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Tag: abuse

More Money Tips

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More Money Tips

Fraud and Abuse

If you have not done so already, adding yourself to the Do Not Call Registry can limit the number of mail and phone calls you receive from marketers. Contact the Do Not Call Registry at 1-888-382-1222 or visit www.donotcall.gov

For more information on stopping unwanted mail and phone calls visit the Federal Trade Commission online at www.consumer.ftc.gov/articles/0260-stopping-unsolicited-mail-phone-calls-and-email

You’ve seen many ads and articles stating that a Reverse Mortgage can help you, and for some people it is a wise choice. NJFA’s Renaissance magazine has published articles outlining what you should know when considering a Reverse mortgage. You must be 62 or over to qualify and a counseling session is required.  A reverse mortgage is borrowing against the equity of your home. You must stay current with your property taxes while you live in the home and the money will have to be paid back when you or your heirs sell the home. More information can be found at www.fdic.gov/

Always be on the lookout for fraud. Here are some warning signs to be aware of:

  • An unsolicited phone call, email or other request that you pay a large amount of money before receiving goods and services.
  • An unexpected email or call requesting your bank account number, perhaps one asking you for the information printed at the bottom of your checks.
  • An offer that seems too good to be true, like an investment, ‚Äúguaranteeing‚Äù a return that‚Äôs way above the competition.
  • Pressure to send funds quickly by wire transfer.

Protecting your important documents is important. Keeping them in a safe place should also include protecting them from water damage by keeping them in an airtight and waterproof container.

The NJ Division of Consumer Affairs provides valuable information and resources to protect you. Their website features information about cyber fraud, how to determine if an investment opportunity is real and also a way to check if a charity is legitimate and other consumer warnings. Visit them online at www.njconsumeraffairs.gov or call them at 1-800-242-5846.

The Social Security Administration Encourages You to be on the Look Out for Scams

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The Social Security Administration Encourages You to be on the Look Out for Scams

Disaster scams are still out there. The Social Security Administration (SSA) issued another warning last week. The scammers are making phone calls and sending emails, posing as FEMA or SSA employees. They ask  for your Social Security number  and bank information, stating that they need it to make sure you get your benefits. These are the same type of scammers that call or send emails claiming that you won a prize and asking you to provide information so they may send you the winnings or even asking you to pay a fee upfront.  Once the thieves have your personal information, they can use it to open credit accounts, buy homes, claim tax refunds, and commit other types of fraud. Most recently, some identity thieves have redirected Social Security beneficiaries’ monthly benefit payments, so the money goes to a different bank account, sometimes repeatedly.

To help prevent this type of fraud, the Inspector General recommends that you:

  • never provide your personal information when receiving unsolicited calls or contacts
  • never agree to accept pre-paid debit cards or credit cards in another person‚Äôs name
  • never agree to send or wire money to an unknown person
  • always contact your local SSA office if you receive a call from a person claiming to be from SSA, and that person asks you to provide your Social Security number or other information.

To verify the legitimacy of a caller who claims to be an SSA employee, call your local Social Security office, or Social Security’s toll-free customer service number at 1-800-772-1213. Deaf or hard-of-hearing individuals can call Social Security’s TTY number at 1-800-325-0778.

If you find that someone has stolen or is using your personal information, you should report that to the Federal Trade Commission at www.ftc.gov/idtheft or 1-877-ID-THEFT.  You can report suspicious activity involving Social Security programs and operations to the Social Security Fraud Hotline, or by phone at 1-800-269-0271. Deaf or hard-of-hearing individuals can call OIG’s TTY number at 1-866-501-2101.

Fraud is still out there.

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Fraud is still out there.

Scammers continue to target seniors.

The Certified Financial Planner Board of Standards, a non-profit organization, conducted a survey of financial planners. In this survey they found that seniors who become victims of financial abuse lose an estimated $140,500.

The financial planners surveyed indicated that seniors who were victims of “unfair, deceptive or abusive practices” were often scammed through misleading marketing schemes. As we have said before, there is no such thing as a free lunch. But often that is just what the scammers do is lure seniors in with a seminar where they get a free lunch. The catch is that is really a sales pitch for misleading or fraudulent investments. 73% of the advisors surveyed said they knew a senior that was invited to this type of “free lunch” seminar.

The financial advisors also stated that they knew of seniors getting unsolicited pitches at home through the mail, e-mail, or the phone. While these type of investment scams, reverse mortgage scams and even sweepstakes scams are prevalent, sometimes seniors are also victims of fraud committed by someone they know. Of the planners surveyed, 35 % of them reported that they knew of at least one case were an elder was the victim of financial abuse by someone they knew. And another 20% said that the perpetrator was the guardian or Power of Attorney for the senior.

And the types of fraud don’t end there either. 83% of the advisors surveyed stated that seniors have been scammed by other financial advisors. Just like the “free lunch” seminars, there are financial advisors out there that have offered inappropriate financial products to seniors, as well as, misrepresented or omitted information about the costs and risks of those products.

Despite the fact that these types of fraud result in big losses for seniors, only 16% actually report the abuse to authorities. Many things can deter seniors from reporting crime, if the perpetrator is a family member they may not want to press charges or they may be afraid to report them. Some seniors may be embarrassed to admit they feel for a scheme, for fear people will think they are feeble. Or, they may be experiencing cognitive impairment or dementia and don’t want to admit that either.

It is important to make sure the people you’ve selected or hired to help with your finances are trustworthy. It never hurts to obtain a second opinion about any investment advice. If you think you’ve been the victim of financial abuse or fraud, please report it. If you are concerned that a loved one may have been taken advantage of, encourage them to report it or make the call yourself.

You can report financial abuse to the police. You can also reach out to your County Office on Aging to find out about programs or services. To report any elder abuse concern please contact your County Adult Protective service agency.

To find your County Office on Aging phone # visit, www.njfoundationforaging.org/services.html or call 1-877-222-3737.

To find your County’s Adult Protective Service agency visit: http://www.state.nj.us/health/senior/adultpsp.shtml

or call 1-800-792-8820