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Fraud Protection For Seniors |
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Click here for Telemarketing Fraud Information
Click here to stop unwanted calls
Click here for information on Medicare Drug Fraud
Click here for general information on Internet Fraud
ACCORDING TO THE NATIONAL CONSUMERS LEAGUE'S NATIONAL FRAUD INFORMATION CENTER,
nearly a third of all telemarketing fraud victims are age 60 or older. Studies by AARP show that most older telemarketing fraud victims don’t realize that the voice on the phone could belong to someone who is trying to steal their money.
Many consumers believe that salespeople nice young men or women simply trying to make a living. They may be pushy or exaggerate the offer, but they’re basically honest. While that’s true for most telemarketers, there are some whose intentions are to rob people, using phones as their weapons. The FBI says that there are thousands of fraudulent telemarketing companies operating in the United States. There are also an increasing number of illegal telemarketers who target U.S. residents from locations in Canada and other countries.
It’s difficult for victims, especially seniors, to think of fraudulent telemarketers’ actions as crimes, rather than hard sells. Many are even reluctant to admit that they have been cheated or robbed by illegal telemarketers.
THE FIRST STEP in helping older people who may be targets is to convince them that fraudulent telemarketers are hardened criminals who don’t care about the pain they cause when they steal someone’s life savings. Once seniors understand that illegal telemarketing is a serious crime—punishable by heavy fines and long prison sentences—they are more likely to hang up and report the fraud to law enforcement authorities. They can help catch the crooks and put them in jail—where they belong
THE SECOND STEP in fighting telemarketing fraud against seniors is to understand why they are particularly vulnerable. It’s a myth that victims are incompetent, lonely, or isolated. In fact, AARP research shows that many older victims are active people who are simply lured by false promises of great deals or ways to add to their "nest eggs." Fraudulent telemarketers take advantage of the fact that:
· It’s difficult to tell whether someone is legitimate. Good salespeople are convincing, but so are crooks. They use many of the same sales tactics—being friendly, getting people excited, creating a sense of urgency;
· Seniors tend to be trusting. Since they have difficulty imagining that some telemarketers are criminals, they’re more likely to give them the benefit of the doubt;
· It’s easy to wear people down. Seniors are targeted relentlessly—some get more than 20 calls a day from scam artists. They may also receive dozens of mailings every week asking them to call about sweepstakes and other offers;
· We all want to believe. Who doesn’t want to win a valuable prize, take a free trip, or strike it rich on an investment? People want to believe that it’s their lucky day, and may react with anger or suspicion when others question their optimism; and,
· It’s hard to hang up. Many seniors feel that it’s impolite to hang up on people. Swindlers know how to take control of the conversation and are prepared to tell any lies necessary to keep potential victims on the phone.
THE THIRD STEP is helping older people recognize the "red flags" of fraud:
· A promise that you can win money, make money, or borrow money easily;
· A demand that you act immediately or else miss out on this great opportunity;
· A refusal to send you written information before you agree to buy or donate;
· An attempt to scare you into buying something;
· Insistence that you wire money or have a courier pick up your payment; and,
· A refusal to stop calling after you’ve asked not to be called again.
The common thread that runs through all telemarketing scams is the demand for payment upfront. Seniors need to know that:
· It’s illegal for companies that operate contests or sweepstakes to ask you to pay to enter or claim your prize or even to suggest that your chances of winning will improve if you buy something;
· It’s illegal for telemarketers to ask for a fee upfront to help you get a loan if they guarantee or strongly imply that the loans will be made;
· There is no reason to give your credit card number or bank account number to a telemarketer unless you are actually making a payment with that account; and,
· If you have to pay first before getting detailed information about the offer, it’s probably a scam.
. THE FOURTH STEP is to recognize when older people have been victimized or may be in grave danger and know how to help them. Seniors may be in trouble if they:
· Receive lots of mail for contests, "free trips," prizes, and sweepstakes;
· Get frequent calls from strangers offering great deals or asking for charitable contributions;
· Make repeated and/or large payments to companies in other states or countries;
· Have difficulty buying groceries and paying utility and other bills;
· Subscribe to more magazines than anyone could normally read;
· Receive lots of cheap items such as costume jewelry, beauty products, water filters, and knick knacks that they bought to win something or received as prizes;
· Get calls from organizations offering to recover, for a fee, money they have lost to fraudulent telemarketers.
If you are trying to help an older person with a telemarketing fraud problem, don’t be critical. It could happen to anyone—con artists are very good at what they do. Encourage them to:
· Report actual or attempted fraud to the National Fraud Information Center, 800-876-7060, M-F, 9 a.m. to 5 p.m., or at www.fraud.org. That information will be transmitted to law enforcement agencies;
· Change his or her phone number if con artists call repeatedly; and,
· Change his or her bank account or credit card numbers if they have fallen into the hands of thieves.
THE FIFTH STEP in fighting telemarketing fraud is to inform older people about how to reduce the number of unwanted sales calls and mailings they receive and how to deal effectively with telemarketers.
