White-Collar Crime - Scams On The Elderly

Because senior citizens are often retired and living on fixed incomes and savings, the promise of economic security can be very alluring. As a consequence, the elderly FIGURE 7.5
Responses to shoplifting, 2002 can be particularly vulnerable to economic crimes such as fraud and confidence schemes.

Seniors are particularly vulnerable to con artists. Often, they are lonely, isolated from their families, and sometimes more willing than in earlier years to believe what they are told. Some suffer mental or physical frailties that leave them less able to defend themselves against high-pressure tactics. In addition, they may be financially insecure and may want to believe the con artist's promises of future wealth and security. Since many elderly are too embarrassed to admit that they have been fooled, many of these crimes are not reported.

Statistics on fraud against the elderly, sometimes called elder scams, are not collected by the major crime reporting agencies. In 2002 the National Fraud Information Center estimated that there were 14,000 illegal telemarketing operations in the United States, and that the elderly fell prey to unscrupulous telemarketers to the tune of $40 billion per year. Between 2002 and 2003, the 70 to 79 age group rose from 9 percent to 13 percent of all fraud victims, the steepest rise for any age group. Additionally, surveys conducted by the AARP (formerly the American Association of Retired Persons) indicated that most victims of telemarketing fraud were 50 years of age or older. In 2003 the top frauds committed against those 60 or older involved prizes/sweepstakes, lotteries/lottery clubs, and magazine sales.

Because the elderly are more likely to suffer from health-related problems such as diabetes, hypertension, arthritis, and heart disease, they can be especially susceptible to fraudulent claims for products marketed as treatments or cures for diseases. In 2001 the Federal Trade Commission initiated legal action against eight companies that used the Internet to fraudulently market medical devices, herbal products, and dietary supplements as treatments or cures for Alzheimer's disease, diabetes, arthritis and other diseases that affect senior citizens. The actions were the result of the FTC's Operation Cure.All. The initiative was to identify deceptive and misleading Internet promotions of products and services that purportedly treat or cure various diseases.

Another popular scam involves con artists calling or mailing information to elderly people announcing that they have won a free prize, but must pay postage and handling to receive it. They are told a credit card number is needed to pay these costs. The thieves then use the credit card number to buy items and to get cash. The elderly are also susceptible to repairmen who stop by and say they can fix their homes. The workers may do the repair work, but it is shoddy and overpriced. If the elderly try to complain, the repairmen are no longer in the area, possibly not even in the state.

A more elaborate scam involves a con artist, acting as a bank official, telling the elderly person that a particular bank teller is giving out counterfeit bills and that the bank needs help in catching the teller. The elderly person goes to the teller's window and withdraws a large sum of money. The victim then gives the money to the "bank official" to be examined. The "bank official" assures the customer that the money will be redeposited in his or her account; of course, it never is.