WASHINGTON – In testimony last week, a high-ranking FBI official described the onslaught of frauds and scams now being perpetrated against the elderly, who are prime targets of crooks for a number of reasons.
According to Joseph S. Campbell, Deputy Assistant Director, Criminal Investigative Division at the Federal Bureau of Investigation, baby boomers are now reaching the age of 65. “They have many reasons to celebrate. Senior citizens are most likely to have a ‘nest egg,’ to own their home, and to have excellent credit. Unfortunately, these are also many of the same qualities which make them so attractive to con artists.”
Reverse mortgage fraud schemes are now one of the hottest scams out there at this time. Campbell said in testimony that unscrupulous loan officers, mortgage companies, investors, loan counselors, appraisers, builders, developers, and real estate agents are exploiting home equity conversion mortgages (HECMs)—also known as reverse mortgages—to defraud senior citizens. They recruit seniors through local churches, investment seminars, and television, radio, billboard, and mailer advertisements and commit fraud primarily through equity theft, foreclosure rescue, and investment schemes. HECM-related fraud is occurring in every region of the United States, and reverse mortgage schemes have the potential to increase substantially as demand for these products rises in demographically dense senior citizen jurisdictions.
Other widespread scams include health care fraud and telemarketing/internet fraud.
Cambell said fraud targeting senior citizens exists in many forms, is creative in its approach, and can often leave our most vulnerable citizens with little to no savings to enjoy a time in life they’ve earned. He advised all citizens to be vigilant and to always review billing statements.
[poll random]
