If It Sounds Too Good to Be True

Money magazine, November 2006, put it bluntly on page 112, Hello, Sucker THINK SCAMS ONLY HAPPEN TO OTHER PEOPLE?Wake up and smell the coffee. It caught my eye probably like it caught yours. Right?

Scams come in all sizes and colors. They are often subtle, clever, ingenious and diabolical. Seniors, who often have nest eggs, are prime targets. But even those who don’t save but are looking for a quick buck are vulnerable (that includes some seniors, doesn’t it?).

Let’s start with the title: IF IT SOUNDS TOO GOOD TO BE TRUE it probably isn’t. That is one giveaway we should not fall for. If someone has a deal that is incredible (like paying 12% per month), it is most likely a hoax. Twelve per cent a year, guaranteed, would be a good deal but not 12% a month. So, don’t have this kind of a senior moment by being hoodwinked needlessly. Think again if you forgot to put your thinking cap on.

This Money article stated that the average loss reported by scam victims in 2005 was $2,412 for a total of $682 million. It also stated that their were 431,118 fraud complaints reported in 2005 (and what about those not reported due to embarrassment or not knowing where to report?). It also said that 25 million were scabbed in 2004. How many were seniors I do not know. Scary, isn’t it?

Here are some of the typical scams to look out for: someone pitching a financial product; someone offering you a business opportunity; someone you don’t know has gotten hold of your name, email address, home address, telephone number or whatever which could be a scam in the making. A general rule to follow: if you didn’t solicit the inquiry, head for the exit. Also, beware of well-intentioned friends or family making a pitch. Even if you trust them, it is possible they have been mislead because scampers often convince a "sucker" to pass the "good" word along.

Does this mean you should be wary of every "solicitor"? Not really, but be cautious, ask tough questions, sleep on it (don’t rush into it), seek guidance from a trustworthy source, and if it sounds too good, beware. Ask yourself some questions: Have you suffered a loss recently? Are you overly anxious to make a killing? Are you emotionally upset or depressed? If so, you might be more vulnerable than you normally are. Do you feel you are too smart to be conned? Do you realize that 1-10 are likely to be scabbed sooner or later? Do you believe that fraud artists are usually quite adept at their deception (maybe not smarter but more shrewd)?

Seniors are gravitating to personal computers more than ever. Here’s a bit of advice to help ward off scams: Never click on a link that asks for personal information (type in the correct URL yourself); Update your computer regularly and use protective devices designed to help avoid trouble; Do not respond to requests from unsolicited financial institutions (most legitimate financial institutions do not solicit by email); Check your banks statements often (via computer or telephone), especially if you suspect something may be amiss.

SCAM SPEAK is also helpful. Look for these lines which often trigger an alarm: Just wire the money; Cash this check; You’re guaranteed a 10-15% return every month; I’m contacting you from [a foreign country]; Don’t tell anyone else about this opportunity; Only a few lucky investors can get in, so you must act right away.

Consider this a starting point, not the whole story. Learn again how to say NO THANK YOU!