Elder Journal - Elder Telemarketing Fraud

Elder Journal by Paul Takayanagi

Telemarketing fraud is a growing concern for many Bay Area communities. Grace is a 79 year old widow and retired school teacher who lives in an active senior community. Her only daughter, Mary, lives in San Jose and visits three or four times a month. Grace attends church regularly and she volunteers at a local hospital once a week. Grace also loves to go on occasional trips to Reno to gamble on the slot machines. She likes the thrill of hearing the bells and whistles go off and the sound of falling quarters when she hits a jackpot. Her interest in winning something extends to contests and promotions by a variety of telephone and mail solicitations. She receives on average twelve to twenty phone calls and mailings each week asking her to enter a contest , join a club, sign-up for services or purchase some merchandise. She has become addicted to this activity and cannot stop entering contests.

Recently Grace became a victim to telemarketing fraud when an unscrupulous promoter called her nearly every night for two weeks and convinced her to send more than $500 for a "prize" and other merchandise. The promoter was a "very nice sounding young woman named Tracy" by Grace�s account. "Tracy" began her pitch by enthusiastically congratulating Grace on the fact that she had won a fantastic weekend vacation to Reno with all expenses paid. Grace cannot remember all of the contests she has entered so when Tracy called she just assumed that the prize was from one of them. Tracy told her that the "prize" was worth $2,000 and all Grace had to do was send in a check for $215.00 for luxury taxes. Grace was reluctant at first but Tracy told her that she understood, there was no obligation to accept the prize and she would call back the next night after Grace had time to think about if she wanted it. Regular telephone calls over the next week developed between them.

During the conversations, Tracy shared "personal information" about herself. She told Grace that she was a single mother with two young children and going to school at a local university during the day and working at night to support her family. She told it well and convincingly. Her story tugged at Grace�s heart strings and she began to like Tracy. In time Tracy convinced Grace not only to send in the $215 but to also purchase additional merchandise for $300. Tracy told Grace that she would earn a high commission on these items which would help pay for childcare. Grace wanted to find a way to help Tracy. In reality, Tracy�s real name is Bonnie and she is a forty-eight year old divorcee without any children and has never gone to college.

After a couple of weeks, Grace�s daughter Mary found out about her mother�s growing relationship with Tracy and of the more than $500 spent on prizes and merchandise which would ultimately never be delivered. Mary reported the incident to local authorities who informed her that they knew of this telemarketing outfit and their unscrupulous tactics. They had been gathering information for quite some time but needed assistance from fraud victims to prosecute. Mary and Grace agreed to "bait" Tracy the next time she called and asked for more money. Ultimately, Tracy and the telemarketing outfit were stopped but Grace will not get her money back. She has the satisfaction, however, of knowing that seniors like her will not be taken in by at least one more telemarketing scheme.

Grace�s story is not unusual. Telemarketing fraud is growing and it is often targeted at seniors. The American Association of Retired Persons reports that there are more than 10,000 telemarketing companies calling hundreds of thousands of seniors each day. If you suspect telemarketing fraud, call your state attorney general, listed in your local telephone book and on the National Association of Attorneys General website (www.naag.org). You may also contact the Federal Trade Commission (www.consumer.gov/knowfraud) for a consumer complaint form, or call 1-877-FTC-HELP (1-877-382-4357), TDD: 202-326-2502. Locally, there are a number of resources. Call the Senior Fraud Fighter Bureau serving Alameda and Contra Costa Counties at 1-888-545-SAFE for more information. On May 19, there will be an event called "Senior Fraud Fighter Conference" at Nile Hall in Preservation Park in Oakland starting at 9:00 am. It�s free. Call (510) 834-4401 for more information.

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