Seniors as Predominant
Telemarketing Fraud Victims
Percentage of Telemarketing Fraud Victims
Law enforcement experience shows that telemarketing fraud victimizes
consumers of all ages, levels of income, and backgrounds. The elderly,
however, are disproportionately represented among victims of telemarketing
fraud, and in some scams, 80% or more of the victims are 65 or
older.
Seniors seem especially susceptible to fraudulent offers for prize
promotions and lottery clubs, charitable solicitations, and investment
offers and account for 60% of the fraud victims who call the National
Consumers League's National Fraud Information Center.
Most are available for midday calls and have no suspicious children
around to intervene. Every single day there are thousands of cases
of elderly people being scammed by home services, defrauded by
caregivers, exploited by neighbors or family members, or tricked
by the unscrupulous.
Elderly victims commonly receive five or more calls a day from
high-pressure telephone sales people once they make their first
purchase or contribution.
An Ohio widow lost her life savings of $240,000 to more than fifty
fraudulent telemarketers. A 92-year-old California woman lost $180,000,
and then $5,250 more in supposed "recovery" fees to a
man who said he could get some of her money back. A woman in her
seventies from another western state was persuaded by a telemarketer
to send him $60,000 from her and her husband's retirement fund
and, when that was gone, to take out a loan for $13,000 more.
Elderly victims commonly receive five or more calls a day from
high-pressure telephone sales people once they make their first
purchase or contribution.
An Ohio widow lost her life savings of $240,000 to more than fifty
fraudulent telemarketers. A 92-year-old California woman lost $180,000,
and then $5,250 more in supposed "recovery" fees to a
man who said he could get some of her money back. A woman in her
seventies from another western state was persuaded by a telemarketer
to send him $60,000 from her and her husband's retirement fund
and, when that was gone, to take out a loan for $13,000 more.
Attitude of Society towards Fraud Victims
We tend to think of these victims as being someone maybe frail
or very elderly but that is not always the case. Research
rebuts the notion that all elderly victims are vulnerable because
they are socially isolated, ill-informed, or confused.
It is often someone that is very outgoing, someone that has many
ties in the community, someone that's well educated, and someone
that has some money. But they are also very trusting and feel the
salesperson could just as easily be their grandchild on the phone
trying to make a living. Many of the victims come from a time and
place where a man's word was his bond.
One AARP sponsored survey shows that older
people who fall for telemarketing scams tend to believe the pitches
they hear, that they have a good chance of actually winning the
grand prize, and that the products touted are worth the price charged
for them.
Ninety percent of survey respondents report awareness of consumer
fraud; yet two-thirds said it is hard to spot fraud when it is
happening. Even after the fact, they generally feel that they were
not cheated or robbed but that they just didn't get their money's
worth. The survey also showed that elderly victims find it
difficult to terminate telephone conversations, even when they
say they are not interested in continuing a conversation.
They fail to associate the pleasant voice with a criminal trying
to steal their money and do not realize that scammers are not just
sleazy salespeople trying to make a living.
Stage in Life for Elderly Scam Victims
In this fast-paced, youth-oriented society elder issues are not
high on the social agenda and the elderly tend to be ignored. Many
people live their twilight years in isolation and they are sometimes
mentally infirm and frequently lonely. An alarming number are suffering
from debilitating grief over the loss of a lifetime spouse at the
precise time they are tapped by a telemarketer. Telemarketers will
collect obituaries from various newspapers so that they can take
advantage of recent widows and widowers.
Statistically, wives are often left behind having to make financial
decisions, which were often handled by their now deceased husbands. They
are lonely and suffering from ills that make them desperate for
someone to talk to. Thus, many seniors are exploited at a
time when they are particularly vulnerable.
Offenders have told police their ideal "mark" is an
elderly person, home alone, with no contact with family members.
Their sympathetic tones easily win the trust of the victim as they
commiserate over their troubles but assure them that "now
your luck has changed, for you've just won a prize worth tens of
thousands of dollars".
Financial Situation of Senior Fraud
Victims
Fraudulent telemarketers will often target older citizens knowing
that many of them may have significant assets from a lifetime of
saving, including self-directed retirement accounts, cash reserves,
or other assets available to spend on seemingly attractive offers.
Apart from not wanting to ever be a burden on their children,
seniors seek to build their nest egg in the hopes of also providing
for their grandchildren as well. They are also reluctant
to seek advice or assistance from others about financial matters
in general.
