RX·YHEHHQWDXJKW - AGE of Central Texas · Slide 1 1 Fraud Detection & Prevention for Seniors...

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Fraud Detection &

Prevention for Seniors

Kassie Welch

Reverse Mortgage Professional

[email protected] 512-497-9080

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what you’ve been taught!

You can only know…

Fraud Detection & Prevention

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Why am I here today?

• Facts & Statistics

• Identify Risk Factors

• Know Common Scams

• Tips to Prevent Fraud

• What to Do if You’re a

Victim of Fraud


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Facts & Statistics:

• We’re Living Longer/Have More Wealth

• More Options/Less Personal Experience

• 5 Million Older Americans are Exploited

Yearly Losing $36.5 Billion

• Dirty Little Secret

• Exploitation Affects Health & Longevity

“We’re going to come to a place where we’re seeing a lot of homeless elderly people on the street.” Joy Solomon, former NY Prosecutor now the Director Harry and Jeannette Weinberg Center for Elder Justice


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We’re Living Longer/

Have More Wealth


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Past Losses

More

Options/

Less

Personal

Experience


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Fraud Loss

Fraud Loss


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Dirty Little Secret:

Estimated that 60% of

financial predators are

family members.


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Past Losses

Exploitation

Affects Health

& Longevity


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Identifying Risk

Factors:

- Past Losses

- Age-Associated

Financial Vulnerability

- Loneliness

- Overly Trusting

& Polite


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1111

Past Losses


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Age-Associated

Financial

Vulnerability

or AAFV


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Past Losses

Lonelinesss

Loneliness


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Past Losses

Overly

Trusting

&

Polite


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Common Scams:

- Lotteries, Sweepstakes & Contests

- Pyramid Schemes

- Money Transfer Requests

- Internet Scams

- Mobile Phone Scams

- Health & Medical Scams

- Emergency Scams

- Dating & Romance Scams

- Charity Scams

- Real Estate Scams

- Job & Employment Scams

- Service Scams


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Lotteries, Sweepstakes & Contests

- These scams try to trick

you into providing

banking & personal

information.

- You should NOT have to

pay any fee or tax to

claim a legitimate prize.

- If you or someone you

know didn’t enter you,

you CANNOT WIN.


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Pyramid &

Ponzi Schemes

If there’s no product, there’s no investment. If investment(s), VET.


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Money Transfer Requests

“Inheritance” Scam Overpayment Scam

“Advance Fee Fraud”


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Internet Scams

- Malicious Software - Phishing

- Internet Shopping - Online Auctions


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Mobile Phone Scams

- Ringtone - Missed Calls

- SMS Contest - Text Messages


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Health & Medical Scams

- Miracle Cures

- Weight Loss

- Fake Online Pharmacies

- Counterfeit Prescription

Drugs

- Medicare or Health Care

Fraud


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Emergency Scams

Scammers prey on grandparents’

heart-strings, getting them to

disclose personal information.

Sometimes they say they’re an

old neighbor or friend of family.

A Family Password is a phrase your loved ones know. If

they get an emergency call, they can ask for the phrase to

make sure it’s really YOU.


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Dating & Romance Scams

- Some charge per email or

message, racking up fees

from false suitors.

- Scammers build a

relationship with you, then

ask for money for a “sick

family member.”

- Similar to Money Transfer

Requests Scams, they ask

for help transferring large

amounts of money.


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Charity Scams

Scammers often exploit a

recent natural disaster or

famine. They contact you on

the street, at your home, over

the phone, via mail or over the

Internet. They collect money

for either a fake charity or for a

legitimate charity, but it never

reaches them.

Make Donations Directly to Those Charities You Choose!


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Real Estate Scams

- Foreclosure Scams

- AITD/”Wrap Around” Loans

- Vacant Rentals

- Bait & Switch Reverse

Mortgage Loans

- Other Risks


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Job & Employment Scams

Many are fronts for money-laundering or pyramid

schemes whether they’re work-from-home or business

opportunities. If it sounds too good to be true…


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Service Scams

- Anti-Virus Software Scams

- Credit Card Scams,

including interest rate

reduction and EMV

replacement cards.

- Fraudulent Activity on

Credit Cards Scams

- Hotel Front Desk Scams

- Free Wi-Fi Scams


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other assets.Fraud Detection & Prevention

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Golden Rules to Prevent Scams

- Never carry your Social Security Card with you.

- Treat personal information details like you would

treat money. Shred old bank, credit card, utility

statements and IRS information.

- Never send money or give credit card or online

account information to anyone you don’t know or trust.

- Always get independent advice re: money, personal information,

time or commitment.

- There are no guaranteed get-rich quick schemes.

- Never pay a fee to claim a prize or lottery winnings.


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Golden Rules to Prevent Scams (continued)

- Don’t rely on testimonials; instead find solid evidence and check

credentials.

- Don’t accept checks or money orders from those you don’t know

and never with overpayment requiring funds back.

- Don’t use links in suspicious emails. Review website addresses

carefully and check independently.

- Beware of websites offering “free”

downloads.

- Install anti-virus and malware software.

- Don’t click on “pop-up” ads.


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- Don’t use public computers or wifi whenever possible. If

unavoidable, make sessions brief, clear the history and cache

before leaving.

- Choose passwords that are difficult (use symbols and numbers

to replace letters) and CHANGE often.

- Print out online purchase receipts and only pay via

a secure site, reviewing their security policy first.

- Never send personal, credit card or online account

information through email.

- When receiving solicitation calls, always get the

caller’s name and call company back directly.


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- Let unknown numbers go to voicemail and be leery of 900

numbers that may incur fees.

