Beware the Field of Schemes |
| |
If you think most fraud involves fast-talking swindlers who bilk trusting old ladies out of their life savings, think again. A number of factors--a growing pool of overconfident investors riding the '90s bull market, more sophisticated ways of making phony businesses look legitimate (including Web sites), and a lack of funds for enforcement of antifraud initiatives--are changing the face of fraud and its victims.
Who are the targets? An American Association of Retired Persons survey of 745 telemarketing victims provides a surprising snapshot. Most are relatively affluent, educated, socially outgoing, and confident people over age 50. Many have heard stories of scam methods but refuse to believe that they could be duped.
Who are the perpetrators? Today's con artists have abandoned old-fashioned boiler rooms in favor of elaborate multimedia operations. They often use telephone banks staffed by smooth-talking telemarketers, well-designed Web sites that back up their claims, bogus references, and polished marketing mailings to convey a sense of legitimacy.
What are the scams? Investigators say the raging bull market makes it easy to persuade investors to plow their savings into nonexistent companies purportedly poised to cash in on the next cutting-edge trend. Law enforcement officials also report a flourishing trade in old favorites like pyramid schemes, fake charities, and bogus sweepstakes. The trickiest operators defraud a victim, then place a follow-up call offering to recover money lost to illegal telemarketers--for a fee that simply disappears.
Eight ways to outsmart scam artists: tips from ThirdAge expert Joan Cleveland.
Report-a-scam: online help for consumers.
|
