang up the phone. It’s not rude to hang the phone up on someone who may be taking advantage of your good nature.

If consumers are actively seeking someone to do work on your behalf, doing their homework before handing over money or sensitive information is the best defense against falling victim to a scam.

Consumers can start with Hawaii’s BBB; we do the homework for them. We keep a pulse on all the current and old scams across the U.S. and in our community. If we don’t have the information, we will know where to guide the consumer or business to get the proper help. We have staff available to speak with seniors on the phone, or for more technologically savvy consumers, try the BBB’s free app, downloadable from our website, where you can find accredited businesses in our community who agree to uphold the highest ethical standards in business.

Q: What should you do if you believe you are the victim of a scam?

A: It depends on the type of scam they were a victim of. Regardless, it is always a good idea to report it to Hawaii’s BBB so we can start to collect data to help warn others as well as provide them with the best information to help protect themselves. Other agencies to contact can range from the police to their credit card company and/or financial institution.

Q: What ways can the Better Business Bureau help people avoid scams?

A: Education is really the best way to avoid scams. Hawaii’s BBB delivers presentations to groups on request and participates in local fairs and events. We utilize online platforms like hawaii.bbb.org, our social media networks as well as work with local and national media to educate and alert the public.

Hawaii’s BBB also partners with our accredited businesses to ensure our community has the most trustworthy trading partners. Consumers should start their search for purchases by browsing the Hawaii BBB website to find those businesses in our community who have agreed to uphold the BBB’s high standards.

Q: If you are worried your elderly relative may be caught up in a scam, what is the best way to talk to her about it, and what should you advise her to do?

A: It really depends on how receptive your relative is to listening to you. Many times having a third party like BBB get involved can help put things in perspective for a victim of fraud. Our staff will work with the consumer to review the information, compare the situation with other reported incidents to see if there is a pattern of fraud or cause for greater concern, and then work with the consumer on finding the best resolution for the issue.