The downturn in the housing market has led to a rise in one type of fraud which has especially hurt the elderly – the foreclosure rescue scam, Santa Clara County Deputy District Attorney Kim Connors recently told members of the Silicon Valley Association of REALTORS® (SILVAR).
A guest speaker at a SILVAR REALTORS® tour meeting, Connors told REALTORS® and affiliates that financial crimes against the elderly are becoming more widespread, and the only way to prevent these scams from happening is to always keep informed and warn everybody you know about these scams.
Foreclosure scams can result in equity stripping, phantom help, fake sales or fake rentals. The elderly are especially susceptible to these crimes and very vulnerable to predators, Connors said.
Connors pointed out, "The elderly aren't as resilient as young people."
She said many senior citizens are embarrassed to admit they have been scammed and often, they are fooled by people they know – friends, family members, caregivers, fiduciaries. Many seniors don't fully recover from these scams, especially if the crime has resulted in the loss of their home or life savings. In some cases, these scams have resulted in their deaths.
Identity theft also has become quite prevalent. She told SILVAR members it is not enough to shred important documents, put them in a bag and drop them into the recycle bin.
"Thieves have a lot of time on their hands and will actually put pieces of paper together," she said. The best way to prevent strangers from getting hold of shredded documents is to soil the documents and put them in the trash bin, she advised.
Examples of financial crimes include forgery, lying to get your money (e.g., my child is dying of cancer and needs surgery story); deceiving you into signing any document (e.g., quit claim, grant deed, will); improper use of conservatorship, guardianship or power of attorney; and cold calls.
Connors told REALTORS® to advise their clients to beware of calls or e-mails informing you that you have won the lottery.
"There are still many seniors out there that believe they have won the Canadian lottery," she said, referring to a popular scam.
She also warned against the "Enter to Win" cards people see and fill out at shopping centers. Always read the fine print, she cautioned, because once you fill out the information and sign the card, the fine print in many of these cards states you wave being on the Do Not Call Registry.
"Scam artists try to get you when you are in your safe zone – at home or at work," Connors said. "Always be on guard. Remember, if it sounds too good to be true, it is."
Connors offered the following fraud prevention tips: lock mailboxes; scrutinize credit reports; screen calls; always get a second opinion when someone presents a financial proposal; only return calls to known numbers; and watch the news.
She especially urged REALTORS® to share their knowledge and expertise about all the different scams they hear or read in the newspaper with their parents, grandparents and elderly clients.
"Prevention is still the best medicine," she said. "Prosecution seldom makes the victim whole."
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please email or call the SILVAR office at (408) 200-0100.