Each year, thousands of elderly people forfeit their money and property to scams. By striking fast, swindlers get in, grab the goods and get out before family members realize what's happening.
Elder law attorney Deb Speyer of Philadelphia says elder fraud is a major industry in America. "In most societies, the elderly are cherished, and here you have a small group of people who take advantage of them," she says. "Elder fraud is a billion-dollar business and growing every year."
Would you know if one of your elderly loved ones was being vicimized? These are the red flags to look for.
See the SignsAt the age of 82, Irene Silverman's life was as rich as the fabrics that decorated her swanky Upper East Side New York mansion. Although she didn't need the money, Silverman divided her five-story home into minisuites to rent by the week. The rentals provided company and diversion. Silverman didn't like to be alone.
Her guests paid $6,000 per week to stay in the posh surroundings. Only the well-heeled and famous could afford it, and that made it safe. Or so she thought.
Everything changed when a mother-son team, Sante and Kenneth Kimes, showed up at Silverman's door. The professional con artists devised a simple plan to take control of the elderly woman's property: They'd kill Silverman, hide the body and present forged documents giving them possession of her home and other assets.
On July 5, 1998, Irene Silverman's life ended with a bullet. Eventually the Kimes were caught, tried and sentenced in connection with the case. But for Silverman's family and friends, revenge served cold provided little comfort.
Although Silverman's tragic fate isn't common, her case serves as an extreme example of what can happen when a vulnerable older person's path crosses that of someone bent on cheating her.
Speyer outlines a scenario she's seen way too many times: After gaining the confidence of an older person, opportunists take advantage of their relationship. They borrow money, talk the person into changing his or her will, run up credit card debt and/or liquidate assets. Many times, Speyer says, the victim is too embarrassed to tell his or her children.
"They often try to isolate (the elder) from friends and family members," Speyer says. Many times the scammer won't even let the victim answer the phone.
She says one client was ripped off after an individual insinuated himself into the woman's trust, then turned her against her own children. The swindler told the elderly lady her kids would put her in a nursing home, then offered to handle her affairs, promising to take care of her.
Money can be a powerful motivator, even within families. Cases like that of a Georgia retiree whose grown daughter stole his life's savings are not uncommon. The man obtained a civil judgment against his daughter, but hasn't collected. He lives on a small Social Security check. As for his daughter -- she has conveniently disappeared.
It's sad, but Speyer and other elder law attorneys see cases like this every day. Occasionally the swindler plays the part of a romantic interest, even when the age difference -- sometimes multiple decades -- should set off alarm bells.
There's also a hidden, secret factor to these crimes. No one likes to admit to foolish behavior. Since victims of con games often don't come forward, law enforcement and families can be at a disadvantage. These cases can be tough to investigate months after the con takes place and, even in successful prosecutions, the assets are usually gone. In some cases, so are lives.
Jennifer Kent and others in her profession are sometimes among the first to suspect elder fraud. As fraud and security manager of ViewPoint Bank in Plano, Texas, Kent says financial institutions routinely train tellers to watch for signs that something's not right.
Some money scams just keep tripping people up over and over again. From old cons to new, here are five that you should be on the lookout for.
Five Common Scams"If we notice someone is accompanying a senior and it seems strange -- maybe another person who's not on the account is talking for them -- we'll ask to speak to the member by himself," Kent says.
Separating the senior from the source of the swindle can be key in getting the truth. Remember -- the victim might be too intimidated or brainwashed to say "no" to the con.
There's also the possibility that medical factors are at work: Your loved one may be suffering from undiagnosed dementia, impairing his judgment and making him easy prey for the unscrupulous. For that reason, Kent says it's important to stay connected to the seniors in your life.
"Talk to them about what's going on," Kent says. "Ask if they're having any construction work done on the house, talk to them about their finances, if possible, and about unsolicited phone calls if they mention they think they've won something."
Checking Out the Caregiver
A primary source of senior fraud comes in the form of caregivers. Often the situation starts out legitimate but soon wobbles out of control: There are changes in real property holdings, life insurance policy beneficiaries, a new power of attorney or milked bank accounts.
Would you know if one of your elderly loved ones was being vicimized? These are the red flags to look for.
See the SignsSpeyer says, "Sometimes it's as simple as a caregiver withholding food or medicine so the (elderly) person can't function well, or threatening harm if the elderly person tells anyone what is going on."
Hiring a caregiver or other employee is an important decision. Like all prospective employers, you should conduct a thorough background check before hiring. Insist on calling former employers and landlords or hire an online company that does background checks for a small fee.
Steer clear of candidates with histories of financial problems. They may be as honest as George Washington, but it could also indicate a gambling, alcohol or drug problem. Someone already on the edge may be more tempted to take advantage.
Be careful even when opting for a relative. Police files are thick with sons and daughters who've let their elderly family members exist in squalor and abuse.
Zoran Basich, a California-based elder law attorney, says one way to protect the elderly is to spell things out in writing while the senior's still in control of his faculties. A letter from the patient's physician testifying to his mental condition and a notarized power of attorney for a trustworthy family member are two good steps in that direction.
Further isolate the caregiver from financial matters by paying the bills yourself. It's harder to steal from someone when you can't get to the money.
Lansing, Ill., police Chief Dan McDevitt recently worked a case where an elderly woman was swindled out of $295,000 in three separate confidence schemes.
"She lost $287,000 to a Nigerian fraud scheme alone," McDevitt says. "Then she was targeted by the Spanish lottery and the Canadian lottery. It was obvious they (the criminals) all knew one another."
All three scams -- the fake lotteries and the Nigerian scam (also known as the 419 fraud) -- operate on the same principle of something for nothing. These aren't the only con games in town, but they're all essentially the same.
People want to believe their ship's in, no matter how unlikely the source. That's why fake lotteries continue to hook victims.
"They get a call or a letter saying 'before he died, your husband bought a ticket for the Canadian lottery. I'm not supposed to give this to you, but send me $2,500 and I'll send you $150,000,'" McDevitt says.
Many elderly fall for these schemes because they grew up in more trusting times and tend to be less skeptical. "My father was a World War II veteran, and those are the ones who are getting ripped off," McDevitt says.
The same generation also provides a prime target for home-repair scams, where exorbitant prices are charged for repairs and home improvements that aren't needed and are shabbily done.
Some money scams just keep tripping people up over and over again. From old cons to new, here are five that you should be on the lookout for.
If you suspect a scam, notify authorities without delay. Chances are the thieves are long gone, but there's always a possibility they'll one day be caught. Discuss the incident with the victim in a nonjudgmental way. Yes, it's difficult to understand that anyone could fall for such transparent schemes, but many do.
And here's one way to send scammers packing: If an elder you know if offered such a dubious "opportunity" again, McDevitt says that they should, "Tell them you want their name and phone number and that you're a good friend of the police chief. You'll have him call and talk to them. If he says it's OK to do business, then you will."
Another way to prevent elder fraud is through education. Most local law enforcement agencies and senior services organizations, including AARP, have programs and literature on the subject -- all you have to do is ask.
Protect the seniors in your life by checking on them often. If you're on the other side of the country, call frequently. You might also ask a trusted neighbor or friend to look in on them. Remember, it only takes one unscrupulous individual to drain a lifetime of savings. Be the trained dog at the door and chase the scammers away before they take a big bite out of someone else's future