[Senate Report 114-208]
[From the U.S. Government Publishing Office]
114th Congress } { Report
SENATE
2d Session } { 114-208
_______________________________________________________________________
FIGHTING FRAUD: U.S. SENATE AGING COMMITTEE IDENTIFIES TOP 10 SCAMS
TARGETING OUR NATION'S SENIORS
__________
R E P O R T
of the
SPECIAL COMMITTEE ON AGING
UNITED STATES SENATE
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
February 11, 2016.--Ordered to the printed
______
U.S. GOVERNMENT PUBLISHING OFFICE
98-492 WASHINGTON : 2016
SENATE SPECIAL COMMITTEE ON AGING
SUSAN M. COLLINS, Maine CLAIRE McCASKILL, Missouri
ORRIN HATCH, Utah BILL NELSON, Florida
MARK KIRK, Illinois BOB CASEY, Pennsylvania
JEFF FLAKE, Arizona SHELDON WHITEHOUSE, Rhode Island
BOB CORKER, Tennessee KIRSTEN GILLIBRAND, New York
DEAN HELLER, Nevada RICHARD BLUMENTHAL, Connecticut
TIM SCOTT, South Carolina JOE DONNELLY, Indiana
TOM COTTON, Arkansas ELIZABETH WARREN, Massachusetts
DAVID PERDUE, Georgia TIM KAINE, Virginia
THOM TILLIS, North Carolina
BEN SASSE, Nebraska
Priscilla Hobson Hanley, Majority Staff Director
Derron Parks, Minority Staff Director
C O N T E N T S
----------
Page
Executive Summary................................................ 1
Key Figures...................................................... 3
Top Ten Scams Reported to the Fraud Hotline...................... 4
1. IRS Impersonation Scams................................... 4
2. Sweepstakes Scams......................................... 6
3. Robocalls/Unwanted Phone Calls............................ 7
4. Computer Scams............................................ 9
5. Identity Theft............................................ 12
6. Grandparent Scams......................................... 14
7. Elder Financial Abuse..................................... 15
8. Grant Scams............................................... 17
9. Romance Scams/Confidence Fraud............................ 18
10. Home Improvement Scams................................... 20
Conclusion....................................................... 22
Appendix 1: Fraud Hotline Statistics............................. 22
1. By Scam Type.............................................. 22
2. By Origin of Call to the Hotline.......................... 23
Appendix 2: Resources for Reporting Fraud........................ 23
LETTER OF SUBMITTAL
----------
U.S. States Senate,
Special Committee on Aging,
Washington, DC, February 11, 2016.
Hon. Joe Biden,
President, U.S. Senate,
Washington, DC.
Dear Mr. President: Under authority of Senate Resolution 73
agreed to on February 12, 2015, I am submitting to you a report
of the U.S. Senate Special Committee on Aging entitled:
Stopping Senior Scams: The Top 10 Scams Reported to the U.S.
Senate Special Committee on Aging's Fraud Hotline in 2015.
Senate Resolution 4, the Committee Systems Reorganization
Amendments of 1977, authorizes the Special Committee on Aging
``to conduct a continuing study of any and all matters
pertaining to problems and opportunities of older people,
including but not limited to, problems and opportunities of
maintaining health, of assuring adequate income, of finding
employment, of engaging in productive and rewarding activity,
of securing proper housing and, when necessary, of obtaining
care and assistance.'' Senate Resolution 4 also requires that
the result of these studies and recommendations be reported to
the Senate annually.
I am pleased to transmit this report to you.
Sincerely,
Susan M. Collins,
Chairman.
LETTER OF TRANSMITTAL
----------
Dear Friends: Our nation's seniors worked hard their entire
lives and saved for retirement. Unfortunately, there are many
criminals who target them and seek to rob them of their hard-
earned savings. Far too many older Americans are being
financially exploited by strangers over the telephone, through
the mail, and, increasingly, online. Worse yet, these seniors
may also be targeted by family members or by people they trust.
Many of these crimes are not reported because the victims are
afraid that the perpetrator may retaliate, the victims are
embarrassed that they have been scammed, or sometimes simply
because victims are unsure about which law enforcement or
consumer protection agency they should contact. Additionally,
some seniors do not realize they have been the victims of
fraud.
The U.S. Senate Special Committee on Aging has made
consumer protection and fraud prevention a major focus of its
work. In recent years, the Committee has held hearings
examining telephone scams, tax-related schemes, Social Security
fraud, and the implications of payday loans and pension
advances for seniors, among other issues. The Committee
launched a toll-free Fraud Hotline: 1-855-303-9470. By serving
as a resource for seniors and others affected by scams, the
Hotline has helped increase reporting and awareness of consumer
fraud.
As the Chairman and Ranking Member of the Senate Special
Committee on Aging, we remain committed to protecting older
Americans against fraud and to bringing greater awareness of
this pervasive problem. The Fraud Hotline has been successful
in meeting both of those goals, assisting individuals who
contacted the Committee over the telephone or through the
online form on the Committee's website. The Fraud Hotline
allows the Committee to maintain a detailed record of common
fraud schemes targeting seniors. This record informs the
efforts of the Committee and, ultimately, the work of Congress.
Additionally, the Fraud Hotline offers real help to victims
and to those targeted by scammers. Committee staff and
investigators who have experience dealing with a variety of
scams and fraud speak directly with callers and can assist
callers by providing them with important information regarding
steps they can take, including where to report the fraud and
ways to reduce the likelihood that the senior will become a
victim or a repeat victim.
Seniors are typically referred by investigators to the
relevant local, state, and/or federal law enforcement entities
with jurisdiction over the particular scam. In addition to law
enforcement, Fraud Hotline investigators may also direct
seniors to other resources, such as consumer protection groups,
legal aid clinics, congressional caseworkers, or local
nonprofits that provide assistance to seniors.
Over the past year the Fraud Hotline has been contacted by
more than 1,100 individuals from all 50 states, the District of
Columbia, and Puerto Rico. Consumer advocacy organizations,
community centers, and local law enforcement have provided
invaluable assistance to the Committee by encouraging consumers
to call the Fraud Hotline to document scams. We would like to
thank all of the groups and governmental entities who have
worked with us to fight fraud.
In an effort to educate seniors on emerging trends and help
protect them from becoming victims, this report features the
top ten scams reported in 2015 to the Fraud Hotline. In
addition, this report includes resources for consumers who wish
to report scams to state and federal agencies.
The range and frequency of scams perpetrated against
seniors that were reported to the Fraud Hotline in 2015
demonstrate the extent of this epidemic. In 2016, the Aging
Committee intends to build on its successful efforts to
investigate and stop scams aimed at our nation's seniors and
ensure that federal agencies are aggressively pursuing the
criminals who commit these frauds.
Sincerely,
Susan M. Collins, Chairman.
Claire McCaskill, Ranking Member.
114th Congress } { Report
SENATE
2d Session } { 114-208
======================================================================
FIGHTING FRAUD: U.S. SENATE AGING COMMITTEE IDENTIFIES TOP 10 SCAMS
TARGETING OUR NATION'S SENIORS
_______
February 11, 2016.--Ordered to be printed
_______
Ms. Collins, from the Special Committee on Aging,
submitted the following
R E P O R T
_______
EXECUTIVE SUMMARY
From January 1, 2015, through December 31, 2015, the Senate
Aging Committee's Fraud Hotline received a total of 1,108
complaints from residents in all 50 states, the District of
Columbia, and Puerto Rico. Calls pertaining to the top 10 scams
featured in this report accounted for more than 90 percent of
the complaints. The Committee has held hearings on the top
seven scams on this list, with five of those hearings occurring
in 2015.
The top complaint, the focus of more than twice as many
calls as any other scam, involved seniors receiving calls from
fraudsters posing as agents of the Internal Revenue Service
(IRS). These criminals falsely accuse seniors of owing back
taxes and penalties in order to scam them. Due to the extremely
high call volume, the Aging Committee held a hearing on April
15, 2015, to investigate and raise awareness about the IRS
imposter scam.
Sweepstakes scams, such as the Jamaican lottery scam,
continue to be a problem for seniors, placing second on the
list. A March 13, 2013, Aging Committee hearing and
investigation helped bring attention to these scams and put
pressure on the Jamaican government to pass laws cracking down
on criminals who convinced unwitting American victims that they
had been winners of the Jamaican lottery. The United States
government has had some recent success in bringing individuals
connected to the Jamaican lottery scam to trial, but these
types of scams continue to plague seniors.
Nearly 100 seniors called to complain about receiving
robocalls or unwanted phone calls, making that topic the third
most common scam reported to the Committee. On June 10, 2015,
the Aging Committee held a hearing on the increase in these
calls that are made despite the national Do-Not-Call registry.
The Committee examined how the rise of new technology has made
it easier for scammers to contact and deceive consumers and has
rendered the Do-Not-Call registry ineffective in many cases.
Computer scams were fourth on the list and the subject of
an October 21, 2015, Committee hearing. Although there are many
variations of computer scams, fraudsters typically claim to
represent a well-known technology company and attempt to
convince victims to provide them with access to their
computers. Scammers often demand that victims pay for bogus
tech support services through a wire transfer, or, worse yet,
obtain victims' passwords and gain access to financial
accounts.
Identity theft was the fifth most common scam reported to
the Fraud Hotline. This wide-ranging category includes calls
about actual theft of a wallet or mail, online impersonation,
or other illegal efforts to obtain a person's identifiable
information. On October 7, 2015, the Aging Committee held a
hearing to assess the federal government's progress in
complying with a new law to remove seniors' Social Security
numbers from their Medicare cards, which will help prevent
identity theft.
Grandparent scams, the focus of a July 16, 2014, hearing,
were next on the list. In these scams, fraudsters call a senior
pretending to be a family member, often a grandchild, and claim
to be in urgent need of money to cover an emergency, medical
care, or a legal problem.
Elder financial abuse was seventh on the list and the topic
of a February 4, 2015, hearing. The calls focused on the
illegal or improper use of an older adult's funds, property, or
assets. Chairman Susan Collins and Ranking Member Claire
McCaskill introduced the Senior $afe Act of 2015, which would
allow trained financial services employees to report suspected
cases of financial exploitation to the proper authorities
without concern that they would be sued for doing so.
The eighth most common scam reported to the Fraud Hotline
was grant scams. In these scams, thieves call victims and
pretend to be from a fictitious ``Government Grants
Department.'' The con artists then tell the victims that they
must pay a fee before receiving the grant.
Romance scams were next on the list. These calls are from
scammers who typically create a fake online dating profile to
attract victims. Once a scammer has gained a victim's trust
over weeks or months, the scammer requests money to pay for an
unexpected bill, an emergency, or another alleged expense or to
come visit the victim, a trip that will not occur.
Home improvement scams rounded out the top 10 scams
reported to the Fraud Hotline in 2015. Seniors are common
targets of these scams, in which fraudsters contact homeowners
and offer to do home maintenance or yard work. The fraudsters
charge the homeowners but either do not provide the service or
do substandard work.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Top Ten Scams Reported to the Senate Aging Committee's Fraud Hotline
1. IRS IMPERSONATION SCAMS
The Treasury Inspector General for Tax Administration
(TIGTA) has called the Internal Revenue Service (IRS)
impersonation scam ``the largest, most pervasive impersonation
scam in the history of the IRS.''\1\ According to TIGTA, nearly
900,000 Americans have been targeted by scammers impersonating
IRS officials, with 12,000 to 13,000 people submitting
complaints on this scam every week as of December 2015.\2\
Additionally, 30 to 50 people a week reported that they lost
money to the scam; more than 5,000 Americans have lost a total
of at least $26 million via this scam.\3\ The IRS impersonation
scam was the most frequent scam reported to the Fraud Hotline
in 2015.
