Fraud is the number one crime against older Canadians.
Though people of all ages can be victims of fraud, older people get targeted more than others for a few different reasons:
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seniors are often home during the day to answer the door or phone
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seniors generally have more discretionary income
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the number of older adults is growing, with some retiring early and many living longer
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seniors are generally more concerned about outliving their savings, which makes “get rich quick” schemes particularly appealing
People who commit fraud and scams are commonly called con artists. Con artists are quite adept at gaining your confidence. These criminals don't just target people who have a lot of money, but rather steal small amounts from many people using a variety of ways to reach people, like through regular mail, fax, emails, telephone going door-to-door, or newspaper advertisements.
Successful frauds share common elements. The offenders gain trust and confidence through their charisma, by using a business name similar to that of a well-established organization or by communicating a concern for the elder's well-being. They create the impression that the elder has been "chosen" or is "lucky" to receive the offer, and that such offers are rare. They encourage their victims to make an immediate decision or commitment to purchase products or services, limiting the opportunity for consultation with others. Since the "special" offers are available to only a select group of customers, the offenders often ask the victims to be discreet and not discuss the details, decreasing the chance of discovery by others.
Types of Fraud
Fraud can take many shapes. The best way to protect yourself from being a victim of fraud is to be skeptical of unsolicited offers. Know the most common types of fraud schemes and check the comprehensive list of scams targeted at seniors on the Royal Canadian Mounted Police website.
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Identity theft happens when someone uses vital personal information, such as your name, address, date of birth, social insurance number, and mother’s maiden name, without your permission to access your financial accounts, open new bank accounts, transfer bank balances, apply for loans, credit cards and other services, purchase vehicles, take luxury vacations, obtain passports, apply for government benefits and so on. Avoid identity theft by not sharing your PIN, social insurance number, or your computer or online passwords with anyone and don’t write down and keep this information in your wallet or hand-bag. Cancel lost or stolen credit and/or debit cards and report any discrepancies in spending to your bank or credit card company. Make sure you shred receipts, paper bills, expired contracts, etc. before throwing them out and never leave receipts at bank machines, restaurants or stores, or at the gasoline pumps
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Charity scams involve someone who asks for a donation on behalf of their charitable organization, only the organization is bogus and the con artists keeps the funds. The most successful charity scams use a charity name that is similar to an easily recognizable organization or event. To prevent being a victim of this scam, avoid sending money to unknown charities and arrange to have your contribution delivered to true charities directly or ask them to mail you a donation envelope.
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Health, funeral and insurance fraud happen when con artists offer funeral, medical or insurance services over the phone and/or by mail. Be careful when purchasing insurance that you are not duplicating coverage you already have, does not provide the coverage you need, or is entirely fake. When purchasing insurance or funeral services, deal with reputable providers only. If you suffer from a particular ailment, seek the advice and services of qualified medical practitioners.
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Prize scams involve informing the victim that he or she could win, or has already won, a valuable prize (trip, money, car, etc.) or a lot of money (lottery, inheritance, etc.). The victim is required to send in money to cover taxes, shipping, or processing fees in order to claim the prize. The prize may never be delivered or is usually worth less than the money paid to retrieve it.
Never send money in advance to retrieve a prize.
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Business or investment scams happen when someone proposes a once in a lifetime business or investment opportunity promising high returns after you send a registration or initial investment payment. These are particularly tempting to seniors living on a fixed income who are concerned about having sufficient financial resources to continue to meet their needs. A legitimate business would never require a registration or investment fee and no investment firm will guarantee a rate of return.
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Confidence games involve a variety of deceitful scenarios to get cash from a senior. These may be presented as helping a grandchild or other family member in financial or legal trouble or a call supposedly from your bank branch to get you to share personal information. Contact family members directly for verification of the whereabouts of the family member in question. Never send money through money wire services to persons you do not know personally.
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Home and automobile repairs scams involve pressuring a person to make “emergency” repairs to their home or car that require an advance deposit. Work is often never started, started but not finished, or done substandard work and requiring correction. Common home repair frauds include roof repairs, driveway resurfacing, waterproofing, and pest control. For automobiles, dishonest mechanics might inform a customer that certain repairs are needed, or they may bill for services or repairs that were not requested or completed. Demand a few days to verify the need for the repairs and get a second opinion. Ask for and check references or other credentials. Consult the Ministry of Consumer and Business Services or the Better Business Bureau to verify that the company is legitimate.
Since seniors are embracing shopping, banking and other activities on the internet, they are also vulnerable to scams and fraud that are perpetrated online. The two most common types of online scams are:
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Phishing is a general term for e-mails, text messages and websites created by con artists that are designed to look like they come from well-known and trusted businesses, financial institutions and government agencies in an attempt to trick people into disclosing personal, financial and sensitive information. No bank or store will ever ask you for your PIN or password via email, so never respond to these requests. If you receive an email that has a sense of urgency requesting personal information, contact your bank to see if the email is legitimate.
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Malicious software comes in different forms (viruses, worms, Trojan horse programs, spyware and adware, for example) and can be transmitted by opening e-mail, by accessing a website, by using infected media or by downloading infected files such as images, games or music. Once your computer is infected, con artists have access to the information stored on your computer, including passwords. Protect your computer by keeping your operating system and software packages up to date, and using anti-virus software, firewalls, anti-spyware and anti-adware. Only download from legitimate sources and ignore offers if you cannot validate them.
Protecting yourself and others from fraud
Recognize the risk and responsibility involved with each transaction you make. Whether you are dealing with a door-to-door salesperson, telephone solicitor or through the mail, you are taking a risk.
Think in terms of “buyer beware” and “you don’t get something for nothing”. If it sounds too good to be true, it likely is. Be skeptical of any service or prize that requires you send money in order to receive what is promised.
Be alert. Educate yourself and your family members about common frauds out there to prevent being a victim of scams. Be especially suspicious of unsolicited offers. Never turn over large amounts of cash to anyone no matter how good the deal sounds. Do not give out personal or banking information over the telephone unless you have initiated the call to a reputable business.
Take your time. Do not sign an agreement or contract without giving yourself time to think it over. Consider getting a second opinion from a trusted friend, family member or legal representative. If a salesperson insists that an offer is "time limited" and you must decide in that moment, it is probably better not to buy.
Ask questions. Read the fine print and ask about anything you do not understand. Get more than one opinion as to how necessary work is and always get a written quotation for the work involved and the cost.
Report scams. If you are the victim of a scam, report it to the police. All fraud and scams should be reported, even if you are embarrassed or feel the amount of money is too small to worry about. While you might not be able to get your money back, you can help stop the con artist from scamming others.
Practice online safety. Don’t open emails from an unknown sender or unsolicited emails (even if they are from someone you know). Report spam and related activity to enforcement agencies such as the Canadian Radio-television and Telecommunications Commission, the Competition Bureau, the Office of the Privacy Commissioner of Canada, through the Spam Reporting Centre.
Written with resources from the Government of Canada, the Royal Canadian Mounted Police, and the Ontario Provincial Police