Better Business Bureau of Southern Arizona is alerting elderly and disabled consumers to beware of unsolicited phone calls from unscrupulous people looking to obtain Medicare or Medicaid information.

Victims report they received phone calls, supposedly from federal agencies, medic alert businesses or medical supply companies working with the government.

The scammers ask for personal information such as Medicare, Medicaid, Social Security, credit card or bank account numbers in order to provide free services such as medic alert alarms, back braces, and other products that assist the elderly and infirm and are paid for by Medicare and Medicaid.

Elderly consumers may be given any number of excuses to provide this information. Reasons used to further the scam include:

• The resident is part of a corporate or government survey
• They are eligible to receive free products if they give the information
• They must provide the information to sign up for a new prescription drug plan.
• Residents are eligible for a free medic alert service if they provide the information.

Some scammers also claim that they are from the government and are calling to update information or confirming Medicare, Medicaid and Social Security numbers in order to issue a new card.

Callers are obtain the phone numbers of seniors from marketing lists, phone directories and the internet in order to place the calls with the assumption that elderly residents will be in need of these services.

If the scammers obtain banking, Medicare/Medicaid or Social Security information, they could use it to commit identity theft and steal funds from accounts.

Some also call from “spoofed” phone numbers, meaning the real numbers are disguised on phones equipped with caller ID so the numbers can’t be traced.

These scammers can be very aggressive, often calling many times and at all hours of the day to wear down potential victims and can be very convincing.

BBB recommends the following tips to avoid this scam:

• Never give out their personal information over the phone, especially if it is from an unsolicited caller. If consumers receive a suspicious phone call, they should hang up immediately.

• Remind elderly family members that Medicare will never call to ask for sensitive personal financial information. If you suspect fraud contact your local police or the Health and Human Services Office of Inspector General at 800-HHS-TIPS.

• Don’t do business with door-to-door or telephone salespeople who tell you that medical services or equipment are free. Medicare, Medicaid and the Social Security Administration will not call you to update information or issue a new card.

• Give your insurance/Medicare identification only to those who have provided you with medical services.

• Keep accurate records of all health care appointments to prevent fraud involving Medicare/Medicaid information provided to doctors or caregivers.

“More than 7.3 million Americans over 65 have been financial-fraud victims, according to a 2010 survey by the Investor Protection Trust, a nonprofit investor-education group. And some of those con artists are their own age,” according to the September/October issue of the AARP Magazine.

How could so many people be duped by con artists? They connect with you because they share your age, background and/social sameness. They might approach you at church, in your retirement community, offering you free dinners, free golf, or something similar. AARP calls this affinity fraud.

Here are some tips from AARP to help protect yourself and your investments:

• Watch for red flags. Basically, if it sounds too good to be true, then it is. Promises of high returns with low risk are not reality. Be safe, find investments that have lower return but also lower risk.
• Ask and check. Contact your state securities agency to research the company and make sure the salesperson and firm are registered and have no history of problems. Also, check with the Better Business Bureau. Verify, verify, verify that you have a legitimate company.
• Buy time. Don’t let them pressure you. Make the decision after you have had time to think about (more…)

June 15 is World Elder Abuse Awareness Day (WEAAD), and Better Business Bureau of Southern Arizona is marking the occasion by calling attention to the many ways the elderly are victimized in southern Arizona, and throughout the world.

BBB receives hundreds of phone calls each year from senior citizens who have been targeted or victimized by scammers. These can range from common scams such as bogus travel deals or lottery schemes to outright financial fraud.

“Southern Arizona is an attractive destination for retirees and according to 2009 Census Data, more than 15 percent of Pima County’s population is 65 or older,” said Kim States, BBB President. “One of the more common types of abuse that BBB often hears about is financial fraud.”

Financial elder abuse occurs when seniors’ banking or credit accounts are exploited by scammers who take advantage of the vulnerabilities sometimes associated with age, explains States.

What makes the crime particularly frightening is that in most cases the abuse is carried out by someone the senior knows, such as a family member, caregiver or friend.

“Many victims do not realize they have been taken advantage of,” said States. “Or if they do know, they may not want to tell anyone due to embarrassment or fear of losing what independence they may have.”

Unfortunately financial elder abuse can be difficult to identify. If often takes a caring family member, friend or caregiver to recognize that fraud has occurred. These are some signs to look for:

• Belongings or property is missing
• Unusual bank account activity
• Complaints from seniors that they can suddenly not afford normal purchases
• Suspicious stories about people that normally wouldn’t be involved in personal affairs now being (more…)