It has been shown that the elderly are more likely and more vulnerable to acts of consumer fraud. People over the age of fifty account for approximately 56% of all victims of consumer fraud. Financial crimes against the elderly fall under two categories: fraud committed by strangers and financial exploitation by relatives/caregivers.
Fraud Committed by Strangers
Fraud occurs when the victim is misled with the promise of goods, services, or benefits that are either nonexistent, unnecessary, never intended to be furnished, or grossly misrepresented. There is a general set of frauds used against the elderly. These include:- Prizes and Sweepstakes ¿ Informing the victim that he could win or has won a valuable prize and requiring him to send in money to cover various fees
- Investments ¿ Persuading the elderly to invest by promising unrealistically high rates of return
- Home and Automobile Repairs ¿ Recommending fraudulent home repairs and then failing to do any work, doing little work, or doing substandard work
- Loans and Mortgages ¿ Providing loans with exorbitant interest rates, hidden fees, or inequitable repayment schedules
- Health, Funeral, and Life Insurance ¿ Selling duplicative coverage, failing to live up to the provisions of coverage, or providing bogus coverage
- Telemarketing ¿ Calling people at home and using high-pressure tactics to solicit money for fraudulent operations
- Mail ¿ Mailing fraudulent materials to a wide audience, allowing potential victims to indicate their interest
What are the Indicators of Phone Fraud?
Many acts of consumer fraud occur over the telephone. It may be difficult to determine whether an offer is genuine or fraudulent. An offer may be fraudulent if:- The victim is told to ¿act now¿ or the offer will expire
- The victim is told he has won a free gift or prize but must pay for some other charge or fee
- The victim must send money or give a credit card number before considering the offer carefully
- The victim is told that it is unnecessary to check out the company
Are There Consumer Fraud Laws that Protect the Elderly?
Federal law has provided some legislation against consumer fraud against the elderly. These laws require that a telemarketer:- Not call you if you have asked not to be called
- Only call between the hours of 8 a.m. and 9 p.m.
- Tell you that it is a sales call, the name of the seller, and what they are selling
- May not lie about any information
- May not withdraw money from your checking account without your express approval
States have also adopted laws protecting consumers against fraud and often have stiffer penalties for fraud committed against the elderly.
Do I Need a Lawyer if I Am a Victim of Consumer Fraud?
Suing a company for consumer fraud claim can be very difficult. An experienced consumers¿ rights attorney can help you file any necessary paperwork and represent you in court. |
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