Elderly at risk from scams

Older people can present an attractive target for scammers and fraudsters

Some older people are isolated and may not have anyone to go to for advice about deals scammers offer

Their loneliness often leads them to embrace people who will pay them attention and this can affect their judgement

Older people may be less likely to have access to the internet to check details and legitimacy of a deal

Scams can be anything from buying products or services, to making investments, or becoming involved in apparently ‘fail-safe’ business propositions

If you are concerned that someone you know is being tricked, or buying unsuitable products and services, look out for warning signs, such as unusual amounts of post, or evidence of large cash withdrawals

If you find your elderly relative has been a victim of a scam, try to offer advice and support and reassure them that this can happen to anyone, so they don’t feel stupid

How many scams work

A common feature of scams is the pressure which is placed on the person to commit to buy very quickly

They may be told that an offer is only available for a limited period, or that by signing now, they will get a discount on the retail price

You should remind your ageing parent that a genuine offer is unlikely to require them to make an instant decision and they should not let themselves be rushed into any decision

They should take time to think about whether the product or service is something they want or need, ask others for advice and you can help them to look for alternative prices

They should never to sign anything until they are absolutely sure

Persuade your elderly relative not to pay their tradesman until the job is complete and they are happy with the result

If they feel they are being pressurised, they should call a friend or family member, or if necessary, the police

To find trustworthy tradesmen, contact the Office of Fair Trading 

What should your ageing parent check about the company before agreeing to buying a product or service?

• Do they have a contact number for the company and does it work?
• They should be wary if the only number they have is a mobile phone number (remind your parent these are all numbers beginning ‘07′
• Do they have a postal address for the company? They should be very cautious if it uses only a PO Box number
• Check if the company based overseas. If so, the usual consumer rights may not apply, or could be very difficult to enforce, so they must be careful
• Check if the company or individual properly regulated, or a member of a trade association
• Your parent should remember that it is easy to have business cards, stationery and websites made up and that it is still worth checking that people are who they say they are
• Local community websites can be a useful source of information and recommendations. Contact Consumer Direct for further information on checking companies’ credentials

What your ageing parent should check before buying a product or service?

• Before buying a product or service, or making an investment, make sure your elderly relative understands fully how the offer works, so that they can make an informed decision
• Your ageing parent should always remember, as we all should, that if something seems too good to be true, it probably is. It is sensible to question claims made about products before buying them.

Avoiding bogus callers: watch our guide to safety for the elderly at home

Bogus callers are people who try to con their way into your parent’s home to steal, or trick them out of money

They might pretend to be an official from a gas or electricity company, or a salesperson, or they may even just be someone with a hard luck story claiming to need to borrow a few pounds, or wanting to use your elderly relative’s telephone in an emergency

If your parent is not expecting a visitor, they should find out who is outside before you answer the door by using a spy-hole, or looking through a window and if they do not recognise the caller, they should put the security chain on before they open the door

They should ask to see identification and examine it carefully, or ask them to post proof of identity through the letter-box

If they are still unsure, your parent should telephone the organisation the person says they are from using the phone book, rather than ringing the number they give you, which could be answered by an accomplice, or they should call a friend or relative for advice

Alternatively, they should ask them to come back at another time when someone will be with them, or tell them to write to arrange an appointment.

Remind you ageing parent not to let any stranger into their home and tht is they are worried or suspicious, or the caller will not leave, they should dial 999 and ask for the police

Common direct mail scams

The following are common types of direct mail scams:

• Lotteries/prize draws: Your ageing parent may be told they have won a large sum of money or a prize and asked to pay an administration fee before they can collect it. The prize is, however, either non-existent or worth very little. Your elderly relative might be asked for further payments before this becomes clear
• Psychics and clairvoyants may claim to have seen something in their future and ask for money to disclose what it is. This can be a very persuasive thing for people who are isolated
• Pyramid schemes can take the form of chain letters, or selling schemes. The former can be illegal. In either case, your parent may be encouraged to send money to the person who has contacted them, either through the promise of rewards, or by superstitious threats about what might happen if the chain is broken
• Products may be sold on the basis of unrealistic claims about their usefulness or value. These products often turn out to be of a far lower quality than the original claims suggested. Miracle health cures are a good example of the kind of unrealistic claims made about products. Many of these medicines have not been properly tested and could even be harmful. Consult a medical practitioner before your parent buys any medicinal products

