Current Scams Swindling Our Seniors

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Have I Got a Deal for YOU!

• Current Scams Swindling Our Seniors
• How to spot them
• How they work
• How to avoid them
• How to assist your victims

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CURRENT SCAMS

• 1. Phone Scams
• 2. Sweepstakes/Lotteries
• 3. Charities
• 4. Internet Mail Scams

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Phone ScamsSaving 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 youve just given your credit card number to a
  scammer.

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Phone ScamsSecurity Breach

• This is your credit card security company and we
  believe that your credit card has been
  compromised.
• Caller 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.

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Phone ScamsMedicare Benefits

• Due to Obamas health care package your Medicare
  benefits may change. Youll 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 whats hot in the news!

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Phone ScamsDirect 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.

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Phone ScamsGovernment 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.

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(No Transcript)
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Phone ScamGrandparent 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. Dont tell mom and dad.
• Actually, caller makes grandparent believe it is
  grandson/daughter and instructs the grandparent
  to wire money.

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Phone ScamPersonal Security Device

• Caller indicates that family member has ordered
  and paid for personal alarm device, but wont
  reveal which family member.
• Senior is unknowingly charged a monthly fee for a
  monitoring service.

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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 youve won a free security system.
• Actually, caller may trick you into an install OR
  may use the information to break into your home.

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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).

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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
  doctors 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.

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Sweepstakes/Lotteries

• Seniors who respond to phone calls or postcards
  saying that they have won money or prizes.
• BEWARE

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Sweepstakes and Lotteries

• The Office of Consumer Protection receives about
  4-5 calls per day regarding sweepstakes. Some
  even claim to be PCH, Readers 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

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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.

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Sweepstakes - The Gimmick contd

• 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.

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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
  scammers accounts.
• Cannot be traced.

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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 doesnt drive, scammer sends taxi to
  seniors home to transport senior to the bank and
  wiring transfer service to send money.

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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.

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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.

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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.

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Fraudulent Telemarketers

• Telemarketing fraud is a crime and should be
  reported. Victims shouldnt 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.

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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).

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Other Phone CallsCharitable Solicitations

• All charitable solicitors must register in the
  Attorney Generals 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.

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Charitable Solicitations Examples
6-6-13Projected 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
• Veterans of Foreign Wars, Dept. of KY 20

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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
  Generals Office.

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Charities Beware

• Advise your loved ones
• You DONT have to pay for the stick-on mailing
  labels, the calendars, the cards, etc. sent by
  charities asking for a donation.
• Dont give to every charity that calls. Do your
  research before you give, and give wisely.
• Practice Ive already budgeted my dollars this
  year, but if youll send me some information, I
  will consider you for next year.

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Popular Internet ScamsMystery Shopper

• The senior receives an email (or mail)
  congratulating him/her for being selected as a
  mystery shopper candidate.
• The senior receives a cashiers 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!

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Popular Internet ScamWork at Home Plans

• Senior is selected to serve as a processing
  agent for a foreign marketer.
• Senior receives money orders and cashiers 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!

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Popular Internet Scams

• Bogus responses or postings on Craigs 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.

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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.

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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 cant afford normal purchases.
• Wire service receipts in the home.
• Secretive phone conversations.

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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.

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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.

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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 dont
  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.

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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 seniors assets.
• Senior may need to be evaluated by doctor for
  uncharacteristic behavior. APS may help.
• Family may consider emergency guardianship as an
  option.

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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.)

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Working with Victims of Scams

• To report fraud to MoneyGram call
• 1-800-MONEYGRAM (666-3947)
• (option 7) then press 5

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Extreme Victim Examples

• Some families have reported
• Loans taken against seniors 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 victims phone number,
  scammer sends a taxi to the seniors home in an
  extreme measure to contact them. Scammer
  maintains contact with driver by cell phone and
  eventually speaks with senior.

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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)

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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

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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
• Cabinets hotline - 1-800-752-6200

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• QUESTIONS?
• Lori Farris
• Mediation and Senior Protection Branch Manager
• KY Attorney Generals Office of Consumer
  Protection
• 502-696-5394 or 502-696-5300
• lori.farris_at_ag.ky.gov