If it sounds too good to be true, then it probably is

Bernie Madoff’s Ponzi scheme has made him a household name. He swindled hundreds of people of their life savings and pocketed the money as his own. Although, I wish I could say this is an isolated case, it’s not. Last week in Lompoc, another fraud came to light with Michael Lee Wilson as the mastermind. He got trusting souls to invest in Wilson’s Pacific Coast Mortgage company, even in this unfavorable market, by inducing them to make “short” term loans to him with shaky real estate as collateral. He defrauded his investors of $14 Million dollars, most of who consisted of the elderly. So we come back to the question, why do people keep falling for this? I feel there are a lot of different reasons, some people may have extra capital they wish to make profits on, others may be in need of larger savings then they have and so, are trying to make extra money, however, what I feel it comes down to is greed. I think we commonly associate greed with young wall street types but this feeling is universal, it doesn’t change from young to old. The only difference is that in their old age and desperation, the elderly may be more trusting and gullible to schemes. However, what we all have to remember is that if it sounds to good, then it probably is.

Brantingham, Barney. "Where'd the $14 Million Go?" Santa Barbara Independent. February 3, 2011.

Elder Fraud: Who would do such a thing?

We have all heard of scams and have probably all been exposed to them. The emails claiming you have an inheritance awaiting you by a decease relative you have never previously heard of or the many telemarketing frauds we hear about in the news. And you may think, “Who would fall for these frauds?” But many Americans do everyday, and according to Congressional estimates and surveys from the American Association of Retired Persons (AARP) over half of the victims are 50 years or older. However, what may be most surprising is that most financial abuse of elders happens by those they know, such as family members, care takers and neighbors. It is those who know they have funds to be extorted and who are close enough to take it away quietly that do so most often.

Last week the San Diego Union Tribune published, “Elder abuse, often unnoticed, growing at alarming rate.” The article focuses on the financial and physical abuse many seniors face. With the growth of the baby boomers, the numbers of seniors who are reliant on others for their care and financial planning will only grow and with this so will the opportunity for people to take advantage of them in there weak state. Although there are currently many resources for seniors, many of them lack the knowledge to reach out for help or are oblivious to the fact that they are getting swindled. What this tells us is that the aging population still lacks the correct and most efficient weapons to protect themselves from fraud. We may not have a immediate solution to this problem but it is on us to help solve this growing abuse. It is true each of us is only one person but if we talk to our parents, grandparents, and friends about these issues it will be one less person affected.  

“Elder abuse, often unnoticed, growing at alarming rate”