Beware of Scammers
Especially with the pandemic, scams are on the rise. Very often, senior citizens are targets for fraud and with that in mind it we thought that it would be important to round up the most common retirement scams that you should be on the lookout for. Don’t forget, if you believe you have been victimized by a scam – you should file a complaint with your local police department as well as with the Federal Trade Commission.
Medicare Beneficiary Identifier Scams
Typically, scammers will impersonate Medicare employees and call beneficiaries, telling them they need to verify personal information or pay a processing fee to get their new beneficiary card. Their goal is to get personal or financial information for the purposes of identity theft or financial theft. If you receive an unexpected call from someone claiming to work for Medicare it is important to know that actual Medicare employees will never call you without being invited to do so (for example, if you left a message at Medicare’s customer service line). If you suspect that the individual that is calling you does not work for Medicare hang up immediately and call or visit Medicare to tell them about your experience.
Funeral Frauds
Unfortunately, many criminals take advantage of those who died using funeral fraud schemes. One of the most common funeral fraud schemes involves prepaid funeral expenses. Typically, someone from a fraudulent funeral home will call and promise that for a fee, the company will cover all funeral expenses after the individual dies. Depending on the type of funeral arrangements requested, the fee can cost upwards of $10,000.
Counterfeit prescription drug scams
Online counterfeit drug scams are all over the internet and quickly drain your savings. In this scenario, internet retailers say that they have a product that has benefits or cures for ailments that haven’t been scientifically proven or supported. They also typically promise better prices. In some cases, the criminals will take the money and never deliver a product but what is extremely dangerous is when they deliver a “drug” that can pose serious health risks. To avoid these scams, make sure that you discuss any online prescription plans with your doctor, be wary of any site that offers a prescription for simply filling out a questionnaire, and only buy prescriptions online from a pharmacy approved by the National Association of Boards of Pharmacy.
Telemarketing scams
From time to time, we receive calls from telemarketers. Many of them are harmless, however this is an easy way for scammers to be in disguise. Many false telemarketers target seniors, offering products that reduce the signs of aging, various health supplements, or other products that will increase independence. These false telemarketers often use urgency as a tactic (for example, this is a one-time deal). If you believe you have a telemarketer on the line, you can hang up if you are not comfortable with how the conversation is going.
Charity scams
Many individuals support charities on a regular basis. Unfortunately, this also opens a door for scammers who capitalize on donors’ goodwill. Many of these frauds are around fundraising for veterans or disaster relief. They are especially active during the holidays. They will reach out to you via telemarketing, direct mail, and door-to-door solicitations. They create well-designed websites with deceptive names. Specifically be aware if the individual is pressuring you to give right now as a legitimate charity will welcome your donation whenever you choose to make it. Additionally, if the individual is requesting payment by cash, gift card or wire transfer – these are not typically how charities accept donations and these payment methods are difficult to trace. To avoid these scams, check the watchdogs like Charity Navigator or CharityWatch and do your own research online before donating.
Grandparent scams
In this scenario, you might get a call claiming to be about or from a grandchild or other family member in distress. They are typically requesting an urgent need for money to be secretly wire transferred, often to a foreign country. In order to avoid this scam, verify the callers identify and resist pressure to act before the caller’s identify is verified. You can verify the caller by contacting a family member who could confirm the caller’s story or contact the real grandchild or family member at a number you know is accurate.
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At Client First Capital, we are dedicated to trustworthiness and transparency. If you have question about wealth management strategies, please feel free to connect with us by sending an email or filling out our contact form.
