April 2022 issue

(Continued from page 23)
SOME TYPES OF FRAUD
Fraud can take many shapes, and fraudsters are
becoming more and more sophisticated with their
approach. Here are a few of the most common
types of fraud that seniors may be exposed to, with
ways to prevent it from happening to you or
someone you care about.
Identity Theft
Identity theft occurs when someone uses your
personal information – such as your name, social
insurance number, credit card number – without
your permission to access your money, obtain
passports, apply for loans or mortgages, apply for
government benefits and other crimes.
Ways to protect yourself: Identity theft can
happen anywhere – at your mailbox, by email,
over the phone, from personal documents you’ve
thrown away, or from your old computer hard
drive. To prevent identity theft, don’t throw away
paper bills and statements without first shredding
or cutting them up. Also, don’t give out personal
information unless you’re sure who you’re dealing
with. It’s also a smart idea to put a lock on your
outside mailbox.
Telephone Scams
There are many different types of schemes and
scams out there, that prey especially on seniors.
Telemarketing scams, fake charities and “too good
to be true” offers are some of the most common –
these fraudsters will ask you to send cash to collect
a prize, make a pledge or process a loan.
Ways to protect yourself: Never give money or
your credit card information to someone you don’t
know – even if they sound like they’re from an
established organization. Request additional
information to be sent to you, review it with
friends or family, or simply hang up if the whole
thing sounds fishy!
Credit Card Fraud
“Skimming” is one form of credit card fraud that
takes place when someone makes a counterfeit
copy or transcribes the numbers of your credit
card. This is commonly done at restaurants where
they have your card out of sight and can write
down the numbers. Credit Card fraud can also take
place if you’ve left your wallet or purse open
where someone can easily steal your card(s).
Ways to protect yourself: Recent introductions
in technology will also protect you – hand-held
card processing devices at restaurants mean that
you don’t have to leave your card unattended, and
Chip and PIN technology means you no longer
have to swipe the magnetic stripe on Point of Sale
devices. Just remember to protect your PIN!
Phishing Scams
Phishing is designed to trick you into disclosing
your personal or financial information. Often an
unsolicited email that “appears” to be from your
bank, asks you for confidential information,
claiming a computer glitch.
Ways to protect yourself: It’s important to know
that no bank or store will ever ask you for your
password via email, so never respond to these
requests. If you receive an email that has a sense
of urgency requesting personal information,
contact your bank to see if the email is legitimate.
Ponzi Schemes
A Ponzi scheme attracts investors by offering
guaranteed and unusually high returns, based on
short-term and often complex investments.
Returns, however, are paid to the initial investors
from the funds of subsequent investors – there is
never any actual profit earned. This scheme
requires a constant stream of new investors.
Ways to protect yourself: Beware of claims of
guaranteed investments with above average
returns. Ask to see written statements to see
underlying investment details, and do a
background check to see if the individual or group
who approached you is licensed to sell securities.
General Fraud Prevention Techniques
In addition to the protection measures listed above,
there are a few things you can do to reduce your
risk of becoming a victim of fraud:
• Use a secure computer or location to conduct
your banking. Memorize your PIN and don’t
share it with anyone. Your bank will never ask
you what it is.
• Routinely monitor your transactions so you can
quickly spot one that looks out of place.
• Be aware when using the ATM – don’t let
another customer distract you, even if they tell
you you’ve dropped something. Keep your
eyes on the machine and your card at all times.
If you suspect your accounts or identity have been
compromised, contact your bank immediately and
tell them what’s happened. They’ll know what
steps to take.
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The Sentinel - April 2022