Warning over financial scams to fleece seniors

Three government departments have recently released a notice warning about the risks of financial scams targeting elderly people, including those offering food supplements or senior care services.

“Some organizations and enterprises cheated elderly people by charging them membership fees or mis-selling them food supplements and using their money for illegal purposes,” said the notice, jointly released by the Ministry of Civil Affairs, the China Banking and Insurance Regulatory Commission and the State Administration for Market Regulation.

“Those activities have resulted in extensive property losses among the elderly people.”

Four major risks were listed in the notice: investments promising unrealizable high interest rates; medical treatment that fails to improve health; handing over large amounts of prepaid money for things like membership fees; and unregulated business practices that may break the law.