Recent retirees or older workers who have lost their jobs through
corporate down-sizing are often attracted to ads touting
opportunities to operate their own small business or to work from
home.
Affect On Elderly Victim of a Scam
Often these elders get trapped in a downward spiral of repeated
victimization as they grow increasingly desperate to recoup their
losses. They dread revealing the full extent of their losses, fearing
that their last measure of independence will be taken away from
them by their well-meaning children.
The elderly are not only more susceptible, they tend to be more
seriously affected when they are victimized and do not have the
time or opportunity for financial recovery; their prime earning
years are behind them.
As elders lose their savings, go into debt, mortgage property,
or take out credit card advances to pay those exploiting them,
even comfortable lifestyles collapse. Some have lost their homes
or been forced to sell them to meet day-to-day living expenses.
The impact of fraud on elders can be profound and life-altering.
Fraudulent telemarketers not only rob their victims of their hard-earned
financial assets, but also of their human dignity. Elder fraud
victims often find their trust shattered. "I would rather
be taken advantage of by someone who placed a gun in my ribs than
be cheated by someone I trusted", wrote an elderly victim.
They doubt their judgment. They feel isolated, depressed, angry,
and ashamed. These violations of trust compounded with the subsequent
uncertainty about paying bills, often lead to illness. In fact,
seventy-eight percent of elderly victims develop acute and chronic
anxiety. The loss of quality of life or standard of living
can be physically and psychologically devastating and irreversible,
and victims may become suicidal as a result.
Scammers Thoughts Towards Senior Victims
The evidence indicates that offenders believe older people have
more assets and are more susceptible to techniques such as excitement
tactics or appeals to altruism. A con artist will say whatever
it takes to separate victims from their money. They are swindlers
who con our senior citizens out of their life savings by playing
on trust, sympathy, and sometimes loneliness.
They have also said that they don't fear prosecution because they
count on their victims' physical or mental infirmity, perhaps even
impending death, or the shame surrounding victimization, to prevent
their testimony at trial. These telemarketers know that the victim,
shamed at suffering such losses, often will not even tell friends
or family about the scam.
To date, most of the fraud affecting the elderly has been perpetrated
through the telephone. As the elderly begin to use the Internet,
fraud operators can be expected to find them through this new channel
of communication and commerce.
Sweepstakes
Swindle
From Jackie H. Mon, 28
Aug 2000
I am writing this with the hope that you
can help me. My elderly parents reside in Greenville, S.C. I
reside in Bryan, Ohio. Anyhow, my father lives in an assisted
living facility and my mother lives alone in their condo.
Several months ago my mother started receiving
phone calls from a man in Montreal, Quebec who lead her to believe
that she had won $2 million. Several days and several conversations
later, he told her that she needed to wire him $18,000
to receive her prize.
She did this, without telling anyone, just
as he instructed her to do. (This transaction occurred on 6/28/00) On
Aug. 1,2000 all of this was brought to my attention when a neighbor
of my mother's notified my brother who lives in Tennessee.
My mother had ask her to go to the bank
with her when two men were to come to town to give her her winnings.....the
neighbor became suspicious and then notified us. I notified the
FBI and the Secret Service, I also called an organization in
Canada called Phonebusters. This man is still calling my mother,
unaware that she is now on to him (although, in her confused
state, it is unclear whether or not she still believes him.....he
is telling her the armoured car carrying her money has broken
down). I have a phone number which he uses, and the bank account
and bank branch which the money was sent to.
Do you think that you can help me at all.....the
US authorities have said that Canadian authorities have been
notified, but it seems like they are not too concerned about
solving this. This money was to have been used to help pay for
my father's care in the facility he resides in (he suffers from
advanced Parkinson's disease and Prostate Cancer). I will be
hoping to hear from you soon.
Hi Jackie,
Your story is all too familiar but heart-breaking
none the less. I wish I knew how to fast track your request for
police action but with the exception of asking you to notify
the FTC and your Attorney General ( who will ensure the longest
extraditable jail term ) all I can do is forward your letter
on to the Solicitor General Canada and their task force on Telemarketing
Fraud which uses Phonebusters as a collection point for complaints.
I will ask them to let you and me know what
course of action is usually taken and what else you might do. Knowing
the area code and exchange might allow you to contact the Quebec
police fraud squad for that city to also file a complaint. I
would have you ask those you contact for written confirmation
of action in the manner of charges being laid.
