How Con Criminals find their Mark - Getting on the Mooch List
"The criminal's mooch list is one his most valuable possessions. It contains names of people who have responded to past scams or seem likely to do so in future along with contact information. The list may also contain personal information about potential victims - things like credit card information, how much they have lost in past scams, where they live, personal facts such as information on family members, and any other pieces of information that the criminal may find useful in taking thee person for a scam ride.", from the second chapter in Weapons of Fraud.
There is a recent lawsuit, from Illinios which demonstrates this in more detail.
"Attorney General Lisa Madigan announced her office filed two lawsuits against companies that allegedly used deceptive, unsolicited mailers to target senior citizens. The companies used the mailers to obtain personal financial information to develop sales leads for insurance agents to sell annuities and other insurance products.According to Madigan's complaint, seniors who respond to these mailings are not told their personal financial information may be used as leads for insurance agents, telemarketers, or others who may later try to persuade them to buy annuities and other insurance products." (my emphasis)
In this particular scam, seniors were
"allegedly [sent] deceptive postcards the defendants mailed to Illinois senior citizens. Investors Union, LLC is an Ohio company that creates, mails and processes direct mail postcards to consumers between the ages of 55 and 84 to obtain "qualified" appointments for independent insurance agents. Investors Union markets these leads to independent insurance agents.The postcard Investors Union sends to consumers states "Dear Annuity Holder: This notice is to inform you that you may have an annuity that has reached the end of its surrender period. Please contact Bob Walker in the annuity service center to discuss your options.
800-560-9448." Madigan's complaint alleges Investors Union has no way of knowing whether consumers have an annuity or whether such an annuity has reached the end of its surrender period."
This is a pretty decent hook, I couldn't tell you if our annuities have reached the end of their surrender period. It would be natural, for those who phoned Investors Union, to be in a bit of panic or at least a state of concern. What happens next?
"If the call center agents find a consumer to be "qualified," they allegedly offer the consumer a free review of existing annuities and other investments. In her complaint, Madigan alleges that while Investors Union describes the offer to consumers as a free review, it is really offering a sales presentation for annuities and other insurance products by an independent insurance agent."
A free review from someone so kind to have alerted me about our annuities, my goodness what lovely people they must be. I like them, I trust them, but what is this?
"At least one consumer believed the appointment was with an estate planner from a government sponsored senior advocacy program. The appointment was in fact with an insurance agent who persuaded the senior citizen to use $170,000 from an IRA, representing nearly all of the senior's liquid assets, to purchase a deferred equity indexed annuity with significant surrender charges issued by American Investors Life Insurance Co."
