AARP Fraud Prevention 2011Sponsored by the AARP Foundation and the InvestorProtection Trust Fund
Thank You for AllowingMe to Talk With YouToday!I am here today to provide you with information about four differenttypes o...
Identity Theft Identity theft occurs when someone uses your personal information without your permission to commit fraud o...
Who Is Most At Riskfor ID Theft?                      AARP
Overview of Reporting Fraud                              AARP
Safeguarding YourIdentityRequest a credit report regularly Check your bills and statements upon arrival and report any sus...
Safeguard YourIdentity!At Home     Place personal documents in a secure place out of plain view of     servicemen, sales p...
Safeguard YourIdentity!When You Travel Use a credit card or traveler’s checks where possible Be aware of your surroundings...
Safeguard YourIdentity!On the phone Sign up for the NO CALL List to limit incoming sales calls Do not give out personal in...
Warning Signs of ACrime:Newly opened accounts on your credit reportIncreased mortgage or insurance rates as a result of a ...
What To Do NextFile a Police ReportRequest your Credit ReportPlace a Fraud Alert on your accountsContact the Identity Thef...
ResourcesFREE Credit Report - Call (877) 322-8228 or online atwww.annualcreditreport.comNO CALL Program    Call (888) 382-...
What is charity fraud? Misleading solicitations Sham charities Enrichment of individuals  (excessive compensation)        ...
What are the signs ofsolicitation fraud?   Look-Alike names ( e.g., Cancer Society of America)   Written materials that ar...
How do you protectyourself? Again Sign up for the NO-Call List Get a phone equipped with caller ID Always ask for informat...
What Information IsAvailable?• Go to the Attorney General’s Website, Building Better Charities• http://www.illinoisattorne...
GuidestarComprehensive information, including IRS filingshttp://www.guidestar.org/Need a subscription                     ...
BBB (Better Business Bureau) BBB website: http://www.bbb.org/us/charity/ Consumer tips as well as charity information Acce...
Investment FraudI am not a financial planner or an investment broker The Illinois Secretary of State Securities Department...
Real Life Examples ofInvestment Fraud                 Ponzi Scheme: The Bernard Madoff Case Madoff until 12/09 was a New Y...
Real Life Examples> Affinity Fraud: Donna Vogt Case        Fox Valley        Targeted young retirees (early 50’s) at phone...
A word about Life orViatical Settlements . ..Product: When someone sells off their life insurance policy for a cash  payou...
What We Need ToWatch Out For:    Phone Sales    Door to Door Sales    Direct Mail Sales    Offers that are too good to be ...
Who Can Help YouInvest Safely?Trained/Licensed Professionals:       Financial Planners       Investment Advisors       Bro...
Do Your Homework!Check out the person AND the product OR to report a scamby calling the Illinois Secretary of State Securi...
Health Care Fraud and How itHappens  “Up-coding”  Undelivered services  Paying kickbacks  Stealing identities  Mistreating...
What You Can Do Read your Medicare, Medicaid, and/or Insurance statements Contact the provider—it might be an innocent mis...
Multi-Million Fraud SchemeATTORNEY GENERAL CUOMO ANNOUNCES ARRESTS INMULTI-MILLION DOLLAR MEDICAID FRAUD SCHEME RUNMULTI-O...
Tips to Avoid Fraud Keep your personal medical information from thewrong hands   Only carry your Medicare card when you ar...
Fraud Enforcement HEAT - Health Care Fraud Prevention andEnforcement Action Team Double size of Senior Medicare Patrol Mor...
Where to Report    Medicare                       Senior Health InsuranceCall: 1-800-MEDICARE (1-800-         Program (SHI...
Remove the Word Victimfrom Your Vocabulary!Scammers are ruthless, their sole mission is to part you and your              ...
Thank You!Life long learning begins anytime you             want it to . . .
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2011 Fraud Fighter Presentation Illinois

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A presentation on how to avoid becoming a fraud victim, and what to do if it happens to you. Resources and phone numbers for Illinois.