Although it may be contrary to certain laws,
so I can not advise you to do so, I, personally, would still
try to tape record the conversations these guys have with your
mother. I would also take your mom down to the bank and establish
a joint account for the bulk of her savings, requiring both of your
signatures on checks.
If she balks, keep a single account for
her spending money with whatever she wants in it, just lock down
the rest, if they left her any. At worst, talk to her bank
manager and request that they either ignore requests from your
mother for large withdrawals without notifying you, ( Note: this
would be against bank policy but some managers have a decency
which transcends regulations. It would be best to
provide them with the power of attorney - if you can get it ).
Stress that being aware of the fraud you will, with your mother's
consent, ultimately hold them responsible if they process such
requests, knowing them to be of a fraudulent nature.
Pay for a stop payment on any future checks
payable to that organization, regardless of amount. This
is all of course assuming you can convince her to go along. Without
her consent and written authorization the bank is powerless to
act. In fact, they may refuse to discuss anything related
to her account for fear of breaching privacy issues.
Do not expect your mother to listen to your
reasoning over the persuasive voice of the fraudster. She will
continue to send checks. I ask your permission to post
your plea so that anyone else who might have a suggestion can
forward it on.
For now, take care. Les Henderson
Les: You have my permission to post
my plea. The FBI is indeed trying to get a taped conversation,
but my mother is not good with the device which they gave her.
They did retrieve some of his messages which he left on her answering
machine, so that is good. The bank has been notified and there
is a red flag alert on her account if she tries to make large
transactions.
We also canceled her credit card. I doubt
the crooks will ever be caught, but I am going to keep up my
fight so that I can make others more aware of how this can happen
in their families so easily.
Thanks for responding. Jackie H.
Dear Les,
First of all, I would like to thank you
for your assistance in getting my Mom to be called by the group
SeniorBusters, thru the Phonebusters organization.....I have
been busy doing a lot of my own research along with some help
from a man which Gus from Phonebusters hooked me up with.
He runs a company which specializes in credit
card fraud for banks. Gus saw a connection with the phone
numbers which I had reported and some of them linked to an investigation
which Mr. Whatley was doing. Anyhow, one interesting thing
which I found out....my Mom purchased three similar items from
telemarketers in a three week period in June.
They were from three separate companies
but a very similar product......one of them being the global
retrieval system. The purchase amounts were: $299.00
, $399.00 , and $398.00. How awful, since she paid the bill. The
following week was when she wired the money.....all of this is
connected somehow, I am sure.
I have tracked down the mother of the girl
which the money was wired to......I am going to put some pressure
on her to return the $18,000.00
Will be in touch.....Jackie
I am going down to stay with my mother (the victim) after her
doctor assesses her ability to handle her own finances.
This is a step that my sister and I feel we have had to make
to try and get some sort of control of the situation and to help
my mother to get her life back. She does not know she is going
for an assessment and will be angry and confused.
If your book is anything like your website, I was hoping to have
stories to tell her of other people who had been conned, as to
reassure her that these telemarketers are very clever and manipulative.
We're desperate, as we estimate at least $3,000 a month is going
out to buy numerous power drills and trinkets and my mother's health
is suffering. She is even reluctant to go to church and has
been a devout Catholic all her life.
C.S 04/02/02
I still haven't been able to stop my Mum from entering the "competitions".
They seem to have produced obsessive behaviour in her and she is
doing more than ever. This now amounts to $150 a day!
I tried doing all the things in your book - not blaming her, helping
her to see the extent of the problem, finding alternative activities
to occupy her, but to no avail. I also contacted gamblers anonymous
who said that only she could help herself and that she had to reach
a point of realisation - usually bankruptcy or an arrest for stealing
to feed her habit.
Last time I went to see her, I just flipped and told her what
a load of nonsense this was and threw handfuls of the envelopes
into a rubbish bag - as I left the house she screamed at me "May
you rot in hell you little bitch". And this from a supposedly
devout catholic!
We have since made it up, but she will not stop.
I have also written to some of the scammer companies and sent
them a change of address to divert mail to my house. Luckily
I have the same initials and name as her so I am just on the side
of the law in doing this.
The banks over here have been no use whatsoever and the same
with the post office - they just can't be bothered.