In response to the influx of calls to the Fraud Hotline,
the Committee held a hearing on April 15, 2015, titled, ``Catch
Me If You Can: The IRS Impersonation Scam and the Government's
Response,'' that examined how the scam works, steps seniors can
take to protect themselves, law enforcement's response, and
what more can be done to combat this scam.\4\ Since the
hearing, the IRS has released several lists with tips to spot
these scams and what people should do if they receive a
call.\5\
TIGTA reports that increased awareness has made a
difference, as it now takes scammers roughly 300 calls to find
a victim as opposed to 50 calls prior to the Committee's
hearing.\6\ TIGTA reports, however, that the scam has morphed
and evolved in response to guidance the IRS has issued.\7\ For
example, one of the IRS' anti-fraud tips advises consumers that
the agency will not call about taxes owed without first mailing
a bill.\8\ Recent fraud calls have revealed to investigators
that some scam artists now claim that they are following up on
letters that the IRS previously sent to the victims.
While there are multiple variations of the IRS
impersonation scam, criminals generally accuse victims of owing
back taxes and penalties. They then threaten retaliation, such
as home foreclosure, arrest, and, in some cases, deportation,
if immediate payment is not made by a certified check, credit
card, electronic wire-transfer, or pre-paid debit card. Victims
are told that if they immediately pay the amount that is
allegedly owed, the issue with the IRS will be resolved and the
arrest warrant, or other adverse action, will be cancelled.
Once victims make an initial payment, they will often be
told that further review of their tax records has indicated
another discrepancy and that they must pay an additional sum of
money to resolve that difference or else face arrest or other
adverse action. Scammers will often take victims through this
process multiple times. As long as the victims remain hooked,
the scammers will tell them they owe more money.
These scam calls most often involve a disguised, or
``spoofed,'' caller identification (caller ID) number to make
the victims believe that the call is coming from the ``202''
area code, the area code for Washington, D.C., where the U.S.
Department of the Treasury and the IRS are headquartered. In a
recent variation of this scam, calls also appear to be coming
from the ``509,'' ``206,'' and ``306'' area codes, all
Washington State area codes. Scammers have also been known to
``spoof'' their phone numbers to make it appear as though they
are calling from a local law enforcement agency. When the
unsuspecting victims see the ``Internal Revenue Service'' or
the name of the local police department appear on their caller
IDs, they are understandably concerned and are often willing to
follow the supposed government official's instructions in order
to resolve the alleged tax issue.
Caller-ID spoofing is a tactic used by scammers to disguise
their true telephone numbers and/or names on the victims'
caller-ID displays to conceal their identity and convince the
victims that they are calling from a certain organization or
entity.
Source: FCC
fraud case #1
``Lynn,'' from Ohio, called the Fraud Hotline after she learned
that her mother had been scammed out of $1,600. Lynn said that her
mother received a phone call from a scammer posing as an IRS agent. The
scammer recited a number he claimed was on his IRS badge and tricked
Lynn's mother into believing that he was an authentic IRS agent. The
alleged IRS agent told her mother that they had a warrant for her
arrest for failing to pay her taxes from 2012, and unless she paid them
today, they were going to send the police to her house and arrest her.
The scammer directed her to go to her local grocery store and buy a
prepaid debit card. After obtaining the debit card and loading it with
$500, she read the scammer the 16-digit PIN number on the back of the
card, which allowed the scammer to steal the card's funds. Upon doing
so, the scammer told her that, after a closer look at her records, it
appeared that she owed additional taxes for previous years. The scammer
directed her to buy another prepaid debit card and took the money from
that card as well. The scam continued until Lynn visited her mother and
learned what was happening. A Fraud Hotline investigator filed a report
with TIGTA on Lynn's behalf. In addition, the investigator gave Lynn
and her mother tips to avoid being scammed again.
As of December 31, 2015, the Department of Justice had only
prosecuted three individuals for their roles in the IRS
impersonation scams. Two of these individuals were prosecuted
in Florida, and the other individual was prosecuted in New
York. In July 2015, the New York perpetrator was sentenced to
more than 14 years in prison and ordered to forfeit $1 million
for crimes that stretched from December 2011 until his December
2013 arrest.\9\
The IRS released the following tips to help taxpayers
identify suspicious calls that may be associated with the IRS
imposter scam:
The IRS will never call a taxpayer to demand
immediate payment, nor will the agency call about taxes
owed without first having mailed a bill to the
taxpayer.
The IRS will never demand that a taxpayer
pay taxes without giving him or her the opportunity to
question or appeal the amount claimed to be owed.
The IRS will never ask for a credit or debit
card number over the phone.
The IRS will never threaten to send local
police or other law enforcement to have a taxpayer
arrested.
The IRS will never require a taxpayer to use
a specific payment method for taxes, such as a prepaid
debit card.
Source: https://www.irs.gov/uac/Five-Easy-Ways-to-Spot-a-
Scam-Phone-Call
fraud case #2
``Mrs. A,'' from Maine, was scammed out of $23,000 after receiving
a call from someone claiming to be from the IRS. Mrs. A was instructed
to send wire-transfers and purchase money orders, as well as make
deposits in specific bank accounts. When the phone call was
accidentally disconnected, Mrs. A received a call from a ``Lt. Green''
from a number that displayed on her caller ID as her local police
department. The con artist said that she should not hang up on the IRS
and told her that, should she hang up again, he would arrest her. This
led her to believe that the previous call was in fact from the IRS. In
addition, she also received a call that displayed as the local district
attorney's office. After eventually becoming suspicious that something
was amiss, she went to her local police department, which began
investigating the calls. As Mrs. A was being interviewed by a
detective, the imposter once again called the victim's cell phone. The
detective took the call and did not let the scammer speak to Mrs. A.
The detective spoke to her bank's fraud department and was able to stop
a pending wire transfer to an account overseas. As a result, Mrs. A
received $11,000 of her money back. A Fraud Hotline investigator spoke
with both the victim and the local detective in the case. The local
detective testified at the Committee's hearing in April 2015. TIGTA
took over this case.
2. SWEEPSTAKES SCAMS
Sweepstakes scams continue to claim senior victims who
believe they have won a lottery and only need to take a few
actions to obtain their winnings. Scammers will generally
contact victims by phone or through the mail to tell them that
they have won or have been entered to win a prize. Scammers
then require the victims to pay a fee to either collect their
supposed winnings or improve their odds of winning the
prize.\10\ According to the Federal Trade Commission (FTC) the
number of sweepstakes scams increased by 5.68 percent between
2013 and 2014.\11\
Early last Congress, the Aging Committee launched an
investigation of the Jamaican lottery scam, one of the most
pervasive sweepstakes scams.\12\ At its peak, law enforcement
and FairPoint Communications estimated that sophisticated
Jamaican con artists placed approximately 30,000 phone calls to
the United States per day and stole $300 million per year from
tens of thousands of seniors.\13\
Since the Committee began investigating this issue, the
Jamaican government passed new laws enabling extradition of the
criminals to the United States for trial, leading to the
extradition of one scammer for prosecution in the United
States.\14\ Several arrests have been made in connection with
this scam. In November 2015, a 25-year-old Jamaican national
living in the United States was sentenced to 20 years in prison
after being found guilty of selling lists of potential victims,
referred to as ``lead lists.''\15\
Sweepstakes scams start with a simple phone call, usually
from a number beginning with ``876,'' the country code for
Jamaica. At first glance, this country code looks similar to a
call coming from a toll-free American number. Scammers tell the
victims that they have won the Jamaican lottery or a brand new
car and that they must wire a few hundred dollars for upfront
processing fees or taxes for their winnings to be delivered.
Often, the criminals will instruct their victims not to share
the good news with anyone so that it will be a ``surprise''
when their families find out. Scammers tell victims to send the
money in a variety of ways, including prepaid debit cards,
electronic wire transfers, money orders, and even cash.
Of course, no such winnings are ever delivered, and the
``winners'' get nothing but more phone calls, sometimes 50 to
100 calls per day, from scammers demanding additional money.
Behind these calls is an organized and sophisticated criminal
enterprise, overseeing boiler room operations in Jamaica.
Indeed, money scammed from victims helps fund organized crime
in that island nation.\16\ Criminals once involved in narcotics
trafficking have found these scams to be safer and more
lucrative.
Lead Lists are lists of victims and potential victims. Scammers buy
and sell these lists and use them to target consumers in future scams.
Expensive ``lead lists'' identify potential victims.
Satellite maps are used to locate and describe victims' homes
to make the callers appear familiar with the community.
Elaborate networks for the transfer of funds are established to
evade the anti-fraud systems of financial institutions. Should
victims move or change their phone numbers, the con artists use
all of the technology at their disposal to find them and re-
establish contact.
The con artists adopt a variety of identities to keep the
money coming in ever-increasing amounts. Some spend hours on
the phone convincing seniors that they care deeply for them.
Victims who resist their entreaties begin receiving calls from
Jamaicans posing as American government officials, including
local law enforcement, the Federal Bureau of Investigation
(FBI), the Social Security Administration, and the Department
of Homeland Security (DHS), asking for personal data and bank
account numbers so that they can ``solve'' the crime.
fraud case #3
``Carol,'' from Washington State, called the Fraud Hotline
regarding her father, who had been the victim of the Jamaican lottery
scam. Over the past five and a half years, Carol's father lost more
than $600,000. Her father is a former Navy Captain and Korean and
Vietnam War veteran.
Carol used to give her parents $500 twice a month for expenses.
Sometimes she would send more because her mother would call saying that
her father had given away all of their money to con artists associated
with the Jamaican lottery scam. In July, Carol began sending her
parents food and gas cards and paying all of their bills directly in
lieu of sending cash. When her parents stopped receiving cash, the
lottery scammers acquired her father's personal information, contacted
the Defense Financial and Accounting Administration, and rerouted his
pension to one of their accounts. The scammers apparently ``spoofed''
the call to make it appear as though they were calling from the same
area code in which Carol's parents live.
A Fraud Hotline investigator helped Carol contact the DHS and the
local FBI field office in California. The investigator also helped
Carol provide both agencies with copies of her father's recent Verizon
bill showing the numerous calls from the 876 area code, the country
code for Jamaica, along with the corresponding dates and times. The DHS
and the FBI both said that this case was one of the largest they had
ever seen. The Fraud Hotline investigator was able to have the July
pension check reissued to Carol's father and helped arrange to have
future pension payments deposited in a family trust where scammers
would not have access to the funds.
3. ROBOCALLS/UNWANTED PHONE CALLS
In 2003, Congress passed legislation creating the national
Do-Not-Call registry with the goal of putting an end to the
plague of telemarketers who were interrupting Americans at all
hours of the day with unwanted calls.\17\ Unfortunately, 12
years after the registry was implemented, Americans are still
being disturbed by telemarketers and scammers who ignore the
Do-Not-Call registry and increasingly use robocall technology.
Robodialers can be used to distribute pre-recorded messages or
to connect the person who answers the call with a live person.
Robocalling is the process of using equipment to mechanically, as
opposed to manually, dial phone numbers in sequence.
Robocalls often originate offshore. Con artists usually
spoof the number from which they are calling to either mask
their true identity or take on a new identity. As described in
the previous section on Internal Revenue Service (IRS)
impersonation scams, fraudsters spoof their numbers to make
victims believe they are calling from the government or another
legitimate entity. In addition, scammers will often spoof
numbers to appear as if they are calling from the victims' home
states or local area codes.
