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Senior
Moments:
Affinity Fraud Is the Newest Scam Targeting Seniors
By
Jan Fowler
“If it’s too good to be true, it’s probably a
fraud.”
— Ron Weber
“Eeeny-meeny-miney-mo.”
Whatever happened to the wonderful vintage era when choices were that easy to
make? It was a far less complicated world then — and much healthier in
many ways.
I personally love to carry a myth in my heart that it was also a more honest
world, with fewer worries about how, for example, to avoid being scammed by con
artists.
The truth is that even though we seniors pride ourselves on becoming more financially
savvy, we nevertheless continue to be defrauded of billions of dollars annually.
While most of us manage to avoid consumer rip-offs that can quickly drain our
bank accounts, it seems to be a case of eternal vigilance. There’s no way
around it, for if we drop our guard for one second, we could easily fall prey
to the latest scam.
Seniors continue to be prime targets because we’re believed to be more
trusting and more likely to under-report and prosecute wrongdoers because of
personal embarrassment.
And so it goes … fraud against the elderly runs rampant.
Most of us have come to quickly recognize telemarketing schemes which require
us to verify our Social Security, PIN or bank account number. We have also learned
to spot advance-fee schemes, phony vacation offers, bogus “you-must-act-now” promises,
Internet fraud and the Nigerian letter. But there is a new variety of “wolf
in sheep’s clothing” lurking about, and you need to be aware of it.
It is known as affinity fraud.
Affinity fraud, an increasingly popular method of duping victims, involves a
crafty swindler who manages to achieve a veneer of credibility by posing as someone
very much like you. With cunning cleverness, he positions himself so that he
appears to share a bond of commonality with you — be it age, politics,
race, ethnicity, religion or recreational hobbies.
Let’s face it, when it comes to trust, don’t we all tend to let our
guard down when we discover we have something in common with a specific demographic
group or cluster?
Whether we identify with others on the basis of our values, professional backgrounds,
careers or investment opportunities matters little. In instances of affinity
fraud, the perpetrator portrays himself as a trusted member of such a group so
that he can then exploit friendships and loyalty for financial gain.
To overcome skepticism, the swindler will generally target a prominent leader
of the group, such as a minister or other pillar of the community, lure him to
invest money in a bogus fund or company, then pay an impressively high return
on his investment so that he, the investor, will in turn convey his excitement
to others, encouraging them to also invest.
“This type of scam leverages and exploits the inherent trust within the
group,” says a Forbes Media spokesperson.
Hoaxes, Frauds and Scams
Seniors, be on guard for government “look-alike” return addresses
and letterheads as well as brown envelopes resembling U.S. Treasury correspondence.
Beware of “For your protection register immediately” promises and
pitches, as well as ploys to “double your money in 60 days.”
First, learn about any firm you choose to make an investment with. It is not
enough to merely accept the salesperson’s word.
Ponzi Schemes
Named after the 1920s illegal pyramid scam, artist Charles Ponzi, a Ponzi is
when you’ve been recruited to pay “interest” to an earlier
investor to create the illusion of making a pyramid look legitimate until, of
course, it eventually collapses. Please report your suspicion of fraud to law
enforcement at the local, state or federal level.
Also, never reply to any letters from Nigeria or any other country soliciting
funds or your personal identifying information. Instead, make sure the letter
is forwarded to the local FBI service, U.S. Secret Service, U.S. Postal Inspection
or Federal Trade Commission.
If you wish to report a fraud online, visit www. google.com and type in National
Fraud Information Center. For further information on avoiding Internet scams,
visit www.sec.gov/
investor/pubs/cyberfraud.htm or www.sec.gov/answers/
ponzi.htm.
And remember, the easiest way to escape scammers, swindlers, fraudsters and crooks
is to simply say, “No thank you.”
This Week’s Tip: Several
remedies found to provide relief for itchy skin include the use of Oregon grape
extract. Either simmer the herb itself to make a tea or apply it directly to
the skin. External creams containing mahonia aquifolium are also recommended.
To obtain the highest anti-inflammatory benefit, a person with itchy skin should
follow a diet that consists of two daily servings of fruit, five daily servings
of vegetables, seeds or nuts and less than two ounces of meat every other day.
If you have a heartwarming, touching or humorous story
of 300 words or less — written
by a senior or about a senior — which you would like to see included in
Jan Fowler’s upcoming book, “Hot Chocolate for Seniors,” please
mail your submission to:
Senior Moments
1540 Barton Road #251
Redlands, CA 92373.
This page and its contents ©2008 Metropolitan News Company, Inc.
