Common Scams that Target Seniors
New scam targets senior citizens
Warning from US Immigration and Customs Enforcement about scams targeting senior citizens to unknowingly act as international drug smugglers.
This involves a scheme that conned dozens of elderly U.S. citizens into being unwitting drug mules to countries with severe penalties for drug-related charges, like Australia and New Zealand.
The victims were recruited via social media and telemarketing fraud. Investigators believe over 30 individuals from the United States remain incarcerated overseas.
The ruse entices victims with a promise of an inheritance or business opportunity and the requirement that they fly to various countries to meet with “attorneys” or “business partners,” with all travel and expenses paid by the transnational criminal organization. On the final leg of the trip, the victims are asked to take seemingly harmless items along with them for their business contacts at the next location. Upon arrival and inspection, these innocuous items are found to contain drugs resulting in detention and arrest by local authorities. The drugs are concealed in everything from chocolates, picture frames, tea and markers to canned goods, shampoo bottles, soap and wooden hangers.
The recruited individuals are often so engaged with the criminal organization, they do not believe the truth when they are confronted with it because these organizations warn their victims not to believe anyone who approaches them as law enforcement. HSI has warned elderly unwitting couriers concerning their potential role in this scheme, only to have them book travel and be intercepted in another country with narcotics. While organizations like these will victimize consumers of all ages, backgrounds and income levels, the elderly are disproportionately targeted, according to investigators. Perpetrators take advantage of the fact that elderly Americans may be lonely and not have the Internet savvy to recognize the scam.
This involves a scheme that conned dozens of elderly U.S. citizens into being unwitting drug mules to countries with severe penalties for drug-related charges, like Australia and New Zealand.
The victims were recruited via social media and telemarketing fraud. Investigators believe over 30 individuals from the United States remain incarcerated overseas.
The ruse entices victims with a promise of an inheritance or business opportunity and the requirement that they fly to various countries to meet with “attorneys” or “business partners,” with all travel and expenses paid by the transnational criminal organization. On the final leg of the trip, the victims are asked to take seemingly harmless items along with them for their business contacts at the next location. Upon arrival and inspection, these innocuous items are found to contain drugs resulting in detention and arrest by local authorities. The drugs are concealed in everything from chocolates, picture frames, tea and markers to canned goods, shampoo bottles, soap and wooden hangers.
The recruited individuals are often so engaged with the criminal organization, they do not believe the truth when they are confronted with it because these organizations warn their victims not to believe anyone who approaches them as law enforcement. HSI has warned elderly unwitting couriers concerning their potential role in this scheme, only to have them book travel and be intercepted in another country with narcotics. While organizations like these will victimize consumers of all ages, backgrounds and income levels, the elderly are disproportionately targeted, according to investigators. Perpetrators take advantage of the fact that elderly Americans may be lonely and not have the Internet savvy to recognize the scam.
The scam: Visa / MasterCard Scam
The scam works like this:
Person calling says - 'This is (name) and I'm calling from the Security and Fraud Department at VISA. My Badge number is 12460, your card has been flagged for an unusual purchase pattern, and I'm calling to verify. This would be on your VISA card which was issued by (name of bank). Did you purchase an Anti-Telemarketing Device for $497.99 from a marketing company based in Arizona ?' When you say 'No', the caller continues with, 'Then we will be issuing a credit to your account. This is a company we have been watching, and the charges range from $297 to $497, just under the $500 purchase pattern that flags most cards. Before your next statement, the credit will be sent to (gives you your address). Is that correct?' You say 'yes'.
The caller continues - 'I will be starting a Fraud Investigation. If you have any questions, you should call the 1- 800 number listed on the back of your card (1-800-VISA) and ask for Security. You will need to refer to this Control Number. The caller then gives you a 6 digit number. 'Do you need me to read it again?'
Here's the IMPORTANT part on how the scam works - The caller then says, 'I need to verify you are in possession of your card'. He'll ask you to 'turn your card over and look for some numbers'. There are 7 numbers; the first 4 are part of your card number, the last 3 are the Security Numbers that verify you are the possessor of the card. These are the numbers you sometimes use to make Internet purchases to prove you have the card. The caller will ask you to read the last 3 numbers to him. After you tell the caller the 3 numbers, he'll say, 'That is correct, I just needed to verify that the card has not been lost or stolen, and that you still have your card. Do you have any other questions?'