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2011 Fraud Fighter Presentation Illinois

  1. 1. AARP Fraud Prevention 2011Sponsored by the AARP Foundation and the InvestorProtection Trust Fund
  2. 2. Thank You for AllowingMe to Talk With YouToday!I am here today to provide you with information about four differenttypes of fraud Identity theft Charity fraud Investment fraud Health care fraudOur mission is to provide you with good tools to avoid scams andfraud; and to remove the stigma of reporting fraud AARP
  3. 3. Identity Theft Identity theft occurs when someone uses your personal information without your permission to commit fraud or other crimes. Criminal Identify Theft. When someone steals your identity and presumes to be you in order to commit a crime. Medical Identity Theft. When someone steals your identity to receive medical care. Employment Identity Theft. When someone steals your identity to be able to work in the United States. Financial Identity Theft. When someone steals your identity for financial gain. AARP
  4. 4. Who Is Most At Riskfor ID Theft? AARP
  5. 5. Overview of Reporting Fraud AARP
  6. 6. Safeguarding YourIdentityRequest a credit report regularly Check your bills and statements upon arrival and report any suspicious activity Password protect your accounts if possible Photocopy everything in your wallet and keep in a safe place Do not carry your social security card in your wallet AARP
  7. 7. Safeguard YourIdentity!At Home Place personal documents in a secure place out of plain view of servicemen, sales persons, visitors Place outgoing mail in an official mailbox Arrange for mail pickup if you are away more than one day Opt out of pre-approved offers (www.optoutprescreen.com) AARP
  8. 8. Safeguard YourIdentity!When You Travel Use a credit card or traveler’s checks where possible Be aware of your surroundings when providing information to someone on the phone, i.e., someone may overhearOn Your Computer Use virus, anti-spyware and firewall protection Don’t be a victim of “phishing” Don’t click on pop-ups. They can re-direct you to a site that is not secure AARP
  9. 9. Safeguard YourIdentity!On the phone Sign up for the NO CALL List to limit incoming sales calls Do not give out personal information – legitimate companies will not ask for it Be aware of Caller ID (spoofing) scams AARP
  10. 10. Warning Signs of ACrime:Newly opened accounts on your credit reportIncreased mortgage or insurance rates as a result of a lower credit scoreFailure to receive excepted mailUnsolicited change of address noticeReceiving credit cards you didn’t apply forBeing denied credit or being denied less favorable credit termsBeing contacted by businesses or debt collectors about merchandise orservices you didn’t buy. AARP
  11. 11. What To Do NextFile a Police ReportRequest your Credit ReportPlace a Fraud Alert on your accountsContact the Identity Theft Hotline AARP
  12. 12. ResourcesFREE Credit Report - Call (877) 322-8228 or online atwww.annualcreditreport.comNO CALL Program Call (888) 382-1222 Online www.donotcall.govOpt Out of credit card offers Call (888) 567-8688 or online at www.optoutprescreen.comOffice of the Attorney General Consumer Protection Chicago 1-800-386-5438 Springfield 1-800-243-0618 Carbondale 1-800-243-0607 Online http://www.illinoisattorneygeneral.gov/consumers/index.html AARP
  13. 13. What is charity fraud? Misleading solicitations Sham charities Enrichment of individuals (excessive compensation) AARP
  14. 14. What are the signs ofsolicitation fraud? Look-Alike names ( e.g., Cancer Society of America) Written materials that are to be returned to a P.O. Box Refusal to provide written material Refusal to provide percentage of donation that will go to the charity Vague description about the use of the donations “Badge Charities” e.g., police, firefighters, veterans AARP
  15. 15. How do you protectyourself? Again Sign up for the NO-Call List Get a phone equipped with caller ID Always ask for information in writing AARP 15
  16. 16. What Information IsAvailable?• Go to the Attorney General’s Website, Building Better Charities• http://www.illinoisattorneygeneral.gov/charities/index.html• Illinois Attorney General’s Registered Charities• Plethora of information on this website. AARP
  17. 17. GuidestarComprehensive information, including IRS filingshttp://www.guidestar.org/Need a subscription AARP
  18. 18. BBB (Better Business Bureau) BBB website: http://www.bbb.org/us/charity/ Consumer tips as well as charity information Accepts on-line complaints AARP
  19. 19. Investment FraudI am not a financial planner or an investment broker The Illinois Secretary of State Securities Department oversees/investigates investment fraud in Illinois http://www.cyberdriveillinois.com/departments/securities/home. htmlTop 3 problems include: Fraud Unsuitable recommendations Unauthorized activity AARP
