Seniors beware: Scammers go where the money is

You might be surprised by the seniors who fall prey to investment scams.

The victim is often a successful male, said Daryl Hagel, a regional director for the U.S. Securities and Exchange Commission in San Francisco.

He’s college-educated, affluent and versed in the workings of the stock market. He’s heard just enough stories about well-timed investments to succumb to a con artist’s pitch of instant wealth.

“Scammers go where the money is, and most of the wealth is in the hands of senior investors,” Hagel told a crowd of senior citizens Thursday at North Idaho College.

About 100 people turned out for “Senior Scam Jam,” the 8th Annual North Idaho Conference on Aging. Speakers focused on ways seniors can protect themselves from fraud.

Nearly 60 percent of scams are perpetrated on individuals older than 50, according to research by AARP. Not only are older Americans wealthier than the general population, Hagel said, but they were raised in a more courteous era, so they’re less likely to hang up on a high-pressure telemarketing pitch. Many of the pitches prey on people’s fears of outliving their money.

Fraud targeting seniors is particularly heinous, Hagel said, because they have less time to recover financially than a younger person.

Some seniors came to Thursday’s conference to arm themselves against the unscrupulous. Others came with hindsight.

A 72-year-old Post Falls woman said she spent $5,500 on a work-from-home scheme she saw advertised on television. She was looking for a job to generate a bit of extra cash during retirement.

The offer to sell vitamins through the Internet sounded ideal at the time, she said.

“That’s why I let them talk me into it,” said the woman, who asked that her name not be published for fear of being targeted again. “They were going to take care of all of it; I didn’t have to do a thing. But all they did was take my money.”

Two years later, she said she’s still paying off the charge on her credit card.

Con artists are “here, and they’ll always be here,” said Detective Sgt. Pat Kenner of the Post Falls Police Department.

In Kootenai County, many financial crimes can be traced back to the perpetrator’s use of methamphetamine, Kenner said. “Where do they get the money? By ripping you off,” he said.

The Post Falls Police Department has investigated schemes from local check fraud to Nigerian e-mail scams, where the victims are sent a letter or an e-mail, requesting help with transferring large sums of money out of Nigeria.

Local residents have also been taken in by the “jury duty” scam, Kenner said. A person who identifies himself as an officer of the court calls and advises victims that they have failed to appear for jury duty. When the victims say they didn’t receive a notice to appear, the phony court officer asks for a birth date, Social Security number and maybe even a credit card number to clear up the matter.

“They’re going to make it sound very legitimate,” Kenner said.

Experts said the time-honored advice for avoiding fraud is the best. Ask for detailed information about the offer.

Check if the person is licensed to sell securities. Consult with an attorney or certified public accountant. Be skeptical of deals that sound too good to be true.

And, said Hagel, “hang up when a stranger calls with a financial offer.”