Fraud Against the Elderly

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Fraud against the Elderly

“Youth is wasted on the young” Oscar Wilde

Whilst carrying out research for this chapter, I found some of my findings personally disturbing and somewhat disgusting. Fraud against a financial institution is almost anticipated or expected. However fraud against elderly people, who are targeted solely based on their age and on the possibility that, over their lives, they have accumulated significant savings, is one the most shameful crimes. These vulnerable people need to be protected. Elderly people contribute to our society in many ways, in particular by talking of their experience and knowledge of years past, which in turn enriches the youth of today.

The con artist will think nothing of applying their evil trade in order to gain the confidence of elderly people and relieve them of savings and investments. It is additionally disturbing to note that these scams occasionally include intimidation and even violence.

We all have a duty to protect the elderly and should always make it our business to check in with elderly people living in our neighbourhood. We should also give consideration to the current elderly generation, who are not familiar with computers and the internet. Banking, obtaining revenue forms and insurance online is now considered normal practice, however this creates difficulty to some of the elderly who may appreciate support.

According to the Federal Bureau of Investigation (FBI) elderly people are less likely to report being the victims of fraud, as they simply don’t know who to report the scam. In some cases they are ashamed and concerned that relatives may think they are no longer fit to take care of themselves and may feel isolated. It is also widely accepted that, in some cases, elderly people do not make good witnesses and do not want the pressure and stress of giving evidence in court. This is also known by the con artist who exploits their vulnerability. It is important that organisations such as the Citizens’ Advice Bureau provide information and resources to elderly people, offering advice on how to avoid being conned, how to act if approached by a suspicious individual and who to contact in the event of falling victim to a fraudster.

It is interesting and appalling to learn that in many cases, fraud against an elderly person is committed by a relative and or care-giver. This can be a difficult fraud to detect and investigate as financial transactions on behalf of the elderly person may well appear legitimate, even when investigated. The victim will be particularly afraid or ashamed to report the fraud by a relative. They may even feel isolated and lonely.

Fraud against an elderly person by a relative or care-giver might manifest itself in the following ways:

•  The Relative or care-giver taking a higher than expected interest in the person’s financial affairs.
• Shortage of food, hygiene or other personal items for the person
• Utility bills not paid by the carer, when they have been authorised to do so. Services (phone, TV etc.) being discontinued.
• Purchases made on behalf of the person, for which they have no need or interest.
• The person’s normal bank account or, credit card, changed to another bank in which they have no previous history or relationship, without just cause or reason.

If any of the above signs are present and even if a reasonable explanation is provided by the carer or relative, it would be prudent to contact another family member or, if none available, seek legal advice.

Telemarketing Fraud:

A telephone gives an elderly person a sense of security, especially if they live by themselves. A key fraud threat to the elderly is Telemarketing fraud. According to the United States Bureau of Consumer Protection, telemarketing fraud costs approximately US$40 billion a year, with the victims in their retirement years being in the majority. Scammers obtain the phone numbers of the individuals and hone in on them, offering them special and unique offers. They work on the confidence trick and know that the older person has time to talk and may be too polite to hang up the phone. One tried and tested con is the ‘once in a lifetime offer’, an offer of an inexpensive item or service that must be availed of immediately. Applying light pressure not to ‘miss out’ is often enough to make them part with their money.

The term “Robo-calls” is used to describe computer auto-dialler telephone scammers who repeatedly call with an “offer” for the occupant and asking for personal details ‘necessary to process’ the order or prize. They are simply phising exercises made in the hope that the person will release valuable identity information, such as credit card details or social security numbers.

There are some basic rules or guidelines that we can follow to protect the elderly from telemarking fraud:

•  If you didn’t enter a draw then how can you have won a prize?
• Under no circumstances should personal information be shared with any person not completely trusted. If asked for such information, take the caller’s contact details and inform a relative or care-giver.
• Calls coming in after business hours should raise additional suspicion.
• Callers applying undue pressure should raise concern.
• It is acceptable to simply hang up if a caller is unknown, asking inappropriate questions or simply raising suspicion. If possible record the date and time of the call and pass to a relative or care-giver.

Any suspicion that an elderly person is being conned should be reported. Consider the following points: 

• The local law enforcement authority should be informed and an incident number taken.
• Obtain a Financial Credit check on the person, using Experian or the Irish Credit Bureau.
• If there is suspected unauthorised activity on an elderly person’s bank account or credit card, the bank should be contacted and account statements requested.
• Check the statements for any unknown or out of the ordinary purchases
• Ensure the letter box has not been tampered with to make sure no unauthorised person can access the post.
• Check with the local Post Office in respect of any delivery of unsolicited mail or parcels to the address. Consider the possibility of the identity theft of the elderly person.
• Computers used by an elderly person should be checked, ensuring adequate virus and email protection.

Cold Calling to the Home:

The pre-cursor to the telephone con, the cold call, involved the con-artist knocking on an elderly person’s door offering a deal or prize, with the intention of eliciting personal details or gaining access to the person’s home. The scammers are once again phising for information and trying to gain access to the person’s property. It is important that there is adequate physical security, front doors should be fitted with a chain lock. 

The Builder Scam:

An extension of the cold call, this involves a man knocking on the door, advising that he is a builder working in the area and that he spotted a cracked slate or other damage on the roof, which he will fix for a small amount of money. Then, whilst repairing the slate he finds more damage and offers to repair them for a higher amount. It is unlikely the elderly person will be able to confirm that the repairs are needed and may agree, especially if the ‘builder’ applies pressure, suggesting possible roof leaks if not repaired. Other scams may include someone who is cleaning gutters and state that they have observed similar damage whilst up the ladder.

Terrified of the bank collapse:

A 70 year old man who withdrew his savings of almost €30,000 which he had saved to cover his routine costs and his funeral/burial was robbed by a man posing as a member of the Gardai (Irish police). The conman informed the elderly man that the bank was going to collapse and that he would take care of his savings. The Judge described the case as “a very mean crime against a vulnerable old man.” There have been other cases of conmen posing as members of the Police or other officials. If in doubt you should call your local police station to verify the identity of the officer.

 Lessons Learned

• Never pay on the promise that you have won a prize
• Any person calling to your home, should be asked for an identity card with a photograph. If not satisfied, the person should not be allowed enter. If the person does not leave, the occupant should close the door, contact a friend or the authorities
• Personal information, especially regarding identity should be protected
• Individuals making unsolicited visits, offering services such as building work, should not be entertained
• Services should not be paid for in cash, especially if the service provider is insisting on an immediate cash payment
• If getting work done, ensure that the service provider is reputable, always check references

For other scam stories and ways to protect yourself, check out Universal Scams & Fraud Detection, available on Amazon.

https://www.amazon.com/Universal-Scams-Fraud-Detection-David/dp/1500547158/ref=sr_1_1?ie=UTF8&qid=1469705992&sr=8-1&keywords=universal+scams+and+fraud