  20. 20. Real Life Examples ofInvestment Fraud Ponzi Scheme: The Bernard Madoff Case Madoff until 12/09 was a New York broker and fund manager His funds attracted investors with the promise of consistently high returns and low fees. Through his ponzi scheme, he caused financial destruction across the world. Investors were primarily members of the wealthy community in New York, Florida and up and down the east coast of the US On turning himself in to authorities on December 11, Mr. Madoff estimated the losses at $50 billion. That figure now stands at more than $65 billion. AARP
  21. 21. Real Life Examples> Affinity Fraud: Donna Vogt Case Fox Valley Targeted young retirees (early 50’s) at phone co. They heard about her by word of mouth from other employees Unsuitable recommendations Employing broker has paid over $10 million to investors so far. AARP
  22. 22. A word about Life orViatical Settlements . ..Product: When someone sells off their life insurance policy for a cash payout. Usually bought up by holding companies called Life Settlement broker agencies. These holding companies sell them back to the public as individual policies or in bundles – like a mutual fund. You collect the “dividend” upon the sellers death. Be Careful! For more information, contact the Illinois Department of Insurance’s Consumer Services Section at (312) 814-2427 or 1-877-527-9431. AARP
  23. 23. What We Need ToWatch Out For: Phone Sales Door to Door Sales Direct Mail Sales Offers that are too good to be true – because they usually are! One time offers Offers “Just for You” Offers by anyone who isn’t a licensed financial professional! AARP
  24. 24. Who Can Help YouInvest Safely?Trained/Licensed Professionals: Financial Planners Investment Advisors Brokers But remember, it is your responsibility to understand and review what they have recommended AARP
  25. 25. Do Your Homework!Check out the person AND the product OR to report a scamby calling the Illinois Secretary of State SecuritiesDepartment 1-800-628-7937 Chicago (312) 793-3384 Springfield (217) 782-2256 http://www.cyberdriveillinois.com/departments/securities/home.html AARP
  26. 26. Health Care Fraud and How itHappens “Up-coding” Undelivered services Paying kickbacks Stealing identities Mistreating patients AARP 26
  27. 27. What You Can Do Read your Medicare, Medicaid, and/or Insurance statements Contact the provider—it might be an innocent mistake Report to authorities—it might not! AARP 27
  28. 28. Multi-Million Fraud SchemeATTORNEY GENERAL CUOMO ANNOUNCES ARRESTS INMULTI-MILLION DOLLAR MEDICAID FRAUD SCHEME RUNMULTI-OUT OF THREE NEW YORK CITY DENTAL CLINICSDefendants Allegedly Stole $5.7 Million From Medicaid FundNEW YORK, N.Y. (June 2, 2010)The xxxx and xxxx paid recruiters, known as “flyer boys”, to bring Medicaidrecipients to the clinics, and paid the recipients to get treatment, whether medicallynecessary or not. The Medicaid recipients were sometimes brought to the clinics fromhomeless shelters, and were paid cash as well as gifts such as CD players andMcDonald’s gift certificates. In terms of the “flyer boys,” the more Medicaidrecipients they brought in, the higher the pay.The operation employed dozens of dentists who were often required to pay two thirds high-of their Medicaid billings to the defendants. It is alleged that xxxx, a high-billingdentist in the clinics, actively exhorted the flyer-boys “to go out and get more flyer-patients.” AARP 28
  29. 29. Tips to Avoid Fraud Keep your personal medical information from thewrong hands Only carry your Medicare card when you are goingto a doctor’s appointment, a hospital or clinic, orpharmacy Never sign blank insurance claim forms Be alert to “free” medical services AARP 29
  30. 30. Fraud Enforcement HEAT - Health Care Fraud Prevention andEnforcement Action Team Double size of Senior Medicare Patrol More inter-agency cooperation AARP 30
  31. 31. Where to Report Medicare Senior Health InsuranceCall: 1-800-MEDICARE (1-800- Program (SHIP) 633-4227) (800) 548-9034Report fraud to the Inspector Your Insurance Company’s General Fraud Division • email: Phone number on EOB HHSTips@oig.hhs.gov State Attorney General- • Call: 1-800-HHS-TIPS / (1- Health Care Hotline 800-447-8477) (877) 305-5145 • ww.stopmedicarefraud.gov State Insurance Department (800) 548-9034 31
  32. 32. Remove the Word Victimfrom Your Vocabulary!Scammers are ruthless, their sole mission is to part you and your money or your identity! If you are hit by fraud, don’t be a victim – be an activist! AARP
  33. 33. Thank You!Life long learning begins anytime you want it to . . .

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