have i got a deal for you! - bgaaailbgaaail.org/docs/scams.pdf · have i got a deal for you!...
TRANSCRIPT
Current Scams Swindling
Our Seniors • How to spot them
• How they work
• How to avoid them
• How to assist your victims
Have I Got a Deal for YOU!
CURRENT SCAMS
1. Phone Scams
2. Sweepstakes/Lotteries
3. Charities
4. Internet & Mail Scams
Phone Scams:
Saving Money
“Hi, this is Rachel. I have a very important message about your credit card. To reduce your credit card interest rate, please press one. ”
◦ Caller indicates he can reduce your current rate to an attractive LOW percentage.
◦ You could be signing up for a debt consolidation service.
◦ Or you’ve just given your credit card number to a scammer.
Phone Scams:
Security Breach
“This is your credit card security
company and we believe that your credit
card has been compromised.”
oCaller indicates there has been an
unauthorized purchase on your card. She
asks for verification that you are in possession
of your card and requests security code.
Phone Scams:
Medicare Benefits
“Due to Obama’s health care package
your Medicare benefits may change. You’ll
need to lock in current rates now before
they go up…”
◦ Caller is trying to obtain credit card and
personal information to “secure” benefits.
◦ Scammers love what’s hot in the news!
Phone Scams:
Direct Deposit
“This is the IRS ( or Social Security) and
we are having problems direct depositing
your refund (or social security) check.”
◦ Caller is trying to obtain personal information
to make unauthorized withdrawals.
(BEWARE of these calls after tax season and
during open enrollment for Medicare
prescription plans). Green Dot card
transactions are being used to steal SS check.
Phone Scams:
Government Grant
“Congratulations, since you paid your
taxes on time, you qualify for a
guaranteed government grant.”
◦ Caller tries to obtain bank account
information and will withdraw funds to pay
for a packet of worthless grant information.
◦ Or they will require you to wire money to an
unknown contact for “fees” before you
receive “funds”.
Phone Scam:
Grandparent Scam “Grandma/Grandpa, do you know who
this is? I need help. I am traveling in
Mexico and was involved in a traffic
violation and need money wired to pay
the fine. Don‘t tell mom and dad.”
Actually, caller makes grandparent believe
it is grandson/daughter and instructs the
grandparent to wire money.
Phone Scam:
Personal Security Device Caller indicates that family member has
ordered and paid for personal alarm
device, but won’t reveal which family
member.
Senior is unknowingly charged a monthly
fee for a monitoring service.
Phone Scam
“Security Survey”
Caller claims to be with a security
company and is conducting a home
security survey.
Caller inquires about security features in
your home, number of doors, etc.
Indicates you’ve won a free security
system.
◦ Actually, caller may trick you into an
install OR may use the information to
break into your home.
Phone Scam?
Political Survey
Caller indicates you win a free cruise for
participating in a political survey.
After a series of questions, you then qualify
for a “free” cruise and are transferred to a
sales agent who asks for your credit card info
to pay fees!
A new way for telemarketers to attempt to
skirt the law? (Political surveys are exempt
from no call law).
Phone Scam?
Diabetic Supplies Call
You are contacted by a company stating you
can obtain free diabetic supplies or monitor.
Company asks for your Medicare number and
doctor’s information.
Claims bill will be paid by Medicare.
You may be charged if the company is not a
Medicare approved provider, or the company
may be a scammer who now has your
personal information.
Sweepstakes/Lotteries
Seniors who respond to phone calls or postcards saying that they have won money or prizes……….
BEWARE
Sweepstakes and Lotteries
The Office of Consumer Protection receives about 4-5 calls per day regarding sweepstakes. Some even claim to be PCH, Reader’s Digest, or Mega Million lottery representatives.
2-3 Victims per week.
Initial money lost ranges from $1,800 - $5,600 and escalates as victim is pursued.
Target – Senior Citizens and others
Sweepstakes – The Gimmick
You have won the foreign sweepstakes – usually from Canada, Spain, Jamaica, Las Vegas, etc.
The caller claims to be a US Customs agent, IRS agent or other “official”.
You need to send money for “duty taxes”, fees, insurance or other reasons in order to claim your prize. Often victims are provided a check to pay these fees.
Sweepstakes - The Gimmick cont’d
You must deposit the check and wire the
money to the promoter.
When you do, the bank calls to tell you the
check is no good, and you are responsible for
repaying the bank!
