NVL money & wealth
SIX ELDER FRAUD SCAMS
and How to Help Prevent Them Use these tips to help you protect your loved ones from the threat of financial fraud that’s increasingly targeting older Americans.
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fall victim to some form of finanor grandparent who lives cial fraud, notes Blomberg.” alone. They hire someone Here are six common elder to replace the roof for on their aging fraud • Start saving retirement andscams, take along with stratehouse and give the roofer half gies you can use to help protect advantage of having longevity on the money up front. And that’s your loved ones. the last they of the roofer. to No an employeryour side.seeContribute 1. Pros who are not legit: Con matter how close your relationsponsored savings plan such asoften a advertise “foolproof” artists ship, can you be sure they’d let investments or claim special ex401(k) — athappened? least at a level that meets you know what pertise in working with retirees Elder fraud is on the rise, any company match. or older clients. One California but it remains a vastly underthief advertised inexpensive “Older people •reported Talk tocrime. your local Merrill advisor, who are often reluctant to complain will-preparation services. After gaining clients’ trust, he talked can being assistduped,” with putting a about says Tomtogether them into investing with him by Blomberg, dean of Florida plan to help pursue your goals. State University’s College of promising 12% annual returns. Criminology and Criminal Checks from investors went straight to his personal offshore For more Justice. “Theyinformation, may fear appear-contact account, and he made off with ing foolish or worry that wellMerrill Lynch Financial Advisor meaning relatives will pressure $11 million before he was Eric in the finally caught. What you can do: them F. to Gonzales move to a retirement community, depriving Napa, CA, office them of Remind family members that letheir independence.” Even so, gitimate businesses will happily at 707.254.4606 by 2020, more than 20 million wait while you check their referAmericans age 65 and older will ences. If they’re unsure about a or eric_gonzales@ml.com.
2. Unbelievable billing practices: After storms or other natural disasters, scam artists often go door to door, telling homeowners that their properties have been damaged and offering to make repairs at a big discount, says Blomberg. Then they may only pretend to do the work and demand payment. Similarly, auto mechanics may charge for parts not installed and work not performed, he adds. What you can do: Help older relatives keep their properties and cars in good repair, and urge them not to hire anyone who can’t provide clear identification and references. 3. Internet and telephone fraud: These scam artists may be thousands of miles away, and they
often play on people’s trusting nature and desire to help others. A caller may ask for a donation for a worthy-sounding cause. And yet another congratulates you for winning a $1 million prize — and says all you need to do to claim it is provide your Social Security number to confirm your identity and pay a special collection fee. What you can do: Set a firm policy not to give personal information over the phone and remind older relatives to do the same, suggests Debra Greenberg, a director in the Retirement & Personal Wealth Solutions Group at Bank of America. “And if you want to make a pledge to a charity, ask to receive something in writing first,” Greenberg says. Ignore internet offers with obscure origins and prizes that come out of the blue and require a fee to collect.
Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as “MLPF&S” or “Merrill”) makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of Bank of America Corporation (“BofA Corp.”). MLPF&S is a registered broker-dealer, Member SIPC and a wholly owned subsidiary of BofA Corp.
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Investment products:
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company, it’s also wise to ask for a second opinion from someone they trust.
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