| Avoid fraud which takes billions from mature adults | |
| By Leonard J. Hansen | |
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Orlando, Florida - The scenarios sound improbable - even impossible - for the schemes and scams which are targeted specifically at mature adults. But they work all too often and are financially devastating to those who can’t replace the lost assets or income. According to a new study, one fifth to one quarter of all mature adults say they have been victim of a major fraud. And, once a victim, the mature adult is a ripe target for repeated fraudulent pitches as the con artists share mooch lists of those who have already fallen for a scam. Eight hundred professionals active in law enforcement and prosecution, senior and service organizations, government agencies and academia from around the nation focused for four days on an Economic Crime Summit in Orlando, Florida. At the same time as the Federal Bureau of Investigation (FBI) was announcing that the rate of violent crime was down in the United States, experts in this conference reported an impelled rise in fraud, particularly against mature adults. The annual losses exceed $40 billion just in telemarketing fraud alone, taken easily and mostly without investigation or prosecution by some 14,000 illegal boiler room operations. Scam artists have expanded their methods into cyberspace, taking additional tens of billions of dollars each year via the Internet by using spam (junk e-mail), phony web sites and newsletters, and banner advertising which offers a "greater return on your money." Why mature adults fall for scams - each which makes offers too good to be true or pleads a cause for contribution for which there is no charity - could not be explained by the professionals. Whether a representative of the Securities and Exchange Commission, the FBI, a state Attorney General, local District Attorney, or a street cop, none could tell the reporter why mature adults fall for the schemes and scams, but only reported that people over age 50 are the easiest and most predictable victims while, in fact, they should know better and not fall for the incredible pitches. What is the fraud that works against mature adults? Phony sweepstakes where the caller or e-mail message announces that you have won a major sweepstakes prize but must pay the taxes and/or processing fee in advance is number one. The concept doesn’t make sense because the mature adult has not entered the claimed sweepstakes and no legitimate sweepstakes charges a service fee or collects taxes in advance. But, tens of thousands of mature adults fall for the phony pitch. The prize which does arrive will be junk worth pennies; but more often, the scammer will call back again and again demanding yet more money. Other schemes are “insider” investment pitches with offers of returns far above the traditional market, often "without risk," and frequently with claims that are too good to be true, prize and free trip announcements for contests which you have not entered, charity pitches which plead for contributions, and blatantly-fraudulent pitches which claim to be from your bank or other financial institution who claim that they must check your account number and move the money to a financial instrument which is safe from a computer crash. All are lies; but too often the scams are successful, report the experts participating in the Economic Crime Summit. An Internet Fraud Council has been launched by the National Fraud Center, FBI, National Coalition for the Prevention of Economic Crime and the National White Collar Crime Center. "This is a major initiative to curb the growth of Internet fraud, which is increasing exponentially," stated Norman Willox, Jr., president of the National Fraud Center. AARP has taken a leadership role in targeting fraudulent telemarketers to reach and inform all mature adults about the currently rampant and successful field of crime. Lee Norgaard, AARP specialist on fraud, reported from a survey that most mature adults don’t believe telemarketing fraud is a crime. "It is a crime, a vicious crime which has serious repercussions .on the victims, far above their economic losses. Fraudulent telemarketers are criminals and can and should be identified, investigated and prosecuted as criminals. AARP’s first thrust is to inform mature adults how to avoid being a victim of fraud through materials, audio and video tapes, "reverse boiler rooms" (involving volunteer telephone calls to those considered possible or perspective victims), community training sessions and more. The program theme is: "Don’t fall for a telephone line." The National Sheriff’s Association operates an ever-expanding Triad program in more than 800 counties throughout the nation, drawing into its local management senior organizations and prosecutors in addition to its own law enforcement officers. The National Fraud Information Center has expanded its on-line service to include more data and recommendations for mature adults on how to avoid being a victim of economic crime. On the federal level, the Securities and Exchange Commission (SEC), Federal Trade Commission (FTC) and FBI have all added to their on-line information service plus have expanded their complaint receipt process and follow through. The body of law regarding fraud is weak or spotty, state experts at the Summit, and that massive training programs are necessary at all levels of government, prosecution, investigation and enforcement. Amid the never-never-land setting of Walt Disney World, the discussion was serious, the warnings ominous, and the resulting message to mature adults emphatic. Older Americans, at least for now, must be their own first line of defense against fraud by telemarketers, via Internet or at the front door when pitched by the workman who just "happened to be in your area and saw the problem in the driveway." If the call or message comes and you don’t know the person or the company, assume that it is fraud. Hang up, hit the delete button to kill the e-mail message, or close the front door to the questionable pitch. There is no reason to listen or even be polite when saying a firm “no” or getting rid of the caller or message. For information on fraud and how to avoid being a victim:
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