An elderly woman sees on television that a next-door-neighbor type of couple have just opened their door to find Publishers Clearing House agents on the doorstep, ready to hand over a million-dollar check.
The message is that the money is out there waiting to be won.
So when the phone rings with someone congratulating her as a prize winner in a random sweepstakes, the woman already has been primed for acceptance because she has seen a legitimate prize offering. But in this case, the caller says there are tax consequences. She must send $500 to $5,000 to cover taxes before the prize is hers.
The woman eventually withdraws close to $5,000. Of course, the promised prize fails to materialize. Her bankers step in and work with the police. So far they have been unsuccessful in recovering her money. But they want to prevent other seniors from a similar fate.
Angered by the client’s experience with the scam, Highland Park NBD Vice President Ken Tremaine turned to Marge Blake, Highland Park Department of Senior Services director, in an effort to warn other elderly citizens.
The result was the Financial Protection Seminar recently held at the Highland Park Senior Center. Tremaine and other officers of the bank spoke about safeguarding retirement income.
“Scam artists will tag along with what seniors watch on television,” Tremaine said. “A person will see someone win a check from the Clearing House and then the phone will ring. The person will tell them to send a check that will take care of the IRS because they have lawyers on staff who handle that. And then the person will receive the money won, free and clear. They know what appeals to seniors. They’ll take something familiar and tag along with that,” Tremaine said.
A handout distributed at the seminar from the Federal Trade Commission’s Bureau of Consumer Protection Office (202-326-3650) noted that crooked telemarketers pose as sweepstakes representatives. “If you’re told you have won a major sweepstakes but then are asked to send money, watch out,” the FTC pamphlet warns.
Tremaine’s advice is to ask for documentation and then mention that the subject will be discussed with a financial adviser. “They don’t like that,” he explained. “It’s a turnoff. They hang up or try to convince you not to bring in someone else.”
Illinois Assistant Atty. Gen. Elizabeth Yore identified some of the gambits and key words that should send up red flags.
The ploy of choice is to build a con on the latest fears headlined on television and in newspapers. “They have no conscience. The headline mentions Social Security concerns, Medicare concerns. People are concerned about all the changes that are happening. A con artist understands that and preys upon your concerns,” Yore said. These scams are particularly popular now as Congress reshapes social programs.
Watch for “buzzwords” such as AARP, Social Security, Medicare and the Department of Aging. “When they mention them, it’s just an attempt to legitimize what they’re selling,” Yore said.
“They are reading the same papers you are. They’re going to push your buttons. They will call saying we’re here selling Social Security insurance or Medicare insurance. They prey on your fears to separate you from your money,” she said.
Seated in the comfortable living room of the 60-year-old Tudor-style mansion that has been turned into the Senior Center, nearly 50 older north suburbanites heard the uncomfortable news that con games are not always easy to detect.
“Do not be ashamed if you’ve been taken in,” Yore said. “These folks are highly skilled. They’re very convincing. Anyone can be taken in. The person who calls sounds like a nice person. And the person has contacted you in the comfort and safety of your home.”
She warned the group to be skeptical of all calls. “The chief weapon of choice for the scam artist is the telephone,” Yore told the audience.
Another popular ploy with older citizens is prepaid nursing home care, according to Yore. “You’re told if you sign on the dotted line, you will not have to worry your family about nursing home costs,” she said. What happens is worse: no money and no nursing care. “When the person needs the nursing home care, six, eight years down the line, that spot they thought they had in a nursing home is not there. They find out too late that it was a scam.”
Playing on fears and promises is an old ploy, according to Yore. “Con artists have been around for centuries. In the early days of this country, they called them `Freedom Fighters.’ They would ride into town and free people from their money,” she said.
Yore urged people to call the attorney general’s office at 800-386-5438 to check on an operation before signing, agreeing or sending money. But she also subscribed to the better-late-than-never philosophy.
“It’s better to contact our office when you get a call because we’ll try to check if it’s legit. But even if you’ve gone ahead, still call,” she said, explaining that checking stops the operation in an area “even if just temporarily.”
Along with warning them of current scams, Yore said she also had come to enlist their help in fighting the con artists.
“The public is our eyes and ears. The public makes our case for us. You are helping us when you call us with your suspicions. It’s not a bother for law enforcement. We’re here for you,” she said.
Other suggestions on how to counter the cons included: 1. Hang up (“Don’t engage them in conversation.”); 2. become informed by taking a College of Lake County course on financial planning (“It will be $20 well spent.”) and 3. do not give out a Social Security number, credit card number or bank information (“You do not give out any information over the phone.”).
Listener Sheldon Abrams offered an additional way to tell. Since subscribing to caller ID, a mechanism that shows the phone number of the caller, the 72-year-old Highland Park man has had little trouble with sales and con calls. “When the ID window says `unavailable,’ I know it’s a solicitor so I don’t answer. Virtually every telemarketing call is blanked out,” Abrams said.
Even so, he thought the program at the Highland Park Senior Center worthwhile. “I know they do prey on the elderly,” he said. “And they are believable. These (con artists) are very good at what they do.”
“This is a longstanding issue,” senior services director Blake said. “Older people are vulnerable, particularly those people without family or people who are not connected in some way to the community.”
