We’ve previously warned you about a bookkeeping scam involving a Sheriff’s Department and found more info on related scams. These are targeted at our seniors, a demographic often thought to be not tech savvy and more likely to fall for threats and intimidation. Worst of all, many seniors can have an excess of cash for their retirement, from settlements, from selling their homes, etc. To avoid these scams and know what to do, check out these 4 ways scammers try to steal money from seniors.
1. Tax and Penalty Fraud
This is the scam we most often hear about at our Houston bookkeeping firm. It’s where seniors are contacted by someone pretending to be an official for the IRS or other agency. They will either contact seniors and other potential victims by mail or email threatening that you owe some sort of tax or other penalty. They then give you the option to pay the penalty now, at times for a reduced rate or other incentive. They then ask for credit card information or other sensitive data and use it rob you blind.
The worst type of this scam is those who will actually call seniors at their home with similar threats and promises.
The solution: Only the IRS can confirm that you do indeed owe a tax or a penalty and they ALWAYS contact by mail with their insignia, your personal information, and a detailed explanation of what you owe. There is also a number to call to confirm this information or call the IRS directly.
Interesting fact: Did you know that over 10,000 people a day in the United States turn 65?
2. Healthcare Scams
In this scam, the perpetrators try to convince seniors they need some sort of healthcare product or coverage. They may pose as an official with Medicare or other well known healthcare agency or even as your insurance company. They then sell seniors products, coverage, plans, and more that they don’t need. At other times, they promise that simply by signing up all costs will be paid for by their insurance or Medicare and the seniors won’t have to pay anything. Yet, this rarely turns out to be true as seniors are billed for these phony services later.
The solution: Speak with your doctor directly if you have any questions about services and coverage you think you may need. You can also consult your health insurance directly if you have questions about coverage. Never sign up for anything over the phone.
3. Bill Fraud
Many seniors have the same types of bills: healthcare, prescription medications, property tax, social security tax, and more. However, many scammers know this and attempt to fool seniors by sending them phony bills directly through the mail for medical services, taxes, and more. Just because they look official doesn’t mean they are, and you are literally paying for nothing when you pay these bills.
The solution: If you get a bill you are not 100% sure is legit, such as from your doctor, contact your doctor ‘s office to see if it is legit. Don’t contact the phone number on the bill, as the scammers are surely ready and waiting for your call. You can also try Googling the company or the wording of the bill to see if anyone else has had this issue.
4. Investment Scams
Often these scammers are day by day operators who will promote the next big time investment idea or hot stock. At other times, they are longtime scammers like the infamous Bernie Madoff, who was discovered to have falsified financial returns for over 10 years. Spotting the longtime scammers is much harder than the “fly by night” investors, but it is possible.
The solution: As before, never buy anything from a telemarketer, especially investments. If you have a bookkeeper or friend you trust, ask them for advice on investing. And remember: if it’s too good to be true, it is.
Houston Bookkeeping Scams
And if you are in need of a Houston bookkeeping firm to stay on top of your finances, please contact me.
