Consumer Reports: Annatomy of a swindle (This is a great article that everyone should read)

[Playinghardball]

This is one part of a larger article titled Lies, Secrets, and Scams
http://www.consumerreports.org/cro/consumer-protection/preventing-elder-abuse

Lottery and sweepstakes scams have been around for years, but they still ensnare seniors and younger individuals, sometimes for hundreds of thousands of dollars. One of the biggest operates out of Jamaica and several other countries, including Canada, Costa Rica, and Israel. Here’s how the so-called Jamaican lottery scam can lead to elder fraud and rob them of their savings:

1. Creating the list. Scammers collect seniors’ names from sources that include obituaries mentioning surviving relatives and legitimate mailing lists of people who’ve bought products widely sold to seniors. They also get names from list makers that operate bogus mass sweepstakes mailing centers and cater to scammers.

2. Testing the waters. Elder financial exploitation often begins with a mass mailing, sometimes personalized to each victim. The mailing may offer an attractive product or service, or mention that the victim is eligible for a lottery or sweepstakes. The mail-in return forms ask for personal information such as phone numbers and whether the victim has a credit card. They may also ask for a small fee—say, $20.

3. Homing in on ‘suckers.' The swindle may end there with the receipt of respondents’ fees. Or the scammers may create a more refined “sweepstakes list” or “sucker list” of respondents. They may use those lists themselves or sell them to others. Listed names are worth up to $6 each; the most valuable are older and alone, and often have a rural address.

4. Calling the ‘winners.' A scammer, often from abroad, using a phone system that masks the call’s origin, contacts a listed individual to announce that she has won a big prize. The catch: She has to pay fees or taxes up front—and keep the win a secret. The caller then directs the victim to wire or mail the funds to a third party’s bank account.

5. Moving the money. The third party sometimes flies the cash to Jamaica to deliver directly to the scammer or has another person, a “mule,” do it. Each participant in the swindle takes a cut, often 10 percent.

Read more here: http://www.consumerreports.org/cro/consumer-protection/anatomy-of-a-swindle

[AwakeAtLast]

1. My grandmother was a major victim

She was bilked for almost $400,000 (yep, you read that right). My Dad and his brother tried so hard to get her fiances out of her hands, but she had a lawyer that did her bidding and kept them from doing it. These slimeballs convinced her to cash in life insurance policies, CDs, you name it. They were in Canada, so they could not be caught. This happened starting in the mid-80's.

You might be thinking my family is awash with money, but Grandma didn't leave the money she had left to family. She wanted us to know the value of earning our own, which was her decision and we were fine with that.

Watching it being stolen from her was heartbreaking.

Never, ever give anyone personal information over the phone (and now, the internet).

[Chemisse]

3. My mother is a victim, but nobody can persuade her of it.

Legally, she has the right to do any foolish thing she wants with her money, unless she is declared to be incompetent. So our hands are tied.

[Scuba]

4. My ex Mother in Law was scammed out of a similary amount - all her life savings.

She said "Reggie" just sounded so honest on the phone.

[Octafish]

2. Sounds like the Bank Bailout of 2008...

...and the S&L Bailout of 1990.



Yeah, the micro version, see?

[rgbecker]

5. Do they mention State Lotteries?

Billions from the poor to support state governments that refuse to vote money for Education etc. from those who can afford to pay. Ever notice the types of stores selling lottery tickets in your state? Guaranteed they are not marketing in high end neighborhoods.

[edhopper]

6. Irrevocable Trusts

are a good strategy for many seniors.