By Andrea Calcagno
November 2, 2009
MEDFORD, Ore. - The American Association of Retired Persons says older citizens are a primary target for financial fraud and scams.
On Monday Oregon Attorney General John Kroger sent out a warning to families to beware of these "grandparent scams".
About 12 percent of people in the U.S. are 65 and older, but senior citizens make up 35 percent of all fraud victims according to the National Crime and Prevention Council.
"I said to him, 'do you need some money', and he said 'yes, grandma I really do'," Phoenix Resident Eloise said.
Eloise recently received a phone call from a man claiming to be her grandson in a Canadian jail.
"And he said 'I want you to know I'm not wanting you to give it to me'. He said, 'I've got the money at home'," Eloise said.
The scammer told Eloise he would have his attorney call her to get the funds needed to get him out of jail.
It wasn't until she was withdrawing around $2,800 in cash that her bank told her it was likely a scam.
"She said 'oh, Eloise don't do that'. She said, 'that's a scam'. I said, 'really?' Because I had thought I had talked to me grandson and I thought I recognized his voice and everything," Eloise said.
"People's families are very important to them, and they prey on people's emotions. So sometimes when your emotions are involved, and there's danger involved, you not going to be able to sit down and think rationally," Talent Police Chief Mike Moran said.
Medford Police say the most common financial scams are forms of identity theft. Phishing and texting scams are emails, text-messages or phone calls seemingly from a financial institution asking for bank account information.
"I've gotten a phone call already that said that I won a $30,000 boat and the guy wanted to know my social security number. Of course, I told him he could keep the boat," said Lois McConnell, whose card number was compromised.
Skimming scams happen when a person loses sight of their credit card while making a purchase and the card number is taken before its returned to the customer.
McConnell's credit card number was used after shopping in Medford.
"I went shopping Friday, so this happened on a Saturday, that somebody ordered $500 of flowers to send to another state. And Visa did turn them down because whoever called for the order had the wrong expired date on it, so now I'm very careful when I go shopping not to give my credit card out," McConnell said.
Secret shopper scams ask a person to cash a check received in the mail and wire the money to a certain place promising large amounts of money in return.
Criminals also collect information through classic dumpster diving.
Nigerian scams usually involve someone seemingly from Nigeria or another foreign country who is promising inheritance money, if they are sent a certain amount of money first.
"Because older adults are really, in general, quite trusting, and lots of time folks are home alone, so they're lonely, and scammers know that," said Kathie Young with Seniors and People with Disabilities.
Medford Police say financial crimes are most likely to be committed by family members or caretakers.
Many go unreported.
"The victims in those cases care very deeply for what we call suspects and they call caregivers or family members. So they may not be as cooperative in regards to a prosecution or giving a statement," said Kevin Walruff with the Medford Police Department.
The Southern Oregon Financial Fraud and Securities Team, also known as SOFAST, brings together prosecutors, law enforcement, adult and protective services, competing banks and the AARP. Representatives from each group meet on a monthly basis to discuss suspicious transactions coming through the banks.
This program alerted employees at Eloise's bank about the Canadian scam.
"They may wind up giving advice to somebody or caution them or question them about the amount of money that they're giving to a certain individual. In a lot of cases they get frustrated with that and move to another location. So if the competing banks are aware of these individuals, they too can try to help to notify adult protective services or law enforcement," Walruff said.
He recommends seniors be on guard.
"Know who you're giving your money to. Ask questions, try to educate yourself on what that company is. If that company is calling and asking for money, try to do some research on that company. You can call the Better Business Bureau. You can call the Federal Trade Commission," Walruff said.
Shred any documents with personal information before throwing it away.
The issue of elderly fraud is also being addressed on a national level.
The Elder Justice Act was recently added in committee to the Healthcare Reform Bill. The act is designed to spread awareness about elder abuse, neglect and financial exploitation.