Robocalls have become an increasing nuisance to consumers
in recent years due to advances in technology. Phone calls used
to be routed through equipment that was costly and complicated
to operate, which made high-volume calling from international
locations difficult and expensive. This traditional, or legacy,
equipment sent calls in analog format over a copper wire
network and could not easily spoof a caller ID. Today, phone
calls can be digitized and routed from anywhere in the world at
practically no cost. This is done using Voice over Internet
Protocol (VoIP) technology, which sends voice communications
over the Internet. Robocalling allows scammers to maximize the
number of individuals and households they can reach.
Voice over Internet Protocol (VoIP) is a technology that allows a
caller to make voice calls using a broadband Internet connection
instead of a traditional (or analog) phone connection. Some VoIP
services may only allow a user to call other people using the same
service, but others may allow users to call anyone who has a telephone
number, including local, long distance, mobile, and international
numbers.
Many companies now offer third-party spoofing and
robodialing services. Third-party spoofing companies provide an
easy-to-use computer interface or cell phone app that allows
calls to be spoofed at a negligible cost. To demonstrate how
accessible this technology is, an Aging Committee staff member
spoofed two separate calls to Chairman Susan Collins during a
Committee hearing on June 10, 2015, titled ``Ringing Off the
Hook: Examining the Proliferation of Unwanted Calls.''\18\ By
using an inexpensive smartphone app, the staff member was able
to make it appear that the calls were from the IRS and the
Department of Justice, respectively. The hearing examined why
so many Americans are constantly receiving unsolicited calls
even though they are on the national Do-Not-Call registry,
discussed how advances in telephone technology makes it easier
for scammers to cast a wide net and increase the number of
potential victims they can reach, and highlighted possible
technological solutions to this menace.\19\
fraud case #4
Linda Blase, from Texas, testified at the Aging Committee's June
2015 hearing that she had been plagued by robocalls for years. She
described how these calls had disrupted her personal life and the small
business she operated out of her home. Although Linda had registered
with both the national Do-Not-Call registry and her state's registry,
she continued to receive telemarketing calls and an increasing number
of government impersonation scam calls. Linda began keeping a log of
these calls and also began using a call blocking device to limit the
number of nuisance calls to her home. Like many other seniors, Linda
did not feel comfortable letting the phone ring or screening calls
since she did not want to miss an important medical or business-related
call. This led her to bring this problem to the attention of the
Committee in the hope that a solution could be found.
In response to the high volume of robocalls that are made
in violation of the national Do-Not-Call registry, the Federal
Trade Commission (FTC) launched a contest in October 2012 to
identify innovative solutions to protect consumers from these
calls.\20\ In April 2013, the FTC announced that Nomorobo, a
free service that screens and blocks robocalls made to VoIP
phone numbers, was one of two winners of the their Robocall
Challenge.\21\
Once a consumer registers his or her phone number, Nomorobo
reroutes all incoming phone calls to a server that instantly
checks the caller against a whitelist of legitimate callers and
a blacklist of spammers.\22\ If the caller is on the whitelist,
the phone continues to ring, but if the number is on the
blacklist, the call will disconnect after one ring. Aging
Committee Fraud Hotline investigators have referred callers who
contact the Hotline regarding robocalls to the Nomorobo website
and have received positive feedback from callers who chose to
register for the service.
In the spring of 2015, the FTC announced that it was
launching two new robocall contests challenging the public to
develop a crowd-sourced ``honeypot'' and to better analyze data
from an existing honeypot.\23\ In this context, a honeypot is
an information system that attracts robocalls so that
researchers can analyze them and develop preventive
techniques.\24\ In August 2015, the FTC announced that
RoboKiller, a mobile app that blocks and forwards robocalls to
a crowd-sourced honeypot, was selected as the winner of the
Robocalls: Humanity Strikes Back contest.\25\ Champion
RoboSleuth, which analyzes data from an existing robocall
honeypot and develops algorithms that identify likely
robocalls, was selected as the winner of the FTC's DetectaRobo
challenge.\26\
The Federal Communications Commission (FCC) has published
the following tips for consumers to avoid being deceived by
caller-ID spoofing:
Do not give out personal information in
response to an incoming call. Identity thieves are
clever: they often pose as representatives of banks,
credit card companies, creditors, or government
agencies to convince victims to reveal their account
numbers, Social Security numbers, mothers' maiden
names, passwords, and other identifying information.
If you receive an inquiry from a company or
government agency seeking personal information, do not
provide it. Instead, hang up and call the phone number
on your account statement, in the phonebook, or on the
company's or government agency's website to find out if
the entity that supposedly called you actually needs
the requested information from you.
Source: https://consumercomplaints.fcc.gov/hc/en-us/
articles/202654304-Spoofing-and-Caller-ID
4. COMPUTER SCAMS
The Aging Committee saw an increase in the frequency and
severity of computer-based scams in 2015. Private industry has
seen a similar increase in the prevalence of this scam:
Microsoft reported receiving more than 180,000 consumer
complaints of computer-based fraud between May 2014 and October
2015.\27\ The company estimated that 3.3 million Americans are
victims of technical support scams annually, with losses of
roughly $1.5 billion per year.\28\ Unlike other victim-assisted
frauds, where the scammers are successful in just one out of a
hundred-plus attempts, it appears that computer-based scams
have a very high success rate.\29\ In addition, in 2014, the
Internet Crime Complaint Center (IC3), a partnership between
the Federal Bureau of Investigation (FBI) and the National
White Collar Crime Center, received 269,492 computer fraud
complaints with a loss of $800,492,073.\30\ Americans age 60
and older accounted for 16.57 percent of these complaints.\31\
In response to the increase in complaints to the Fraud
Hotline, the Committee held a hearing on October 21, 2015,
titled ``Virtual Victims: When Computer Tech Support Becomes a
Scam.''\32\ The hearing featured representatives from Microsoft
and the Federal Trade Commission (FTC) who spoke about the
challenges in combating this fraud given its many variations
and constant changes.\33\
fraud case #5
Frank Schiller, from Maine, testified at the Aging Committee's
hearing on computer tech support scams in October 2015. Frank's
experience with tech support scammers began in October 2013, when he
received a call from a man who claimed to be a Microsoft contractor.
The con artist told Frank there was a problem with his computer. He
gained Frank's trust and convinced Frank to allow him to obtain remote
access to his computer. Shortly thereafter, Frank's computer began to
malfunction, and the con artist explained that this was due to viruses
that ``Microsoft'' could fix using two programs costing $249 and $79.
Frank attempted to pay for these programs using his credit card, but
the scammer told him that he could not use a credit card because
Microsoft's bank was in India. The con artist directed Frank to the
Western Union website and moved very quickly through the payment system
before Frank could tell what was happening. Two months later, the con
artist called Frank again to say that Microsoft had rescinded his
contract and would need to refund Frank's money. The con artist claimed
that the refund could not be processed using Frank's credit card and
asked for his checking account number. This information was used to
steal another $980 from Frank.
The basic scam involves con artists trying to gain victims'
trust by pretending to be associated with a well-known
technology company, such as Microsoft, Apple, or Dell. They
then falsely claim that the victims' computers have been
infected with a virus. Con artists convince victims to give
them remote access to their computers, personal information,
and credit card and bank account numbers so that victims can be
``billed'' for fraudulent services to fix the virus. In a
related scam, individuals surfing the Internet may see a pop-up
window on their computer instructing them to contact a tech-
support agent. Sometimes, scammers have used the pop-up window
to hack into victims' computers, lock them out, and require
victims to pay a ransom to regain control of their computers.
Below are several of the most common variations of this scam:
Scammers Contact Victims. In the most prevalent
variation of this scam, con artists randomly call potential
victims and offer to clean their computers and/or sell them a
long-term or technical support ``service.'' The con artists
usually direct victims' computers to display benign error
messages that appear on every computer to convince victims that
their computers are malfunctioning. Scammers generally charge
victims between $150 and $800 and may install free programs or
trial versions of antivirus programs to give the illusion that
they are repairing victims' computers. If victims express
concern about the price, the con artists will often entice
victims to pay by offering a ``senior citizen discount.''
Victims Unknowingly Contact Scammers. Some
consumers unknowingly call a fraudulent tech support number
after viewing the phone number online. Consumers who search for
tech support online may see the number for the scammer at the
top of their ``sponsored results.'' The FTC found that a
network of scammers paid Google more than one million dollars
since 2010 for advertisements and for certain key search
terms.\34\ Some key search terms included: ``virus removal,''
``how to get rid of a computer virus,'' ``McAfee Customer
Support,'' and ``Norton Support.'' These search terms are
cleverly chosen to confuse the consumer into thinking the
fraudsters are associated with well-known companies. Other
fraudsters use pop-up messages on consumers' computer screens
that direct potential victims to call them.
Ransomware. Scammers use malware or spyware to
infect victims' computers with a virus or encrypt the computers
so they cannot be used until a fee is paid. If victims refuse
to pay, scammers will render the computer useless, prompting
the appearance of a blue screen that can only be removed with a
password known by the scammers. The Fraud Hotline has received
reports that scammers sometimes admit to victims that it is a
scam and refuse to unlock the victims' computers unless a
``ransom'' payment is made.
Fraudulent Refund. Scammers contact victims
stating they are owed a refund for prior services. The scammers
generally convince victims to provide them with access to their
computers to process an online wire transfer. Instead of
refunding the money, however, the fraudsters use the victims'
account information to charge the consumers.
The FTC has responded to computer-based scams through law
enforcement actions and ongoing investigations. In 2014, the
agency brought action against six firms based primarily in
India that were responsible for stealing more than $100 million
from thousands of victims.\35\
fraud case #6
``Karl,'' from Florida, called the Aging Committee's Fraud Hotline
after he realized that he had been the victim of a computer scam. Karl
said he had received a call from someone claiming to be from Microsoft.
The scammer told Karl that his computer had been hacked and was about
to crash. The ``technician'' instructed Karl to go to his computer and
click on programs so he could show him the problem. When Karl did so,
the scammer was able to access his computer, and an error message
subsequently appeared on the screen. Karl was told that his computer
could be cleaned for $300. Karl agreed and gave the con artist his
credit card number. The next day, Karl received another call from an
individual claiming to be from Microsoft, who told him that his
computer needed to be updated again. This time, it was going to cost
$150. At this point, Karl realized that he had been scammed. Karl
called an Aging Committee Fraud Hotline investigator, who told him that
these scams were prevalent and recommended ways he might protect
himself in the future. Karl was encouraged to contact his credit card
company, the IC3, and his local police department. He was also
encouraged to have his computer cleaned by a local computer repair
service to ensure that the scammers did not download malware.
Tips from the FTC to help consumers avoid becoming a victim
of a computer-based scam:
Do not give control of your computer to a third
party that calls you out of the blue.
Do not rely on caller ID to authenticate a caller.
Criminals spoof caller ID numbers. They may appear to be
calling from a legitimate company or a local number when they
are not even in the same country as you.
If you want to contact tech support, look for a
company's contact information on its software package or on
your receipt.
Never provide your credit card or financial
information to someone who calls and claims to be from tech
support.
If a caller pressures you to buy a computer
security product or says there is a subscription fee associated
with the call, hang up. If you're concerned about your
computer, call your security software company directly and ask
for help.
Make sure you have updated all of your computer's
anti-virus software, firewalls, and pop-up blockers.