After you say no, the caller then thanks you and states, 'Don't hesitate to call back if you do', and hangs up. You actually say very little, and they never ask for or tell you the card number. But after we were called on Wednesday, we called back within 20 minutes to ask a question. We were glad we did! The REAL VISA Security Department told us it was a scam and in the last 15 minutes a new purchase of $497.99 was charged to our card. We made a real fraud report and closed the VISA account. VISA is reissuing us a new number. What the Scammer wants is the 3-digit PIN number on the back of the card. Don't give it to them. Instead, tell them you'll call VISA or Master Card directly for verification of their conversation.
The real VISA told us that they will never ask for anything on the card, as they already know the information, since they issued the card! If you give the Scammer your 3 Digit PIN Number, you think you're receiving a credit. However, by the time you get your statement you'll see charges for purchases you didn't make, and by then it's almost too late and/or more difficult to actually file a fraud report.
Person calling says - 'This is (name) and I'm calling from the Security and Fraud Department at VISA. My Badge number is 12460, your card has been flagged for an unusual purchase pattern, and I'm calling to verify. This would be on your VISA card which was issued by (name of bank). Did you purchase an Anti-Telemarketing Device for $497.99 from a marketing company based in Arizona ?' When you say 'No', the caller continues with, 'Then we will be issuing a credit to your account. This is a company we have been watching, and the charges range from $297 to $497, just under the $500 purchase pattern that flags most cards. Before your next statement, the credit will be sent to (gives you your address). Is that correct?' You say 'yes'.
The caller continues - 'I will be starting a Fraud Investigation. If you have any questions, you should call the 1- 800 number listed on the back of your card (1-800-VISA) and ask for Security. You will need to refer to this Control Number. The caller then gives you a 6 digit number. 'Do you need me to read it again?'
Here's the IMPORTANT part on how the scam works - The caller then says, 'I need to verify you are in possession of your card'. He'll ask you to 'turn your card over and look for some numbers'. There are 7 numbers; the first 4 are part of your card number, the last 3 are the Security Numbers that verify you are the possessor of the card. These are the numbers you sometimes use to make Internet purchases to prove you have the card. The caller will ask you to read the last 3 numbers to him. After you tell the caller the 3 numbers, he'll say, 'That is correct, I just needed to verify that the card has not been lost or stolen, and that you still have your card. Do you have any other questions?'
After you say no, the caller then thanks you and states, 'Don't hesitate to call back if you do', and hangs up. You actually say very little, and they never ask for or tell you the card number. But after we were called on Wednesday, we called back within 20 minutes to ask a question. We were glad we did! The REAL VISA Security Department told us it was a scam and in the last 15 minutes a new purchase of $497.99 was charged to our card. We made a real fraud report and closed the VISA account. VISA is reissuing us a new number. What the Scammer wants is the 3-digit PIN number on the back of the card. Don't give it to them. Instead, tell them you'll call VISA or Master Card directly for verification of their conversation.
The real VISA told us that they will never ask for anything on the card, as they already know the information, since they issued the card! If you give the Scammer your 3 Digit PIN Number, you think you're receiving a credit. However, by the time you get your statement you'll see charges for purchases you didn't make, and by then it's almost too late and/or more difficult to actually file a fraud report.
Change-of-address scam
You receive a notice that purports to be from the Social Security Administration (SSA) confirming a change of address for where your future Social Security benefits checks will be sent (or a change of bank account where your future benefits checks will be direct deposited). Trouble is, you have not moved and did not authorize any change. When you call the toll-free number listed on the notice, a person who claims to be an SSA representative explains that someone is trying to steal your identity, but that the representative can help you sort it out.
The scam Stealing Your Phone Number
This new “porting” scam not only results in your losing your phone number but creates the opportunity for scammers to charge money against your accounts.
Here’s how it works:
You get a phone call from someone who says they are conducting a survey. They ask questions to seemingly legitimize the survey and then say you need to hit 9 on your phone to record the answers. When you do so you are transferring your phone number to the thieves’ cell phone which is a prepaid untraceable phone.
When the retailer or credit card company calls to check to see if this is a legitimate charge, they reach the scammer who approves it. Sometimes the amount charged can be large as once the bank thinks they have been told by consumers that these charges are legitimate they will take down the protections and allow that credit card to be used until it reaches its limit
Here’s how it works:
You get a phone call from someone who says they are conducting a survey. They ask questions to seemingly legitimize the survey and then say you need to hit 9 on your phone to record the answers. When you do so you are transferring your phone number to the thieves’ cell phone which is a prepaid untraceable phone.