YOU HAVE BEEN SCAMMED! Note: Many family members notice sweepstakes
participation and uncharacteristic spending patterns
by senior as first sign that something may be wrong.
Sweepstakes - Other Gimmicks
Scammers ask that victims purchase a Green
Dot card (moneypak.com). It is a “pre-paid”
type card and operates just like cash.
The card can be depleted instantly by the
scammer through the Green Dot system,
placed on another pre-paid card, transferred
to a PayPal account for internet purchases, or
make payments on the scammer’s accounts.
Cannot be traced.
More Sweepstakes Gimmicks
◦ Scammer changes home phone number of
senior so only the scammer can talk to
senior.
◦ Scammer provides cell phone to senior and
asks that senior keep it a secret.
◦ If senior doesn’t drive, scammer sends taxi
to senior’s home to transport senior to the
bank and wiring transfer service to send
money.
More Sweepstakes Gimmicks
When senior depletes resources,
scammer talks senior into borrowing
from friends and family or obtaining a
home loan or reverse mortgage.
Senior is shamed or threatened to
continue to send money.
How to Help Protect Seniors from
Scams:
Encourage them never to respond to
sweepstakes notices/phone calls
ESPECIALLY if asked to send money.
If asked to send money, the sweepstakes is
ILLEGAL.
ALL foreign lotteries and sweepstakes are
ILLEGAL.
How to Help Protect Seniors from
Scams:
Advise that they:
never give personal information to unsolicited
callers.
never engage in conversation with callers,
they may believe what they say.
never order anything to increase their
chances of winning.
NEVER send money – it IS ILLEGAL. Their
names will be placed on a “sucker list” and
sold to other scammers.
Fraudulent Telemarketers:
Telemarketing fraud is a crime and should be reported. Victims shouldn’t be ashamed or embarrassed. A report could assist the Office in prosecuting the fraudulent telemarketer and help others avoid being victimized.
Call toll free 1-866-877-7867 to report telemarketers.
Also contact the Federal Trade Commission at 1-877-382-4357.
Telemarketers:
To add your residential and/or cell phone,
call the National Do Not Call Registry, call
1-888-382-1222 or register online at
www.donotcall.gov
Note: Scammers do not abide by the federal no
call list.
Scammers also “spoof” caller IDs and use
untraceable phone numbers and cell phones.
(One can purchase a phone app for as little as 99
cents to “spoof”).
Other Phone Calls:
Charitable Solicitations
All charitable solicitors must register in the Attorney General’s Office.
BY LAW, you must be told the name of the solicitor, for whom they work, and for which charity they are soliciting.
IF YOU ASK, they must tell you what percentage of your dollar goes to the cause.
Charitable Solicitations Examples: 6-6-13
Projected funds to charities currently
registered:
American Lung Assoc.: 2%
Save the Children Federation: 1% to 2%
KY Firefighters Assoc., Inc. : 15%
Cancer Fund of America: 10% to 20%
KY State Police Professional Assoc. : 12% to
32%
Feed the Children, Inc. : 1% to 10%
Veteran’s of Foreign Wars, Dept. of KY: 20%
Charities: Beware
Beware of sound alike charities.
Ask questions. Ask that material be sent to your home for your review BEFORE you commit to a contribution. Ask about what % of your contribution will reach the charity. By law they MUST tell you.
Realize that you can donate locally to a cause without going through the solicitor.
Research the charity with the BBB or the Attorney General’s Office.
Charities: Beware
Advise your loved ones:
You DON’T have to pay for the stick-on mailing labels, the calendars, the cards, etc. sent by charities asking for a donation.
Don’t give to every charity that calls. Do your research before you give, and give wisely.
Practice “I’ve already budgeted my dollars this year, but if you’ll send me some information, I will consider you for next year”.
Popular Internet Scams:
Mystery Shopper
The senior receives an email (or mail) congratulating
him/her for being selected as a mystery shopper
candidate.
The senior receives a cashier’s check to deposit into
his/her bank account to use for the “assignment”.
The senior is instructed to wire money through
Western Union or Money Gram to “evaluate” their
customer service. As payment for the assignment,
the senior keeps a portion of the check.
The check is counterfeit and the senior has to repay
bank!
Popular Internet Scam:
Work at Home Plans
Senior is selected to serve as a “processing
agent” for a foreign marketer.
Senior receives money orders and cashier’s
checks to deposit into his/her account.
