Avoiding Frauds and Scams

There are many criminals who use scams to defraud people. These scam artists can show up at your home, call your home, or contact you online. The Federal Trade Commission has a webpage with scam alerts, so that you can recognize new scams. Their most recent scam alert is "Scam-proof Your Doorstep", which discusses:

• home repair scams
• cable reconnect scams
• utility cut-on scams

You can read all the scam alerts here.

New "Aging on the Suncoast" Episode

The Area Agency on Aging of Pasco-Pinellas produces and hosts a community access television program, "Aging on the Suncoast". This program  provides information of interest to elders, their families and caregivers. The January program was  "Consumer Protection Part 1". This episode will help you recognize potential scams and how to protect yourself, if you are targeted. 

How to Avoid Credit Card Hacking Over The Holidays

Credit card fraud can happen as the result of thieves finding a credit card billing statement in your trash, or  by someone taking a picture of your credit card when you are checking out, or someone could hack into an online account. You can read more about credit card fraud on the Federal Trade Commission (FTC) consumer information page here. To avoid fraud, the FTC recommends that you:

• Don't give out your account information to a company unless you called them and know that they are reputable company.
• Open your bills promptly and check for questionable charges.
• Carry only one credit card for a shopping trip.

 Here is a link to an article about "elder fraud" and services that have started up to help prevent elder fraud. 
 In the short video below, Marietta, the editor-in-chief of the Consumer Action Handbook, discusses how you can avoid being a victim of credit card hacking this holiday season:

Resources for Consumer Protection

If you have been a victim of consumer fraud, there are state and local agencies which may be able to help you. In Florida, there is the Florida Attorney General's Senior's vs. Crime Project. You can request help from them by filling out an online form here. You may also seek help from the Division of Consumer Services, which is a part of the Florida Department of Agriculture and Consumer Services. This department  is the state’s clearinghouse for consumer complaints, information and protection. You can find their consumer complaint forms here. For more information, you can call: 
1-800-HELP-FLA (435-7352),
 1-(850) 410-3800  - if you are calling from outside of Florida, or 
1-800-FL-AYUDA (352-9832) en Español.

Our closest regional consumer help offices are:

Hillsborough County Consumer Protection Agency   1-(813)-903-3430 

Pinellas County Office of Consumer Services   1-(727)-464-6200

Another great consumer resource is the 2014 Consumer Action Handbook, published by the federal government. This guide includes a sample complaint letter and useful advice about how to resolve a complaint with a seller. You can pick up a print copy of this handbook at your local Pasco County Library branch.

Here is a video describing the Consumer Action Handbook:

 

If you live in another state, you can find an index of state consumer agencies here.

Plan For Retirement Safely

 The Securities and Exchange Commission provides a webpage with a lot of information to help Seniors invest their money wisely.  This web page has links to information about what questions to ask when considering investments and how to avoid internet scams and affinity fraud. In addition, they have published a pamphlet called "A Guide For Seniors: Protect Yourself Against Investment Fraud". 

 They have also created a brochure called "Early Retirement Seminars 101: Smart Tips for Spotting Retirement Scams", This pamphlet can help you to recognize fraudulent retirement pitches, that promise much more than they can deliver. For example, here are some common tactics used by scammers:

• the "scarcity tactic" - claiming there is only a limited supply left for an investment.
• the "reciprocity tactic" - offering to give you a discount on commission if you buy now.
• the "source credibility tactic" - the broker claims to be a reputable expert.
• the "social consensus tactic" - other savvy people have invested in this product.

Another useful resource is the investor bulletin, "Social Media and Investing - Tips for Seniors". This bulletin can help you avoid online investment fraud. Finally, be very wary of "free lunch" investment seminars. These lunch seminars are advertised as "educational", but they are really geared to sell you investments. You can read more about these "free lunch" sales seminars in a previous post here.

The Seniors Vs. Crime Project is on Your Side!

The Seniors Vs. Crime Project is a non-profit organization that was started in 1989.  This organization works with the Florida Attorney General's Office to educate Seniors about crime prevention and to investigate complaints about companies and individuals who have defrauded the elderly. Volunteers called "Senior Sleuths" help with investigations and by reporting suspicious activity. You can learn more about volunteering here. This organization has two outreach programs: the Florida Seniors Against Investment Fraud (FSAIF) and the Senior Medicare & Medicaid Patrol (SMMP). There is also a link to scam alerts here. 

One of their most important activities is helping consumers to get money back from companies which have defrauded them. The Seniors Vs. Crime Project reports that they return approximately $1,000,000 per year to Seniors who have been cheated. If you would like to file a consumer complaint, you can request help online.  You can learn more about the Seniors Vs. Crime Project here.

