Unfortunately, not everyone is your friend and not everyone has your best interests in mind. This is especially true of people who want to “help you” invest your money or who offer you a deal that is “too good to be true.” More often, older people are the prime target of scams and swindles.

Anyone can be a victim of a scam or swindle. It’s up to you to spot them. Otherwise, you could lose your money. Once you sign a contract, make a purchase, or invest money, it may be too late to get your money back.

Scams and swindles can take many forms such as shoddy goods, unfair prices, inflated interest rates, poor service, and crooked schemes. Here are some things to avoid:

1. Never give out your credit card number unless you’re sure with whom you’re dealing. Your credit card number can be used the same way as blank checks by someone who wants your money.
2. Check out the product to make sure it’s not a counterfeit. Sometimes a good price is offered on a product because it is counterfeit or stolen.
3. Get rich quick schemes really do work ... for them but not for you! The person selling the scheme gets rich from stealing your money. Don’t fall for schemes which seem “too good to be true.”
4. If you have poor credit, you may be a target for schemers who want to “help you fix” your credit rating. Often they take your money and you never hear from them again.
5. “Going out of business” sales sometimes are faked just to get you into a store. The prices offered may not be any lower than in other stores. Be sure the merchant really is going out of business.
6. Social Security, insurance and Medicare card scams hurt older people. It is generally not a good idea to pay a fee for services like laminating your Social Security card, contacting the Social Security Administration, special veteran’s insurance which appears to be offered by the U.S. government, and checking on your Medicare records.

Some people read obituaries and send fake bills to bereaved families. The family usually doesn’t realize that the goods or services were never ordered and never received by the deceased.

Don’t buy goods or services from salesmen who call you on the telephone. These individuals may not be reliable. Most of the products they sale can be purchased locally. Telephone sales people may not send you the product you order or may give you a shoddy product. You can register on the national “do not call” list by calling 1.888.382.1222 or register online.

Resist the “sympathy” sales approach. Many unscrupulous sales people play on your emotions or goodwill to get your money. Sometimes they ask for donations to non-existent charities or may use your sympathies towards your family as a way to get you to buy a product which you or your family may not need.

Another fraudulent sales tactic some stores use is to advertise an usually low price for a product which, when you go to the store, is “sold out.” The store will try to sell to you a higher priced product.

There are many other scams and swindles which you should avoid:

1. shady auto repairs.
2. shoddy home repairs.
3. “free” vacation offers.
4. most sales by telephone.
5. calling a 900 number or paying a fee to claim a prize.
6. miracle cure offers.
7. earn money at home schemes.
8. most “deals” offered through the mail.
9. telephone solicitations for donations to “charities.”
10. vanity or fitness gimmicks.

Read and understand everything before you sign. Don’t rely upon the salesman for information in a contract. Make sure all promises are in writing, that guarantees are specifically stated, that all blank lines are filled in, and all charges are itemized. Read the small print and get a copy of the signed document. Ask a family member or friend to help you read the document if you are unable to do so.

1. Don’t be pressured. Take your time to think about an offer.
2. Be wary of a sales pitch which doesn’t explain the questions you want answered.
3. Avoid buying from someone who uses tricky wording or vague language.

If you think you’ve been swindled, contact:

1. the state Attorney General’s office at 1.800.243.5377,
2. the Better Business Bureau,
3. various associations,
4. the Social Security office at 1.800.269.0271, or
5. Medicare and Medicaid fraud at 1.800.447.8477.

Keep your best interests in mind. It’s your money and you should use it to your family’s benefit.

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Source: “20 Ways to Avoid Being Swindled,” Channing L. Bete Co., Inc., 1992.

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