How to protect your parents from fraud

More types of fraud
• Cyberspace cons. If you think because your parents aren't wired up they couldn't get conned in cyberspace, it's time to reboot your perceptions about older people and technology. "They're all (on) broadband, cable modems, online all the way," says David Cravit, senior vice-president of marketing with the 50Plus Group, a Toronto-based company that publishes websites and an electronic newsletter for baby boomers and seniors. So-called phishing expeditions are reeling in plenty of victims. Scammers create cruelly convincing clones of websites, often of big Canadian banks. They then send e-mails instructing recipients to verify passwords and other banking information. "That's the one that worries me the most," says Cravit. "If they (seniors) are not on their toes, then they're going to type in their bank account number."

• Lure of the letter. Then there's the Nigerian letter scam, which is vacuuming millions from hapless victims around the world, including Canadians. An 84-year-old Winnipeg man was fleeced of more than $30,000 last year after falling for it. The con comes in the form of graciously-worded e-mails, ostensibly from people in Nigeria or other countries, offering whopping sums of money. In the Winnipeg case, the senior was promised a
$1.5-million inheritance if he wired a total of $37,500. According to PhoneBusters stats, Canadians lost about $3 million in these letter scams in 2006. "It's really, really a sad thing to see," says Simpson, "because you know those people will never see that money again."

• At-your-door dupe. While the web is making it easier for fraudsters to milk seniors' bank accounts from afar, the old-fashioned face-to-face con is still on the streets. There's the contractor, for example, who knocks on your door, warns that your roof looks like it's about to collapse and offers to do the repairs for a cut rate. The senior hands over a cheque to cover supplies, the contractor leaves, and is never seen again.

• Breach of trust. Perhaps the most unscrupulous crook is the one in a position of trust in a senior's life. Some people are ripped off by their own kids, while others are victimized by employees. Financial planner Marcy Ages remembers an elderly client who paid the price for trusting a caregiver with her bank card. "This woman stole $20,000 from her. But because she gave her the PIN, how can you say she stole it? You could try taking the person to court, but then it's going to cost you lawyer's fees. And [the person] might not have the money to pay you back anyway if they've already spent it."

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