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Seniors Gain Expert Advice On Avoiding Scams
By Keith Hagarty
Dorothy George, 73, was recently offered a chance to cash in on what she was promised as a golden investment opportunity - the only catch was the salesman first asked to see her bank account number.
"He said to me, 'do you want to double your money?' It sounded great, but I didn't know what that implied," said the Brick senior. "So he said, 'I can take $10,000 out of there (her bank account) and I'll charge you for it and I'm going to invest it for you and you'll end up with up to three-times as much as you already have.'"
Despite the lure of making big money in a flash, George thought better of the offer and politely declined.
While George chose to tread on the side of caution, thousands of seniors aren't so lucky. They get swindled out of their life-savings every year, said Tony Bunn, a certified senior advisor for USA Financial Services of Spring Lake.
"Seniors are prone to financial fraud and financial abuse for a number of reasons," Bunn said. "One reason is they're alone, and a lot of the times, they're isolated. They're vulnerable because the many people that are trying to scam them out of their money know that seniors may have some money, and they also know that seniors may be alone."
To help seniors avoid the threat of financial fraud, Bunn held a workshop at the Brick branch of the Ocean County Library this week, offering his 10 tips to avoid getting ripped off.
"Perhaps the prime reason they get scammed is seniors are constantly trying to prove their independence. They're constantly trying to prove they can still make decisions for themselves," Bunn explained. "But they're doing that by making decisions that may not be in their best interests."
Scam artists and even legitimate salesman are cognizant of this prevailing insecurity in the senior population and prey on it.
"They put a guilt trip on the seniors, as if to say, 'oh, you can't make a decision by yourself?' or 'what do you need to talk to someone else for?' and that kind of thing," said Bunn.
What makes it even harder to track down and punish such scam artists are seniors' tendency to not report when they've been hoodwinked.
"It's embarrassing to call up the cops, or your son or daughter or whomever and say, 'look, I just got beat out of $20,000, $30,000 or $40,000 by some guy who said this was a great bet,'" said Bunn. "And again, if seniors let word out that they perhaps made a wrong decision, then their entire decision-making capacity might be brought into question by their loved ones."
Some of Bunn's helpful tips for seniors include: taking your time to make a decision, being suspicious, asking questions, involving others, researching financial professional, beware of strangers and understanding the investment.
Never feel pressured to part with your money, he said.
"If the deal is a bona fide, legitimate, good deal for you today, then that same deal will be a bona fide, legitimate, good deal for you tomorrow," said Bunn. "If someone pressures you to make a decision right away, just walk away from it."
If the seniors in attendance got nothing more out his workshop than one tip, Bunn said it would be to always ask questions, leaving no stone unturned.
"There are no dumb questions," Bunn told the audience. "The only dumb question is the unasked question."
Seniors should adhere to the rules of journalism when contemplating any investment, Bunn said: Who, what, when, where, why and how.
"You want to know, 'where is my money going, when can I get it back, what kind of return am I going to get, what are the fees, who is my money going to?'" he said "You want to ask anything and everything.
"Never be afraid to ever ask questions," Bunn emphasized.
Above all else, Bunn said it's imperative for seniors to have a sound financial plan and fiscal direction for the duration of their life.
"With the medical advances going on today, seniors are definitely afraid of outliving their money," said Bunn. "The average lifespan grows every year."
Seniors must develop a plan to make their money last as long as possible, said Bunn, adding it's never to late to start planning. Without one, seniors are even more vulnerable to a scam, where the promise of money is often a more attractive alternative to the unknown.
"You've got to plan on having some money," said Bunn, "otherwise you're going to be dependent on society, or you're going to be dependent on the government, or you're going to be dependent on your family, and they might not even be able to help you. They may have their own financial problems."
While Bunn's final tip is based purely from his own personal experience and faith, he believes it pertains to anyone.
"It's my personal opinion that God speaks to me everyday," he said. "He speaks to me through two sources; conscience and my gut, and neither one of them has ever steered me wrong."
Sometimes when all else fails, Bunn advises seniors to listen to their gut feeling, saying if it sounds too good to be true, then it usually is.
"If my conscience tells me don't do it, and I don't do it, then I sleep great at night," he said. "We all know what it's like to be BS'd, so if your gut feeling tells you not to do it, then don't do it."
The potential setback of missing out on "a once in a lifetime opportunity" pales in comparison to a conscience at peace, according to Bunn.
"The bottom line is: you know right from wrong, you know what's been good for you throughout your whole life," he said.
"If it doesn't feel right up here and in here," Bunn said pointing to his head and heart, "then don't fall for it, and say no."
For more information on Bunn's tips and learning how to avoid financial fraud, contact him at 201-233-8409 or e-mail him at
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