Creators Syndicate

FIGHT BACK!  BY DAVID HOROWITZ 

Fraud Warning for Seniors 

        Like anyone else, older people resent being stereotyped, 
especially when they are portrayed as easy marks for fraud.  Millions
of sharp, savvy seniors are no more likely to be  scammed than people
half their age. But unfortunately, crime  statistics compiled by the
FBI, the Federal Trade Commission  and the American Association of
Retired Persons tell a  different story. 
        A recent AARP survey showed that 34 percent of people  over 75
are "highly vulnerable" to consumer and investment  fraud schemes. That
compares to 24 percent of people between  65 and 74 and to 7 percent
for younger people. But what's  behind those statistics? What is it
about older people that  makes them the victims of choice for con
artists? 
        It's a combination of different things, and while many  of the
reasons are admirable, many are dangerous when dealing  with
unscrupulous salespeople. 
        -- Because they are retired, seniors are more likely to  be at
home to answer the phone. 
        -- They are more polite and less likely to hang up on an 
unsolicited phone call. 
        -- Older people are usually more trusting than younger  people
and less suspicious of strangers. 
        -- Many are lonely and tend to treat every caller like a 
friend. 
        -- They often live alone with no family members nearby  to
advise them against bad investments. 
        -- They have money to invest. And with money market and  CD
yields depressed, many are anxious to find higher returns  on their
retirement investments. 
        -- Elderly fraud victims are less likely than younger  ones to
report scams to the authorities. Many are  embarrassed, afraid their
families will think they're  incompetent. Others simply cannot believe
that after a  lifetime of experience, they could be ripped-off that
easily. 
        But the most important reason the elderly are so often  victims
of fraud is that con artists deliberately target them  for
telemarketing and investment scams. They buy lead sheets  and lists of
potential victims from other telemarketers. One  boiler-room operator
was recently found working from a list  of widows who had recently
inherited their late husbands'  estates. 
        Is this problem getting better or worse? Most law- enforcement
agencies say worse. The FTC calls telemarketing  fraud the fastest
growing fraud in the United States.  According to the North American
Securities Administrators  Association, the sale of unregistered and
fraudulent  securities alone costs investors $1 million an hour 
nationwide. 
        President Clinton recently signed a new law that makes  it
easier for state authorities and individual consumers to  sue
fraudulent telemarketers in federal court. But seniors  should still be
wary of unknown callers asking for money.  Here are some tips to avoid
being ripped-off:        -- Never invest by phone until you have
checked out the  investment and the company that is making the pitch. 
        -- Never give anyone your credit-card or bank-account  number
to anyone on the phone unless you placed the call and  know who's
getting the money. 
        -- Beware of financial advisors who promote specific 
investments in which they may have a financial interest. 
        -- Never pay for a "free" prize. 
        -- Don't be rushed into making an investment. The more 
pressure the salesperson exerts on you to make a quick  decision, the
more likely he or she is a crook. 
        -- Remember that these people are not your friends. They  are
trying to make a sale. 
        -- For more information, call the National Fraud  Information
Center's toll-free hotline: 800-876-7060 
        If you have any questions or comments, please write to  David
Horowitz in the Consumer Forum+ (go FIGHTBACK). 

COPYRIGHT 1994 CREATORS SYNDICATE, INC.