The Internet can be a wonderful resource, especially when it comes to making purchases, managing your finances and staying in touch with friends and family. Technology has allowed many important transactions to take place safely online, which is extremely beneficial to those with busy schedules or mobility issues who may not be able to get to stores or banks during normal business hours. It has also made reconnecting with loved ones simple and seamless.
Unfortunately, many digital scammers also use the Web to target people for fraud. Specifically, many of these scams are aimed at senior citizens, many of whom are less computer-literate than their younger counterparts. If you regularly share your personal information online, review these three scams and learn how to avoid them.
1. Prescription promises
Many seniors manage multiple prescriptions, a process that can be complicated and expensive. While insurance can help reduce the price of drugs and treatments, many seniors are still left with significant medical bills. The National Council on Aging explained that those with staggering health expenses often hop online to see if they can find their medications at lower prices.
Since 2000, there have been around 20 cases per year of seniors purchasing drugs from illegitimate websites posing as official health care providers. The source explained that scammers on these sites usually send seniors placebos that don’t do anything for their conditions, or ship them different medicine than what they ordered. In the long run, these fraudulent organizations put seniors at risk for financial and medical difficulties.
Bank Rate reported that seniors are also targeted by scammers who pose as Medicare professionals. They often reach out to seniors twice to create a false sense of authenticity. First, they call or email to introduce themselves and take down general information. They typically contact seniors again, explaining that they called their children or other close relatives and were given permission to ask for Social Security and insurance information. Many times, scammers say this information is crucial for improving seniors’ insurance plans. Once these individuals or organizations acquire personal information, they commit identity theft and steal money.
2. Illegitimate loans
Another common scam aimed at seniors is what AARP calls “loan intimidation.” People posing as official government agents, lawyers or law enforcement administrators email seniors, telling them they have delinquent loans and will be subject to legal consequences. The source noted that these scams are often the hardest to identify, as the fraudulent organization first collects private information like birthdays, contact info and even Social Security numbers. Loan intimidation is often a secondary scam, as the fraudsters receive seniors’ private data through false online credit card applications they filled out without realizing their illegitimacy.
In fear of being arrested or fined even further, people often pay these fake loan collectors immediately and later realize they were scammed. AARP reported that people over the age of 50 lost $3.5 million to this type of fraud in 2011.
3. Grandparent scam
Unfortunately, many con artists prey on sensitive areas they know will elicit strong emotional reactions. For many seniors, their grandchildren occupy large places in their lives, and they would do anything to help them succeed. Knowing this, scammers will contact seniors via phone or email, posing as one of their grandkids. They typically approach the situation with an air of familiarity, explained the National Council on Aging, opening with lines like “Hi Grandpa, you know who this is, right?”
After making small talk to establish trust, the scammer will then reveal that he or she is in deep financial trouble, typically with something like rent, car payments, student loans or another respectable and time-sensitive issue. The con artist will then beg the senior not to disclose the situation to his or her parents, and ask that the grandparent send the money through a service like MoneyGram as opposed to meeting to exchange cash or having the senior mail a check. The source explained that this type of scam is incredibly common, as it doesn’t require con artists to do much research.
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