Cactus Village Community

Wired Older Americans

Jul 08, 2003

How can wired older Americans avoid being conned out of their hard-earned savings while surfing the Web? Here are some tips.

Check everything. Always research investments, sweepstakes, giveaways, product offers, and money-making opportunities fully, no matter how trustworthy the person bringing you the offer may appear to be.

Beware investments that are too good to be true. Never fall for investments that promise spectacularly high profits or guaranteed returns. Also, be wary of any investment that claims to be risk-free. No investment is risk-free.

Be skeptical of websites. Just because a website seems professional doesn't mean the company behind it is. AARP's Oleck warns consumers to be especially careful of websites that do not list an address, phone number, or other way to contact the company.

Be even more skeptical of spam. Oleck says an investment or moneymaking opportunity advertised through an unsolicited email should send up a red flag. Legitimate companies advertise via email only to those customers who have signed up to be contacted.

Communicate with others. Scam artists often count on the isolation of older Americans to help keep word of their schemes from spreading to other potential victims. Talk to your friends about the opportunities advertised to see if they've been contacted, too. Be very wary if you are told to keep an investment opportunity to yourself.

Don't be rushed. Legitimate companies generally don't rush their customers into making decisions. Always take the time to investigate any opportunity before you invest or make a purchase. If an advertisement says you have to act now, don't.

Be careful of prizes. Never pay money to claim a prize. Never buy a product just because the purchase will enter you into a sweepstakes or contest. Be very cautious if you're offered a prize from a contest that you don't remember entering. If it's truly a prize, it should be yours free, with no strings attached.

Watch out for pyramid and Ponzi schemes. Two of the most common investment scams are these cons in which investors are paid with the money of other investors. If you're promised a larger return on your investment as more people "join the club," you're probably looking at one of these types of schemes, which are illegal.

Watch out for work-at-home opportunities. These are some of the oldest cons in the book. If the pay seems too high for simple work or for work that could be done more cheaply by a machine, it's probably a scam.

Never give out personal information. Never give out your Social Security, bank account, or credit card numbers unless you know the person you're giving them to, whether it is over the Internet, the telephone, or in person.

Pay by credit card. Using a credit card to make purchases online protects you by giving you the opportunity to dispute the charge later. Checks can't be stopped once they have been cashed. And don't ever give someone approval to transfer money out of your bank account.

Ask questions. The Better Business Bureau suggests consumers ask the following questions before committing to anything:

?• Where did you get my name?

?• Can you explain the risks involved in this investment?

?• Could you explain the proposal to my attorney or accountant?

?• What government agency supervises your business?

?• Can you send me written information to back up your claims?

?• How much money will go for fees and commissions?

?• Where will my money be held?

?• What is the phone number and address of your company?

Don't be ashamed. Many con artists count on victims being too embarrassed to report that they've been scammed. Don't be. A large number of people get conned everyday, including younger people. Be sure to report it when you get conned so the con artists can be caught and others won't be taken. . .☺