When the retailer or credit card company calls to check to see if this is a legitimate charge, they reach the scammer who approves it. Sometimes the amount charged can be large as once the bank thinks they have been told by consumers that these charges are legitimate they will take down the protections and allow that credit card to be used until it reaches its limit
The scam: Someone is trying to steal your identity
The phony SSA representative who claims to want to help. The change-of-address notice was sent by a con artist, and the toll-free number listed on it connected you with this crook. At some point during the call you will be asked to provide your Social Security number and other personal data. If you provide this information, you make it very easy for your identity to be stolen.
Refund scam
A fake financial adviser offers to help you opt out of the Social Security system and reclaim all of the money that you paid into it over the years, for a fee.
The scam: There is no legal way to opt out of Social Security. This "adviser" will pocket your fee, then use the Social Security number you provide to steal your identity or sell it to others to do so. Replacement card scam. A letter claiming to be from the SSA states that your Social Security card is in poor condition and must be replaced. Just fill out the enclosed form and a new card will be mailed to you.
The scam: There is no legal way to opt out of Social Security. This "adviser" will pocket your fee, then use the Social Security number you provide to steal your identity or sell it to others to do so. Replacement card scam. A letter claiming to be from the SSA states that your Social Security card is in poor condition and must be replaced. Just fill out the enclosed form and a new card will be mailed to you.
The scam: If you fill out the form
A scammer will use the information to steal your identity. The SSA does not replace old Social Security cards unless the cardholder requests a replacement. The scammer likely assumed that your card was in poor condition because many people’s cards are in poor condition.
Online dating or social network scam
If you establish a relationship with someone you met on line who well into your exchange of emails or even phone calls asks you for money, do not send it. If you have received a photo which you think might be bogus you can check it out by going to tineye.com and uploading the photo. This site will tell you where on the Internet the photo has appeared.
If you already receive social security benefits... Inheritance scam
A communication that seems to be from the SSA informs you that because you recently received an inheritance, you no longer qualify for full Social Security benefits and must pay back a portion of benefits you received.
The scam: Receiving an inheritance does not affect your Social Security benefits. If you "pay back" the money as instructed, you are handing it to a con artist. This thief likely saw your name listed among the surviving relatives in a newspaper obituary and guessed that you received an inheritance.
The scam: Receiving an inheritance does not affect your Social Security benefits. If you "pay back" the money as instructed, you are handing it to a con artist. This thief likely saw your name listed among the surviving relatives in a newspaper obituary and guessed that you received an inheritance.
Cost-of-Living Adjustment (COLA) scam
The SSA informs you that you qualify for a benefits increase to keep pace with inflation -- but only if you apply for it.
The scam: Cost-of-living adjustments are automatic, so anyone who prods you to apply for an adjustment is likely a con artist attempting to trick you into revealing your Social Security number and bank account information.
Extra check scam. The SSA says that you were the victim of a benefits miscalculation and are now entitled to an extra payment. You just have to complete a form (and perhaps pay a filing fee).
The scam: You have not really been underpaid by the SSA, you have beentargeted by a con artist. In the extremely unlikely event that there really was a benefits miscalculation, once it was discovered by the SSA, you would not have to fill out a form or pay a fee to receive the money owed -- your future checks would simply increase.
The scam: Cost-of-living adjustments are automatic, so anyone who prods you to apply for an adjustment is likely a con artist attempting to trick you into revealing your Social Security number and bank account information.
Extra check scam. The SSA says that you were the victim of a benefits miscalculation and are now entitled to an extra payment. You just have to complete a form (and perhaps pay a filing fee).
The scam: You have not really been underpaid by the SSA, you have beentargeted by a con artist. In the extremely unlikely event that there really was a benefits miscalculation, once it was discovered by the SSA, you would not have to fill out a form or pay a fee to receive the money owed -- your future checks would simply increase.
Direct-deposit scam
A scammer pretending to be from the SSA contacts you to confirm the direct-deposit bank account number it has on file for you. Like other Social Security scams, this contact might come via phone, mail or e-mail. You are warned that you will not receive your next check if you do not supply the requested information.
The scam: You have been contacted by a con artist, not the SSA. He/she likely is guessing that you recieve checks by direct deposit, as most benefits recipients do. If you provide your bank account information, the thief can arrange a funds transfer or print counterfeit checks for your account. If the request to verify direct deposit information came via a phone call or e-mail, it is almost certainly a con. If it arrived in a letter, there is a chance that it could be legitimate. Rather than trust any contact information listed on this form, call the real SSA at 800-772-1213 to confirm. Do this with any communication that claims to come from the SSA.
