(Reprinted from Mature Lifestyles, October 1997)
By Sean B. Pasternak
With dozens of advertising messages coming to us through television, radio, newspapers, magazines, billboards and now the Internet, how does one determine which ones are legitimate? Which ones should we simply steer clear of?
Recently, a company by the name Valley View Renovations and their salespeople were fined a total of $49,330 for unfair business practices targeting seniors. Evidence showed in court that during 1993 and 1994, this group of individuals engaged in home renovations under the pretext they were 'doing work in the area', and convinced their victims that their homes required extensive renovations. Upon investigation, most of the work done was found to be unnecessary, or overpriced by up to 400 per cent.
The truth about this is not only that it occurred with this one firm, but that occurs on a daily basis across Canada, and that many people are left victims.
The ABC's of Fraud is a unique part of the fraud fighting effort across the Greater Toronto Area. Part of a joint effort between Metropolitan Toronto Police Services, community organizations and seniors themselves, the group builds awareness and helps seniors to recognize frauds and scams, and prevent victimization. Volunteers, often seniors themselves, will travel to church groups, retirement homes and other community groups to put on interactive presentations outlining professional 'scamming techniques'. Over 2500 seniors have seen this presentation since its inception last year.
"No one is immune to consumer fraud," warns Robin Haley-Gillin, program director for the ABC's of Fraud. "You can be smart as a whip and still get taken."
Among the scams popular today is something horrifying referred to as the 'Alzheimer's Scam'. This is where the perpetrator will call seniors over the telephone, and eventually, find someone who doesn't remember things very well. Soon, they will call those people back asking 'Where's the cheque you promised me?'. Many times, victims will assume they really owe money to someone, and will promptly send a cheque to them in the mail.
Another infamous scam is one where people are mailed a letter, informing the recipient they have won a prize, and that all they have to do is call a 1-900 number to claim it. When they call, victims may placed on hold for extended periods of time, or connected who does not speak English very well, all at a cost of $15 - 20 per minute to the victim.
"We have a lottery mentality, and that's why these scams happen so often," Haley-Gillin says. "Sometimes, if you hold on the line long enough, you may receive something such as a complimentary pen."
Indeed, the telephone can be quite useful to the fraudulent individual or company, mainly because it can target the homebound as well as the active senior. "It's easier to build trust and conduct business over the telephone," says Haley-Gillin. "People can be very nondescript."
Jean Ballantyne, a 75-year-old Toronto resident who speaks at many of the ABC's of Fraud presentations, adds that "for lonely seniors, people on the phone can be very persuasive.";
In fact, lots of preparation will go into today's scams, with companies being able to access personal information and even bank balances.
Another scenario has the perpetrators preying on the recently widowed. "A renovator may pitch to someone who doesn't know the condition of their roof, for example," adds Ballantyne. "Perhaps their husband was the one who usually looked after that."
There is hope, however. With a few simple tips and things to keep in mind, many can avoid frauds and scams most of the time.
- Watch out for sales pitches such as 'Congratulations! You have won a prize!', 'This is the final day of our promotion, so order now', and 'This deal is so special, keep it just between you and me'. Never get bullied or pressured by telephone salespeople
- Be sure to get 2 or 3 written estimates for repair work. Verify phone numbers of these people by checking in the phone book, and talk to a trusted friend or family member before signing anything. Also, remember that legitimate salespeople or contractors will never force you into a rush decision, so take your time before agreeing on anything.
- Be careful when people visit your home and are 'driving by and noticed your roof needs repairing', have some 'left-over materials from my last job and can sell you them at my cost', or drop by to inspect leaks, the furnace, etc.
- Never give out your credit card number over the phone unless you have initiated the call yourself.
- Most importantly, remember you always have the right to say no.
As well, if your group of seniors or caregivers is interested in hearing a presentation from the ABC's of Fraud, call (416) 961-6888. There is no charge in the Metro Toronto area, and materials will be provided during this interactive program.
