Unfortunately, senior citizens tend to be targeted often by scam artists. The Motley Fool warns about a new Social Security scam called the "referendum scam," which tricks senior citizens out of money. Many senior citizens rely on Social Security, which makes this scam all the more dangerous.
The referendum scam usually targets senior citizens in the form of a letter from a fake non-profit or advocacy group. The letter says that Congress is trying to get rid of Social Security and that seniors need to vote to save the program. The fake non-profit says that in order to reach more senior citizens and mail out referendum ballots, they need more money. This is how the scammers trick senior citizens into donating money. By asking for seemingly small sums of $15 or $20 donations, scammers gain access to credit card information, with which they can make other fraudulent charges. In order to steer clear of this scam, it's important to remember that non-profits are not responsible for conducting national referendums through the mail. Any fundraising efforts in conjunction with a national referendum vote should also raise a red flag. If you receive mail that matches the referendum scam description, be sure to bring it to your local police. Keep your money safe and be cautious any time you are asked to mail a donation!