Protect Yourself from Scams

The Elder Consumer Protection Program of the Stetson University College of Law provides educational materials and videos to help older adults avoid scams and fraud. They also provide consumer news and alerts. Here are links to several of their brochures:

• Financial Fraud Awareness
• Identity Theft Awareness
• Family-in-Need Scam
• Tax Season Scam Awareness

Below is their video about Financial Fraud:


You can find more videos here.

Safe Investing For Seniors

The Securities and Exchange Commission provides a webpage with a lot of information to help Seniors invest their money wisely.  This web page has links to information about what questions to ask when considering investments and how to avoid internet scams and affinity fraud. There is also information about investment products such as variable annuities, equity-linked CDs, promissory notes, callable CDs, ultra-short bond funds, and viatical settlements. In addition, they have published a pamphlet called "A Guide For Seniors: Protect Yourself Against Investment Fraud". You can access this pamphlet online here or pick up a print copy at your local Pasco County Library branch.

Want information about a particular investment opportunity?
You can investigate the investment and the investment firm with these resources:

• You can find out whether the investment is registered by using the EDGAR database.
• You can find information about an investment firm or a broker by using the FINRA BrokerCheck.
• You can investigate investment adviser firms on the SEC website here.

For information about "free lunch investment seminars", click here for a previous blog post.

On Guard for Seniors Website

 The state of Florida has launched a new website to educate older adults about a variety of consumer-related topics including how to avoid scams and fraud.  This website is called "On Guard for Seniors". This website has information about annuities, reverse mortgages, long-term care, and how to avoid identity theft. There is also a section on consumer alerts, which lists common scams which target older adults.  In addition, there are example stories about how the Florida Division of Consumer Services was able to help resolve consumer problems. For more information, click here.

Upcoming Free Caregiver Seminars

The Elder Law Office of Emma Hemness is sponsoring six free seminars for Seniors and family caregivers in May. The first program is presented by a Florida ombudsman. For people not familiar with the Florida Long-Term Care Ombudsman Program, an ombudsman "is an advocate for people who live in nursing homes, assisted living facilities and adult family care homes. All services are confidential and free of charge." There are also programs about caregiving, veteran's benefits, avoiding fraud, and Medicaid Managed Care. Registration is required (the registration webpage is here).

Here is a partial list of these programs:

Your Buddy the Ombudsman: What you didn't know or didn't know to ask
Don Hering, Director of Field Operations, State LTC Ombudsman

May 1st from 10:30am - noon
Jimmie B. Keel Library
2902 W. Bearss Ave, Tampa, FL

How to Expect the Unexpected: 
Preparing caregivers for transitions in care, advocating for their loved one, and securing benefits in plain English
Ann Cholowski, M.D., J.D., Life-Path Hospice

May 5th  9:00am - noon
Embassy Suites USF
3705 Spectrum Blvd
Tampa, FL

 So You're a Caregiver, but Who is Taking Care of You?
Allan W Redash, M.D.; Teri Redash, R.N.

May 19th  9:00am - noon
The Galleria at USF
3720 Spectrum Blvd
Tampa FL

What Medicaid Managed Care Means to Sick Seniors and Their Families
Rebecca Bell, Esquire, BCS, LLM in Elder Law

May 22 10:30am - noon
Jimmie B. Keel Library
2902 W. Bearss Ave, Tampa, FL

You can get more details by downloading the event flier here.

Senior Safety Seminar at New River Library

The Area Agency on Aging of Pasco-Pinellas will be holding a free Senior Safety Seminar on Thursday, February 10th from 1:00pm to 3:00pm at New River Library.  This program will tell you how to avoid scams and fraud.  Also, free safety phones will be available. 
           The presenters will be:

• Captain R. McKinney - Zephyrhills City Police Department
• Kathy Cornwell - Area Agency on Aging Victim Advocate
• Little Horatio - Pasco County's four legged victim advocate

New River Library
34043 State Road 54
Zephyrhills, Fl 33543
(813)788-6375

Free Seminar on How to Avoid Financial Scams and Fraud

The Stetson University College of Law sponsors the Elder Consumer Protection Program.  This program was designed to provide an educational resource for topics pertaining to elder consumer protection - including financial scams and fraud.  The college sponsors free events as part of this program.  There are three upcoming programs: "Shield Yourself from Financial Exploitation (Financial and Consumer Scams and Frauds)", "Protect Yourself from Financial Abuse (Family Issues, Preplanning, Personal Legal Document Basics)", and "Batten Down Against Disaster Frauds and Scams (Price Gouging, Home Repair, Charity Fraud, Insurance)".

The first program is:

"Shield Yourself from Financial Exploitation (Financial and Consumer Scams and Frauds)"

Tuesday, January 25th 

from 9:00am - 2:00pm

at the Stetson University College of Law 

(Eleazer Courtroom)

1401 61^st Street South

Gulfport, Florida 33707

Although the program is free, they do require that you register, as there is limited space.  Light breakfast and lunch will be provided to registered attendees.  You can call  727-562-7888 to register or to get more information or you can e-mail elderconsumers@law.stetson.ed.