Source: http://www.consumer.ftc.gov/articles/0346-tech-
support-scams
5. IDENTITY THEFT
Identity theft has been the Federal Trade Commission's
(FTC) most common consumer complaint for the past 15 years,
with 212,698 Americans reporting being victimized in 2014
alone.\36\ Nearly 40 percent of the identity theft complaints
that the FTC received in 2014 were reported by consumers age 50
and older.\37\
Identity thieves not only disrupt the lives of individuals
by draining bank accounts, making unauthorized credit card
charges, and damaging credit reports, but they also often
defraud the government and taxpayers by using stolen personal
information to submit fraudulent billings to Medicare or
Medicaid or apply for and receive Social Security benefits to
which they are not entitled. Fraudsters also use stolen
personal information, including Social Security numbers (SSN),
to commit tax fraud or to fraudulently apply for jobs and earn
wages. According to the FTC, government documents/benefits
fraud was the most common type of identity theft reported by
consumers in 2014, comprising 38.7 percent of all identity
theft complaints.\38\
fraud case #8
``Amanda,'' from Maine, contacted the Fraud Hotline after she
learned that she had been the victim of identity theft. When Amanda
tried to file her taxes online electronically, she was notified that
someone had already submitted a tax return using her and her husband's
names and SSNs. She was told that it could take between three and six
months for the issue to be resolved and for her to receive her tax
return. A Fraud Hotline investigator was able to work with Amanda and
her local Taxpayer Advocate Service to process her return in five
weeks. Once Amanda received her refund, the Taxpayer Advocate advised
her that the Internal Revenue Service would apply extra scrutiny to her
return for the next three years to help ensure that no one tries to use
her name and SSN to submit another fraudulent return.
Tips to help secure your identity:
Medicare and Social Security will not call you to
ask for your bank information or SSN.
There will never be a fee charged to obtain a
Social Security or Medicare card.
Never give out personal information over the
phone.
Sensitive personal and financial documents should
be kept secure at all times.
Review all medical bills to spot any services that
you didn't receive.
Tax-related identity theft continues to disrupt the lives
of Americans. The growing use of commercial tax filing software
and online tax filing services has led to opportunities for
thieves to commit fraud without stealing SSNs. In some cases,
thieves can illegally access an existing customer's account
simply by entering that individual's username, e-mail address,
or name and correctly guessing the password. This is often
referred to as an ``account takeover.'' Whether the thief uses
this method to access an existing account or uses stolen
personal information to create a new account, the end result is
often the same: early in the tax filing season, the thief files
a false tax return using a victim's identity and directs the
refund to his own mailing address or bank account. The victim
only discovers this theft when he files his own return and the
Internal Revenue Service (IRS) refuses to accept it because a
refund has already been issued. In November 2015, the IRS
reversed a long-standing policy and now will provide victims
with copies of the fake returns upon written request.\39\ The
documents will provide victims with details to help them
discover how much of their personal information was stolen.
Medical identity theft occurs when someone steals personal
information--an individual's name, SSN, or health insurance
claim number (HICN)--to obtain medical care, buy prescription
drugs, or submit fake billings to Medicare. Medical identity
theft can disrupt lives, damage credit ratings, and waste
taxpayer dollars. Some identity thieves even use stolen
personal information to obtain medical care for themselves or
others, putting lives at risk if the theft is not detected and
the wrong information ends up in the victims' medical files.
Claims for services or items obtained with stolen HICNs might
be included in the beneficiary's Medicare billing history and
could delay or prevent the beneficiary from receiving needed
services until the discrepancy is resolved.
fraud case #7
``Katie,'' from Maine, contacted the Fraud Hotline after she
received a credit card bill in the mail from Victoria's Secret in the
amount of $730.45. Katie, who is in her 70s, said that she is certain
that she never purchased anything from Victoria's Secret. The bill
indicated that someone opened a Victoria's Secret credit card at a
Florida location in August. The statement showed two transactions: the
first one in the amount of $30 for lip-gloss, and the second
transaction totaling $700 in gift cards. Most likely, whoever opened
the card ran the first charge as a test to make sure it would work.
Katie had already filed a police report with her police department and
contacted Victoria's Secret. Victoria's Secret cancelled the card and
is not holding Katie responsible for the charges. A Fraud Hotline
investigator explained to Katie that she should notify one of the three
national credit reporting companies to place a fraud alert on her
credit report. By placing a fraud alert, she is also entitled to a free
copy of her credit report to see if there has been any other fraudulent
activity committed under her name or SSN. The investigator also filed a
report with the FTC on Katie's behalf.
In April 2015, President Obama signed a law that requires
the Centers for Medicare & Medicaid Services (CMS) to remove
SSNs from Medicare cards by 2019.\40\ On October 7, 2015, the
Aging Committee held a hearing titled, ``Protecting Seniors
from Identity Theft: Is the Federal Government Doing
Enough?''\41\ The Committee heard testimony from the CMS
official in charge of implementing the Medicare card
replacement process and from the Health and Human Services
Office of Inspector General about investigative efforts to
combat medical identity theft.\42\
What To Do if You Suspect You Are a Victim of Identity Theft
What To Do Right Away:
1. Call the companies where you know the fraud occurred.
2. Place a fraud alert with a credit reporting agency and
get your credit report from one of the three national credit
bureaus.
3. Report identity theft to the FTC.
4. File a report with your local police department.
What To Do Next:
1. Close new accounts opened in your name.
2. Remove bogus charges from your accounts.
3. Correct your credit report.
4. Consider adding an extended fraud alert or credit
freeze.
Source: https://www.identitytheft.gov/
6. GRANDPARENT SCAMS
A common scam that deliberately targets older Americans is
the ``grandparent scam.'' In this scam, imposters either
pretend to be the victim's grandchild and/or claim to be
holding the victim's grandchild. The fraudsters claim the
grandchild is in trouble and needs money to help with an
emergency, such as getting out of jail, paying a hospital bill,
or leaving a foreign country. Scammers play on victims'
emotions and trick concerned grandparents into wiring money to
them. Once the money is wired, it is difficult to trace.
The Fraud Hotline has received frequent reports of con
artists telling victims that they were pulled over by the
police and arrested after drugs were found in the car. The
scammer who is pretending to be the victim's grandchild will
often tell the victim to refrain from alerting the grandchild's
parents. The scammer then asks the victim to help by sending
money in the fastest way possible. This typically requires the
victim to go to a local retailer and send an electronic wire
transfer of several thousand dollars.
After payment has been made, the fraudster will more likely
than not call the victim back, claiming that more money is
needed. Often, scammers claim that there was another legal fee
they were not initially aware of. The second call is typically
what alerts the victims that they have been scammed. Victims
have told Fraud Hotline investigators that, once they realized
they had been duped, they wished they had asked the con artists
some simple questions that only their true grandchild would
know how to answer.
fraud case #9
``Katelyn,'' from Maryland, contacted the Fraud Hotline to report
that her mother had been the victim of a grandparent scam. Katelyn said
that when her mother, ``Meredith,'' answered the phone, a young man
said, ``Hi Grammy, I've had an accident in the Bahamas and need help.''
Meredith thought it was her grandson Kyle and asked what she could do
to help. The con artist told her that he needed $9,000 to pay for
towing and hospital fees, as well as money to help get back home since
the car had been totaled. He begged her not to tell his mom. Meredith
was instructed to drive to the local Western Union location and wire
the money, which she quickly did. When Meredith returned home, the con
artist called her again and asked for more money. Meredith became
suspicious and called her daughter, who told her that Kyle was not in
the Bahamas and was home earlier that day. Her county sheriff's
department referred Katelyn to the Fraud Hotline, where an investigator
helped her file a report with Western Union's Fraud Department, the
FTC, and the DHS.
In another version of the scam, instead of the
``grandchild'' making the phone call, the con artist pretends
to be an arresting police officer, a lawyer, or a doctor. It is
also common for con artists impersonating victims'
grandchildren to talk briefly with the victims and then hand
the phone over to an accomplice impersonating an authority
figure. This gives the scammers' stories more credibility and
reduces the chance that the victims will recognize that the
voice on the phone does not belong to their grandchild.
In 2014, the FTC received 14,521 complaints of individuals
impersonating friends and family members, up from 11,793 in
2012.\43\ Between January 1, 2012, and May 31, 2014,
individuals reported more than $42 million in losses to the FTC
from scams involving the impersonation of family members and
friends.\44\
fraud case #10
``Jackie,'' from Kentucky, called the Fraud Hotline to report that
she had been the victim of a grandparent scam. Jackie told
investigators that she had answered a phone call and heard a young
man's voice on the phone respond, ``Grandma.'' Jackie asked if it was
``Tommy,'' her grandson. The man responded, ``Yes, this is Tommy.''
Jackie told a Fraud Hotline investigator that ``her grandson'' on the
phone said he was in Orlando with some friends when the police pulled
their car over and arrested them for drug possession. The con artist
told her that he was not using any drugs and did not know they were in
the car. He told Jackie he needed money to post bail so he could come
home. That is when the phone was handed to another individual who was
allegedly a bondsman. The bondsman instructed Jackie to go to her local
Walmart and buy $4,000 in iTunes gift cards. The bondsman told her she
needed to do it quickly, because if she did not have all the cards
within an hour when he called back, the bail was going to increase to
$6,000. Once Jackie purchased the cards, she read the numbers on the
back of the cards to the scammers. She was then told that there were
additional fines and that she would need to send an additional $1,500.
At this point, Jackie realized she had been scammed. Jackie called her
grandson, who was safe at home. Jackie explained to the Fraud Hotline
investigator that she wished she had asked a question that only her
true grandson could have answered. By the time Jackie called the Fraud
Hotline, she and her grandson had already filed a complaint with
Apple's Fraud Department and the local police department. The Fraud
Hotline investigator filed a report with the Federal Trade Commission
(FTC) and the Department of Homeland Security (DHS) on Jackie's behalf.
The investigator also gave Jackie tips on how to avoid being scammed
over the phone in the future.
7. ELDER FINANCIAL ABUSE
Financial exploitation of older Americans is the illegal or
improper use of an older adult's funds, property, or assets.
According to MetLife's Mature Market Institute, in 2010 seniors
lost an estimated $2.9 billion because of financial
exploitation, $300 million more than the year before, although
these numbers are likely substantially underreported.\45\ One
study found that, for every case of financial fraud that is
reported, as many as 14 go unreported.\46\ A 2011 Government
Accountability Office (GAO) study found that approximately 14.1
percent of adults age 60 and older experienced physical,
psychological, or sexual abuse; potential neglect; or financial
exploitation in the past year.\47\
The Fraud Hotline documents complaints of elder abuse and
refers callers to Adult Protective Services (APS) for further
action. APS employees receive reports of alleged abuse,
investigate these allegations, determine whether or not the
alleged abuse can be substantiated, and arrange for services to
ensure victims' well-being.\48\ APS can also refer cases to law
enforcement agencies or district attorneys for criminal
investigation and prosecution.\49\ APS workers ideally
coordinate with local law enforcement and prosecutors to take
legal action, but the effectiveness of this relationship can
vary significantly from state to state. As of 2015, every state
has an elder abuse statute.\50\
fraud case #11
``Richard,'' from Arizona, called to report that his 84-year-old
father, who has Alzheimer's, was the victim of financial elder abuse.
Richard said that six months after his mother died, a 33-year-old woman
started interacting and caring for his father. Richard claimed that she
and her family depleted his father's accounts and convinced him to sell
his house. The woman is preventing Richard and other family members
from seeing his father. A Fraud Hotline investigator spoke with Richard
and provided him with the number for his state's APS and attorney
general's office.
