Hawai‘i is ranked No. 6 in the nation for cases of identity theft. “Be cautious… but most importantly, be vigilant.”The phone rings, and the saccharine-sweet voice on the line informs you that you are eligible to win a substantial amount of money, as long as you provide a few tidbits of personal information. Sensibly, you hang up the phone—knowing that you may have just dodged the fraudulent bullet of a scam artist.
These cold-hearted manipulators have become increasingly relentless in their attempts to cheat and swindle unsuspecting victims out of their hard-earned savings. So relentless, in fact, that consumer fraud has become a multibillion dollar industry in the United States. According to the Federal Bureau of Investigation (FBI) Website, the most common scams include credit card and investment fraud, charity schemes, health insurance fraud, foreign lotteries and identity theft.
Con artists are skilled at deception, often using high-pressure “sales pitches” to entrap their targets; particularly in selling “get rich quick” schemes that promise a “low-risk and high-yield” investment—a beguiling prospect, especially in these tough economic times.
But for those who fall prey to these scam artists, the damage can be unimaginable. From plummeting credit scores to evaporating bank accounts, victims of fraud often feel the pain long after the initial sting.
Sadly, senior citizens are often prime targets of these criminals, according to “Senior Fraud Squad” Volunteer Specialist Malcolm Findley. Last year, the American Association of Retired Persons (AARP) reported nearly one-third of all fraud victims were over the age of 65. Findley said con artists tend to prey on senior citizens because they belong to the demographic most likely to have sizable nest eggs, they typically live alone, and are more susceptible to “age appropriate” schemes involving healthcare, at-home services and investment funds.
“These criminals aim to exploit the trust of their victims,” said Findley. “That is how the term ‘con man’ came to be… ‘con’ is short for ‘confidence.’” Even worse, he said, the masterminds behind these callous plots are often operating outside of the country, which makes it extremely difficult for law enforcement to take action.
In a partnership with AARP Hawai‘i and the Senior Anti-Fraud Education (SAFE) Project, the Senior Fraud Squad has coordinated a team of dedicated volunteers who teach seniors the ABCs of fraud; namely, how to spot potential scams and how to report them to the proper authorities.
“Senior citizens are increasingly vulnerable at home and in nursing homes,” cautioned Maui County Council on Aging Chairman Peter Durkson. “Family caregivers need to understand how vulnerable their loved one is in the season of their lives… scams come at them through the mail, at the front door and on the telephone.”
There are several safeguards to avoid being defrauded, and while some may seem inconvenient or time-consuming, it is certainly important to heed the old adage, “Better safe than sorry.” Some effective ways to combat scams include: shredding financial statements and receipts; closing unused accounts; requiring offers to be mailed to you in writing; verifying credentials with state or federal officials; and most importantly, refusing to disclose personal information—particularly your social security, checking account, or credit card numbers—over the telephone, by mail or on the Internet.
“Be cautious… but most importantly, be vigilant,” advised Findley.
Another simple step, he said, is to never leave mail in the mailbox overnight or toss anything in the garbage that could offer clues to your identity. “Believe it or not, some of these people are actual ‘dumpster divers,’” he said. “They will literally dig through the trash to retrieve your personal information.”
And for those who are concerned about older family members, Durkson said, “The best defense is to communicate openly with your kupuna and check frequently to see if they have had any ‘unusual’ phone calls or visitors.”
You can also take advantage of available technology, said Durkson. “There are some innovative and affordable home videos and telecare systems which can help caregivers stay in visual contact with their older family members, and help them manage their health issues, too.”
In 2007, ID Analytics Inc., an identity risk management company, released a study of identity fraud by geography, ranking Hawai‘i as No. 6 in the nation for cases of identity theft, behind Illinois, Arizona, Nevada, California and New York. As a result, state and federal officials have stepped up their efforts to combat fraud by coordinating a variety of educational resources and community outreach programs and passing legislation to protect Hawai‘i’s seniors from financial abuse and fraud.
Additionally, in August, the state Executive Office on Aging, the state Department of Commerce and Consumer Affairs and the state Department of the Attorney General released the Hawaii Fraud Prevention & Resource Guide, a comprehensive guide that outlines different types of fraud and how to avoid them.
As the anti-fraud trend continues to flourish in Hawai‘i, individuals like Findley and Durkson hope to see enhanced community awareness—and more penalties for those who commit crimes against seniors. But these criminals won’t give up so easily, which requires all residents to stay alert and take precautions.
Remember, if it sounds too good to be true—it probably is.
For more information, contact the state Department of Commerce and Consumer Affairs at (808) 587-7400 or the Maui County Office on Aging at (808) 270-7755. To view the Hawaii Fraud Prevention & Resource Guide, visit http://hawaii.gov/health/eoa/.