Better Business Bureau of Southern Arizona is issuing an alert, urging caution to seniors who may receive a telephone call from “AFD Medical Advisors”, selling a prescription drug discount plan or referencing “Medicare” and requesting a bank account number.

BBB is receiving roughly 60 inquiries each month from around the country, and has received fifteen complaints from thirteen states in a very short time period. All complaints are from children filing on behalf of an elderly parent.

Complainants report that their parent received an unsolicited phone call from AFD Medical Advisors, either advising of a problem with their Medicare program, or offering free medical prescriptions through a drug discount plan. In all cases, AFD Medical Advisors representatives requested a bank account number and withdrew $299.

The company has responded to most complaints, by making refunds. However, the company’s report is an “F”, the BBB’s lowest grade, based on the nature of (“serious”) complaints filed, information not supplied by the company and two unanswered Advertising Review requests by BBB.

The company claims to be located in Wisconsin. However, the Stevens Point address listed on its website, is a UPS store. The “suite” number is a rented box.

According to the Wisconsin Department of Financial Institutions, the company became incorporated in Wisconsin in June, 2012. Aaron F. Dupont (initials “AFD”) is listed as the registered agent of AFD Advisors, LLC.

“ BBB is very concerned when we believe seniors are being preyed upon. In this case, every complaint to our office has been filed on behalf of an elderly parent, some who live in assisted living facilities and most who no longer have complete control over their finances”, said Kim States, BBB president. “It’s extremely important to monitor transactions and advocate for elderly parents or relatives. Often times, they’re too embarrassed to come forward after giving bank account or other personal information over the phone to an unknown caller.”

On December 6, 2012 BBB requested AFD Medical Advisors address advertising claims made on its website. AFD Medical Advisors states it is “The leader in providing clients access to patient assistance programs created by pharmaceutical companies.” In addition, AFD Medical Advisors claims to be affiliated with more than 20 pharmacies. The Wisconsin BBB requested that AFD Medical Advisors substantiate its relationship with the advertised pharmacies, as well as substantiate its title of “leader.” The Wisconsin BBB also requested AFD Medical Advisors provide the names and contact information of at least five customers who have used the advertised program along with documentation on the discount program. The BBB did not receive a response.

In addition, on two occasions BBB sent business questionnaires, requesting basic information from AFD Medical Advisors, but has received no response.

BBB did contact and receive verification from two of the pharmacies previously listed on its website, stating they are not “participating pharmacies” nor affiliated with AFD Medical Advisors. The list was suddenly removed from AFD’s website the week of February 18, 2013.

Richard J. of Arizona filed a complaint on behalf of his elderly mother, saying an AFD representative talked her into providing her bank account number. “She had no recollection of talking to (the company) and if we hadn’t been taking care of her financial affairs, this would probably have gone unnoticed. I feel this is a terrible business practice that preys on vulnerable seniors.”

Vicki T. of Mississippi filed a complaint on behalf of her elderly mother, who suffers from Alzheimer’s disease. She writes, “The caller suggested she represented the U.S. government for a Medicare Drug program and requested (my mother’s) social security number and bank account information. The consumer was misled. This was a misrepresentation of a product.”

BBB offers these tips:

• Register your phone number with the National Do-Not-Call registry at (888) 382-1222 or visit www.donotcall.gov. Telemarketers who continue to call you after you have registered are subject to penalties.
• Never send money or give out personal information such as credit card or bank account numbers, date of birth, or Social Security numbers to unfamiliar companies or unknown persons.
• Report suspicious callers to family members, assisted living facility managers, neighbors or friends.
• Check with BBB before dealing with any company or charity that you are not familiar with.
• Don’t yield to high-pressure or emotional sales tactics.
• Consider changing your telephone number to an unlisted number.
• Check on seniors often and discuss their activities with them.
• Review their bank statements, looking for unusual withdrawals or charges.
• Remember, you may simply hang up the phone when a stranger calls.

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…)

Falling victim to a fraudulent investment scheme can mean losing anywhere from a few hundred dollars to your life savings. While most people might not see the harm in sitting through an investment seminar, Better Business Bureau recommends researching the investment company first, rather than run the risk of falling for a financial siren song over a free lunch.

Investment scams and schemes can come in many forms and a common technique to lure people in is the offer of a free financial seminar over lunch. In one recent example, the Securities and Exchange Commission shut down a Ponzi scheme which stole $20 million from retirees in California and Illinois. The scammers invited senior citizens to estate planning seminars and later coaxed their victims into buying promissory notes for purported Turkish investments.

“Free lunch seminars can seem like an easy way to get a meal, but attendees run the risk of getting drawn in by the slick presentations and promises of big returns,” said Kim States, BBB President. “Unscrupulous seminars often use the promise of a free lunch to lure in leisurely senior citizens who have time and exploitable retirement accounts and real estate.”

When listening to an investment pitch, BBB recommends looking for the following red flags:

• Requires a large up-front investment. Untrustworthy schemers might try to convince investors to pay a lot of money upfront so they can get out of town with a large haul, rather than wait for the funds to trickle in.

• Promises high returns for low risk. Every investment comes with a level of risk. Typically the amount of risk increases in line with the potential return on the investment. If the seminar is trying to sell an investment scheme that claims a high return with little or no risk, beware, even if it comes with the promise of a money-back guarantee.

• Employs high pressure sales tactics. Seminar leaders often use high pressure sales tactics to get people to sign up without thinking it through. They might claim that there are only a few spots left or that you need to get in on the ground floor today to see the largest earnings. Any reputable investment company will let you take your time and do your research and will not pressure you into signing a check.

• Relies on off-shore investments. Many hucksters try to give their scheme an air of sophistication by relying on overseas investments such as foreign currency, property, stocks and bonds. They also might claim—incorrectly—that you can avoid taxes by investing overseas.

• Sounds too good to be true. At the end of the day, if the offer sounds too good to be true, it probably is. Always listen to your instincts because the potential payoff is rarely worth the risk.

For more advice from your BBB on financial planning and investing visit http://www.bbb.org/us/consumer-tips-finance/.