30 percent of consumer fraud in the US is directed toward senior citizens. According to statistics, seniors who are 65 to 79 years-old – typically women living alone – are the target of phony telemarketing ploys, bogus health cures, get-rich-quick investments, and many others. So why are seniors the primary targets of such scams? First, they tend to have more disposable income than the younger generation. Second, they are often at home and more likely to take phone calls from strangers. Lastly, they are the most vulnerable group to victimize.
As their loved one, it is wise to know about the deceitful world of consumer fraud and on how you can protect their hard-earned savings and retirement income. So, Prestige Health Care Services, Inc., your Home Care Provider in Worcester, Massachusetts brings you two of the most common financial fraud aimed at the elderly people:
- Investment Fraud
Predators make use of computer-generated lists of newly retired employees or seniors. With that list, they try to sell shares in gold, gemstones, and most commonly, cheap lands in beautiful places. Many of these investments lose their value rapidly and are not marketable shortly after purchase.
- Pyramid Schemes
This is done through a program promising quick money for recruiting new members. Predators promise enormous earnings, sell “miracle” products, or ask new distributors to spend money on costly inventory and marketing materials. Many of the participants of this scheme end up losing money to pay for the lucky few.
The bottom-line of all these? If it’s too good to be true, then say no!