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.

1. AARP Fraud Prevention 2011
Sponsored by the AARP Foundation and the Investor
Protection Trust Fund

2. Thank You for Allowing
Me to Talk With You
Today!
I am here today to provide you with information about four different
types of fraud
Identity theft
Charity fraud
Investment fraud
Health care fraud
Our mission is to provide you with good tools to avoid scams and
fraud; and to remove the stigma of reporting fraud
AARP

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. Who Is Most At Risk
for ID Theft?
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5. Overview of Reporting Fraud
AARP

6. Safeguarding Your
Identity
Request 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. Safeguard Your
Identity!
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. Safeguard Your
Identity!
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 overhear
On 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. Safeguard Your
Identity!
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. Warning Signs of A
Crime:
Newly opened accounts on your credit report
Increased mortgage or insurance rates as a result of a lower credit score
Failure to receive excepted mail
Unsolicited change of address notice
Receiving credit cards you didn’t apply for
Being denied credit or being denied less favorable credit terms
Being contacted by businesses or debt collectors about merchandise or
services you didn’t buy.
AARP

11. What To Do Next
File a Police Report
Request your Credit Report
Place a Fraud Alert on your accounts
Contact the Identity Theft Hotline
AARP

12. Resources
FREE Credit Report - Call (877) 322-8228 or online at
www.annualcreditreport.com
NO CALL Program
Call (888) 382-1222
Online www.donotcall.gov
Opt Out of credit card offers
Call (888) 567-8688 or online at www.optoutprescreen.com
Office 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. What is charity fraud?
Misleading solicitations
Sham charities
Enrichment of individuals
(excessive compensation)
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14. What are the signs of
solicitation 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. How do you protect
yourself?
Again Sign up for the NO-Call List
Get a phone equipped with caller ID
Always ask for information in writing
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16. What Information Is
Available?
• 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.
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17. Guidestar
Comprehensive information, including IRS filings
http://www.guidestar.org/
Need a subscription
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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. Investment Fraud
I 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.
html
Top 3 problems include:
Fraud
Unsuitable recommendations
Unauthorized activity
AARP

20. Real Life Examples of
Investment 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. 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. A word about Life or
Viatical 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. What We Need To
Watch 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. Who Can Help You
Invest 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. Do Your Homework!
Check out the person AND the product OR to report a scam
by calling the Illinois Secretary of State Securities
Department
1-800-628-7937
Chicago (312) 793-3384
Springfield (217) 782-2256
http://www.cyberdriveillinois.com/departments/securities/home.html
AARP

26. Health Care Fraud and How it
Happens
“Up-coding”
Undelivered services
Paying kickbacks
Stealing identities
Mistreating patients
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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!
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28. Multi-Million Fraud Scheme
ATTORNEY GENERAL CUOMO ANNOUNCES ARRESTS IN
MULTI-MILLION DOLLAR MEDICAID FRAUD SCHEME RUN
MULTI-
OUT OF THREE NEW YORK CITY DENTAL CLINICS
Defendants Allegedly Stole $5.7 Million From Medicaid Fund
NEW YORK, N.Y. (June 2, 2010)
The xxxx and xxxx paid recruiters, known as “flyer boys”, to bring Medicaid
recipients to the clinics, and paid the recipients to get treatment, whether medically
necessary or not. The Medicaid recipients were sometimes brought to the clinics from
homeless shelters, and were paid cash as well as gifts such as CD players and
McDonald’s gift certificates. In terms of the “flyer boys,” the more Medicaid
recipients 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-billing
dentist in the clinics, actively exhorted the flyer-boys “to go out and get more
flyer-
patients.”
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29. Tips to Avoid Fraud
Keep your personal medical information from the
wrong hands
Only carry your Medicare card when you are going
to a doctor’s appointment, a hospital or clinic, or
pharmacy
Never sign blank insurance claim forms
Be alert to “free” medical services
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30. Fraud Enforcement
HEAT - Health Care Fraud Prevention and
Enforcement Action Team
Double size of Senior Medicare Patrol
More inter-agency cooperation
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31. Where to Report
Medicare Senior Health Insurance
Call: 1-800-MEDICARE (1-800- Program (SHIP)
633-4227) (800) 548-9034
Report 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
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32. Remove the Word Victim
from 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. Thank You!
Life long learning begins anytime you
want it to . . .