Direct marketing companies in the UK are required to follow certain rules. By registering with the Mailing Preference Service, your elderly relative can have their name taken off most direct mailing lists, although the service does not cover mail that is unaddressed, addressed to ‘The Occupier’, or which has originated overseas

Once registered, reputable marketing companies should not contact your parent, so they can ignore any that continue to do so

Many direct mail scammers are based overseas, so they are unregulated and largely beyond the reach of UK authorities. If your elderly relative receives a direct mail invitation of this kind, they should ignore it and throw it away. They should never reply to these letters. If they do, their details could be circulated to others running similar schemes, and they could end up being bombarded with scam mail

Identity theft

Your ageing parent might receive emails, or telephone calls claiming to be from their bank, or another financial institution, asking them to confirm account details or other personal information

These are always fake and if they disclose the information, it may be used to raid your accounts

Banks and institutions, such as the tax authorities, will never ask  for  PIN(Personal Identification Number), password or other security information in full

If your parent is concerned about emails, or calls claiming to be from their bank, they should contact their bank to discuss this, but make sure they use the contact details they received when they opened their account

Help your parent to keep personal documents safe and report missing passports, or driving licences as soon as possible

Cancel any lost or stolen bank cards immediately

Keep passwords and PIN numbers safe – don’t write them down and don’t disclose them to anyone

Shred documents such as bank statements, receipts and card slips before your parent throws them away

Help them to check statements regularly for transactions that they do not recognise

If they have a computer, make sure their security software is up-to-date

Visit www.identitytheft.org.uk for more information

Email Scams

The best-known type of email scam is called ‘advance fee’fraud. This takes different forms, but commonly the initial email explains that the sender has money, or something valuable and needs help to move it, often from one country to another, in return for a fee. Once involved, victims are persuaded to make a payment to help the transaction along.The promised large reward never appears.

Alternatively,victims are asked to provide their bank details. These are then used to remove money from their account. As with other scams, once your parent has paid, they will be encouraged to make further payments.

Most email accounts can be set to block email spam: check your parent’s computer settings

If your elderly relative does receive a scam email, forward it to the fraud department of the email provider hosting the scammer’s account,requesting that the account be closed

Bad investments

Financial investments are complicated and most of us need advice on the best way to manage them.

There are plenty of unscrupulous sellers who try to exploit this, particularly to older people

Make sure the company you are dealing with is authorised by the Financial Services Authority and contact them to check the company’s status. Avoid companies who are not authorised

Be wary of dealing with companies based overseas. They may be located there to avoid regulatory requirements

Seek independent advice. Be clear about how your parent’s adviser benefits from the process

Your elderly relative may be encouraged to buy legitimate products that are overvalued, for example, shares that exist, but have little, or no resale value

Don’t let your parent be pressured into making a quick decision

Try to dissuade them from buying ‘off the page’ from newspaper adverts, ormarketing leaflets unless they are sure they are genuine

Telephone selling

Unsolicited telephone calls are used by both genuine and fraudulent businesses to reach new customers

Many people find them irritating and would rather not receive them

The Telephone Preference Service (TPS) is a free register that allows your parent to opt out of receiving unsolicited sales and marketing calls

Registering with the TPS should greatly reduce these calls, but your parent may still get some, particularly from overseas companies

They should be wary of calls from companies that they have had no previous  dealings with and not be afraid to put the phone down, or end the call with a brief ‘No, thank you’

Pressure selling by telephone of dubious financial investments – by so-called ‘boiler room’ operations – is also a recognised problem

Check whether companies are authorised by the Financial Services Authority