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Stay Ahead of the Scam...Stay Smart!


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A Sampling of News Stories About Scams, Frauds and Financial Exploitation Across America

    

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It Sounded Like Such a Good Deal...
Lottery Scams on the increase during Economic Downturn

Police in Norwalk, Connecticut reported on November 21, 2009 that an 86 year-old man was bilked out of $14,000 by thieves using one of the oldest scams.   They convinced him that he was about to win a magazine sweepstakes, and all he had to do was wire money to pay for the “taxes and processing fees”. 

The scammers originally began to talk with the man after he filled out a postcard from a magazine and told him that he had to send the money by wire transfer to various addresses in foreign countries. In each circumstance the man was lead to believe that he had won large sums of money, but that he had to pay the fees before he could receive his winnings. The police indicated that the fraud was one of the largest that they had seen in the area. 

Family members often discover that their loved ones have sent funds for lotteries, sweepstakes, or other contests after they discover that bills aren’t being paid or that bank accounts have been drained.   Older adults often see these potential winnings as a way to leave an inheritance for their children, so they are eager to follow directions to collect the winnings. The scammers might telephone isolated seniors daily in an attempt to build trust and encourage the seniors to keep sending funds. It is often hard to discourage the victims from sending the money because they become emotionally trapped in the fantasy of finally becoming rich. 

For tips on how to help your loved one avoid becoming a victim in this type of scam, click on the Caregiver’s Corner link on the left.  Posted December 10, 2009.


The "Pigeon Drop"--Oldest Scam in the book
Are People More Willing to Believe in Miracles Because of Tough Economic Times?
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A 90 year-old woman was a recent victim of a “pigeon drop” scam in Tennessee. The woman was approached by two women while she was dropping off cans at a recycling box. They told her that they had found a bag of money, and would split it with her if she gave them some “good faith money.” All three piled into the woman’s truck and headed to her bank less than a mile way. Police said when the woman went inside the bank, the other women stayed outside to stay clear of all surveillance video.   After the elderly woman withdrew all of the money in her account, more than $1,600, and gave it to them to show her “good faith,” the women drove off in her truck with the money.

Police said this happened to two other victims this week. One was taken for $15,000 and jewelry. The other was trying to withdraw $10,000 from her account, but an alert bank manager realized what was happened and saved the woman from the scam. Posted October 16, 2009.


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© 2009 AARP Foundation
Contact M Gouge
9/4/2010 10:56p