Post on 29-Sep-2020
transcript
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Fraud Detection &
Prevention for Seniors
Kassie Welch
Reverse Mortgage Professional
KassieAWelch@gmail.com 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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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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Golden Rules to Prevent Scams (continued)
- 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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Golden Rules to Prevent Scams (continued)
- 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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Golden Rules to Prevent Scams (continued)
- 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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Golden Rules to Prevent Scams (continued)
- 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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Additional Resources (continued):
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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Additional Resources (continued):
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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Additional Resources (continued):
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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Additional Resources (continued):
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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Additional Resources (continued):
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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Additional Resources (continued):
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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Additional Resources (continued):
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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