Seniors: The Typical Targets of Fraud and Financial Elder Abuse

Written by Adam Peck Category: Elder Law January 26th, 2013 3 min read

Even if you have never been the victim of a fraud or scam artist, chances are you know someone who has.

What it means, according to federal and state fraud prevention experts, is that the scammers typically target older Americans who are nearing — or already in — retirement.

The criminals also have their sights set on the estimated 72 million baby boomers — the leading edge of which turned 62 last year — many of whom have socked away sizable retirement nest eggs through 401(k) plans and other personal accounts.

And do not pooh-pooh the notion that it cannot happen to you, police and other fraud experts say.

Fraud and scam victims can be anyone — you, a relative, a neighbor, a friend, a co-worker.

A lot of people don’t want to admit they have been defrauded or scammed, , There’s no average profile. They’re young and old, but I definitely think seniors are targets. A lot of scammers think they have nest eggs. And that generation … they’re nice and trusting — they were raised to be polite. They want to believe something is true.

In the case of investment fraud, recent research compiled by FINRA Investor Education Foundation blows away the stereotype of investment fraud victims as isolated, frail and gullible. Do you know anyone who meets the following description: self-reliant decision-maker; above-average financial knowledge; college-educated; experienced a recent health or financial setback; open to new ideas or sales pitches?

But fraud experts — like those at the FINRA foundation who compiled fraud prevention tips — say the trick is figuring out when “good” becomes “too good,” because fraudsters and scammers make their living by promoting or offering deals that seem both good and true, in some cases using the same tactics that legitimate and honest marketers use. The difference is, of course, honest deal brokers will be in their bricks-and-mortar offices or residences tomorrow or are registered and licensed with state and federal agencies.

Fraudsters are masters of persuasion, experts agree, that they tailor their pitches to match the psychological profiles of their targets. They look for an “in,” that is, by asking seemingly benign questions — about your health, family, political views, hobbies or previous employers — just to keep you talking. When they begin to sense you may be vulnerable, they bombard fraud victims with “influence tactics,” leaving even the savviest person in a haze. Among those tactics are 1) dangling the prospect of riches (by saying things like “These gas wells are guaranteed to produce $6,800 a month in income”); 2) building consensus (“This is how so-and-so got rich” or “My mother uses this product”); 3) granting reciprocity (“I’ll give you a break on my commission if you’ll buy now — half off”); or 4) mentioning scarcity of a product or service (“There are only two of them left, so I’d put some money down now”).

One of the things they like to do is rush the victims,The thing to do is step back, take a minute, ask friends about it and consider that you might be thinking, ‘Yeah, that doesn’t sound right.’ Get someone else involved.

Some of the scammers do not live in the United States and are, thus, out of American law enforcement’s reach, Windham noted, adding, that the absence of extradition treaties emboldens criminals.

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Written by Adam Peck

Expertise: Personal Injury

Adam J. Peck, ESQ is a principal with Peck Law Group, APC. In 2008, Mr. Adam Peck received his Juris Doctorate from Whittier Law School where he graduated Cum Laude. His practice is primarily dedicated to representing Elders, Dependent Adults, along with their loved ones and family members, who have suffered horrific personal injuries.