In addition, free consumer services will be available at this event -such as do-not-call/opt-out registration, free credit reports, and secure document shredding.

Bay Area Elder Consumer Protection Expo

The Elder Consumer Protection Program of the Stetson University College of Law will be hosting the Bay Area Elder Consumer Protection Expo.  This Expo is part of the Financial Scam & Fraud Elder Awareness Project. 

This Expo is free to the public and will feature:

• A consumer panel with Jackie Callaway from ABC Action News and Ivan Penn from the St. Petersburg Times
• Consumer protection materials
• A consumer panel with Ivan Penn from the St. Petersburg Times
• Free shredding services
• Do-Not-Call kiosk
• Credit report kiosk
• Exhibits by federal, state, and local agencies
• Free continental breakfast 
• Door prizes

Date:  Tuesday, April 20th from 9:00am - 2:00pm

Location of Expo:

Stetson University College of Law

1401 - 61st Street South

Gulfport, Fl 33707 

For more information, please contact Slade V. Dukes at (727)562-7888 or elderconsumers@law.stetson.edu

"Free Lunch" Sales Seminars

Many financial services firms are marketing to senior investors, who are a growing segment of investors. These firms have a sales technique - they offer free lunches to seniors, if they are willing to listen to their seminar information. The Securities and Exchange Commission (SEC) is concerned with unscrupulous and abusive sales practices of financial advisers who market to older adults. The Securities and Exchange Commission published a report in 2007 called "Protecting Senior Investors: Report of Examinations of Securities Firms providing "Free Lunch" Sales Seminars".

This report found that:

• Free Lunch Seminars are advertised as "educational", but they are really geared to sell investments.
• Attendees are not informed that the seminar is presented by a company that has a financial interest in selling these investments.
• 23% of the seminars had financial advisers who recommended investments which were not suitable for particular customers.
• 57% of the investigated seminars gave exaggerated or misleading claims about the investments.
• 13% of the investigated seminars were selling fraudulent investments.
  

The AARP has a "Free Lunch" Monitor program where volunteers attend many of the free lunch style seminars and report their experiences back to AARP. There is an AARP online discussion group which provides a place to exchange stories about these free lunch seminars, which is located here.

The AARP has a good article about spotting financial scams. This article stated the the following phrases are warning signs of a financial scam:

• "There's no risk".
• "Your profit is guaranteed."
• "The offer is only available today."

The AARP recommends that you take your time investigating an investment before committing to it. For more advice on what questions to ask at a free lunch seminar, please see the AARP article "Free Lunch Seminars: Questions to ask a Financial Professional."

How to find out more about a particular investment opportunity:

• You can find out whether the investment is registered by using the EDGAR database.
  
• You can find information about an investment firm or a broker by using the FINRA BrokerCheck.
  
• You can investigate investment adviser firms on the SEC website here.

Scam Alert!

There is a new scam which targets grandparents. The scammer calls someone and pretends to be their grandchild. They may know the names of family members or they may trick the grandparent into saying the name of the grandchild. The scammer then pretends that he is on trouble. For example, he or she may say that their car broke down, they are stuck in a foreign country, or that they need bail money to get out of jail. Then, they ask their "grandparent" to wire them money, but not to tell their parents.

The Federal Trade Commission (FTC) recommends that if you get such a call, you should not act immediately and send the money. Instead, take the time to verify the caller's identity by asking them questions to which only family members know the answer. In addition, try to reach the parents of the grandchild to find out if this is a hoax. If you can't reach a family member to verify the story, the FTC recommends that you contact your local police on their non-emergency line and ask for their assistance. You can call the FTC at 1-877-382-4357 to report possible fraud.

The FTC has more information about this scam here.

Upcoming Programs About How to Avoid Scams and Fraud

Richard Zutell of AARP will be discussing how to pick an honest contractor and avoid home repair fraud on Wednesday, January 7th, at 2:00pm at the Hudson Regional Library. He will also be giving a talk about how to recognize the frauds and scams that con artists use on Thursday, February 12, at 2:00pm at Hudson Regional Library. Registration is requested for these programs.

[Hudson Regional Library's address is 8012 Library Road, Hudson, FL and the phone number is (727)861-3040.]

Tips on Home Repair Fraud

Richard Zutell of AARP will be giving a talk at the Hudson Regional Library on July 17th at 2:00pm. This presentation will give advice about how to pick an honest contractor. If you would like to attend this presentation, you can register for the program by calling Hudson Library at (727) 861-3040.


[Hudson Regional Library is located at 8012 Library Road, Hudson FL]