10 Tips To Recognize And Avoid Scams That Target Elders

In it's Winter issue of Consumer News, the FDIC provided several tips for consumers to recognize and avoid scams, identity theft, and fraud that target elders:

1. Choose an advisor carefully: perform research of any new broker, attorney, accountant, or other professional you are considering to hire. Meet with the professional and ask questions before making a hiring decisions. Also, check with the local consumer protection agency in your state.
2. Use the powers-of-attorney legal document carefully: FDIC experts want that this document can easily be abused by the appointed person. Review and discuss the document with a lawyer before signing.
3. Protect your personal financial information: Don't disclose bank account numbers, Social Security numbers, PINs (personal identification numbers), passwords or other sensitive information without first verifying the identity of the person requesting the information. Don't give out this information over the phone to unsolicited callers. Don't give out this information to door-to-door sales people.
4. Files at home: store your checkbook, account statements, and other sensitive information in a safe place. Shred paper documents containing sensitive information (e.g., Social Security numbers, bank account numbers, health care plan numbers, etc.) that is no longer needed.
5. Monitor financial accounts activity: closely review monthly credit card and bank account statements when you receive them. Look for unauthorized or suspicious transactions, and report them to your bank immediately.
6. Don't rush major financial or investment decisions: take your time to fully understand the offer. Ask questions if you don’t. If you need it, ask a lawyer or financial advisor to help you review any documents. Reject immediately anyone saying that you must make a decision immediately.
7. Be aware of reverse-mortgage scams: reverse mortgages allow homeowners ages 62 or older to borrow money from the equity in their homes. However, these arrangements have several risks and costs. The U.S. Department of Housing and Urban Development’s Federal Housing Administration (HUD or call 1-800-569-4287) provides guidance about how to use reverse mortgages and locate approved lenders or counselors.
8. Telemarketing calls: beware of unsolicited callers asking for money or personal information. Consider the national Do Not Call Registry (call 1-888-382-1222) to register to opt out of telemarketing calls.
9. Sending money: don’t comply with requests from strangers to wire money to a foreign location or to deposit a check into your account (perhaps as part of an online sale). the checks are usually bogus.
10. Social networking site use: if you use social networking websites, don't post the names of relatives, home addresses, and birth dates. Scam artists troll social networking sites looking for personal information to pretend to be a friend or family member.

To learn more about common frauds targeting seniors, visit the FBI Common Fraud Schemes site, the FDIC Consumer News site, or MyMoney.gov.

After reading this list of tips, I must say that it is good advice for consumers of any age.