ISSUE #12
Avoiding Fraud

Fraud and financial exploitation have become serious problems for older Americans. Clever criminals have developed ingenious methods for preying on retired people and stealing from them. Some seniors have lost their life savings. Here are some ideas for reducing your vulnerability to fraud.

1. Plan For Incapacity -- Some of the most damaging cases of fraud occur when criminals exploit seniors who have become mentally incapacitated. There are many cases in which seniors with memory disorders have lost everything and ended up impoverished. Make sure you have made proper arrangements for handling your legal and financial affairs, if you become impaired. To do this properly, you need to work with an attorney.

2. Always Get Another Opinion -- Before you make a large purchase or sign a contract, ask someone you trust to look it over. This is especially important for home repair contracts, insurance contracts, vacation and travel packages, funeral plans, investments and any other large purchase. Check with your local Better Business Bureau, and ask for references from other customers. When in doubt, wait. Do not succumb to pressure tactics to make a quick decision.

3. Be Careful Who You Trust -- Some of the most serious cases of financial exploitation have been perpetrated by people who were trusted by victims. Do not give your housekeeper, caregiver, neighbor or health care provider access to your bank account. While it may be convenient to have them pay your bills, you run the risk of losing all your money. If you cannot pay your bills by yourself, ask for help from a trusted family member, your bank or your local agency on aging, which may offer a bill-paying program.

4. Avoid Phone Fraud -- A great deal of financial fraud is conducted over the phone. It is best to simply hang up on telemarketers. Be highly skeptical if a caller tells you that you have won a prize or that you must respond immediately. Always ask for written materials before making a decision. If the caller refuses to send anything in writing, or asks you to pay cash to a private courier, stop the conversation. Never give out your credit card number, until you have verified that you are dealing with a legitimate, trustworthy business.

5. Beware of Fraudulent Financial Services -- Some criminals may try to sell you phony insurance policies or phony investments. Before making any decision about insurance policies or investments, make sure the product is real and that it is something you actually need. We suggest that you seek a second opinion from a financial planner, your banker, or an accountant who can give you objective advice. They can also help you check to see if the salesperson is properly licensed. This one simple step may save your life savings.

6. Safeguard Your Assets -- Never give out your account number or PIN number. Some thieves send out emails that look like they are from banks and credit card companies, fooling people into revealing their account information. If you provide this information, they can steal from your account. Real banks and financial institutions never ask for your account information by email. Never sign a blank check or a blank contract. Keep your Social Security number private. If you are approached by someone claiming to be a law enforcement officer, ask to see proper identification. Some con artists pose as police officers, relying on the victim’s respect for authority figures.

7. Research Before You Give -- There are several fraudulent schemes in the charitable fund raising arena. Some are fake charities, and others provide very little to the actual charitable cause. The fake charities often use names that sound like real charities. Before you make a donation, check out each charity by calling the Better Business Bureau or by visiting this internet site: www.give.org

8. Report Any Suspected Fraud -- If you think you may have been a victim of fraud, report it immediately. Do not wait, even if you feel foolish. Some criminals get away with their fraud because the victims fail to report it. Call your local police department or county sheriff. Some jurisdictions have special fraud investigation departments. The sooner they learn about it, the sooner they can stop it.

This publication has been prepared as an educational resource to help the reader identify areas of potential concern. The publisher is not engaged in rendering legal, accounting or other professional services. The information contained in this publication should not be acted upon without first obtaining the advice of a professional adviser. 2004 © Florida Philanthropic Advisors, LLC. Material may not be used without permission.

Our planned giving director, Paul Ditlevson, can be of tremendous service in helping you integrate your giving goals with your overall estate plan. He can also help you prepare to visit your attorney. You can reach Mr. Ditlevson by calling 419-289-5090 or by email to pditlevs@ashland.edu or regular mail at 401 College Avenue, Ashland, OH 44805.