Elderly fraud and scams are on the rise
Recently in Michigan, James Robert Black (a/k/a “Jim Gribble”) pleaded guilty to conspiracy to commit wire fraud. He was sentenced to 60 months in prison, and ordered to pay restitution for his part in a fraudulent roof repair scheme intended to defraud an elderly homeowner out of nearly $300,000. The scheme included pressuring the homeowner to pay for a series of false problems associated with the project, including dangerous working conditions, employee injuries, threatened lawsuits and criminal tax issues. Conspiracy to commit wire fraud is a felony offense punishable by up to 20 years in prison. After federal investigators arrested him in Florida, Black pled guilty to the conspiracy charge and received a harsh sentence, according to the presiding judge, because “he had a long history of committing the same kind of frauds in the past”.
Scammers target seniors for many reasons. People in their 60s or over have often accumulated significant wealth in their lifetime. Most have regular payments coming in from Social Security. But the older they get, the more vulnerable they may become. Social isolation can put seniors at risk, and there’s even research showing how the part of their brain that can detect lies may wear out over time.
Scammers are also attracted by the sheer size of this large and growing target: By 2030, one in every five Americans is expected to be over 65. What’s more, fraudsters think they’re likely to get away with such crimes because financial scams often go unreported or can be difficult to prosecute.
Older adults need to be on the alert for senior scams. As a baseline, they should remember that government organizations don’t typically come to people’s homes, contact them by phone, or send unsolicited emails that threaten or ask for personal information, says the Institute on Aging (IOA). It’s worth looking online to learn the many tips and habits that can help, such as pausing to look up a legitimate website or phone number before you even think about clicking a link or taking a call. A recent Wall Street Journal article included these tips:
- Call blocking. Put your phone number on the National Do Not Call Registry9 and use your phone service’s features to block robocallers from calling you back. While these steps can help, they’re far from foolproof, especially given fraudsters’ ability to keep changing phone lines.
- Spam blocking. Mark junk email as spam, so your spam filter blocks it the next time. Also, look before you click on any link in the email. Some “phishers” will send emails with what look like legitimate addresses, at first glance, but that might have two letters transposed or otherwise reveal themselves as counterfeit on close inspection.
- Banking tools. You can set up bank alerts on suspicious activity and request a lower credit card limit if you’re not regularly using it all. These steps can help reduce the risk of loss.
Also key to protecting seniors against scams is to report them. A good place to start is the website of the Elder Justice Initiative, which was established in 2018 by the FBI and the Justice Department to combat elder abuse and fraud.
References:
- https://www.americanexpress.com/en-us/credit-cards/credit-intel/elderly-scams-and-fraud/
- https://www.justice.gov/elderjustice/find-support-elder-abuse