· Avoid getting on sucker lists. Don’t fill out contest entry forms at fairs or malls—they are a common source of "leads" for con artists. Ask companies you do business with not to share your personal information with other marketers.
· Know your "Do-Not-Call" rights. Under federal law, you can tell a telemarketer not to call you again. Ask your state attorney general’s office or consumer affairs department if there is a state "Do-Not-Call" law and how it protects you.
· Know who you’re dealing with. If it’s an unfamiliar company or charity, check it out with your state or local consumer protection agency and the Better Business Bureau.
· Screen your calls. Use an answering machine, Caller ID, or other services that may be available from your phone company to help you determine who you want to talk to and who you want to avoid.
· Have a plan for speaking to telemarketers. Before you pick up the phone, know what questions you want to ask or what you want to say. Be polite, but firm. Hang up if someone refuses to answer your questions or you detect the"red flags" of fraud.
· Know that your phone number may be collected. When you call a company, your number can be displayed through Automatic Number Identification (ANI). If you have an account with the business, this enables the customer service representative to pull up your records and help you faster, but ANI can also be used for marketing purposes. Ask what information is being collected and tell the company if you don’t want to be put on a marketing list. [top of page]
| One-Stop Shopping to Curb Unwanted Sales Calls |
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Tired of calls from strangers trying to sell you something? Bothered by shady characters offering deals that are too good to be true? Take back control of your telephone!
Sign up for the National Do Not Call Registry. It’s easy and it’s free! Call 888-382-1222, TTY 866-290-4326 from the phone number you want to register. Unfortunately, registering by phone may not work if you live in a residential complex that uses a PBX phone system. But you can also register online at www.donotcall.gov. If you don’t have a computer, use someone else’s.
To register online, you’ll need Internet access and a working email address. The Do Not Call system will send a response to that address with a link that must be clicked on within 72 hours to complete the registration.
Some callers aren’t covered. Nonprofit groups, charities, political organizations, and survey companies don’t have to use the national Do Not Call list. But when charities use professional fundraisers to call, they must honor your request not to call again.
Even if your number is on the registry, companies can still call if you purchased something from them or made a payment within the previous 18 months, you asked about a product or service, or submitted an application within the past three months. Companies can also call if you have a “personal relationship” as a friend, relative, or acquaintance or you gave them written permission to call. But you always have the right to tell them not to call again. And if you don’t want to register for the list, you can tell companies not to call you again on a case-by-case basis.
Registration lasts for five years. No renewal notice will be sent, so you should write the registration and renewal dates on the reverse side of this page as a reminder (or, if you told individual companies or charities not to call again, use the form to note their names and the dates of your requests). You can confirm that a number is on the registry and learn its registration date through the toll-free number or the Web site. If your number changes or is disconnected, you’ll need to re-register. You can also take the phone number off the Do Not Call registry any time via the toll-free number or Web site.
Some states that have their own Do Not Call lists have transferred the numbers to the national registry. Look at the www.donotcall.gov Web site to see how specific state do not call laws relate to the national registry. If telemarketers ignore the fact that your number is on the registry or your request not to call again, report them through the Do Not Call toll-free number 1-888-382-1222, for TTY call 1-866-290-4236, or visit the Web site www.donotcall.gov. You can also sue telemarketers that violate your federal Do Not Call rights in small claims court for $500 (the court can triple that amount if the company knowingly broke the law). Use the form on the reverse side to record violations.
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Medicare Fraud Information
Here’s what you need to know to take advantage of the Medicare discount drug card program and protect yourself from fraud.
- Check the list of Medicare-approved prescription drug plans. The list of approved plans and other information about the program are available at www.medicare.gov and by calling toll-free, 1-800-633-4227 (TTY users should call 1-877-486-2048.) Medicare prescription drug plans, which will be offered by private companies and organizations, must meet specific federal standards and be approved by the Centers for Medicare & Medicaid Services in the U.S. Department of Health and Human Services (HHS).
- If someone says you must join or you’ll lose your other Medicare benefits, it’s a scam. The Medicare prescription drug benefit is voluntary. It supplements your other Medicare benefits.
- If someone asks for payment before November 15, 2005, it’s a scam. The plans are allowed to begin advertising on October 1, 2005, but they’re not allowed to begin enrolling people and asking for payments until November 15, 2005, which is the beginning of the six-month open enrollment period.
- Guard your personal information from identity thieves posing as sales people. Legitimate plans may ask for your Social Security number, but only when you are actually enrolling. And they may only ask for your credit card or bank account information if you are arranging to make automatic payments for your drug coverage from that account.
- If someone claims to be calling from the Social Security Administration (SSA) and asks for your bank account, credit card, or life insurance policy numbers, it’s a scam. SSA will never ask for that information, and the only time someone calling from the SSA will ask for your Social Security number is if you applied for low-income assistance and the number you put on your application wasn’t correct.
