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| Avoiding consumer scams that target seniors & retirees |
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SENIORS and retirees are often the victims of fraud and illegal schemes, particularly those schemes that play on their sympathies or emotional vulnerabilities or take advantage of their failing physical and mental health. Such scams include:
Financial Advisors and Investment Scams
There are investment seminars that offer "free lunches" and "guarantee" large rates of return in short periods of time. This column has in fact previously discussed this particular scam in detail. Seniors (or any investor for that matter) should investigate the company offering the investment product before investing. Resources are available for protecting oneself against such scams. One may call or visit the website of the California Department of Corporations to educate oneself about this matter.
Living Trust Mills
There are individuals or businesses that purport to offer their services to seniors in creating a "living trust." These salespersons will represent themselves as estate planning experts. They will seek to obtain personal financial information in order to sell a living trust or annuity that may be inappropriate for the senior or retiree. Persons who suspect that such a scheme is being perpetrated should contact their local district attorney’s office or the California Department of Insurance.
Fake Charities
Legitimate charities or persons and organizations soliciting funds for charitable purposes must register with the California Attorney General’s Office. Before writing out a check to donate to a charity, it is best to check the charity’s legitimacy by calling the Attorney General’s Office, visiting the AG’s website, or checking with the local Better Business Bureau.
Funeral and Cemetery Fraud
Persons who plan about funeral and cemetery expenses may fall victim to sales pitches designed to make them buy the most expensive plan. The Consumer Guide to Funeral and Cemetery Purchases (which is available free from the Department of Consumer Affairs Cemetery and Funeral Bureau) discusses items to consider when buying funeral and cemetery plans such as the person’s requirements, pre-needs arrangements, and important contract provisions. The Cemetery and Funeral Bureau is also able to verify a funeral establishment’s license.
Medicare Fraud
One of the most common Medicare fraud perpetrated upon seniors is being charged in their Medicare account for services that they never actually received. Seniors are, therefore, cautioned to keep their Medicare number strictly confidential and not disclose it to just anyone. Possible provider fraud may be reported to Medicare or the California Attorney General’s Office.
Telemarketing/Internet/Mail Fraud
Although it is sometimes difficult to tell which are legitimate and which are fraudulent telemarketers and e-mail solicitations some basic precautions will help: Never provide personal information or send money to solicitors who contacted you first. If the caller seems legitimate, ask them for a contact information where they can be reached later after you have checked and verified their legitimacy. Also, be suspicious of anyone who tell you you’ve won something but then asks for your credit card information or asks you to pay a fee or tax in order to collect your winnings.
Door-to-Door Solicitations When salespersons show up at the door to sell products and services, ask to see a business permit. Resist the pressure to buy anything on the spot. If a purchase has been made, the buyer usually has three business days to legally cancel such a sale if the sale was made in the home or a temporary business place (e.g. a convention center).
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