In my last article I focused mainly on consumer scams that seniors faced, part II will center on financial scams being used right now. Before writing this article I wanted to do a little research. I went to Google and typed “senior scams financial” and to my amazement within seconds I had 643,000 sites from which to choose from. It makes you stop and think just how prevalent is financial fraud, especially when it comes to seniors? Seniors aged 60 and older account for 15 percent if the U.S. population, yet according to Money Wise they comprise 30 percent of fraud victims. More than five million elderly people are victimized by financial fraud each year and with the first boomers reaching 60 this year and as more come of age that statistic can only go up.

The national consumer advocacy group Consumer Action and leading financial services provider Capital One have developed a free new guide, Just Say No to Senior Scams. The guide offers tips seniors can use to spot and protect themselves from scams and is part of the Capital One-Consumer Action MoneyWi$e financial education series. You can get a free copy by going to www.money-wise.org. The scams that follow are ones that are perpetrated though various means – internet, telephone and in person. Be aware and be alert, con men and crooks are ready, willing and able to take your money in a flash.

Many of my clients tell me they’re completely lost when it comes to using a computer and the internet. Based on my research they might be better off not knowing the ins and outs of the internet and e-mailing. Internet fraud is the fastest growing type of crooked schemes being perpetrated on the public today:

“Nigerian” letters

This scam use to come via the U.S. Postal service with a Nigerian stamp. Today it comes via E-mail, but the request and outcome are the same. The sender weaves a tail of large amounts of money sitting in a bank they can’t access and ask for your bank account number to have them wire it (the money) to you and then to their account. In return you will get a cut but with electronic transfers and the speed of the internet the only thing that gets transferred is your money to some one else.

“Phishing”

You receive an e-mail from your bank, a business you know or a governmental agency asking you to “confirm” your account number and online passwords. They tell you that your account is in danger of being closed or you might have been a victim of fraud. If you respond you will be a victim of fraud and may very well find your accounts wiped out in the process.

“IRS” Phishing

Phishing is bad enough but according to the March 2006 issue of Reader’s Digest there is a new twist to this scam. Since it is tax time people are very aware of the IRS and if you got an e-mail from them saying there was a problem with your taxes or refund you’d certainly pay attention. That’s what the thief is hoping for. You are asked to click on a URL that looks like an official WEB site of the IRS but it’s a fake and is set up just to get your social security number and other financial information. Since the IRS doesn’t send out unsolicited e-mail and you get one from them assume it’s a fake and don’t respond.

Don’t think that your lack of computer savvy will keep you out of harms way. Just check out these next scams:

“There is a warrant out for your arrest for missing Jury Duty”

This one really gets me. You receive a call from some one saying that you’ve missed jury duty and a warrant has been issued for your arrest. You get very upset and tell the person you’ve never been notified that you had jury duty. They tell you not to panic, they’ll get it straightened out, and all they need is your social security number and your date of birth to check their records. You happily give it to them to avoid going to jail and when they come back and assure you that it was all a big mistake you hang up relived. Unfortunately now the scammer has everything they need to steal your identity and make your life miserable.

“You qualify for a discount health or drug plan”

Medicare Part “D” has spawned a new way to “D”fraud seniors. This morning at 7:35 AM my fax machine received an unsolicited offer for a Health Plan for $49.99 a month for a single person or my whole family that covers Doctors, Hospitals, Prescriptions, Dental, Vision & other benefits! As confusing as this new Medicare program is it’s easy to be taken in by some one selling a new drug card. The paper work looks official and it sounds great but if you send money what you’ll get back is a program with extremely limited coverage or one that is completely worthless.

Affinity Fraud

By our nature we trust people, for that matter we want to trust people. We especially want to trust those who we have an affinity for – those like us, either religiously or ethnically. Unfortunately it’s that trust which gets us in trouble. Con men will use any means to get at your nest egg even your beliefs in the “goodness” of others. No group is immune from fraud. That sweet young lady from church who is so willing to help you do your shopping or balance your check book just might be a scam with a smile.

Caregiver Fraud

Going hand in hand with affinity fraud is caregiver fraud. Home-based health aides, housekeepers and cooks sometimes steal from the older people they are serving. Many crooks-including friends and family members-take advantage of the good nature of seniors to cheat them, you or your children need to check the background of anyone who you are going to allow into your home.

We all have to be on our guard against scams. These are just some of those being unleashed on our senior population everyday. If you believe that you have been involved in a scam or crooked scheme don’t let it embarrass you into silence. Call the Traverse City Detective Bureau at 231-995-5152 or Commission on Aging at 231-922-4688 to report it.

Fred L. Goldenberg is a Certified Senior Advisor and the owner of Senior Benefit Solutions of Michigan. He is also a founding member of the Senior Resource Alliance of Northern Michigan.