- Know the law on how Medicare prescription drug plans can be marketed. It’s illegal for companies or organizations marketing Medicare drug plans to come to your door uninvited or to send you unsolicited emails. Companies and organizations can call to promote their drug plans, but it’s illegal for them to sign people up during those calls. They must also obey telemarketing laws: it’s illegal to call before 8 am or after 9 pm; call people whose telephone numbers are on a state or the federal "do not call" registry (with some exceptions); or call people who have asked not to be called again. For more information about your telemarketing rights and to put your phone number on the federal "do not call" registry, go to www.donotcall.gov or call 1-888-382-1222.
- Medicare prescription drug plans should come with no strings attached. Companies and organizations can offer modest prizes or gifts (but not cash) to promote their Medicare prescription drug plans – for instance, to people who attend a sales presentation – but it’s illegal to require anyone to join a drug plan in order to get a prize or gift.
- Don’t be fooled by sales materials that look like they’re from the government. Con artists often try to impress consumers with official-looking sales materials that look like they’re from a government agency. Since it is private companies who are offering the plans, be skeptical about promotional materials claiming to come from the government.
- Don’t confuse other types of drug coverage with Medicare prescription drug plans. Only plans approved by Medicare can be marketed as Medicare prescription drug plans. Approved plans will have a seal on their materials with "Medicare Rx" in large letters and "Prescription Drug Coverage" in smaller letters under that. Check with Medicare to make sure that the plan you’re considering is approved.
- Report suspected Medicare drug plan scams. Call the Office of Inspector General at the Department of Health and Human Services, 1-800-447-8477, TTY 1-800-337-4950 (information about the Medicare drug plans is not available at these numbers). You can also report Medicare-related fraud by sending an email to HHSTips@oig.hhs.gov or writing to Inspector General, HHS, Attention: Hotline, 330 Independence Avenue SW, Washington, DC 20201.
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If you need advice about an Internet or online solicitation, or you want to report a possible scam, use the Online Reporting Form. |
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General Internet Fraud Tips and Information
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Know who you’re dealing with. If the seller or charity is unfamiliar, check with your state or local consumer protection agency and the Better Business Bureau. Some Web sites have feedback forums, which can provide useful information about other people’s experiences with particular sellers. Get the physical address and phone number in case there is a problem later.
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Look for information about how complaints are handled. It can be difficult to resolve complaints, especially if the seller or charity is located in another country. Look on the Web site for information about programs the company or organization participates in that require it to meet standards for reliability and help to handle disputes.
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Be aware that no complaints is no guarantee. Fraudulent operators open and close quickly, so the fact that no one has made a complaint yet doesn’t meant that the seller or charity is legitimate. You still need to look for other danger signs of fraud.
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Don’t believe promises of easy money. If someone claims that you can earn money with little or no work, get a loan or credit card even if you have bad credit, or make money on an investment with little or no risk, it’s probably a scam.
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Understand the offer. A legitimate seller will give you all the details about the products or services, the total price, the delivery time, the refund and cancellation policies, and the terms of any warranty. For more information about shopping safely online, go to www.nclnet.org/shoppingonline.
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Resist pressure. Legitimate companies and charities will be happy to give you time to make a decision. It’s probably a scam if they demand that you act immediately or won’t take “No” for an answer.
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Think twice before entering contests operated by unfamiliar companies. Fraudulent marketers sometimes use contest entry forms to identify potential victims.
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Be cautious about unsolicited emails. They are often fraudulent. If you are familiar with the company or charity that sent you the email and you don’t want to receive further messages, send a reply asking to be removed from the email list. However, responding to unknown senders may simply verify that yours is a working email address and result in even more unwanted messages from strangers. The best approach may simply be to delete the email.
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Beware of imposters. Someone might send you an email pretending to be connected with a business or charity, or create a Web site that looks just like that of a well-known company or charitable organization. If you’re not sure that you’re dealing with the real thing, find another way to contact the legitimate business or charity and ask.
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Guard your personal information. Don’t provide your credit card or bank account number unless you are actually paying for something. Your social security number should not be necessary unless you are applying for credit. Be especially suspicious if someone claiming to be from a company with whom you have an account asks for information that the business already has.
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Beware of “dangerous downloads.” In downloading programs to see pictures, hear music, play games, etc., you could download a virus that wipes out your computer files or connects your modem to a foreign telephone number, resulting in expensive phone charges. Only download programs from Web sites you know and trust. Read all user agreements carefully.
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Pay the safest way. Credit cards are the safest way to pay for online purchases because you can dispute the charges if you never get the goods or services or the offer was misrepresented. Federal law limits your liability to $50 if someone makes unauthorized charges to your account, and most credit card issuers will remove them completely if you report the problem promptly. There are new technologies, such as “substitute” credit card numbers and password programs, that can offer extra measures of protection from someone else using your credit card. For more information about paying safely online, go to www.nclnet.org/shoppingonline and www.nclnet.org/essentials/security.html
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If you need advice about an Internet or telemarketing solicitation, or you want to report a possible scam, use the Online Reporting Form or call the NFIC hotline at 1-800-876-7060. |
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