The Aging of
America
Title: TOP 10 FINANCIAL SCAMS AGAINST SENIORS
National Council on Aging
Article
Four
1. Health
Care/Medicare/Health Insurance Fraud:
Over $75 billion is stolen by
Medicare Fraud yearly. The four “Rs” to preventing this are:
Record- Keep a
record all doctor appointments, service, and test dates. Save all your
documentation.
Review – Look
for signs of fraud on your Medicare notices. Do not use advertised free
Medicare services on TV, mailers, or printed in the newspaper. They are usually
scams. Often you get nothing.
Report – Report
all suspicious Medicare Fraud to: 1-800-MEDICARE.
Remember – Protect
your Medicare number!
2. Counterfeit
Prescription Drugs: Over $40 billion is stolen by fake
drug makers. Medicine purchased is foreign countries usually have no quality control,
often are ineffective, and can be dangerous. Avoid any Internet drug buying.
3. Funeral &
Cemetery Scams: To avoid any scams you need
to negotiate the costs and prepay for all funeral expenses. The new scam is the
crooks read the obituary and rob the home when you are gone to the funeral or
exploit the family for unpaid bills of the deceased. The fastest growing
collection scam is collecting from the dead’s family for the deceased bills. Important: According to the Federal Trade Commission the family has no obligation
to pay the debts of a deceased family member.
4. Fraudulent
Anti-Aging Products: Over $30 billion is stolen by the
selling of fake anti-aging products. If the results look too good then it is
usually a fraud. If you are buying these products ask lots of questions.
5. Telemarketing: The number one source of senior fraud is the telephone. Over
$25 billion is stolen by telemarketers. Ask for documentation before you buy
from a telemarketer and don’t be rushed.
The newest senior telemarketing industry is the Elder Care Referral Agencies which finds senior living center free
for you but the senior living facility pays and average of $3,500 for
every new referred senior resident. This industry has grown to $100 million in
sales in the past 10 years and its sales are expected to double in the next
five years.
7. Investment
Schemes: The Federal Trade Commission fights
Investment schemes. “You have a free
lunch if you listen to our investment ideas” is a major problem because
there is no free lunch. When you get these notices destroyed them and deal with
a reputable financial planner. Three questions you need to ask: How do you get
paid? Is my principle at risk? What is the penalty for closing the investment
early?
8. Homeowner and
Reverse Mortgage Scams: Due to the
recession many seniors are getting mortgages to pay for bills but you need to
deal with reputable lenders. However, if you pull out all the equity remember
the bills don’t stop. Reverse Mortgages are expensive and you are at risk of
losing your entire equity to a family member or bad investment. Reverse
Mortgage Lenders require you to maintain your property and pay the taxes timely
and many seniors are unable to do this when the money is gone so they get their
house repossessed. Over one million seniors have lost their homes in the past five
years because of this risky venture and their financial losses.
9. Sweepstakes and Lottery Scams: Nearly
$100 billion state lottery tickets are sold yearly and the state keeps half of
the lottery sales. Over 1/3 of Americans believe this is their only source of
financial freedom. Your chance of winning is over 100 million to one. Foreign
Lotteries are very dangerous and you may never collect if you win.
10. The Grandparent Scam: This
is where the grandchild calls desperately needing money for an emergency. Don’t
fall for it because they are usually not your grandchild. Learn to say “NO”.
World
Elder Abuse Awareness Day
June
15, 2013
Each year, hundreds of thousands of
older persons are abused, neglected, and exploited. In addition, elders
throughout the United States lose an estimated $2.9 billion or more annually
due to elder financial abuse and exploitation, funds that could have been used
to pay for basic needs such as housing, food, and medical care. Unfortunately,
no one is immune to abuse, neglect, and exploitation. It occurs in every
demographic, and can happen to anyone—a family member, a neighbor, even you.
Yet it is estimated that only about one in five of those crimes are ever
discovered.