Older Americans are particularly vulnerable to financial
exploitation because financial decision-making ability can
decrease with age. One study found that women are almost twice
as likely to be victims of financial abuse.\51\ Most victims
are between the ages of 80 and 89, live alone, and require
support with daily activities.\52\ Perpetrators include family
members; paid home care workers; those with fiduciary
responsibilities, such as financial advisors or legal
guardians; or strangers who defraud older adults through mail,
telephone, or Internet scams.\53\
Victims whose assets have been taken by family members
typically do not want their relatives to be criminally
prosecuted, leaving civil action as the only mechanism to
recover stolen assets.\54\ Few civil attorneys, however, are
trained in issues related to older victims and financial
exploitation.\55\ Money that is stolen is rarely recovered,
which can undermine victims' ability to support or care for
themselves. Consequently, the burden of caring for exploited
older adults may fall to various state and federal
programs.\56\
One of the provisions of the Elder Justice Act of 2009,
which was enacted in 2010, seeks to improve the federal
response to this issue.\57\ The law formed the Elder Justice
Coordinating Council, which first convened on October 11, 2012,
and is tasked with increasing cooperation among federal
agencies.\58\ Experts agree that multidisciplinary teams that
bring together professionals from various fields such as social
work, medicine, law, nursing, and the financial industry can
expedite and resolve complex cases, identify systemic problems,
and raise awareness about emerging scams.\59\
While some states have laws that require financial
professionals to report suspected financial exploitation of
seniors to the appropriate local or state authorities, there
currently is no federal requirement to do so. Some financial
professionals may fail to report suspected financial
exploitation due to a lack of training or fear of repercussions
for violating privacy laws. In October 2015, Aging Committee
Chairman Susan Collins and Ranking Member Claire McCaskill
introduced the Senior$afe Act of 2015, which would provide
certain individuals with immunity for disclosing suspected
financial exploitation of senior citizens.\60\ The Financial
Industry Regulatory Authority is simultaneously pursuing
rulemaking that would empower financial professionals to
protect their senior clients from financial abuse.\61\ In the
private sector, Wells Fargo has established internal training
programs for its employees so that they are better equipped to
detect and prevent financial abuse before it occurs.\62\
fraud case #12
``Mackenzie,'' from Arizona, contacted the Fraud Hotline when she
noticed that her daughter, who holds power of attorney, had been taking
money out of her account without her permission. Mackenzie told a Fraud
Hotline investigator that she is coherent and does not suffer from any
diminished capacity. The investigator provided Mackenzie with the
number for her state's APS and her local Area Agency on Aging to help
her resolve the matter.
Some localities with large senior populations have
established special units to address elder abuse, including
elder financial abuse. In October 2015, prosecutors in
Montgomery County, Maryland, successfully brought charges
against an individual who, over several years, embezzled more
than $400,000 before one of the victim's bankers discovered
suspicious activity in his account and alerted APS.\63\ The
fraudster had convinced the victim to give her power of
attorney and control over his finances. She was sentenced to
five years in jail for financial exploitation of a vulnerable
adult, theft, and embezzlement.\64\
The Aging Committee has brought to light many schemes that
have defrauded seniors out of their hard-earned retirement
savings. It is deeply troubling when a senior falls victim to
one of these schemes, but it is even more egregious when the
perpetrator is a family member, caregiver, or trusted financial
adviser. At the Aging Committee's first hearing of the 114th
Congress, ``Broken Trust: Combating Financial Exploitation of
Vulnerable Seniors,'' Philip Marshall, the grandson of well-
known philanthropist Brooke Astor, testified that his father,
Anthony Marshall, mistreated his mother and mismanaged her
assets while she suffered from Alzheimer's disease.\65\ In
2009, after a six-month criminal trial, Mr. Marshall's father
was found guilty on 13 of the 14 counts against him.\66\
8. GRANT SCAMS
Grant scams, of which there are multiple variations, are
frequently reported to the Aging Committee's Fraud Hotline. In
the most common version of this scam, consumers receive an
unsolicited phone call from con artists claiming that they are
from the ``Federal Grants Administration'' or the ``Federal
Grants Department''--agencies that do not exist. In another
version of this scam, scammers place advertisements in the
classified section of local newspapers offering ``free
grants.'' Scammers will request that victims wire money for
processing fees or taxes before the money can be sent to them.
The Federal Trade Commission (FTC) defines grant scams as,
``[d]eceptive practices by businesses or individuals marketing
either government grant opportunities or financial aid
assistance services; problems with student loan processors,
debt collectors collecting on defaulted student loans, diploma
mills, and other unaccredited educational institutions;
etc.''\67\ According to FTC data, the frequency of Americans
reporting grant scams has dropped over the past three
years.\68\ In 2014, the FTC received 8,032 complaints, which
was about a 10 percent decrease from the prior year.\69\
fraud case #13
``Carol,'' from West Virginia, called the Fraud Hotline to report a
voicemail she received from someone claiming to be from the ``U.S.
Government Grant Office.'' Although the phone number did not display on
her caller ID, the voicemail directed her to call a 202 number, which
is the area code for Washington, D.C. When she called the number, the
man who answered told her that she had been awarded a $7,000 grant, but
she had to pay $475 in taxes to receive it. Carol knew this was a scam
and hung up immediately. Although Carol did not lose any money, a Fraud
Hotline investigator filed a complaint with the FTC, Treasury Inspector
General for Tax Administration (TIGTA), and the Department of Homeland
Security (DHS) on her behalf.
fraud case #14
``Charles,'' from Maine, contacted the Aging Committee's Fraud
Hotline to report a call he received from someone claiming to be from
the ``Federal Grant Administration'' congratulating him on receiving a
government grant in the amount of $9,000. The number contained a 202
area code, which belongs to Washington, D.C. The scammer told Charles
that he had to pay a fee of $280 and gave him a number for him to call
the ``Federal Bank'' to get details on how to receive his grant. The
number for the ``Federal Bank'' had a 646 area code, which belongs to
New York City. When Charles called the ``Federal Bank,'' someone
answered ``Federal Bank,'' took his name, and explained to him that, in
order to receive his grant, he had to send them a Western Union wire
transfer. Charles went to his local Western Union outlet and sent the
wire transfer. When Charles called the bank back to see if it had
received the transfer, he was told that there was another fee that the
bank was not initially aware of. That is when he realized he had been
scammed. A Fraud Hotline investigator helped Charles file a complaint
with TIGTA, the FTC, the Western Union fraud department, and the DHS.
The investigator also contacted the local Western Union location to
alert them to the fraud. The investigator explained that these scam
calls are often geographically based and that it is likely that others
in the area may receive these calls.
The National Consumers League has published the following
tips for consumers to avoid falling victim to a federal grant
scam:
Do not give out your bank account information to
anyone you do not know. Scammers pressure people to divulge
their bank account information so that they can steal the money
in the account. Do not share bank account information unless
you are familiar with the company and know why the information
is necessary.
Government grants are made for specific purposes,
not just because someone is a good taxpayer. They also require
an application process; they are not simply given over the
phone. Most government grants are awarded to states, cities,
schools, and nonprofit organizations to help provide services
or fund research projects. Grants to individuals are typically
for things like college expenses or disaster relief.
Government grants never require fees of any kind.
You might have to provide financial information to prove that
you qualify for a government grant, but you never have to pay
to get one.
Source: http://www.fraud.org/scams/telemarketing/
government-grants
9. ROMANCE SCAMS/CONFIDENCE FRAUD
More and more Americans are turning to the Internet for
dating. As of December 2013, one in 10 American adults had used
online dating services, and online dating is now a $2 billion
industry.\70\ As Americans increasingly turn to online dating
to find love, con artists are following suit, not for love, but
for money. In 2014, the Aging Committee's Fraud Hotline began
receiving reports from individuals regarding romance scams.
Sometimes these reports were not just from seniors, but also
from friends and family members whose loved ones were deeply
involved in a fictitious cyber-relationship. This is one of the
most heartbreaking scams because con artists exploit seniors'
loneliness and vulnerability.
In a related scam known as confidence fraud, con artists
gain the trust of victims by assuming the identities of U.S.
soldiers. Victims believe they are corresponding with an
American soldier who is serving overseas who claims to need
financial assistance. Scammers will often take the true rank
and name of a U.S. soldier who is honorably serving his or her
country somewhere in the world, or has previously served and
been honorably discharged. In addition, the con artists will
even use real photos of that soldier in their profile pages,
giving their stories more credibility.
Typically, scammers contact victims online, either through
a chatroom, dating site, social media site, or email. According
to the Federal Bureau of Investigation's (FBI) Internet Crime
Complaint Center (IC3), 12 percent of the complaints submitted
in 2014 contained a social media aspect.\71\ Con artists have
been known to create elaborate profile pages, giving their
fabricated story more credibility. Con artists often call and
chat on the phone to prove that they are real. These
conversations can take place over weeks and even months as the
con artists build trust with their victims. In some instances,
con artists have even promised to marry their victims.
2014 FBI COMPLAINTS OF CONFIDENCE FRAUD AND ROMANCE SCAMS
------------------------------------------------------------------------
Age Range Complaints Loss
------------------------------------------------------------------------
Under 20............................. 30 $37,432
20-29................................ 457 $614,295
30-39................................ 929 $3,765,553
40-49................................ 1,575 $21,285,533
50-59................................ 1,805 $34,659,425
Over 60.............................. 1,087 $26,350,745
Total............................ 5,883 $86,713,003
------------------------------------------------------------------------
Source: https://www.fbi.gov/news/news_blog/2014-ic3-annual-report
Inevitably, con artists in these scams will ask their
victims for money for a variety of things. Often the con
artists will ask for travel expenses so they can visit the
victims in the United States. In other cases, they claim to
need money for medical emergencies, hotel bills, hospital bills
for a child or other relative, visas or other official
documents, or losses from a temporary financial setback.\72\
Unfortunately, in spite of telling their victims they will
never ask for any more money, something always comes up
resulting in the con artists requesting more money.
Con artists may send checks for victims to cash under the
guise that they are outside the country and cannot cash the
checks themselves, or they may ask victims to forward the
scammer a package. The FBI warns that, in addition to losing
money to these con artists, victims may also have unknowingly
taken part in money laundering schemes or shipped stolen
merchandise.\73\
In 2014, the FBI's IC3 received more than 5,883 complaints
about romance and confidence scams that cost victims $86.7
million dollars.\74\ Nearly half of these victims were age 50
or older, and this group accounted for approximately 70 percent
of the money lost to this scam last year.\75\ Romance and
confidence scams disproportionally target women, usually
between the ages of 30 and 55 years old.\76\ Unfortunately,
both the amount of financial loss and the number of complaints
for this crime have increased in recent years.\77\
fraud case #15
``Debbie,'' from Maine, contacted the Fraud Hotline to report that
she had lost more than $140,000 in an online dating scam. The scam
began in May 2014 when she met a man on the website
``plentyoffish.com,'' who claimed to live in Miami. The man, who said
his name was ``Lex,'' told Debbie that his employer was sending him to
Benin in Africa. The pair continued to correspond, and, two months
later, Lex told Debbie that his bank accounts were frozen and he needed
her to send him money until he could regain access to his accounts. She
started wiring money from MoneyGram and pre-paid debit cards in $2,000
to $3,000 increments to an address in Benin. After a while, Debbie
became suspicious that this was a scam and stopped sending money. Then,
in October 2014, she received emails from a bank she believed was real,
saying it could reimburse her for the money she sent to Lex. The emails
were fake, possibly from the same scammer, and charged her thousands of
dollars in processing fees. She ended up transferring $40,000 into
different bank accounts in the United States. In all, Debbie lost more
than $140,000 to this scam. Debbie provided a Fraud Hotline
investigator with more than 400 pages of emails and wire transfer
receipts. The investigator reported the crime to the FTC, the FBI's
IC3, and the Department of Homeland Security.
