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Investigator Warns of Scams, Fraud
By Fran Daniel, Winston-Salem Journal
June 18, 2004
(Journal Photo by Jennifer Rotenizer)
Jane Feather of the N.C. Attorney General's Office talks about how scammers work on seniors' weaknesses.
Anybody can be scammed, but senior citizens are particularly vulnerable, Jane Feather, an investigator in the consumer-protection division of the N.C. Department of Justice, said yesterday at a seminar.
"Many times they are scammed at their door," Feather said. "They are scammed over the phone."
Then she held up a telephone receiver, which she described as a "big-time weapon," and placed it in front of her.
"They are scammed at their mailboxes," she said. "They are even scammed over the computer."
Feather spoke about frauds and scams before a group of about 100 people during a Senior Financial Safety Symposium at Bridger Field House at Groves Stadium in Winston-Salem.
Seniors and Law Enforcement Together, an advocacy group, was the host of the symposium, which attracted seniors, the children of seniors and agencies involved with caring for the elderly from as far away as Mecklenburg County.
Feather said that the N.C. Attorney General's Office is really concerned about "the super victim - those people that get involved and keep getting scammed over and over and over again."
"We have seen people lose their life savings," she said. "If they are not depressed already, they can become even more depressed, very isolated, have more health problems as a result of it, and it frequently destroys relationships with spouses and also adult children."
The victims are most often involved in home-repair and sweepstakes scams and telephone fraud, she said.
Feather recalled three victims in the Triad who lost substantial amounts of money last year: One of them lost $60,000, another $30,000 and a third $20,000.
A telephone fraud that currently targets seniors in North Carolina is international lotteries, according to the attorney general's office.
Callers claim that they will enroll people, whose credit or checking accounts are charged regularly for this service, in the best overseas lottery opportunity each week.
The scam artists pay out small sums from time to time to keep people interested and may collect $10 to $100 a week for months. They occasionally offer a special chance on a "sure bet" lottery package for $5,000 to $10,000, but do not enroll people in lotteries.
Another speaker at the symposium, Seth Rosebrock, a lawyer with the Legal Aid Society of Northwest North Carolina Inc., talked about predatory lending, which he said is undermining the American dream because predatory lenders target homes and home equity.
Predatory lending "is a practice that places the borrower in a worse financial or economic position after the transaction than they were in prior to the transaction," he said.
Rosebrock gave a number of warning signs for predatory loans, including high interest rates, high points or padded closing costs, and repayment penalties.
Other speakers and their topics were Michael Wells, a lawyer with Wells Jenkins Lucas & Jenkins PLLC, powers of attorney; Philip Mohr, a lawyer with Womble Carlyle Sandridge & Rice, investment fraud; and Kathryn Lanier of the N.C. Division of Aging, assisted living and patient rights.
Veronica Hughes, an income-maintenance caseworker who works closely with nursing homes for Forsyth County Department of Social Services, said she attended the symposium to learn more about powers of attorney, predatory lending and the changes in Medicaid.
"Learning more on how we can protect our elderly is why I'm here, to sum it all up," Hughes said.
When Arthur Atkinson, a volunteer for the Shepherd's Center of Greater Winston-Salem, does respite-care work in homes, he sometimes has older adults ask him questions about security problems, insurance and their mail, he said.
"This is good information," Atkinson said during the symposium, which also had several exhibitors on hand with resource materials for seminar-goers. "I can refer them to the right people."
SAFETY TIPS
. Watch out for products that are promoted with prizes or free trips
. Be suspicious of "no-risk" claims or promises of big financial gain
. Beware of individuals or companies that operate outside the United States
. Don't rush to make decisions
. Before investing your money, get a second opinion
. Consult the Better Business Bureau or your lawyer on large investments
. Do not give your credit-card number over the telephone unless you know the caller is legitimate
. Avoid giving out personal information, such as your name, over the telephone
Source: Seniors and Law Enforcement Together advocacy group
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