From an interview: Steve Weisman, Esq., an attorney in Cambridge, Massachusetts, who specializes in elder law issues (www.steveweisman.com). He is host of the syndicated radio program A Touch of Grey, which focuses on issues affecting those over age 50. Weisman is also a senior lecturer at Bentley College in Waltham, Massachusetts, and author of The Truth About Avoiding Scams (FT)
The scam: You have been contacted by a con artist, not the SSA. He/she likely is guessing that you recieve checks by direct deposit, as most benefits recipients do. If you provide your bank account information, the thief can arrange a funds transfer or print counterfeit checks for your account. If the request to verify direct deposit information came via a phone call or e-mail, it is almost certainly a con. If it arrived in a letter, there is a chance that it could be legitimate. Rather than trust any contact information listed on this form, call the real SSA at 800-772-1213 to confirm. Do this with any communication that claims to come from the SSA.
From an interview: Steve Weisman, Esq., an attorney in Cambridge, Massachusetts, who specializes in elder law issues (www.steveweisman.com). He is host of the syndicated radio program A Touch of Grey, which focuses on issues affecting those over age 50. Weisman is also a senior lecturer at Bentley College in Waltham, Massachusetts, and author of The Truth About Avoiding Scams (FT)
Annuity Scams
Targets seniors and terminally ill patients by inducing them to purchase an annuity which is largely for the benefit of investors and intermediaries.
A recent scam enticed senior citizens to put large amounts of savings into deferred annuities, reducing their savings to qualify for a particular federal veterans benefit. The veteran might get $1,000 a month from the benefit, but lose access to the cash for years. Meantime, the annuity salesperson earned a commission of 8% to 12%.
A recent scam enticed senior citizens to put large amounts of savings into deferred annuities, reducing their savings to qualify for a particular federal veterans benefit. The veteran might get $1,000 a month from the benefit, but lose access to the cash for years. Meantime, the annuity salesperson earned a commission of 8% to 12%.
Bogus book contract scam
Scam publishers and their bogus publishing contracts. For more information follow this link...
More Spoofs and Scams
- Medicare spoof: A caller claims to be a Medicare representative and asks for bank account information to activate new federal benefits. Often the caller appears to be legitimate because con artists are able to purchase "spoofing cards" to falsify the phone number that appears on the victim's caller ID and make it appear as if they are calling from a federal agency.
- Magazine scam: Door-to-door solicitors falsely say they are raising money for local sports teams by selling magazines that will be sent to troops in Iraq.
- Grandparents scam: Caller claims to be a lawyer or police officer who states that a grandchild is in trouble, in a hospital or in jail, and asks for money to be wired.
- Counterfeit check scam: Consumer receives a real-looking fake check with a letter explaining they have won a lottery or sweepstakes. The person is instructed to deposit the check and wire back a specified amount of money to cover the taxes on the winnings. Often it takes the bank several days to verify that the check is fake. By that time, it is too late to recover money that was wired from the account.
- Credit card interest rate scam: Con artist says he can help lower credit interest rate but is actually trying to collect credit account information.
- Jury duty scam: Caller claims that the victim missed jury duty. When the victim protests that she never received a jury summons, the caller asks for her Social Security number and birth date so he can "verify the information and cancel the arrest warrant."
Sweepstakes Scam
- You are asked to pay to receive the prize. Legitimate sweepstakes will never ask you to pay fees
- The sweepstakes uses a free e-mail account. If you receive a win notice claiming to be from a sweepstakes it is bogus if it arrived from a free account such as Hotmail or Gmail.
- You don’t recognize the contest you’ve supposed won. The only sweepstakes you can win are those you enter. This is a scam.
- You receive a large check with your winning notification. Do not attempt to cash it. Legitimate sweepstakes require affidavits before sending out any prize valued at more than $600
- You are instructed to wire money. Criminals use services such a Western Union to receive illicit funds because it is nearly impossible to trace who receives the money. Do not send money to get back money.
- You bank or credit card info is required in order to receive your prize. Legitimate sweepstakes do not send wins by direct deposit or do they need to withdraw moneys from your bank or need your credit card information.
- You are told you won the lottery. If you purchased a lottery ticket you must find the winning numbers in a newspaper or via the Internet or TV. The lottery does not notify you to tell you that you’ve won.
