Q: My parents are very trusting people and I worry about scam artists taking them for a ride. Do you have a list of scams that I could share with them?
A: Well, I hadn’t before you wrote but with a bit of research I‘ve created one for you along with some tips that your parents should follow. Because older people are generally polite, have good credit and a savings they can immediately access, they are the best prey for scam artists. And it shows: Consumers lose over $40 billion a year to telemarketing fraud alone and more than half are older victims.
Let’s help your parents outsmart the predators; here is what to watch out for:
1. IRS impersonators. Be wary of people who present themselves as tax preparers who are not affiliated with a reputable company such as H&R Block or AARP volunteers who prepare tax returns at local senior centers. If your parents use email, also be careful of email addresses that look like they are coming from the IRS (such as tax-refunds@irs.gov) telling you that you have a tax refund. They’ll ask for your Social Security number for verification and your credit card number to credit your refund. Do not respond; instead call the IRS at 1-800-829-1040 to find out if this is legitimate.
2. "Phishing" is a gimmick used to get personal financial information from you such as a Social Security Number, banking accounts and credit card numbers under the hoax of updating your billing information or validate it.
3. “Congratulations, you’ve won …” If your mom and dad get a call saying they’ve won something and they need to secure the prize by giving the caller a credit card number or pay a delivery fee or taxes, it’s a scam.
4. Credit Card Insurance: Cashing in on the cautious nature of older people, telemarketers offer credit card insurance either as a prize or special offer. It is insurance they often do not need as federal law protects consumer exposure to no more that $50 of unauthorized expenses when a credit card is stolen.
5. Home Repair: In this scam a home repair person approaches a homeowner telling them that while they were working on someone else’s home in the neighborhood they noticed a leaky roof or some other construction problem on yours. Since they have some extra material from their other job, they’ll do your work at a discount. They may ask for the money upfront and never return or perform poor quality work and overcharge; once they’re in the door they often discover new things that must be fixed immediately.
