Baby boomers: A targeted segment for id theft

In the last few decades, seniors have become easy targets of identity theft and fraud. Their online transactions, computer, and online accounts, and their mobile applications have actually become an open book for crooks. Even their credit reports seem to be mishandled and looked into. In fact the Federal Trade Commission has recently released its yearly reports on consumer complaints.

From 2010, the average number of complaints they receive has risen to more than 24% in 2011. That’s an equivalent of 1.8 million to be exact. Identity theft is the number one overall complaint they received for the second straight year, amounting to 15% of all complaints. Tax or wage fraud comprises the total number of all of these complaints.

So with these people left to fend for themselves (sometimes to fall unknowingly into the trap of despair), there should be something done. These baby boomers are easy targets of ID fraud.

The Top 10 Complaints

Here are the top 10 complaints of seniors as established by the 2011 survey.

• Identity theft - 279,156 (15%).
• Debt collection - 180,928 (10%).
• Prizes, sweepstakes and lotteries - 100,208 (6%).
• Shop-at-home and catalog sales - 98,306 (5%).
• Banks and lenders - 89,341 (5%).
• Internet services - 81,805 (5%).
• Auto-related - 77,435 (4%).
• Impostor scams - 73,281 (4%).
• Telephone and mobile services - 70,024 (4%).
• Advance-fee loans and credit protection/repair - 47,414 (3%).

The Center for Retirement Research from Boston College picked up the report, “The Rise of Financial Fraud.” The study states that consumers are more likely to be vulnerable when it comes to financial fraud these days because they would like to know more about how their problems can be solved.

• People face serious financial problems ranging from stagnant incomes after the 2008 stock market crash to skyrocketing medical costs and house values that are less than the mortgage amount," the report says. "Any one of these can make an individual more vulnerable to get-rich-quick schemes."

The report also adds the declining age of these baby boomers is a factor as to why they are more susceptible to these types of fraud. "Between ages 71 and 79, one-fifth of individuals are impaired, but that rises to half of those between ages 80 and 89," it says.

The Top 10 Red Flags

Here is a list of what you should avoid. These are red flags that should bring a dangerous signal to your head.

1. The offer seems too good to be true. Scam products look more lucrative and profitable than most legal products on the market.
2. There is an offer that says “no risk.” This is something you should look into because all legal products and services have, in some way, risks involved.
3. Legitimate business deals don’t ask for money immediately. Those who are into scams, however, demand cash outright and upfront.
4. You are requested to pay an upfront fee in the exchange where you will receive the returns at some specified later date. When this happens, run--don’t walk--and don’t look back.
5. There is a request that the deal be kept secret and not shared with family members or friends. Why shouldn’t you tell your loved ones, especially when this has something to do with money?
6. There are some individuals who are offered a free lunch for listening to an investment presentation. Don’t sign anything during this deal – wait until you have researched everything properly and you know and understand exactly what you are getting into.
7. When you receive emails that are unsolicited, make sure that these go to your delete folder immediately. Don’t entertain a single thought of following through with any offer from an unsolicited email.
8. When you are urged to immediately act on this matter, don’t move forward. No legitimate business transactions function this way.
9. You don’t have any information – personal or business wise – about the person recruiting you. As someone going into this, you need to be sure that you know everything about this person.
10. The deal is quite complex and difficult to understand. If you don’t understand any of the transactions, you should walk away.

The bottom line is, when it comes to dealing with credit reports (as sometimes these can also be an avenue for fraud and identity theft), you need to make sure to review your credit reports and scores. Be vigilant and know what you need to do in case a prospective offer comes knocking on your door.