From phone calls of supposed “loved ones” requesting help to pushy contractors offering a “deal” if a contract is signed right away, there are a wide variety of scams targeting seniors.
Some of the most common scams that victimize the elderly — and how to respond — were discussed in Rancho Bernardo on July 19.
The free Senior Scam Stopper Seminar at the Ed Brown Center for Active Adults had around 100 attendees, with an additional 100 or so watching online, according to Assemblyman Brian Maienschein, whose office organized the event.
“One in 5 seniors are a victim of fraud and 70 percent go unreported,” Maienschein said during his opening remarks. He said the median loss is around $10,000 with online scams, with seniors victimized four times higher than other adults.
Assemblyman Brian Maienschein speaking at the start of the Senior Scam Stopper Seminar.
(Elizabeth Marie Himchak)
Maienschein said last term he got Assembly Bill 636 signed, which increases law enforcement’s ability to investigate crimes against the elderly and dependent adults. This term he introduced AB 1366. If signed into law, it creates a victim of consumer fraud restitution fund.
“With knowledge, the community can stay safe from these predators,” Maienschein said, adding “if something is too good to be true it probably is.”
That was a mantra repeated by the three panelists: Andrea Valdes, an outreach analyst at the California Department of Insurance; Stephanie Gutierrez-Valdez with the Contractors State Licensing Board; and Sally Kim Westlake, a targeted outreach specialist with the state’s Department of Financial Protection and Innovation.
Valdes said during 2021-22 the California Department of Insurance recovered more than $166 million for Californians by investigating consumer complaints of insurance company practices.
“Seniors are the largest population targeted for scams,” Valdes said, explaining one reason is because “seniors have accumulated wealth in their home, life insurance and retirement savings.”
One of the common insurance fraud methods is selling annuities. While appropriate for some, when used in “switcheroo” tactics by con artists they can lead to seniors losing large amounts of money, she said.
“Your financial adviser knows your goals and risk tolerance,” she said. “Talk about the pros and cons … why it may be the right investment for you.”
Staged auto accidents are another way seniors can be victimized, Valdes said.
“If something does not feel right, call your insurance company,” she said. “If (the other person) offers to cash settle, that is a red flag. So is if the passengers all claim bodily injury for a (bumper) tap.”
She said drivers should never admit fault at the scene or the limits of their policy — just trade basic insurance information.
Valdes also advised checking the status of an insurance agent and company, getting all questions answered thoroughly, getting everything in writing and comparing policies.
“Never feel pressured or intimidated and never sign anything you do not understand,” she said.
The Department of Insurance can be reached at 800-927-4357 and insurance.ca.gov. The one-stop website for seniors hosted by CDI is seniors.insurance.ca.gov.
The Senior Scam Stopper Seminar panelists Andrea Valdes (California Department of Insurance), Stephanie Gutierrez-Valdez (Contractors State Licensing Board) and Sally Kim Westlake (Department of Financial Protection and Innovation).
(Elizabeth Marie Himchak)
Home repair is one of the main ways unscrupulous contractors target seniors, according to Gutierrez-Valdez with the Contractors State Licensing Board. The agency has issued licenses for nearly 300,000 contractors in 44 different classifications, including roofing and plumbing, and is meant to protect California consumers.
“Seniors are trusting, which can make them vulnerable,” Gutierrez-Valdez said. “Unlicensed contractors will try to manipulate seniors. Scammers are attracted to seniors’ life savings and pensions.”
The advice Gutierrez-Valdez gave included not answering the door to strangers selling their services, saying no repeatedly and not making cash payments.
Common tactics include offering to roof a house with “leftover” supplies from a nearby job at a discounted rate and wanting to be paid a large amount upfront.
“Get everything in writing because verbal agreements are not binding,” Gutierrez-Valdez said. “Always have documentation. Down payments can only be 10 percent or $1,000 of the contract, whichever is less.”
She said consumers always need to check the person’s license number with the California State Licensing Board by calling 800-321-2752 or visiting cslb.ca.gov. If someone is scammed, file a complaint.
Gutierrez-Valdez advised always getting three bids and not going with the outliers, especially if extremely higher or lower than the rest.
“Get a detailed written contract before you make a down payment and before work begins. Understand the contract,” she said.
Those 65 and older have five days to cancel a contract (those 64 and younger have three days) and seniors have up to four years from the date of construction to file a complaint.
As for solar, Gutierrez-Valdez said to consider how much longer a person plans to live in the home, their roof’s direction and if the cost is good compared to the savings.
“It takes time to recoup the savings, there is a large upfront cost. Solar is not free,” Gutierrez-Valdez said.
She said some programs come with high interest rates or are tied to property taxes, which can jump substantially causing the homeowner to lose their home if they cannot pay.
Phone calls from a “grandchild” in legal trouble asking for their parent not to be informed are among the common scams, according to Westlake.
She said the elderly should never just follow the instructions — often to buy gift cards or pre-paid credit cards — and give card numbers over the phone.
“(Scammers) create a sense of urgency and get you to act,” Westlake said. “They have a single goal in mind. Stealing your money.”
Seniors should call their grandchild’s regular phone number and their parents to make everything is OK. They should also have a family password to verify identity.
Westlake said with the rise of various technologies, including the ability to “clone” someone’s voice, people need to be very wary of phone calls.
“The voice really sounds like (your loved one),” she said. “Usually they come up with an amount they know you can afford on a short notice.”
Westlake said scammers like to send text messages and contact people by email in addition to phone calls. Unsolicited messages need to be carefully reviewed because they often look real, but the email address has a letter off, for example. Sometimes they impersonate a government or business official.
“Before you react … stop, look and think,” Westlake said. “You can be rude. Hang up.”
The department can be reached at dfpi.ca.gov or 866-275-2677.
Rancho Bernardo resident Beverly Bensalen said after the seminar that she has received suspicious texts.
She recently received a message saying PayPal debited her bank account $1,200 and she needed to call to have it reversed. She called the number given, but no one answered. After Bensalen checked her bank account, she realized it was a scam.
Because she has used Best Buy’s Geek Squad services, when contacted by someone claiming to be from the Geek Squad she let the person have online access to her computer. She found out later the person was not with the Geek Squad.
Bensalen, 80, said she attended because of these incidents. “I am still vulnerable,” she said. “I came because I wanted more information.”
Rancho Peñasquitos resident Barry Peters, 65, said he came to the meeting to become more aware of how seniors are scammed.
“I found it all to be helpful,” Peters said. “I was happy to see a focus on AI (artificial intelligence) scams because they are getting more popular all the time.”