Talk About Aging #5, More Scams and Prevention!

One of the major areas that con artists target with the elderly is healthcare, according the FBI report Fraud Target: Senior Citizens. These scams take several different forms. The term “Medicare Fraud” encompasses this group of schemes. Included under this heading is Medical Equipment Fraud in which unscrupulous equipment manufacturers offer their products “free” to seniors. These products are seldom necessary and in many cases never delivered, but insurers are still presented with inflated bills. In Medicare a physician has to certify that the testing or equipment is needed so con artists bribe corrupt doctors to sign or forge signatures on the forms.

A related scam is the “Rolling Lab” scheme, in which con artists offer unnecessary and sometimes “fake” tests to the elderly at shopping malls, parking lots, retirement homes, and even health clubs, and then fraudulently bill insurance companies and Medicare for services never rendered. Also common, providers sometimes change bills or submit fake bills for payment.

Another area that seniors should be aware of and watch for is counterfeit prescription drugs. Most reputable “walk-in” pharmacies are safe but prescriptions from Internet pharmacies can be dangerous. Never buy from Internet pharmacies that sell medications without prescriptions. Tests show these drugs can vary widely in quality with some being completely useless or even dangerous. Special deals, product promotions, and cost reduction can also be associated with counterfeit medications. Reputable Internet pharmacies will have the approval of the Association of Boards of Pharmacy in the United States. This approval is called the Verified Internet Pharmacy Practice Site (VIPPS) and should be openly displayed on their website.

Anti-aging products are another area of fraud targeting seniors. The Elderly come face to face with their own mortality each time they look in the mirror this makes them particularly vulnerable to scams involving anti-aging products. If it sounds “too good to be true” it probably is. Be suspicious of claims of “Breakthroughs” or “Secret Formulas”, as well as celebrity endorsements and products that claim to treat a variety of unrelated ailments. When contemplating the purchase of anti-aging products do your homework and ask a physician about possible problems. There are several things seniors can do to protect against Medicare fraud:

1. Stay involved and informed with your physician.
2. Ask questions so as to be familiar with what the physician prescribes or recommends.
3. Never give a provider “blanket authorization” to bill for services.
4. Never sign “blank” insurance forms, only give insurance or Medicare identification information to those providing you with medical services
5. Stay away from telephone and door-to-door sales people who claim that medical services or equipment are “free”.
6. Keep good records of health care you have received.

*If it seems “too good to be true” it’s probably not true!

Funeral and Cemetery fraud is another area where everyone in general and Seniors in particular should be well informed. Take time to learn about caskets and their cost as opposed to direct cremation where a casket is not required. Get a list of basic professional funeral home services and charges, as well as any fees for additional services that may be provided. Understand that embalming services are governed by state law and are not required for direct cremation. Take a friend or family member when shopping for a casket or other services funeral homes provide and read all contract and agreements before signing. If prepaying, make sure you are especially well informed about the contractual agreement and be sure to share the information with loved ones who will have to deal with it later. And most important, “Don’t Be Pressured”, take some time and make the decision yourself.

Telemarketing is a very fertile area for con artists to prey on the elderly. The Federal Bureau of Investigation lists six “Come on” phrases from telemarketers that should immediately cause “red flags” to pop-up when heard:

1. “You must act ‘now’ or the offer won’t be good”
2. “You’ve won a ‘free’ gift, vacation, or prize.” But you have to pay for postage and handling or other charges.
3. “You must send money, give a credit card or bank account number, or have a check picked up by courier.” This may come before you have a chance to consider the offer carefully.
4. “You don’t need to check the company with anyone.” Beware if the caller says you don’t need to speak to anyone including family, lawyer, accountant, local Better Business Bureau, or consumer protection agency.
5. “You don’t need any written information about their company or their references.”
6. “You can’t afford to miss this ‘high-profit, no-risk’ offer.”

In most cases it is very difficult, if not impossible, to get your money back once you have been cheated over the phone. Remember to be suspicious and ask for materials to be sent to you before making buying decisions, then checkout the material with local consumer protection agencies. Checkout companies with the Better Business Bureau and other protection agencies ask for specific information such as name, phone number, mailing address, and business license numbers. Some con artists will give this information out freely, but it is totally fraudulent, so be sure to check closely. Don’t worry about being rude it is always wise to stop and think about an offer. It is also wise to discuss the offer with trusted friends or family before sending any money. Don’t give out personal information such as credit card numbers or expiration dates, Social Security numbers, bank account numbers, or date of birth over the phone or to unknown person. Con artists tend to keep track and try to victimize unsuspecting elders as many times as possible. Many times the same people who scammed the senior out of their money will call and offer to help get the money back for a fee but, of course, this is just another scam.

Reverse mortgage scams are yet another example of financial schemes that can be used against the elderly. Reverse mortgages are also known as Home Equity Conversion Mortgages (HECM) and have increased 1300% over the last decade. This has given unscrupulous professionals in real estate and financial services a vehicle to steal equity and property from unsuspecting seniors. It should be noted that there are legitimate Home Equity Conversion Mortgages, they are insured by the Federal Housing Authority (FHA), and give seniors the ability to access the equity in their homes without monthly payments while they continue to occupy their property. Seniors should be very careful when exercising this option to check and verify the legitimacy of the companies and people they are dealing with.

FBI, Fraud Target: Senior Citizens(2009) http://www.fbi.gov/majcases/fraud/seniorsfam.htm

Terry Truhlar has a MS in Gerontology from University of Massachusetts, Boston. Email: ttruhlar:yahoo.com