Scam Prevention Workshop

Goals of the Workshop After the workshop... You will be able to recognize the 10 most common scams. You will be able to identify the red flags of scams. You will create your own Scam Action plan. You will be able to list agencies to call if you need help.

Why is this important? 1 in 5 seniors are taken advantage of financially each year. Seniors lose $3 to $30 billion dollars annually due to scams. A study in the Journal of General Internal Medicine said that if a new disease struck that same percentage of older Americans, “a public health crisis would likely be declared.” Source: Consumer Reports, http://www.consumerreports.org/cro/consumer-protection/preventing-elder-abuse

Scammers are professionals in taking advantage of all of us, and getting our hard-earned money. Enough is enough!

$64,000 Real-life example: Beth Baker is an older Californian. She helped raise her grandchild. One day, she got a phone call from her grandson, saying he was in Peru and that he was in trouble, and he needed his grandma to send him money. Because of their close relationship, Mrs. Baker rushed to the store to purchase a MoneyPak card for $1000. As Ms. Baker sent the money, the scammer kept calling her and asking for her to send more. Over the course of a few days, Ms. Baker had sent $64,000 to someone she didn’t know. See full story here: https://www.nbcsandiego.com/news/local/IRS-Scam-MoneyPak-San-Diego-Victim--399350931.html

Talk to a partner: What are scams you have heard about? (5 minutes)

Recognizing scams For this next section, we are going to present the top 10 most common scams. If you’ve heard of the scam, raise your hand and we will ask you to explain what that scam is to the group.

Sweepstakes/lottery Scam (ask for volunteers who know what the scam is/have examples) Sweepstakes/lottery scam Fraudsters send seniors a check they have “won,” and the senior advances the fraudsters fees before the check bounces.

Romance Scam (ask for volunteers who know what the scam is/have examples) Romance scam   Scammers create fake online profiles using photos of other people, they profess their love quickly and tug at your heartstrings with made-up stories of how they need money.

Door-to-door scams (ask for volunteers who know what the scam is/have examples) Door-to-door scams   Fraudsters come to your door, offering to install solar panels, pave a driveway, or lower bills. Fraudsters refuse to give details or let you review a contract.

Medicare/health insurance scams (ask for volunteers who know what the scam is/have examples) Medicare/health insurance scams Scammers may pose as a Medicare representative to get older people to give them their personal information, then use the personal information they provide to bill Medicare and pocket the money. ** draw attention to medicare scam page**

Funeral and cemetery scams (ask for volunteers who know what the scam is/have examples) Funeral and cemetery scams   Fraudsters read obituaries or attend funerals of someone they don’t know, and then call the widow claiming the deceased had a debt with them. Disreputable funeral homes tack on extra charges onto funerals.

Telemarketing/phone scams (ask for volunteers who know what the scam is/have examples) Telemarketing/phone scams   Scammers solicit money for a fake charity. Scammers get older people to wire over transaction fees for large inheritances or money they have “found” for the senior. Scammers call seniors repeatedly.

Internet fraud (ask for volunteers who know what the scam is/have examples) Internet fraud   Fraudsters fool victims into downloading a fake anti-virus program through a pop-up window. Seniors receive an email from a seemingly legitimate company asking them to update their information with the IRS. **draw attention to internet scam page**

Homeowner/mortgage scams (ask for volunteers who know what the scam is/have examples) Homeowner/mortgage Scammers advertise on telephone poles and via flyers. Scammers request an upfront fee for loan modification and offer to make payments to a company other than your lender.  

Identity theft (ask for volunteers who know what the scam is/have examples) Identity theft   Fraudsters get your personal information and runs up bills in your name. You find out by checking your bank statements or your credit report, or getting bills for something you didn’t authorize.

Grandparent scams (ask for volunteers who know what the scam is/have examples) Grandparent scam   Scammers call and claim your grandchild is in trouble and needs help with an emergency, such as getting out of jail, paying a hospital bill, or leaving a foreign country.

Recognizing scams (examples) These are examples of scams. (ask: what makes the scam believable and not believable?) Bottom line, they are saying that you can pay $20 and get $2.3 million dollars in return. That’s a scam.

Here’s another scam, which threatens a lawsuit for a pay day loan Here’s another scam, which threatens a lawsuit for a pay day loan. There are many spelling errors and confusing court processes that make this suspicious.

This is an arrest warrant. Arrest warrants do not come in the mail This is an arrest warrant. Arrest warrants do not come in the mail. There are other elements that make it suspicious (ask for volunteers)

Red flags A PROMISE that you can win money, make money, or borrow money easily; An INSISTENCE that you keep the offer secret, and not tell family or friends; 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;

Red flags An ATTEMPT to scare you into buying something; An INSISTENCE that you wire money, pay cash, or pay in iTunes or other gift cards; A REFUSAL to stop calling after you’ve asked not to be called again; A THREAT that you will go to jail or be deported; An UNPROFESSIONAL letter with spelling and grammar errors.

$6,000 92 year old Florence Muto chose to pre-pay her funeral so that her family wouldn’t have to pay the hefty funeral expenses. Unfortunately, she paid a scammy funeral home and lost $6000. Muto was but one of 60 other individuals scammed by the owners of the now-closed Ziomek Funeral Home between 1998 and 2007. Luckily, the Ziomek’s were charged at the end of last month with six charges, one of which carries a possible 15-year sentence if they are found guilty. Officials estimate that the Ziomek’s stole approximately $250,000 between the 60 people that purchased pre-paid funerals and cremations. Read more here: http://lansing.legalexaminer.com/miscellaneous/michigan-consumers-duped-by-prepaid-funeral-scam/

Scam prevention tips Ask someone: run offers and deals by people you trust, including lawyers, to see if they are legitimate. Don’t answer the phone if you don’t recognize the number. If it’s someone who needs to talk to you, they will leave a message. Reach out: get involved in your community. Call a friend. Talk to your neighbors.

Scam prevention tips Don’t wire money for any reason, unless you know for sure that your family or friend is abroad and needs it. Don’t use public Wi-Fi to check sensitive financial information, or to make purchases on your credit card. Check your statements including credit card and Medicare statements to ensure that there are no unauthorized charges. Get all offers in writing and check with someone you trust before signing contracts. If offers seem “too good to be true,” they probably are. Don’t assume that because the bank accepted a check, the check is not fraudulent.

My Scam Action Plan Turn to the page in the packet entitled “My Scam Action Plan”

My Scam Action Plan Take 3 minutes and write down the names of three people you can contact if you are not sure something is a scam.

My Scam Action Plan You can also contact: Adult Protective Services Your local Department of Consumer Affairs Your bank Your local legal services office

Thank you!! Any questions?