- Beware of “free” medical equipment offers. Medicare or

insurance companies may be charged when not needed and the

product may never be delivered.

- Watch for unnecessary or fake tests given at health clubs,

retirement homes, shopping centers billed to your insurance.

- Review insurance Statements for false

claims.

- Never sign blank insurance claim forms or

blanket authorization forms.


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- Don’t accept money for a home you didn’t

purchase.

- Be suspicious of anyone who says you can

buy a home with no money down.

- Never sign anything you don’t understand.

- Make sure online pharmacies have Verified Internet Pharmacy

Practice Seal (VPPS) of approval.

- Ask your doctor or pharmacist if medication looks suspicious or

different. If you have unexpected side effects or condition

doesn’t improve, call your doctor


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- Have an attorney review any foreclosure or AITD documents.

- If touring a home for rent and have any suspicious (especially if

vacant), contact a Realtor and ask them to contact the owner.

- Find your own reverse mortgage counselor through HUD (U.S.

Department of Housing and Urban Development) via their

website: https://entp.hud.gov/idapp/html/hecm_agency_look.cfm

- Review your reverse mortgage proposal

with your financial planner, family member

or trusted friend. Ask them to sit in on your

counseling session if you feel you need a

second set of “ears” to make sure you’re

doing what’s best for you.


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If You Suspect Fraud


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What to do when you’re a fraud victim:

- If the fraud is connected to your credit cards, contact

the creditor immediately to contest the charges.

Also, consider requesting new credit card numbers

as well as place a freeze with the credit bureaus.

- If you’re bank was involved, contact them ASAP.

You may need to change those accounts as well.

Although you may not recover lost

monies, the only way to combat fraud

is for it to be reported so the

authorities can STOP predators.


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Reporting Fraud (continued):

- If you sent money through a wire service (such as

Western Union), contact them right away to see if

they can stop the transfer.

- If scam is related to your health, stop taking any pills

or substances you are not sure about and contact

your doctor or qualified medical professional ASAP.

- If you’ve been tricked by a door-to-

door seller, check to see if there’s a

“cooling off” period and contact the

Texas Attorney Generals Office.


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Reporting Fraud (continued):

- If you’ve been scammed on your computer, run a full

system check using reliable security software. Use a

professional, if you do not have security software.

Also, change your passwords using a secure

computer.

- If the situation is threatening or dangerous, call 911

or your local police for immediate help.

Any informed borrower is simply less

vulnerable to fraud and abuse.

- Alan Greenspan


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Additional Resources:

Texas Adult Protective Services:

www.TxAbuseHotline.org or call 800-252-5400

National Center on Elder Abuse:

https://ncea.acl.gov or call 800-677-1116

For more information on Elder Financial Exploitation:

http://www.napsa-now.org/get-informed/what-is-financial-

exploitation/


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Additional Resources (continued):

Austin Police Department/Financial Crime Department:

www.austintexas.gov/department/financial-crime or call

512-974-5290

Texas Attorney General:

www.texasattorneygeneral.gov

Consumer Protection Hotline: 800-621-0508 and for Additional

Assistance: 800-252-8011 or 512-475-4413 (in Austin)


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Federal Trade Commission (FTC):

Consumer Fraud & Identity Theft: www.ftc.gov or call 877-FTC-

HELP, 877-ID-THEFT

How to file a complaint with the FTC:

www.ftccomplaintassistant.gov/#crnt&panel1-1

For “Do Not Call” list: www.donotcall.gov or 888-382-1222 or

Report Violations to 888-225-5322

www.consumer.ftc.gov/features/feature-0038-onguardonline -

A government website to help keep Internet users safe online.


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FBI Internet Fraud & Lottery/Sweepstakes Fraud:

https://www.ic3.gov or 202-324-3000, https://tips.fbi.gov,

https://www.fbi.gov/scams-and-safety/common-fraud-

schemes/seniors

Mail Fraud & Lottery/Sweepstakes Fraud:

https://postalinspectors.uspis.gov or 800-372-8347


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Securities & Exchange Commission:

www.sec.gov or 800-SEC-0330

Texas State Securities Board (investment advisor fraud):

https://www.ssb.texas.gov/ or 512-305-8300


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Financial Industry Regulary Authority (FINRA):

https://brokercheck.finra.org/ - 800-289-9999

Health Care Fraud & Medicare/Medicaid Fraud:

Department of Health and Human Services DIG

www.oig.hhs.gov or 800-HHS-TIPS


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Free Annual Credit Report to Monitor Identity Theft:

www.annualcreditreport.com

AARP Fraud Watch Network:

www.aarp.org/money/scams-fraud/?intcmp=AE-MON-CONP-

SPOT2-FWN


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Consumer Financial Protection Bureau (CFPB)

“Money Smart” Guide:

https://files.consumerfinance.gov/f/documents/201703_cfpb_m

oney-smart-for-older-adults-resource-guide.pdf

The Justice Department Elder Abuse Resource Road Map:

https://www.justice.gov/elderjustice/roadmap


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National Council on Aging (NCOA) –

https://www.ncoa.org/economic-security/money-management/

United States Senate Special Committee on Aging’s

Fighting Fraud: Identifies Top 10 Scams Targeting Our

Nations Seniors:

https://www.aging.senate.gov/imo/media/doc/Fraud%20Book

%202017.pdf


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Summary

Remember…

• Talk to trusted people about

financial transactions.

• Subscribe to scam watch

list websites.

• Pay attention to local news,

listening for new scams.

• Be aware of limitations.

• Don’t be afraid to HANG UP

the phone!

• Ask for help, when needed.


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RX·YHEHHQWDXJKW - AGE of Central Texas · Slide 1 1 Fraud Detection & Prevention for Seniors...

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