Be Aware of These Common Scams

Anyone can fall victim to fraud, but seniors are particularly vulnerable.  Seniors are often on a fixed income, so losing money at the hands of a scam artist can hit older Americans the hardest.

According to a recent AARP article, there were 750 documented data breaches in 2015, which is roughly the same as in 2014.  However, the amount of stolen records increased 11.25% from 2014.  Typically scammers use intimidation and fear tactics, and/or they create a sense of urgency to intimidate their victims.1

Unfortunately only about 1 in 10 older victims of fraud ever come forward, usually because they’re too embarrassed.  Therefore, it’s important to be aware of common scams and protect yourself in order to avoid being the next target.1

Below is a list of some of the most common scams reported in the last year:

IRS Imposters

This remains the nation’s biggest scam.  Phone calls from imposters claiming to be IRS agents threaten arrest, deportation or seizure of property if immediate payment isn’t made to settle alleged back taxes.  In addition to phone calls, these scammers have now branched out to using fraudulent mailings and faxes.  It’s important to note that the real IRS would never contact someone in this manner and demand immediate payment, especially not via a prepaid debit card or wire transfer.1

Tech Support Scam

These scammers claim to be from tech support for Microsoft and other tech companies, and try to convince unsuspecting victims that they have a computer virus.  According to AARP, by the end of the year “…some 3.3 million Americans will have paid an estimated $1.5 billion to these fraudsters for bogus “tech support” – and in the process, also giving these scammers remote access to their computer files and passwords for possible identity theft.”1

Foreign Lotteries

If you receive a “you won” call, letter or email, it’s likely a scam.  Plus, you can’t win a lottery in another country that you never entered.  Typically it’s up to you, as the winner, to notify the lottery commission, not the other way around.  If you ever did win a legitimate lottery, you would never be asked to pay upfront taxes or fees in order to receive your winnings.  Furthermore, if a supposed lottery sends you a check for partial payment and you cash it, you could be responsible for repaying that money.1

Sweepstakes

There are a number of different sweepstakes out there, some of which are not legitimate and they all generally work in the same fashion.  They ask you to pay upfront taxes or fees in order to receive your money, but of course you never receive your prize.1

Grandparents Scam

These fraudsters pose as loved ones in trouble.  They sneakily scour the internet looking for names of family members and family details that they can use to trick you.  Another method they use is to let you fill in the holes with generic greetings such “It’s your favorite grandchild calling and I need your help”.  These imposters successfully swindle about 10,000 grandparents each year, so it’s important to be wary of such calls.1

Don’t fall victim to these scams – protect your well-earned money.  If you’re looking for a way to supplement your retirement funds, a reverse mortgage may be able to help.  A Home Equity Conversion Mortgage (HECM), commonly known as a reverse mortgage, is a Federal Housing Administration insured loan.  A HECM enables seniors to access a portion of their home’s equity to obtain tax free2 funds without having to make monthly mortgage payments.3

If you’d like to learn more about reverse mortgages and see if you’re eligible, please use our Reverse Mortgage Calculator or call 800-218-1415.

 

1 Top Scams of 2015 – aarp.org, by Sid Kirchheimer, 12/25/15, http://blog.aarp.org/2015/12/25/top-scams-of-2015/?intcmp=AE-HP-DP1.

2 Consult your financial advisor and appropriate government agencies for any effect on taxes or government benefits.

3 You must live in the home as your primary residence, continue to pay required property taxes, homeowners insurance and maintain the home according to Federal Housing Administration requirements.

Author:  Meredith Manz