Focus on Internet Safety
From The Department of Homeland Security
With kids out of school for the summer, it’s easy for parents and kids to shift their focus from education to fun. Parents want to make sure their kids are having fun and staying safe at the same time, and this should apply to all activities, from riding bikes to swimming to being online. Summer means kids will have more free time, which may mean more time on the computer. June is National Internet Safety Month, a time to reflect on our current online behavior and commit to being more responsible and safe online.
The Stop.Think.Connect. Campaign encourages parents and educators to start an Internet safety dialogue with their children and students. Topics can include:
Stop.Think.Connect.’s Resources for Parents and Educators, which includes a booklet on how to chat with your kids about being online.
With kids out of school for the summer, it’s easy for parents and kids to shift their focus from education to fun. Parents want to make sure their kids are having fun and staying safe at the same time, and this should apply to all activities, from riding bikes to swimming to being online. Summer means kids will have more free time, which may mean more time on the computer. June is National Internet Safety Month, a time to reflect on our current online behavior and commit to being more responsible and safe online.
The Stop.Think.Connect. Campaign encourages parents and educators to start an Internet safety dialogue with their children and students. Topics can include:
- How to practice online safety every day. Discuss clicking on links, talking to strangers, setting strong passwords, and how to avoid sharing too much personal information online.
- Being a good online citizen. Explain the importance of treating others online with respect and avoid saying or writing things online that you would not say in person.
- When to report suspicious people or activity. Encourage kids to talk to trusted adults when someone online is making them feel uncomfortable or unsafe.
Stop.Think.Connect.’s Resources for Parents and Educators, which includes a booklet on how to chat with your kids about being online.
Cybersecurity and Older Americans
Older Americans are online more than ever before. According to May 2013 testimony by Federal Trade Commission Acting Director Charles Harwood the “number of adults over 65 who use the Internet is increasing rapidly”. The Internet provides older Americans the opportunity to stay connected with their community, friends and loved ones, shop, plan travel, and manage their finances. With these opportunities, however, come risks, especially as cyber criminals take advantage of older Americans’ lack of familiarity with technology to access to their personal information, especially for financial gain.
For example, criminals are using the Affordable Care Act to take advantage of seniors, getting access to their personal and medical information for purposes of identity theft and collecting payments for fraudulent insurance plans.
Older Americans should take special care when conducting the following activities online:
For example, criminals are using the Affordable Care Act to take advantage of seniors, getting access to their personal and medical information for purposes of identity theft and collecting payments for fraudulent insurance plans.
Older Americans should take special care when conducting the following activities online:
- Connecting with friends and family. Only add people who you know on social media (e.g., Facebook) and programs like Skype. Adding strangers can expose you and your personal information to scammers. Do notinclude a lot of personal information about yourself on websites, even if the site requests it. Learn more from sage social media. For example, do not share your address or telephone number.
- Getting medical advice and information. Many pharmaceutical companies create websites with information to sell their products. Look for sites ending in .edu (for education) or .gov (for government) for accurate guidance. Also, be on the lookout for websites claiming to sell legitimate prescription drugs at much lower prices.
- Banking. Do not access your bank accounts from a public computer or through an unsecured wireless network. Do not reveal your personal information, such as social security number, bank account number, or date of birth, to unknown sources. When paying a bill online or making an online donation, be sure that you type the website address into your browser instead of clicking on a link or cutting and pasting it from an email.
- Online shopping. Make sure you only shop on websites that start with “https” – the ‘s’ means that the website is secure. Look for the padlock icon at the bottom of your browser, which indicates that the site uses encryption to protect your personal information, such as your credit card number. Type new website URLs directly in the address bar instead of clicking on links or cutting and pasting them from emails.
- Choose strong passwords. Choose a password that means something to you and you only. Use strong passwords with eight characters or more that use a combination of numbers, letters, and symbols.Do not include your name, your kids or pets names, or other well-known information about yourself in your passwords. Avoid using common words in your password or passphrases. Instead, break up words with numbers and punctuation marks or symbols. For example, @ can replace the letter “A” and an exclamation point (!) can replace the letters “I” and “L”
- Think before you click. Avoid opening attachments, clicking on links, or responding to email messages from unknown senders or companies that ask for your personal information.
- Keep a clean machine. Install and regularly update the software on your computer, including anti-virus and anti-spyware programs. These programs can help protect the information stored on your computer.