Senior is instructed to wire money to the
foreign “employer” for transactions he has
made in the US.
Checks/money orders are counterfeit and the
senior victim owes the bank!
Popular Internet Scams:
Bogus responses or postings on Craig’s List.
Beware of social networking sites and dating
sites. (Recent victim lost $200,000 as the
result of social networking contact).
Bogus emails requesting money.
Behaviors Common to Victims:
Secretive or referencing “something big”
is going to happen soon.
Unexplained missing money or charges to
accounts uncharacteristic of senior.
Excessive junk mail, collection of
worthless trinkets ordered, items unable
to be used by senior.
New friendships by phone or other
persons unknown to senior.
More Behaviors Common to
Victims
Irritability when asked about items purchased
or money spent.
Isolation from family and friends.
Borrowing money from neighbors or friends
which is uncharacteristic of senior.
Senior suddenly can’t afford normal
purchases.
Wire service receipts in the home.
Secretive phone conversations.
Working with Victims of Scams
Be patient, calm and understanding. They may
be embarrassed and ashamed.
Do not blame. Let them know they are not
alone and that the scammers are experts.
Suggest that a family member/trusted friend
sort through mail before senior has access.
Some families do this without the knowledge
of senior.
Suggest to family that they obtain a PO Box
for senior.
Working with Victims of Scams
Suggest family change phone number of
victim if necessary.
Warn of 876 area code - Jamaica!
Explain to the senior the dangers of speaking
to strangers on the phone.
Suggest House Policy: NO personal
information given to unsolicited callers and
NO commitments made by phone. All
requests for money OR personal info must
be made by mail so it can be researched first.
Working with Victims of Scams
Some fraud experts indicate that money sent
to scammers is being used to support
terroristic activities. Let senior know this.
Recommend to senior to place phone
number on the no-call list. (Be aware that
scammers don’t abide by this.)
If family or law enforcement is unable to get
through to victim, suggest that a trusted
family member, friends, minister, etc. speak
with senior.
Working with Victims of Scams
If problems with sending money persist,
suggest that family members write to the
wiring service to request that no more
transactions be allowed by victim.
Suggest family contact a bank representative
to discuss ways to protect senior’s assets.
Senior may need to be evaluated by doctor
for uncharacteristic behavior. APS may help.
Family may consider emergency guardianship
as an option.
Working with Victims of Scams
Western Union Contacts:
To report fraud: 1-800-448-1492
To block future transactions by senior,
write letter to: Western Union, Attn:
Security Dept., PO Box 4430, Bridgetown,
MO 63044
Fax to: 1-888-690-2028
(Include name, address of senior, what type
of fraud, calls, number of transactions sent,
MTCN #s and amounts, etc.)
Working with Victims of Scams
To report fraud to MoneyGram call
1-800-MONEYGRAM (666-3947)
(option 7) then press 5
Extreme Victim Examples Some families have reported:
◦ Loans taken against senior’s home.
◦ Annuities cashed and money spent.
◦ Savings depleted and sent to scammer.
◦ Pawn shops being used to obtain quick cash.
◦ Victim left homeless.
◦ After family changes victim’s phone number,
scammer sends a taxi to the senior’s home in an
extreme measure to contact them. Scammer
maintains contact with driver by cell phone and
eventually speaks with senior.
Other Helpful Contacts
Office of the Attorney General
888-432-9257
Federal Trade Commission: 877-382-4357
Postal Inspection Service: 877-876-2455 opt. 4
Internet Crime Complaint Center: www.ic3.gov (to
report internet crimes).
Adult Protective Services (for financial exploitation)
The Direct Marketing Association: www.thedma.org
(to manage mail preferences)
Medicaid Fraud and Abuse Control Unit
Investigates incidents of patient abuse
when the abuse occurs at a Medicaid
facility
Investigators can assist other agencies or
can answer questions
Hotline: 1-877-ABUSE-TIP
Mandatory Reporting Requirement
KY is a mandatory reporting state
◦ KRS 209.030
Any person who has reasonable cause to
suspect that an adult has suffered abuse,
neglect, or exploitation, shall report the
suspected abuse, neglect, or exploitation
to the Cabinet.
Violations can be a Class B Misdemeanor
Cabinet’s hotline - 1-800-752-6200
QUESTIONS?
Lori Farris
Mediation and Senior Protection Branch Manager
KY Attorney General’s Office of Consumer Protection
502-696-5394 or 502-696-5300