THE AGING OF AMERICA - Article #4 - Top 10 Financial Scams Against Seniors

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.

6.  Internet Fraud: The number two source of senior fraud is the computer. Internet Fraud is so bad the Federal Government created an agency IC3 in 2000 which is a partnership with the FBI and National White Collar Crime Center. The only way to file a complaint is by using the internet. The IC3 has 300,000 internet complaint filed yearly, no results have been published.

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.

World Elder Abuse Awareness Day (WEAAD) was launched on June 15, 2006 by the International Network for the Prevention of Elder Abuse and the World Health Organization at the United Nations. The purpose of WEAAD is to provide an opportunity for communities around the world to promote a better understanding of abuse and neglect of older persons by raising awareness of the cultural, social, economic and demographic processes affecting elder abuse and neglect. In addition, WEAAD is in support of the United Nations International Plan of Action acknowledging the significance of elder abuse as a public health and human rights issue. WEAAD serves as a call-to-action for individuals, organizations, and communities to raise awareness about elder abuse, neglect, and exploitation.