Tips From The FBI's IC3 To Help Prevent Victims From Falling Victim To
Romance Scams
Be cautious of individuals who claim the romance
was destiny or fate, or that you are meant to be together.
Be cautious if an individual tells you he or she
is in love with you and cannot live without you but needs you
to send money to fund a visit.
Fraudsters typically claim to be originally from
the United States (or your local region), but are currently
overseas, or going overseas, for business or family matters.
Source: https://www.fbi.gov/news/news_blog/2014-ic3-annual-
report
10. HOME IMPROVEMENT SCAMS
The last of the top 10 scams reported to the Fraud Hotline
in 2015 were home improvement scams. There are several
variations of this scam in which scammers show up at victims'
doors and offer to perform a service for a price that seems
fair. These service jobs frequently involve, but are not
limited to, repairing a roof, repaving a driveway, repainting a
house or room, or installing a home security system. The
contractors usually ask for immediate payment in advance but
then do substandard work, or no work at all. Seniors, those who
live alone, individuals with disabilities, and victims of
weather-related disasters are common targets.\78\
Home improvement scams occur frequently during a change of
season. Con artists will often take advantage of the warmer
weather, or approaching cooler weather, and use it as an
opportunity to convince victims that it is the perfect time to
get home improvement jobs done. In 2014, the Federal Trade
Commission (FTC) received 8,327 complaints about home repair,
improvement, and product scams.\79\
2014 FEDERAL BUREAU OF INVESTIGATION'S COMPLAINTS OF HOME IMPROVEMENT
SCAMS
------------------------------------------------------------------------
------------------------------------------------------------------------
Home Appliances......................................... 1,681
Home Furnishings........................................ 1,001
Home Protection Devices................................. 823
Home Repair............................................. 1,856
Housing................................................. 2,997
Total:.............................................. 8,327
------------------------------------------------------------------------
Source: https://www.ftc.gov/system/files/documents/reports/consumer-
sentinel-network-data-book-january-december-2014/sentinel-cy2014-
1.pdf.
fraud case #16
``Samson,'' from Texas, contacted the Fraud Hotline to report that
he had paid a contractor $10,000 to repair one side of his roof. After
the work was completed, however, his roof started to leak again. Samson
said that he had been trying for more than a month to get in contact
with the contractor, but to no avail. Samson heard about the contractor
through an advertisement in the local newspaper. A Fraud Hotline
investigator encouraged Samson to contact the Texas Attorney General's
Office of Consumer Protection, the Texas Commission of Licensing and
Regulation, and the Texas Legal Services Center.
Scammers will also frequently target individuals who have
been affected by a recent weather-related disaster. Con artists
may appear after a storm, promising to help with immediate
clean-up and debris removal. For instance, after a flood, these
scammers may tell victims that they can restore their
appliances or haul away damaged items for a fee. Scammers then
demand immediate payment for work that they will never do.\80\
Unlicensed and unskilled contractors may also offer to restore
damaged homes and then fail to do the work or do a substandard
job. Since flooding can cause lasting problems, such as mold,
it's important that homeowners verify that any company they are
considering to clean or repair their homes has the proper
licenses, insurance, and experience to do the job.
fraud case #17
``Hannah,'' from Mississippi, contacted the Fraud Hotline to report
that she had been scammed out of $3,000. Hannah was approached by a
contractor who noticed that her driveway was cracked and had several
potholes and bumps. The contractor indicated that he had just finished
a job in the neighborhood and that he could give her a good deal on
repairing her driveway. Hannah agreed and gave the contractor a $1,500
deposit. The contractor, however, never returned to do the job. Hannah
had not signed a contract, nor did she have the contractor's phone
number. Hannah was encouraged to contact Mississippi's Attorney
General's Office of Consumer Protection and her local police
department.
Another example of the home improvement scam involves home
security systems. Scammers may show up at victims' doors,
inform them about a string of robberies in the area, and offer
to sell them a home alarm. The device they install may or may
not be a working device, or the victims may unknowingly pay
more than market price. In a new variation of this scam, con
artists knock on victims' doors and claim that they are there
to upgrade the home security system. In November 2015, the FTC
warned that scammers may purport to work for a home security
company the victim already uses, but instead install a new
system without asking and convince the victim to sign a new
contract.\81\ Most people do not know that they have been
scammed until their original home security company notifies
them that their system is not responding, or they start
receiving bills from two different alarm companies.\82\
FTC's Tips on How Tell if a Contractor Might Not Be Reputable
Don't do business with someone who:
Claims that ``the deal is good for today only.''
Often, con artists will pressure you for an immediate decision
by telling you that, if you wait even another day, they cannot
guarantee the same price.
Lacks professionalism. Ask if the person has a
business card, or check to see if the person's vehicle is
marked with a company logo or information.
Only accepts cash; asks you to pay everything, or
a sizeable deposit, upfront; or tells you to borrow money from
a lender the contractor knows.
Is not licensed. Many states, but not all, require
contractors to be licensed and/or bonded. Check with your local
building department or consumer protection agency to learn
about licensing requirements in your area.
States that he ``just happens to have materials
left over from a previous job'' or ``just happens to be in the
area.''
Source: https://www.consumer.ftc.gov/blog/home-improvement-
scams-are-no-laughing-matter
Conclusion
One of the Senate Special Committee on Aging's top
priorities in the 114th Congress has been to combat fraud
targeting seniors. The Fraud Hotline has been instrumental in
this fight, providing more than 1,100 callers in 2015 with
information on common scams and offering tips on how to avoid
becoming victims of fraud. In addition, Fraud Hotline
investigators have encouraged victims to report fraud to the
appropriate law enforcement agencies to improve the
government's data as well as its ability to prosecute the
perpetrators of these scams. Committee investigators have even
helped some victims recover thousands of dollars of their hard-
earned retirement savings.
The Aging Committee held hearings on five of the top 10
scams reported to the Fraud Hotline in 2015. The Committee's
hearings have helped to raise public awareness to prevent
seniors from falling victim to these scams, as well as to
provide valuable oversight of the federal government's effort
to combat these frauds and protect consumers. Chairman Susan
Collins and Ranking Member Claire McCaskill have pressed
federal law enforcement agencies to combat fraud and put the
criminals who prey on our nation's seniors behind bars.
While tangible progress has been made in countering a
number of consumer scams, it is evident that more work remains
to be done. As the Aging Committee enters its second year of
the 114th Congress, Chairman Collins and Ranking Member
McCaskill intend to maintain the Committee's focus on frauds
targeting seniors. In order to encourage a more effective
federal response to these scams, the Chairman and Ranking
Member will continue to work with their Senate colleagues to
ensure that law enforcement has the tools it needs to pursue
these criminals.
This report is designed to serve as a resource for seniors
and others who wish to learn more about common scams and ways
to avoid them. For further assistance, please do not hesitate
to call the Fraud Hotline at 1-855-303-9470.
Appendix 1: Aging Fraud Hotline Statistics
------------------------------------------------------------------------
Scam Type Total
------------------------------------------------------------------------
IRS Impersonation Scams................................. 387
Jamaican Lottery/Sweepstakes Scams...................... 157
Unsolicited/Unwanted Phone Calls........................ 93
Computer Scams.......................................... 87
Identity Theft.......................................... 75
Grandparent Scams....................................... 63
Elder Financial Abuse................................... 59
Government Grant Scams.................................. 37
Romance Scams........................................... 28
Home Improvement Scams.................................. 24
Bad Business Practices.................................. 23
Spam Emails............................................. 18
Junk Mail............................................... 7
Check Scam.............................................. 6
IRS Fraudulent Tax Returns.............................. 5
Utility Scam............................................ 5
Health Care Scam........................................ 4
Counterfeit Scam........................................ 3
Medical Equipment....................................... 3
Mortgage Fraud.......................................... 3
Phishing Phone Call..................................... 3
Nigerian Prince Inheritance Scam........................ 3
Debt Collection Scam.................................... 3
Investment Scam......................................... 2
Nigerian Gold Scam...................................... 2
Bad Landlord............................................ 1
Disability Enrollment Scam.............................. 1
International Drug Trafficking Scam..................... 1
Life Insurance Scam..................................... 1
Military Impersonation Scam............................. 1
Online Military Impersonation Scam...................... 1
Payday Loan Scam........................................ 1
SSDI Issues............................................. 1
Total............................................... 1108
------------------------------------------------------------------------
------------------------------------------------------------------------
Origin of Calls to the Origin of Calls
Hotline Total to the Hotline Total
------------------------------------------------------------------------
Alabama...................... 7 Nebraska....... 2
Alaska....................... 1 Nevada......... 12
Arizona...................... 51 New Hampshire.. 8
Arkansas..................... 4 New Jersey..... 8
California................... 120 New Mexico..... 4
Colorado..................... 9 New York....... 58
Connecticut.................. 5 North Carolina. 10
Delaware..................... 7 North Dakota... 1
District of Columbia......... 6 Ohio........... 9
Florida...................... 82 Oklahoma....... 6
Georgia...................... 20 Oregon......... 7
Hawaii....................... 2 Pennsylvania... 16
Idaho........................ 5 Puerto Rico.... 1
Illinois..................... 22 Rhode Island... 1
Indiana...................... 9 South Carolina. 10
Iowa......................... 6 South Dakota... 3
Kansas....................... 7 Tennessee...... 5
Kentucky..................... 4 Texas.......... 42
Louisiana.................... 4 Unknown........ 71
Maine........................ 189 Utah........... 3
Maryland..................... 124 Vermont........ 2
Massachusetts................ 16 Virginia....... 62
Michigan..................... 15 Washington..... 15
Minnesota.................... 13 West Virginia.. 2
Mississippi.................. 2 Wisconsin...... 8
Missouri..................... 4 Wyoming........ 4
Montana...................... 4
------------------------------------------------------------------------
Appendix 2. Fraud Resources
General Consumer Complaints
------------------------------------------------------------------------
Agency Website Phone Number
------------------------------------------------------------------------
Better Business Bureau.......... www.bbb.org....... Use zip code to
find caller's
local BBB
National Do-Not-Call Registry... www.donotcall.org. 1-888-382-1222
National Do-Not-Call Complaint www.fcc.gov/ 1-888-225-5322
Form. complaints.
AARP Fraud Fighter Call Center.. http:// 1-877-908-3360
www.aarp.org/
content/dam/aarp/
money/scams_fraud/
2013-10/Who-To-
Contact-AARP.PDF.
AARP Fraud Watch Network........ www.aarp.org/ 1-800-646-2283
fraudwatchnetwork.
Local/State AG Office........... http:// 1-202-326-6000
www.naag.org/
current-attorneys-
general.php.
U.S. Senator or Representative http:// 1-202-224-3121
for Constituent Casework. www.senate.gov/ (Capitol
general/ Switchboard)
contact_informati
on/
senators_cfm.cfm.
http://
www.house.gov/
Federal Trade Commission http://www.ftc.gov/ 1-877-701-9595
Sentinel Network. enforcement/
consumer-sentinel-
network.
