Download - Consumer fraud - Just Say No!
Consumer FraudConsumer FraudJust Say No!Just Say No!
Presenter: Barbara J. StarkPresenter: Barbara J. Stark
What is consumer fraud?What is consumer fraud?• fraud is an intentional deception
made for personal gain or to damage another individual
• Fraud is a crime, and also a civil law violation.
• Fraud can be committed through many media, including mail, wire, phone, and the Internet (computer crime and Internet fraud)
Facts about consumer fraudFacts about consumer fraud
• Seniors aged 60 and older account for about 15% of the population in the United States
• Yet, according to some estimates, seniors account for 30% of fraud victims
ObjectivesObjectivesBy the end of this
presentation you will be able to:
• Recognize senior scams • Protect yourself from fraud• Know steps to take if you
become a victim• Know where to learn more
Why are seniors targeted?Why are seniors targeted?
Generally, seniors are more vulnerable and trusting have trouble spotting fraud find it difficult to end unwanted
telemarketing calls are often reluctant to seek advice
about financial matters
Types of common scams• Sweepstakes and lotteries• Charities• Sucker lists• Deed forgeries• Identity theft• Caretaker crimes• Medicare and health fraud• Funeral and burial
Sweepstakes and Lottery Sweepstakes and Lottery scamsscams
• You’re told that you’ve won a sweepstakes or the Canadian lottery
• You’re asked to pay for processing, taxes or delivery, or provide a bank account number to verify your identity
• No one ever receives a penny except for the thieves
Charity scamsCharity scams ‘Sound-alike’ names can be tricky and deceptive
Nonprofit and charitable groups must file IRS Form 990Check 990s at GuideStar www.guidestar.org
Before you donate, check to see if the charity is legitimatewww.charitywatch.org: 773-529-2300www.nasconet.org (report charity fraud)
Sucker lists If you often respond to sweepstakes or
contests, your name might be added to lists sold to con artists
A sucker list contains the names of people who have been, or are good candidates to be, victims of fraud
People on the lists may hear from crooks who claim they can help recover, for a fee, money lost to a con artist
Deed forgeriesDeed forgeries
• Scam artists forge the homeowner’s signature on transfer deeds so that they can illegally acquire ownership of the property
• Never sign blank contracts or other documents—they could be filled in later by scam artists who want to steal your property
Identity theftIdentity theft• ID theft criminals use your personal
information to apply for credit or government benefitsYour nameYour birth date Your Social Security numberYour addressYour bank account or credit card numbers
Caretaker crimesCaretaker crimes• Be alert for caregivers
who try to isolate you from your friends and family
who ask about your will and investments
who ask to be given power of attorney
who try to dominate or influence you
• Tell family members or call adult protective services
Medicare fraud
It is illegal for companies offering Medicare drug plans to charge you a fee, or to offer you cash or free food to get you to enroll in a plan.
If you are interested in the benefits available to you as a Medicare beneficiary, visit the federal government’s Medicare web site (www.medicare.gov) or call 800-MEDICARE (800-633-4227).
Health fraudHealth fraud Signs of health fraud include:
Promoters of cures who claim that the medical establishment is keeping information away from consumers
Testimonials from people who supposedly have been cured
“Secret formulas” that no one else has
The use of infomercials—programs that look like news, but are just lengthy ads paid for by the promoter
Funeral and Burial scamsFuneral and Burial scams
It makes sense to plan your funeral and burial in advance.
Do your homework before paying for funeral/burial services in advance.
Draw up your plans with a reputable funeral business and save a copy for your survivors.
If you want cover the cost of your funeral, you can include funds to do so in your will.
Warning signs of fraud• Be suspicious if you hear:
You’ve won a prize or free gift
You’ve been selected to receive a special offer
You must act immediately or lose out
You must pay for shipping your prize or free gift
Give us your credit card number and expiration date to verify that you are a credit cardholder
More warning signs of fraud You’re asked for personal information
You’re asked to donate to an agency whose name sounds like a well known charity
You’re one of only a chosen few to receive this offer
A courier will come to your home to get your payment
The Grandparents ScamThe Grandparents Scam
Grandma! Hi, how are you?”
“Hi, Billy. How are you?”
“Actually, I’m in some trouble, and don’t want Mom and Dad to know
. . .”
The Grandparents Scam The Grandparents Scam (cont’d)(cont’d)
How can you avoid this type of scam?Verify the caller’s identity (personal
questions) to make sure he’s family!Resist the pressure to act immediately. Call the local police on a non-emergency
line.Do not wire money or send money via an
overnight courier.Report the fraud to the FTC.
Protect yourself…Just say Protect yourself…Just say “no”!“no”!
1. Don’t be pressured to make immediate decisions
2. Don’t give your financial account information or Social Security number over the telephone
3. Don’t buy something merely because it comes with a “free” gift
4. Don’t fall for statements that you have won a prize, especially if you must send money to claim it
5. Don’t send cash by messenger or overnight mail
Protect your property and assets
• Financial exploitation is often committed by a person that is trusted by the victim
• Keep all important financial documents under lock and key in your home
• Store valuables in a bank safe deposit box
If you become a victim…
• Call the policeYou may need a police report to help
you prove that you were a victim
• Contact your state and local law enforcement agencies such as your district attorney’s office or the state attorney general
Elder Abuse Prevention Directory of Elder Abuse Prevention
Resources
The National Center on Elder Abuse www.ncea.aoa.gov
Click on “Find State Resources”
Call 800-677-1116 The federal agency that advocates for
older personswww.aoa.gov
Thank you!
For more information contact:
American Debt Counseling, Inc.A 501(c )(3)non-profit Credit
Counseling Organization14051 NW 14th Street
Sunrise, FL 33323www.americandebtcounseling.org
1-888-DEBT USA