AARP warns of, gives tips on avoiding, scams

Five years ago a man from Lewistown afflicted with Alzheimer's disease sent $1,500 mail in marketing contest. He was told if he did so, it would cover the cost of the taxes and he would then be able to receive the money tax free. He sent them three payments but received no money.

"He still thinks that the money is there and that if he does the right thing he will get it," said Alex Ward, state president of AARP Montana.

It's an example of the type of scheme Ward and other organizers of the "Outsmarting Con Artists" workshop seek to prevent.

The workshop informs people about the kind of scams that financially exploit Baby Boomers and seniors.

The event took place Wednesday at the Best Western Plus Havre Inn & Suites. It is the third of four such workshops that the AARP Montana, in conjunction with government consumer protection agencies, are putting on in several Montana cities.

Ward said a similar workshop was held in Bozeman April 27 and a second in Butte May 17. A fourth and final workshop will happen August 17 in Missoula.

Representatives from the offices of the Montana state auditor, Montana Attorney General, Federal Trade Commission and Montana State Office of Banking and Financial Institutions spoke.

Attendees were later served a free lunch.

Ward told the small audience that seniors are often the target of such schemes not because of their delicate health and condition, but because they are the segment of the U.S population that typically has the most wealth.

"So if you are going to target someone for money, you are always going to go after the big score," Ward said.

In Montana, with its aging population, fraud scams could soon become even more common.

Nonetheless, Ward, a former Bellevue Police Officer, said law enforcement largely deems fraud a low priority and many cases are often not investigated.

That makes the information distributed in the form of flyers, PowerPoint presentations and panel discussions at the workshop all the more crucial.

He said the idea of the workshop is for those who attend to be on the lookout for fraud within their communities and hopefully help keep people from becoming vicitms to financial schemes.

Ward said back when he was in the police academy, many financial scams were carried out in parking lots. He said those are less common now.

However, scams once carried out in person that take people's personal and financial security information are taking on new forms and are being carried out over the internet, the phone, through traditional mail and seminars.

But at their core, Ward said the first objective of most scams is the same: win over their target.

Ward said scammers, try to endear themselves to the person they are targeting, and then "ask you questions you shouldn't be asked and answer questions you shouldn't answer."

"The idea is for you to build confidence about them," he said.

The more success a scam artist has in winning over their target, the more likely they are to at some point let down their guard and reveal critical information about themselves.

Ward said perpetrators often use classic marketing techniques to persuade their target These include the false promise of wealth, claiming to be someone of credibility and social consensus and emphasizing the scarcity of something.

Marcus Meyers of the Office of Consumer Protection of the Montana Attorney General's Office said 54 percent of the calls his office received last year were reports of scams.

Meyers said the IRS scam is now the one most commonly reported to his office. In the IRS scam, a caller says he or sheis from the IRS and you need to return the call and make payments in a short period of time or you will go to jail for back taxes.

Meyers said the IRS would never initiate contact by phone with someone who has fallen behind on taxes. Instead they would contact that person through mail.

"It is never going to be 'today or else,' they are going to work with you to make those payments."

Recipients are urged not to provide personal or financial information over the phone.

Another common scheme is the grandparent scam. That is when someone calls a target claiming to be a relative. They claim to be in some kind of legal, medical or financial trouble and need money wired or otherwise sent to them right away

Meyers said people who believe they could be a victim of this practice should make sure they do not give away personal information over the phone. They should ask specific questions. Cases have occurred where the scammer hacked into the Facebook account and therefore know information about the person they are claiming to be.

Questions should be specific, such as what the name of their parents or their first grade teacher.

People who are worried they will forget to ask such questions or that the answers will slip their minds should write them down and keep them by the phone. Doing so will remind a potential target to ask questions and not have their emotions manipulated.

People can get more information about how to protect themselves from scams by going onto the AARP Fraud Watch Network.

Tim Summers, executive director of AARP Montana said people can sign up to receive emails about scams and learn tips on how to not become ensnared in scams, based on the insights and information of law enforcement officials and former con artists.

They can also download a free e-book from the site "Protecting Yourself Online For Dummies." The book tells readers how to shop and bank online as well as how to revent identity theft online.

The Fraud Network is offered at no cost to consumers regardless of whether or not they are a registered member of the AARP.