Financial scams targeting seniors is a rapidly growing form of elder abuse. According to the National Center on Elder Abuse, there are an estimated five million cases of financial abuse in the United States each year, but only 1 in 25 cases are reported to law enforcement or government officials. Premier Home Health Care Services, Inc., is committed to helping to protect our clients. It’s important to be aware of the scams out there – and how you can work together with your health care aid to protect yourself.
Financial elder abuse is broadly defined as illegal or improper use of a vulnerable senior’s money or other property. The American Associated of Retired Persons (AARP) recently reported that people over the age of 50 can be easier targets for financial abuse since they generally expect honesty in the marketplace and are less likely to take action if they are defrauded.
The FBI states that elderly victims are “less likely to report fraud because they don’t know who to report it to, are too ashamed at having been scammed, or don’t know they have been scammed.” Some may also be reluctant to report financial fraud for fear that they may be seen as not having the mental capacity to take care of their own financial affairs.
We have outlined some common fraud schemes and offer tips for avoiding these types of scams:
Health Care Fraud/Health Insurance Fraud
Below are a few common Medicare fraud schemes to watch out for, particularly medical equipment fraud, which offers potential victims something “free” in exchange for someone’s Medicare number. A physician must sign a form to certify the equipment or testing is medically necessary before Medicare pays for it; scammers fake signatures or bribe corrupt doctors to sign the forms.
Dos and Don’ts to Avoid Health Care or Insurance Fraud:
Counterfeit Prescription Drugs
Dos and Don’ts to Avoid Counterfeit Prescription Scams
Funeral and Cemetery Fraud
Dos and Don’ts to Avoid Funeral and Cemetery Fraud:
Fraudulent “Anti-Aging” Products
Dos and Don’ts for Avoiding “Anti-Aging” Product Scams:
Telemarketing Fraud
Telemarketing fraud is big business. The U.S. Department of Justice reports that dishonest telemarketers scam an estimated $40 billion each year, swindling one in six American consumers. The AARP reports that about 80 percent of these consumers are age 50 or older. Scammers posing as telemarketers target this age group, particularly older women. Experts at the FBI recommend saying, “No thank you,” and hanging up the phone if you hear these or similar phrases from telephone salespeople:
Dos and Don’ts to Avoid Telemarketing Fraud
Internet Fraud
Today’s seniors are more active on the internet, which increases their chances of becoming victims of internet fraud. Some examples include non-delivery of items ordered online and credit and debit card scams. Fake anti-virus scams are also widespread. These encourage consumers to download a fake program that could potentially harm their computer and compromise their personal information. For more information on internet fraud and tips for protecting yourself from them, please visit the FBI’s Internet Fraud webpage: https://www.fbi.gov/scams-safety/fraud/internet_fraud.
Investment Schemes
Investment schemes that target seniors are not new and are aimed at those planning for their retirement and managing savings for the golden years. Pyramid schemes, advance fee and prime bank schemes top the charts as some of the most common investment schemes today. For more information about these crimes (along with tips for protecting yourself from them), please visit the FBI’s Common Fraud Schemes webpage: https://www.fbi.gov/scams-safety/fraud/fraud.
Reverse Mortgage Scams
Reverse mortgages, or home equity conversion mortgages (HECM), have increased at a rapid rate, making it the perfect opportunity for fraud perpetrators to steal equity from innocent homeowners. A stern warning from the FBI and the U.S. Department of Housing and Urban Development Office of Inspector General (HUD-OIG) urges consumers (especially seniors) to be vigilant when shopping for a reverse mortgage. Seniors have been known to be targeted through their local churches and investment seminars, along with a barrage of television and radio advertisements, billboards and mailers.
Dos and Don’ts to Avoid a Reverse Mortgage Scam
If you believe you’re a victim of this kind of fraud and would like to file a complaint, you can file your information through the FBI’s electronic tip line or through your local FBI office. You may also file a complaint with HUD’s hotline at 1-800-347-3735.
If you believe you’ve been targeted in any kind of scam, speak with your Premier Home Health Care, Inc. care management team. We are here to help you and your family as a trusted ally.
We hope you have found this information on protecting yourself against financial fraud helpful. To learn more about Premier Home Health Care Services, Inc., please call 1-866-648-5119.