Unfortunately, looking at a lot of the ones she is doing - they
say quite clearly that you can phone to find out what prize you
have been allocated, that you do not need to send any money or
purchase anything and they state the odds of winning a big prize,
but she thinks that she will not be treated like a "special" customer
unless she sends them something.
You don't know anyone who wants about a thousand pieces of crap
jewelry do you?
C.S. 04/23/03
Fraud Runs in the Family
03/07 - They sent their life savings in exchange for large prizes
and promises of large financial returns, but these American seniors
didn't know they had been sucked in by a telemarketing fraud run
by Kingston, Ontario residents.
The OPP's anti-rackets squad had been investigating the fraud
ring for some time and began swooping down on the fraudsters last
fall. As it turned out, the operation stretched farther than the
initial three Kingston residents police arrested in November.
OPP Sgt. Kristine Rae said numerous victims in the U.S. lost "extremely
large amounts" of money.
Police, with help from the U.S. Postal Service, began investigating
in early 2006, after several seniors reported losing their hard-earned
cash.
All of the victims identified to date are seniors who live in
the U.S.
The fraudsters offered seniors loans, lottery prizes and U.S.
Treasury bills or bonds in exchange for advance fees. The victims
were asked to send money to cover the fees, but they never received
anything in return, police said.
Last fall, OPP charged Darryl Dorsey, 49, Darrell Ivan Dorsey
(Weiss), 21, and Amanda Wyer, 21, all of Kingston, with fraud over
$5,000 and conspiracy to commit fraud.
Police have also charged the following Kingston residents with
the same offences: Elizabeth Dorsey, 26, David MacDonald, 30, Stacey
Waudby, 24, Mark Perry, 29, Andrea Diggs, 27, and Francisco Bustamante,
31. Police also charged James Burns, 20, of Hamilton.
Elderly Victim of Lottery Scam Loses Life Savings to Telemarketing
Fraud
11/06 - UK - HEARTBROKEN pensioner Jean Stanton lost her life-savings
and her £140,000 home to a ruthless prize draw conman.
A smooth-talking American crook, calling himself Gregory Johnson
Anderson, phoned the 74-year-old widow daily demanding cash after
she replied to a letter telling her she was in line for a £132,000
windfall.
He even told Jean he had fallen for her and would use the cash
from her house sale to buy them a place in Washington DC. But after
he had fleeced her out of about £200,000, the calls stopped
and the fraudster disappeared.
Jean said: "When I realised he wouldn't call again I wanted
to die. I had absolutely nothing. I was homeless and penniless."
Jean, whose second husband Lewis died in 2001, started sending
cash after Anderson's company The Universal Trust got in touch
in September 2004 telling her she had won the Australian lottery.
Anderson got mum-of-one Jean to send money to mail boxes in England
and abroad, telling her she had to pay fees to secure her "winnings".
Within months her savings, worth tens of thousands, and the bulk
of her £106-a-week pension were gone.
Jean, from Spalding, Lincs said: "He was lovely to talk to.
He told me about his life and job.
He said he lived with his wife but they were no longer a couple
- but that's why I could not call him. I suppose I was gullible,
but we grew very close."
Although the pair had never met, Anderson convinced Jean to sell
up and invest in property in the US.
She sold her bungalow for £140,000 and sent Anderson the £78,000
profit by the difficult to trace Western Union wire service. Police
thought the transaction was suspicious and contacted Jean warning
her she may be the victim of a scam. Tragically, she refused to
believe Anderson could rip her off, and signed forms authorising
the payment.
Jean last heard from him on August 23 last year after she warned
him the police had contacted her.
She now has a council house, near the home she once owned.
She said: "I feel ill all the time - I'm sick with depression." Police
are now investigating the case.
Jean was one of hundreds of readers who flooded the Mirror's phonelines
with calls after we told how a 78-year-old Plymouth pensioner lost
his £90,000 life savings to prize draw scams.
Consumer Minister Ian McCartney said: "These people make
me sick and despite laws and organisations like Trading Standards,
they will always find a way to con.
"I know it can be hard to resist what seems like free money
but I would urge anyone who receives one of these prize draw wins
to bin it."
Mirror.co.uk
Colorado Coalition for Elder Rights
and Adult Protection
Provides educational information and resources for professionals
and the general public about the abuse of alt-risk adults. Topic
focused newsletters, timely fraud alerts, training materials, publications,
video/DVD/Book loan library.
|