Federal Trade Commission http:// 1-877-382-4357
Consumer Response Center. www.consumer.ftc.
gov/.
Federal Communications http://www.fcc.gov/ 1-888-225-5322
Commission. .
State/Local Consumer Protection http://www.usa.gov/ ..................
Agencies. directory/
stateconsumer/
index.shtml.
Assist Guide Information http:// ..................
Services--Government Agency/ www.agis.com/
Programs by State. listing/
default.aspx
DOJ Elder Justice Initiative.... www.justice.gov/ 1-202-514-2000
elderjustice/. (DOJ Main
Switchboard)
Area Agency on Aging............ http://www.n4a.org/ General: 1-202-872-
. 0888
IRS Scam Reporting Hotline...... https:// 1-800 366-4484
www.treasury.gov/
tigta/
contact_report_sc
am.shtml.
HHS OIG......................... http://www.hhs.gov/ 1-800-447-8477
grants/grants/
avoid-grant-scams/
index.html.
National Center for Victims of https:// 1-855-484-2846
Crime. www.victimsofcrim
e.org/.
FINRA Securities Helpline for http:// 1-844-574-3577
Seniors. www.finra.org/
investors/finra-
securities-
helpline-seniors.
Center for Elder Rights Advocacy http:// 1-866-949-2372
www.legalHotlines
.org/legal-
assistance-
resources.html.
------------------------------------------------------------------------
Resources--Issue Area
Computer Fraud
If receiving spam email, forward the spam email to
[email protected]. This website is managed by the Federal Trade
Commission.
------------------------------------------------------------------------
Agency Website Phone Number
------------------------------------------------------------------------
Internet Crime Complaint Center www.ic3.gov/ ..................
(IC3). crimeschemes.aspx
Federal Trade Commission........ http:// 1-877-382-4357
www.consumer.ftc.
gov/articles/0346-
tech-support-
scams.
------------------------------------------------------------------------
Elder Abuse
------------------------------------------------------------------------
Agency Website Phone Number
------------------------------------------------------------------------
Local/State AG Office........... http:// ..................
www.naag.org/
current-attorneys-
general.php.
National Adult Protection Find local APS ..................
Services Association. Association:
www.napsa-now.org/
get-help/help-in-
your-area/.
DOJ Elder Justice Initiative.... http:// 1-202-514-2000
www.justice.gov/ (DOJ Main
elderjustice/. Switchboard)
Financial exploitation.......... www.eldercare.gov. 1-800-677-1116
Center for Elder Rights Advocacy http:// 1-866-949-2372
www.legalHotlines
.org/legal-
assistance-
resources.html.
------------------------------------------------------------------------
Health-Related Scams
------------------------------------------------------------------------
Agency Website Phone Number
------------------------------------------------------------------------
Federal Communications www.fcc.gov/ 1-888-225-5322
Commission. complaints.
Federal Trade Commission........ http:// 1-888-382-1222 (Do
www.consumer.ftc. not call
gov/blog/robocall- registry)
scams-push-
medical-alert-
systems.
Medicare.gov.................... State/Local ..................
resources:
www.medicare.gov/
contacts/topic-
search-
criteria.aspx.
DHHS IG to report Medicare Fraud https:// 1-800-447-8477
forms.oig.hhs.gov/
Hotlineoperations/
.
Medicare Ombudsman's Office..... http:// ..................
www.medicare.gov/
claims-and-
appeals/medicare-
rights/get-help/
ombudsman.html.
Medicare Rights Center.......... http:// 1-800-333-4114
www.medicareright
s.org/.
Health Insurance Marketplace DHHS IG 1-800-318-2596
Fraud. Marketplace (report suspected
Consumer Fraud Medicare fraud
Hotline: https:// related to
oig.hhs.gov/fraud/ Medical ID theft:
consumer-alerts/ 1-800-447-8477
alerts/
marketplace.asp.
------------------------------------------------------------------------
Identity Theft
Call one of the three national credit bureaus to place a
scam alert:
Equifax: 1-800-685-1111 (Fraud Hotline:
1-888-766-0008)
Experian: 1-888-397-3742 (Fraud Hotline:
1-888-397-3742)
TransUnion: 1-800-916-8800 (Fraud
Hotline: 1-800-680-7289)
------------------------------------------------------------------------
Agency Website Phone Number
------------------------------------------------------------------------
Local Police Department......... .................. Check with your
local police
department. Many
departments have
non-emergency
numbers you may
call to file a
report.
FTC ID Theft Hotline............ https:// 1-877-438-4338
www.identitytheft
.gov/.
FTC Identity Theft Resource http:// 1-888-400-5530
Center. www.consumer.ftc.
gov/features/
feature-0014-
identity-theft.
IRS Identity Protection http://www.irs.gov/ 1-877-777-4778
Specialized Unit. Individuals/
Identity-
Protection.
Office of the Comptroller of the http://www.occ.gov/ 1-202-649-6800
Currency. topics/bank-
operations/
financial-crime/
identity-theft/
index-identity-
theft.html.
SSA--File a report of theft or http://www.ssa.gov/ 1-800-269-0271
fraudulent use of SS number. pubs/EN-05-
10064.pdf.
------------------------------------------------------------------------
Investment/Securities Fraud
------------------------------------------------------------------------
Agency Website Phone Number
------------------------------------------------------------------------
FINRA Securities Helpline for http:// 1-844-574-3577
Seniors. www.finra.org/
investors/finra-
securities-
helpline-seniors.
Consumer Financial Protection http:// 1-855-411-2372
Bureau (CFPB). www.consumerfinan
ce.gov.
CFPB ombudsman.................. http:// 1-855-830-7880
www.consumerfinan
ce.gov/ombudsman/.
Financial Industry Regulatory www.finra.org..... 1-800-289-9999
Authority (FINRA).
Better Business Bureau.......... www.bbb.org....... ..................
Securities Investor Protection http:// 1-202-371-8300
Corporation (SIPC). www.sipc.org/.
Federal Reserve Consumer Help... http:// 1-888-851-1920
www.federalreserv
econsumerhelp.gov/
.
------------------------------------------------------------------------
Sweepstakes Scams
------------------------------------------------------------------------
Agency Website Phone Number
------------------------------------------------------------------------
AARP Fraud Fighter Call Center.. http:// 1-800-646-2283
www.aarp.org/
content/dam/aarp/
money/scams_fraud/
2013-10/Who-To-
Contact-AARP.PDF.
Department of Homeland Security https:// 1-866-347-2423
Tip Line. www.ice.gov/
tipline.
Postal Inspector................ https:// 1-877-876-2455
postalinspectors.
uspis.gov/.
Western Union Fraud Unit........ https:// 1-800-448-1492
www.westernunion.
com/us/en/
fraudawareness/
fraud-report-to-
authorities.html.
Moneygram Fraud Unit............ http:// 1-800-666-3947
corporate.moneygr (press 5 for more
am.com/compliance/ options then 5
fraud-prevention. for fraud/
suspicious
activity)
GreenDot MoneyPak Report Fraud.. https:// ..................
www.moneypak.com/
protectyourmoney.
aspx.
FBI Field Office................ http://www.fbi.gov/
contact-us/field
Secret Service Field Office..... http://
www.secretservice
.gov/
field_offices.sht
ml
------------------------------------------------------------------------
Sweepstakes Fraud
------------------------------------------------------------------------
Agency Website Phone Number
------------------------------------------------------------------------
Postal Inspector................ https:// 1-877-876-2455
postalinspectors.
uspis.gov/.
AARP Fraud Fighter Call Center.. http:// 1-800-646-2283
www.aarp.org/
content/dam/aarp/
money/scams_fraud/
2013-10/Who-To-
Contact-AARP.PDF.
FCC............................. www.fcc.gov/ 1-888-225-5322
complaints.
FTC Consumer Response Center.... http:// 1-877-382-4357
www.consumer.ftc.
gov/.
------------------------------------------------------------------------
Mortgage Fraud
------------------------------------------------------------------------
Agency Website Phone Number
------------------------------------------------------------------------
Consumer Financial Protection http:// 1-855-411-2372
Bureau (CFPB). www.consumerfinan
ce.gov/.
Foreclosure Prevention http://www.hud.gov/ Find State
Counseling--HUD's Housing offices/hsg/sfh/ counseling
Counseling Program. hcc/fc/. program
HUD OIG Fraud Hotline........... https:// 1-800-347-3735
www.hudoig.gov/
report-fraud.
------------------------------------------------------------------------
Payday Lending
------------------------------------------------------------------------
Agency Website Phone Number
------------------------------------------------------------------------
Consumer Financial Protection http:// 1-855-411-2372
Bureau (CFPB). www.consumerfinan
ce.gov/.
FTC Consumer Response Center.... http:// 1-877-382-4357
www.consumer.ftc.
gov/.
------------------------------------------------------------------------
Social Security Fraud
Contact local Social Security field office to place a
freeze on any changes to the victim's Social Security account
to prevent future misuse of their Social Security benefits.
Call one of the three national credit bureaus to place a
scam alert:
Equifax: 1-800-685-1111 (Fraud Hotline:
1-888-766-0008)
Experian: 1-888-397-3742 (Fraud
Hotline: 1-888-397-3742)
TransUnion: 1-800-916-8800 (Fraud
Hotline: 1-800-680-7289)
------------------------------------------------------------------------
Agency Website Phone Number
------------------------------------------------------------------------
SSA OIG......................... https:// 1-800-269-0271
www.socialsecurit
y.gov/fraudreport/
oig/
public_fraud_repo
rting/form.htm.
Financial Exploitation.......... www.eldercare.gov. 1-800-677-1116
Information on Representative http://
Payee for victim's social www.socialsecurit
security benefits. y.gov/payee/
faqrep.htm#a0=2..
SSA............................. https:// 1-800-772-1213
secure.ssa.gov/
ICON/main.jsp.
------------------------------------------------------------------------
Timeshare Scam
------------------------------------------------------------------------
Agency Website Phone Number
------------------------------------------------------------------------
State Attorney General.......... http://
www.naag.org/
current-attorneys-
general.php.
FTC Consumer Response Center.... http:// 1-877-382-4357
www.consumer.ftc.
gov/.
Better Business Bureau.......... www.bbb.org
Internet Crime Complaint Center www.ic3.gov/ ..................
(IC3). crimeschemes.aspx
------------------------------------------------------------------------
Grandparent Scam
------------------------------------------------------------------------
Agency Website Phone Number
------------------------------------------------------------------------
FTC Consumer Response Center.... http:// 1-877-382-4357
www.consumer.ftc.
gov/.
State Attorney General.......... http:// ..................
www.naag.org/
current-attorneys-
general.php.
Department of Homeland Security https:// 1-866-347-2423
Tip Line. www.ice.gov/
tipline.
FBI Field Office................ http://www.fbi.gov/ ..................
contact-us/field
Secret Service Field Office..... http:// ..................
www.secretservice
.gov/
field_offices.sht
ml
------------------------------------------------------------------------
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
ENDNOTES
\1\U.S. Congress. Senate. 2015. Tax Schemes and Scams
During the 2015 Filing Season: Hearing before the Committee on
Finance. 114th Congress, 1st sess., March 12.
\2\TIGTA Conference Call with Aging Committee. January 7,
2016.
\3\TIGTA Conference Call with Aging Committee. January 7,
2016.
\4\U.S. Congress. Senate. 2015. Catch Me If You Can: The
IRS Impersonation Scam and the Government's Response: Hearing
before the Special Committee on Aging. 114th Congress, 1st
sess., April 15.
