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Violet believed that, at 79 years old, she finally won the big one! The official on the other end of the phone said it repeatedly -- she was the grand prize sweepstakes winner. She had been paying out large contestant fees for many years, and now her "investments" were about to pay off. All she had to do to was to wire $7,000 in taxes and winner's fees to this nice young man, and the $700,000 would be hers.
Whose responsibility is it to protect our elders from scams and unscrupulous con artists? Too often, we absolve ourselves, falling back on the old adage of buyer beware. But the reality of elder abuse and exploitation is far-reaching. Too many seniors from every income, living situation and education level fall victim, their life's savings depleted in the process.
Millions of Americans -- eight out of every 10 households -- receive sweepstakes pronouncements several times a year through the mail or over the phone. While many toss these offers or simply refuse to talk to aggressive telemarketers, others play along for the fun of it, and some end up financial losers.
Perhaps out of boredom or as a form of entertainment, older adults are particularly attracted to playing sweepstakes or games of chance. While many Americans are quick to recognize the ruse in glossy and official-looking sweepstakes documents, many seniors are not as discerning. They often are not aware of the level of sophistication of computer-generated mail that can be produced en masse. For many older adults with age-related vision loss, it is very difficult to read the fine print that indicates their odds of winning. Required by law, this information typically is written in small type on a background that offers little color contrast. Although it's true that the major sweepstakes companies do pay out the advertised amounts, chances of winning even in these contests, are remarkably slim, typically one in 3 million.
As harmless as it seems, playing the sweepstakes can become a costly obsession.
Legally, no purchase or money is required to enter sweepstakes drawings. Even so, sweepstakes promotions are commonly wrapped around offers of magazine subscriptions and merchandise, purchases that require money up front. Through various means of deception, these offers imply that the chance of winning is increased with such purchases.
Once received, contestants' names are placed on several new sweepstakes mailing lists, thereby increasing their opportunity to enter even more drawings. As cases across the country illustrate, this compulsive cycle of purchasing in the hopes of winning can result in the depletion of one's life savings. Tragically, those close to experiencing such losses may begin to enter contests out of desperation -- they need to keep at it so they can recapture what they have lost. Often, fear and shame keep them from revealing the magnitude of their situation before intervention is possible.
Others may never believe, or refuse to admit, they've been taken. Despite their recurring loss, habitual contestants actually believe that sweepstakes winnings offer the only real chance of financial prosperity and security. In fact, a recent survey taken in the United States, showed that more people believe it is possible to become rich by winning the lottery or a sweepstakes than by systematically saving money over their lifetime.
Many experts believe that sweepstakes played with such intensity often mirrors behavior seen in compulsive gamblers and those with other addictions. What starts out as an innocent activity may lead players down an irreversible path. They are unable to stop playing, despite the fact that their efforts have not paid off. According to AARP, signs to look for in sweepstakes addiction include:
- A large volume of sweepstakes promotions regularly mailed to the contestant's home.
- An inordinate number of unread magazines and amount of unused merchandise delivered to the contestant on a regular basis.
- Explanations by the contestant that the above items were received as gifts or bonuses rather than being merchandise that was ordered.
Telemarketing fraud is another major scheme that targets older adults. More personal than direct mail advertising, professional swindlers are adept at convincing, intimidating and coercing victims to wire large sums of cash. Typically, this is done on the pretense that taxes and contestant fees must be paid in advance before a winning check can be sent.
Simply instructing elders to say no to telemarketers is not effective. Research conducted by AARP indicates that while many older Americans do understand the "too good to be true" message, several play along out of curiosity or the belief that they will not fall prey to such deception. The study indicates, however, that the longer a person stays on the phone with a telemarketer, the greater the likelihood they will be taken in the end.
Increasingly, the fight against elder fraud and exploitation will require a multifaceted, problem-solving approach. Recent legislation passed in Colorado makes it more difficult to be deceived by sweepstakes mail. Nevertheless, new fraudulent practices are being invented every day. It is a dilemma that will require constant vigilance on the part of law enforcement, regulatory agencies, Consumer groups and seniors themselves.
For more information, contact your local
Colorado State University Extension office.
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Updated Tuesday, November 27, 2007
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