This generation of elderly Americans is the wealthiest ever, and that means criminals look at them as easy marks for financial scams. Losing all of one’s (or one’s parent’s) wealth to a scammer is heartbreaking and often difficult to reverse. It’s possible to lose substantial assets to a financial scheme, so protecting oneself by knowing what tactics scammers use can help avoid a bankruptcy situation. Here are a few examples of scams that are trending upward these days.
One type is investment schemes. These come in a variety of forms. For example, in Ponzi schemes scammers adopting the look of sophisticated businesspeople promise high returns to wealthy (or not-so-wealthy) investors. The investment in question is usually in some kind of market that people aren’t familiar with, or it’s pitched by a businessperson they already trust. But rather than produce real returns, the scammers simply use the money from new participants to pay older ones until the system falls apart. A similar type is a “pump-and-dump” scam, in which the scammers buy up a security to inflate its price, tout its value, and then convince other people to buy it from them. Once the price inevitably falls, the newer investors lose everything.
Another tactic is to get at an asset elderly people often have: their homes. One outfit in California sent fake property assessments to homeowners and offered to reduce them for a fee. Similarly, some scammers try to convince older people to use the money from reverse mortgages to buy services they don’t really need, like home repairs. Construction companies might contact the homeowners directly to pressure them into hiring them to maintain the resale value of their homes.
A third type of scam targeting the elderly is related to their health. Scammers might impersonate medical professionals at a mobile clinic to obtain people’s personal information to file false Medicare claims. Another scam that’s becoming more common is counterfeit prescription drugs. The scammers offer fake drugs on the Internet to entice elderly users to pay reduced prices. The criminals take the money and send whatever they have—and it often isn’t safe. Seniors end up not taking the drugs they need and possibly take substances that harm them or cause an adverse interaction with other drugs they take. This is a very dangerous one to get caught up in.
Fourth, sometimes scammers take advantage of people grieving the loss of a loved one. They may attend a funeral of a stranger and tell a bereaved family member that the deceased owes them money. Sometimes even the funeral home gets in on the act by charging for products or services that aren’t necessary, like ornate caskets for cremation.
Finally, one of the most cynical scams out there is the “grandparent scam.” The scammer calls an elderly person, plays a “guess who” game with them to obtain the name of a relative, and then impersonates that relative. The scammer asks for money and asks that they not tell their parents.
If you or a loved one is the victim of a confidence man (or woman), then call the Bureau of Adult Services of the New York State Office of Children & Family Services at (518) 402-6513.
If you lost money in a scam, it’s possible you will not recover all that you lost. If you are in serious financial need, then talking to an experienced New York bankruptcy lawyer can help you assess your options.
For answers to more questions about bankruptcy, the automatic stay, effective strategies for dealing with foreclosure, and protecting your assets in bankruptcy please feel free to contact experienced bankruptcy attorney Brooklyn NY Bruce Weiner for a free initial consultation.
