Identity Theft and Scams
Identity theft and scams against seniors are much more common than against younger Americans.
According to a recent survey by the Investor Protection Trust one out of every 5 Americans over the age of 65 has been the victim of a financial scam. If it sounds to good to be true it probably is. Do your research.
Everybody knows that protecting their credit from identify theft has become an  important part of life. According to a recent study by the Federal Reserve, almost 80 percent of seniors have credit scores of 701 or better, and another 10 percent have scores of 660 to 700. These high scores should qualify most seniors for the lowest interest rates. If you can qualify for a lower interest rate that you are currently getting, by all means do so. Of course, credit thieves target seniors as they know their credit is usually excellent.
You must also protect yourself against people stealing your identity and against fraud. Never give personal information to someone you don’t know and trust. This is especially true of your Social Security number, date of birth, bank account number, credit card numbers, and home address. Do not keep your Social Security number in your purse or wallet, and carry as little identifying information as possible.
Do not sign the back of your credit cards. Instead, put "PHOTO ID REQUIRED".
One of the most common scams is for a bogus credit card company to ask you to pay upfront to get approved for their credit card. Legitimate credit card companies don’t require upfront payment. Also remember that if a deal sounds too good to be true, it usually is. You can verify the legitimacy of offers you receive with your local Better Business Bureau at http://www.bbb.org/.
Make a photo copy of both sides of everything in your wallet including credit cards and identification cards (driver's license, insurance cards, etc..) If traveling overseas make a copy of your passport.
If your wallet or purse is stolen immediately call all your credit card companies to request an account number change. Tell them you want a new number issued. That way nothing will show up on your credit report noted as cancelled by consumer which would be hurtful to your credit. Keep the toll free numbers of each credit card handy for such a call.
Change all your passwords to make sure your accounts can't be opened by the thief. The best passwords are a combination of numbers and letters--not your birth date, mother's maiden name or pet's name which can easily be found online.
File a police report and get copies as you will need them for insurance purposes and possibly in dealings with credit card companies.
Request a fraud alert be placed on your credit accounts that the 3 main credit bureaus maintain. Experian 1-888-397-3742 www.experian.com, Equifax 1-800-525-6285 www.equifax.com and TransUnion 1-800-680-7289 www.transunion.com. If you contact any of these three they will contact the other two.
Call the Social Security Administration (fraud line) and place an alert 1-800-269-0271
Ask your local Department of Motor Vehicles to put a flag on your driver's license so the thief will have difficulty applying for a new copy of your license to use for identification purposes.
Notify your bank you want a new ATM card and tell them if you checkbook was stolen.
Wait a couple of weeks and check your credit by going to www.AnnualCreditReport.com or by calling 1-877-322-8228 and check again after a couple of months.
Internet Scams
Verify your bank account
This is the most common email scam today. It is designed to lure you into divulging your password information. These email and Web pages closely resemble legitimate credit authorities like Citibank, Bank of America, eBay, or PayPal. They entice you into visiting a phony web page and entering your ID and password. Often the guise is an urgent need to "confirm your identity" or tell you your account has been compromised or hacked and you must change your password.
Tip: the beginning of legitimate link address should have https://. These fakes will just have http:// (no “s”). If you question the legitimacy of the email call your financial institution to verify if the email is genuine.
The Nigerian scam
You receive an email from a supposed member of a wealthy Nigerian family interested in getting money out of Nigeria. The scam involves paying you a great deal of money for your help.
Advanced fees paid for a guaranteed loan or credit card
You receive information concerning a “pre-approved” loan or a credit card that charges an up-front fee.
Overpayment scam for item you are selling
This scam involves an item you might have listed for sale such as a car, or some other expensive item. The scammer finds your ad and sends you an email offering to pay much more than your asking price. The reason for overpayment is supposedly related to the international fees to ship the car or item overseas. In return, you are to send the car and the cash for the difference between what you listed your item for and what the scammer has agreed to pay you.
The scamper pays by money order and the money order you receive looks real so you deposit it into your account. In a couple of days (or the time it takes to clear) your bank informs you the money order was fake. In the mean time you have sent the item you were selling as well as the difference you were to pay over your asking price.
Lottery scam
You receive an email from saying that you won a huge amount of money.
The catch is that prior to collecting your “winnings”, you must pay the “processing” fee of several thousands of dollars.
Employment search scam
After posting a resume on an employment site you receive a job offer to become a "financial representative" of an overseas company. They state the reason they want to hire you is that this company has problems accepting money from US customers and they need you to handle those payments. You will be paid 5 to 15 percent commission per transaction.
In your application process, which they demand you do to get the job, you provide the scammer with your personal data, such as bank account information, so you can “get paid” and other personal information. As a result you are subject to identity theft as well as open to have money stolen from any account you list..
Disaster relief scam
You receive a request for donation via email to donate to a major disaster relieve fund or to volunteer.
Sometimes the name of the charity or organization sounds like a legitimate organization, but the Website they link you to is bogus. Always contact the recognized charitable organization directly by phone or their Website and donate or volunteer this way
Travel scams
You receive an email with the offer to get a low fares to some exotic destination but you must book on line through the provided Website immediately as the offer expires that evening. If you call, to check this out you are likely to find out the travel is at a lower price but the hotel rates are jacked up to cover the travel savings.
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