\5\Internal Revenue Service. Tax Scams/Consumer Alerts.
https://www.irs.gov/uac/Tax-Scams-Consumer-Alerts (accessed
January 21, 2016).
\6\TIGTA Conference Call with Aging Committee. January 7,
2016.
\7\Internal Revenue Service. IRS Warns Taxpayers to Guard
Against New Tricks by Scam Artists; Losses Top $20 Million.
https://www.irs.gov/uac/Newsroom/IRS Warns-Taxpayers-to-Guard-
Against-New-Tricks-by-Scam-Artists (accessed January 21, 2016).
\8\Internal Revenue Service. Five Easy Ways to Spot a Scam
Phone Call. https://www.irs.gov/uac/Five-Easy-Ways-to-Spot-a-
Scam-Phone-Call (accessed January 18, 2016).
\9\Associated Press. 2015. Man gets 14 years in prison for
scam that took millions with fake IRS calls. Los Angeles Times.
July 8.
\10\Federal Trade Commission. Consumer Information: Prize
Scams. http://www.consumer.ftc.gov/articles/0199-prize-scams
(accessed January 18, 2016).
\11\Federal Trade Commission. 2015. Consumer Sentinel
Network Data Book for January-December 2014. (February): 79
\12\U.S. Congress. Senate. 2013. 876-SCAM: Jamaican Phone
Fraud Targeting Seniors: Hearing before the Special Committee
on Aging. 113th Congress, 1st sess., March 13.
\13\FairPoint Communications. FairPoint applauds Western
Union decision to shut down services in Jamaican hotbed of
phone scamming operations. BEWARE: Scams from Area Code 876.
http://www.bewareof876.com/press-release-fairpoint-applauds-
western-union-decision-to-shut-down-services-in-jamaican-
hotbed-of (accessed January 18, 2016).
\14\U.S. Department of Homeland Security. U.S. Immigration
and Customs Enforcement. Jamaican man first to be extradited to
face fraud charges in lottery scam. https://www.ice.gov/news/
releases/jamaican-man-first-be-extradited-face-fraud-charges-
lottery-scam (accessed January 18, 2016).
\15\Federal Bureau of Investigation. Jamaican Man Sentenced
to Prison for Involvement in International Lottery Fraud
Scheme. https://www.fbi.gov/minneapolis/press-releases/2015/
jamaican-man-sentenced-to-prison-for-involvement-in-
international-lottery-fraud-scheme (accessed January 21, 2016).
\16\U.S. Senate, 876-SCAM, S. 6-7.
\17\To ratify the authority of the Federal Trade Commission
to establish a do-not-call registry. Public Law 108-82. 108th
Congress, 1st sess.
\18\U.S. Congress. Senate. 2015. Ringing Off the Hook:
Examining the Proliferation of Unwanted Calls: Hearing before
the Special Committee on Aging. 114th Congress, 1st sess., June
10.
\19\Citation needed for the testimony of the fraud case
victim
\20\Federal Trade Commission. FTC Challenges Innovators to
Do Battle with Robocallers. https://www.ftc.gov/news-events/
press-
releases/2012/10/ftc-challenges-innovators-do-battle-
robocallers (accessed January 21, 2016).
\21\Federal Trade Commission. FTC Announces Robocall
Challenge Winners. https://www.ftc.gov/news-events/press-
releases/2013/04/ftc-announces-robocall-challenge-winners
(accessed January 21, 2016).
\22\Ibid.
\23\Federal Trade Commission. FTC Announces New Robocall
Contests to Combat Illegal Automated Calls. https://
www.ftc.gov/news-events/press-releases/2015/03/ftc-announces-
new-robocall-contests-combat-illegal-automated (accessed
January 21, 2016).
\24\Federal Trade Commission. FTC Announces New Robocall
Contests to Combat Illegal Automated Calls. https://
www.ftc.gov/news-events/press-releases/2015/03/ftc-announces-
new-robocall-contests-combat-illegal-automated (accessed
January 18, 2016).
\25\Federal Trade Commission. FTC Awards $25,000 Top Cash
Prize for Contest-Winning Mobile App That Blocks Illegal
Robocalls. https://www.ftc.gov/news-events/press-releases/2015/
08/ftc-awards-25000-top-cash-prize-contest-winning-mobile-app-
blocks (accessed January 21, 2016).
\26\Federal Trade Commission. FTC Awards $25,000 Top Cash
Prize for Contest-Winning Mobile App That Blocks Illegal
Robocalls. https://www.ftc.gov/news-events/press-releases/2015/
08/ftc-awards-25000-top-cash-prize-contest-winning-mobile-app-
blocks (accessed January 18, 2016).
\27\U.S. Congress. Senate. 2015. Virtual Victims: When
Computer Tech Support Becomes a Scam: Hearing before the
Special Committee on Aging. October 21. S. 22.
\28\Ibid.
\29\Federal Trade Commission. Staff Briefing. Dirksen
Senate Office Building, G16. Washington, D.C. October 14, 2015.
\30\Federal Bureau of Investigation. Internet Crime
Complaint Center. 2015. 2014 Internet Crime Report. (May 9): 4.
\31\Ibid., 9.
\32\U.S. Senate, Virtual Victims.
\33\Ibid., S. 18.
\34\Complaint at 19 FTC v. PCCare 247, Inc., et al., No 12-
cv-7189 (S.D.N.Y.) (ECF No. 8).
\35\Federal Trade Commission. FTC Testifies on Efforts to
Stop Illegal Tech Support Scams Before Senate Special Committee
on Aging. https://www.ftc.gov/news-events/press-releases/2015/
10/ftc-testifies-efforts-stop-illegal-tech-support-scams-senate
(accessed January 18, 2016).
\36\FTC, Consumer Sentinel Network Data Book, 14.
\37\Ibid.
\38\Ibid., 12.
\39\Marte, Jonnelle. 2015. You can now request copies of
the phony tax returns filed in your name. Washington Post.
November 10.
\40\Medicare Access and CHIP Reauthorization Act of 2015.
Public Law 114 10. 114th Congress, 2nd sess.
\41\U.S. Congress. Senate. 2015. Protecting Seniors from
Identity Theft: Is the Federal Government Doing Enough?:
Hearing before the Special Committee on Aging. 114th Congress,
1st sess., October 7.
\42\Ibid., S. 12 15 and S.17 20.
\43\FTC, Consumer Sentinel Network Data Book, 82.
\44\Greisman, Lois. U.S. Congress. Senate. 2014. Hanging Up
on Phone Scams: Progress and Potential Solutions to this
Scourge: Hearing before the Special Committee on Aging. 113th
Congress, 2nd sess., July 16. S.20
\45\Elton, Catherine. 2012. The Fleecing of America's
Elderly. Consumers Digest. November 10.
\46\National Center on Elder Abuse. Elder Abuse and Its
Impact: What You Must Know. http://www.ncea.aoa.gov/Resources/
Publication/docs/NCEA_WhatYouMustKnow2013_508.pdf (accessed
January 19, 2016).
\47\Government Accountability Office. 2011. Elder Justice:
Stronger Federal Leadership Could Enhance National Response to
Elder Abuse. (March 21): 9.
\48\Ibid., 14.
\49\Ibid., 15.
\50\Elder Justice Initiative. Financial Exploitation FAQs.
U.S. Department of Justice. http://www.justice.gov/
elderjustice/financial/faq.html#do-all-states-have-elder-abuse-
statutes-that-include-
financial-exploitation (accessed January 18, 2016).
\51\The MetLife Mature Market Institute, the National
Committee for the Prevention of Elder Abuse, and the Center for
Gerontology at Virginia Polytechnic Institute and State
University. 2011. Elder Financial Abuse: Crimes of Occasion,
Desperation, and Predation Against America's Elders. (June): 8.
\52\Ibid.
\53\Ibid., 10.
\54\Culley, Denis and Jaye Martin. (2013). No Higher
Calling--Representing Victims of Financial Exploitation.
Bifocal 34, no. 5 (May-June): 89.
\55\Department of Justice. Deputy Attorney General James M.
Cole Speaks at the White House World Elder Abuse Awareness Day
Event. http://www.justice.gov/opa/speech/deputy-attorney-
general-james-m-cole-speaks-white-house-world-elder-abuse-
awareness-day (accessed January 19, 2016).
\56\Government Accountability Office. 2012. Elder Justice:
National Strategy Needed to Effectively Combat Elder
Exploitation. (November 15): 1.
\57\The Patient Protection and Affordable Care Act,
Subtitle H. Public Law 111-148. 111th Congress, 2nd sess.
\58\GAO, Elder Justice, 22.
\59\Ibid., 25 26
\60\U.S. Congress. Congressional Record. 2015. 114th Cong.,
1st sess. S7595-S7596.
\61\Financial Industry Regulatory Authority. FINRA Board
Approves Rulemaking Item to Protect Seniors and Other
Vulnerable Adults from Financial Exploitation. https://
www.finra.org/
newsroom/2015/finra-board-approves-rule-protecting-seniors-
financial-exploitation (accessed January 21, 2016).
\62\U.S. Congress. Senate. 2015. Broken Trust: Combating
Financial Exploitation of Vulnerable Seniors: Hearing before
the Special Committee on Aging. 114th Congress, 1st sess.,
February 4. S. 63
\63\Metcalf, Andrew. 2015. Caretaker Sentenced for Stealing
More than $400,000 from 87-Year-old Bethesda Man. Bethesda
Magazine. October 10.
\64\Ibid.
\65\U.S. Senate, Broken Trust.
\66\Eligon, John. 2015. Brooke Astor's Son Guilty in Scheme
to Defraud Her. New York Times. October 8.
\67\FTC, Consumer Sentinel Network Data Book, 77
\68\Ibid., 79.
\69\Ibid., 6 and 79.
\70\Shadel, Doug and David Dudley. 2015. A con man steals
one woman's heart--and $300,000. Here's how it happened. AARP
the Magazine. June/July.
\71\FBI, 2014 Computer Crime Report, 15.
\72\Federal Trade Commission. Consumer Information: Online
Dating Scams. http://www.consumer.ftc.gov/articles/0004-online-
dating-scams (accessed January 18, 2016).
\73\Federal Bureau of Investigation. Looking for Love?
Beware of Online Dating Scams. https://www.fbi.gov/sandiego/
press-
releases/2013/looking-for-love-beware-of-online-dating-scams
(accessed January 18, 2016).
\74\FBI, 2014 Computer Crime Report, 42.
\75\Ibid.
\76\U.S. Army Criminal Investigation Command Public
Affairs. Army investigators warn public about romance scams.
U.S. Army. http://www.army.mil/article/130861/
Army_investigators_warn_public_about_romance_scams/ (accessed
January 18, 2016).
\77\Halpern, Mollie. ``Podcast and Radio: Romance Scams.''
FBI This Week. https://www.fbi.gov/news/podcasts/thisweek/
romance-scams.mp3/view (accessed January 18, 2016).
\78\Office of the Indiana Attorney General. Home
Improvement Scams. http://www.in.gov/attorneygeneral/2545.htm
(accessed January 18, 2016).
\79\FTC, Consumer Sentinel Network Data Book, 6.
\80\Federal Trade Commission. Consumer Information: Dealing
with Weather Emergencies. http://www.consumer.ftc.gov/features/
feature-0023-weather-emergencies (accessed January 18, 2016).
\81\Federal Trade Commission. Consumer Information: House
alarms can't stop scammers. https://www.consumer.ftc.gov/blog/
house-alarms-cant-stop-scammers (accessed January 18, 2016).
\82\Ibid.
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