Because That’s Where the Money Is...

Did you ever wonder why scammers target the elderly? If you’re old enough to remember the name Willie Sutton, you might recall that he was an infamous bank robber. When he was caught, he was asked why he robbed banks. He replied, “Because that’s where the money is.”

The reason that people who run scams so often target the elderly is because they are the ones with money. Their homes are usually paid off, and they usually have good credit and a few dollars put away for a rainy day. If you’re a scammer, you think to yourself, “Why not go get some of that money for myself?” In the last couple of issues of the AARP Bulletin, writer Sid Kirchheimer revealed a couple of newer scams that are making the rounds.

One is called ‘negative option’ marketing, and it operates under the assumption that you bought something by doing nothing. Then you have to cancel it to get out of it, which is where the scam begins. That is the opposite of the usual marketing plan where you order something by sending in the card or by making a telephone call.

The scammer sends out a card to the consumer that constitutes the offer, and in order for you to cancel it, you have to fill out the card and send it in. Or you have to call some number and speak with someone in order to cancel it. Then when you call, nobody answers, or worse, the person who answers is so strong on the telephone that they end up talking you into keeping the subscription or selling you something else instead.

These often arrive connected with bank statements or credit card statements. These third-party vendors are not affiliated with the bank or credit card company, but buy a mass mailing opportunity from them. That is how they get their material into the envelope to you. Then once they have your information, they start debiting your credit card or bank account every month until you figure it out and stop it.

Another way this is done is over the telephone. The scammer calls you and asks you several innocent-sounding questions, the answer to each of which is “Yes.” Meanwhile, they record the conversation. One of the questions ends up being the magic one that creates an order for their product, such as, “Wouldn’t you like to feel better by taking our vitamins?” By the time you realize that you do not want their vitamins, or their magazines or their tool-of-the-month, you call up the company to complain and they play your voice back on their tape saying “Yes,” “Yes,” and “Yes” to all of their questions. You are stuck.

The other scam is all the more devastating. It deals with your home, and it can be very dangerous to your property ownership or your credit. It involves the forging of a deed to convey your property to the scammer or to someone to whom the scammer has ‘sold’ your property. This is downright scary, since the theft occurs without your knowledge. It is often done with properties that are not occupied, since those have no one at home. Then the scammer will sell the property to someone else, who may not even be in on the scam, and the scammer walks away with the money.

Just as bad, the scammer takes title to your home in his or her own name and gets a home equity loan, a home improvement loan or even a mortgage against it. By the time you get a coupon book in the mail and realize there is a problem, the scammer has the mortgage money and is three states away.

So what should you do if any of these happen to you? If you are victimized by the ‘negative option’ scam, you can call the bank or the credit card company and work with their complaint department. Carefully review your monthly bank statement and all statements from your credit card companies. I found that one of my card numbers had been used at a local video game retailer, and after reporting it, we learned that our friendly waiter at the restaurant we had been to the night before had copied our number and used it the next day to buy some games.

If you find your house title has been interfered with in any way, you should get in touch with your attorney as soon as possible. There is a lot that needs to be done to clear up a title problem like this. There are some reputable companies out there that sell a service that insures your credit, and if you are really concerned about this type of theft or scam, you might sit down with one of their representatives and ask about their protection services.

Christopher M. Abernethy has been practicing law in Hampton Township since 1976. He focuses on elder law, which includes wills, trusts, powers of attorney, living wills and probate matters. He also is proficient in all aspects of real estate law and business law. He is a member of the National Association of Elder Law Attorneys and the AARP Legal Services Network. He can be reached at 412-486-6624 or by email at cabernethy@aaylaw.com.