Investments, retirement funds, real estate, savings accounts, and insurance benefits are all attractants for scammers and fraudsters. Scams are more prevalent than ever with technological advances and global communication. 

According to the Better Business Bureau Institute for Marketplace Trust Annual Risk Report, the BBB Scam Tracker received 32,781 scam reports in 2016, the first year in which the Scam Tracker was used. 

The report indicates that while people 55 and older aren’t as likely to be scammed as their younger counterparts, they are more likely to sustain a more significant monetary loss if scammed. 

Scams targeting seniors generally fall into three categories: Medicare and health care benefits, heartstrings, and telemarketing solicitations. 

Health care benefits

AARP reports that 44 million people are enrolled in Medicare. Experienced Medicare or Medicaid scammers know the right questions to ask and are sophisticated in their attempts.  

Since its inception, Medicare and Medicaid identification numbers have been Social Security numbers, creating one of the quickest ways to commit identity theft and health care fraud. 

The good news is Social Security numbers will be removed from Medicare cards by April 2019. The bad news is that in the meantime, the looming deadline will be extra motivation for skilled scammers to attempt to steal identity or money. 

In 2019, cards will be issued with a new Medicare Beneficiary Identifier that will be used for billing and for checking your eligibility and claim status. 

Benefits won’t change, and replacement cards will be mailed automatically to account holders. 

Over time, this will help fight Medicare fraud and protect your medical and financial information. Unfortunately, major systematic changes create confusion and miscommunication for millions of people. This is the time when scammers get into high gear. If you receive a phone call or email regarding these changes and requesting personal information or any payment, it’s a scam. 

If you are enrolled in Medicare or considering enrollment, Medicare.gov suggests these tips to avoid fraud:

Protect your Medicare/Medicaid number. Don’t carry your Medicare/Medicaid card with you unless necessary.  Your health care provider should have it on file if you have provided it in the past.

Track your medical appointments and supplies.  One way for scammers to use your benefits is to use your number for health care appointments or medical supplies.  

Be sure to keep track of your appointments and medical supply benefits.  Contact your medical provider if you receive an Explanation of Benefits notice for an appointment or equipment you didn’t schedule or order.

Double-check prescriptions.  Confirm that your pills or medications are for the prescribed amount and are generic or brand name.  Scammers can alter your prescriptions to pocket the difference in costs.

Be informed about changes. Scammers know changes and misinformation are an open door for their tactics. 

Be aware of the upcoming changes with the Medicare Beneficiary Identifier updates. Visit medicare.gov for reliable information.

Know the red flags. Medicare will never call you to verify medical information, personal information, or charge you a fee for the card. They will also never threaten to cancel or change your benefits.

Heartstring scams

Scams targeting people over 65 years old are most successful when they involve an emotional plea or insecurity to capitalize on the opportunity. 

Here are some common examples of heartstring scams:

Loved one scam. Victim receives a phone call requesting financial assistance for a loved one who is in a crisis and needs bail money or health care costs paid immediately.

Companion scam. Victims develop a relationship either in person or online with a scammer, who soon makes a financial request for emergency or travel costs. 

Fake or imposter social media accounts are a common way for those relationships to be established. 

Donation scam. Such a scheme begins with solicitation calls for charity donations with a sound-alike name or with local relevance. 

Be sure to ask many questions and ask if the charity is registered with the Washington Secretary of State. It’s common for those calls to turn aggressive, shaming victims into donating.

Sweepstakes, government grant or investment scams. Scammers know the financial vulnerabilities of people close to or in retirement. Whether you have a comfortable nest egg or you are on a limited income, they will capitalize on your situation and create a sense of urgency or desperation. 

Winning a sweepstakes or contest without entering is likely a scam, and you should never have to pay money to receive the prize. The government doesn’t contact you via phone or email to issue a grant. Be sure you are working with reputable investment professionals by researching them in advance.

Telemarketing scams

Technology and devices have changed over the years. Marketing products and services have evolved equally quickly. Today, scams and fraud are more prevalent than ever because of technology advances and a globalized community. 

Phone scams have made the same strides in growth. Millions of phone calls are placed every day around the world to con people out of money. The most common attempts impersonate the Internal Revenue Service, government officials, and law enforcement. 

“Spoofing” phone numbers allow scammers to place calls easily that appear to be originating from a specific area, for example a local number. The technology is accessible by simply downloading an app. Anyone’s number may be being used to place scam phone calls. 

The Do Not Call registry won’t prevent those calls from being made. The best defense for these calls is not to answer them.

Most phones today provide a digital display of the origination of the call. If you receive a call from outside of your area or locally that you don’t recognize, don’t answer. If it’s important, the caller will provide a message. 

Keep in mind, even scammers leave messages to call them back.  Listen carefully and if you are unsure, research the company by consulting the BBB directory or search for the company online and contact them through the information listed on a secure website to return the call. 

Scams targeting seniors come in all forms and are more sophisticated than ever. 

There are a few characteristics that many scams have in common, including evasive tactics, poor grammar, and aggressive behavior that plays on fear or intimidation. 

The most obvious red flag is the form of payment requested. Keep in mind, wiring money and paying with a pre-paid credit or gift card can be as untraceable as cash and nearly impossible to recover. 

If you have been a victim or contacted by what you feel is a scam, report it to the BBB Scam Tracker at www.bbb.org/scamtracker and the FTC.  Be sure to include as many details as possible in your report.

Kirstin Davis is the Spokane-based marketplace director for the Better Business
Bureau Serving the Northwest.