Thursday, August 25, 2011
Friday, August 19, 2011
Fraud Against the Elderly: When the Golden Years are Tarnished By Laura Telford
As the Baby Boomer generation enters retirement, more attention is being paid to fraud committed against senior citizens and the elderly. These groups have long been targeted by fraudsters, but as more victims come forward, more light can be shed on these crimes.
There are many different schemes that can be perpetrated against seniors:
Financial Fraud Against the Elderly
As older adults approach retirement, they might be looking to pad their nest eggs as much as they can. Also, many retirees own their homes outright or have inherited money from other family members who have passed away. Because of these factors, seniors may be the target of advance-fee swindles, Nigerian fraud schemes and pyramid schemes.
Financial fraud is also perpetrated against the elderly by family members or caregivers. The scheme may be as simple as stealing cash from the victim's home, or fraudsters may run far more complex scams, like weaseling their way into a senior's will or living trust.
Contractor Fraud
A contractor might troll neighborhoods looking for homes owned by elderly individuals. Posing as a helpful handyman, the fraudster tells the homeowner he was just passing by and happened to notice that some part of the home -- such as the roof or chimney -- is in danger of falling apart. The contractor offers to fix the “problem” for a modest fee -- even though there was nothing wrong with the home to begin with.
Seniors may appreciate the helpful nature of the visit, and believe the fraudster is truly trying to help. In this scheme the victim may never know he has been defrauded.
Telemarketing Fraud
According to the National Consumer League's National Fraud Information Center, nearly one-third of all telemarketing fraud victims are age 60 or older. There have been many theories as to why the elderly are targeted, but contrary to popular belief, it is not because older victims are lonely, isolated or incompetent. In fact, most seniors who are victims of fraud lead healthy, vibrant lives and are just dazzled by the lure of prize money or too-good-to-be-true opportunities.
Fraudsters often take advantage of the fact that older people tend to be more trusting of strangers and more reluctant to just hang up on a caller. In addition, fraudulent telemarketers know that it's often difficult to tell if a salesperson is legitimate. Seniors are often targeted relentlessly, sometimes receiving as many as 20 calls a day from scammers.
Medicare Prescription Fraud
In 2006, Medicare began offering coverage for prescription drugs, which provided yet one more way for fraudsters to run a scheme. There are several reasons the Medicare drug coverage program is targeted by fraudsters, not the least of which is that the plans are confusing. Fraudsters use this confusion to pressure seniors into purchasing fraudulent drug coverage plans. They might offer bonuses and prizes for signing up, or offer drug coverage for such a low price that it is difficult for an elderly person, surviving solely on Social Security payments, to resist. Another scheme involves offering a legitimate-sounding deal, but requiring payment upfront -- and a credit card number over the phone.
Fraudulent Medicare peddlers may also attempt a door-to-door sales tactic, incorrectly believing that all seniors are lonely and unlikely to shut the door in someone's face. The fact of the matter is that it is illegal to sell Medicare plans door-to-door, though many seniors aren't aware of such legalities.
Fraudulent medical providers may also scam Medicare by billing for services never performed, or by billing for the same thing twice. Medical suppliers may submit reimbursement claims to Medicare for equipment that was never ordered by the victim.
Reverse Mortgage Scams
A legitimate reverse mortgage allows borrowers, who are at least 62 years of age, to convert the equity in their homes into a line of credit or monthly income. In many reverse mortgage scams, seniors are offered free homes, investment opportunities and foreclosure or refinance assistance; they may also be used as straw buyers in property flipping scams.
In a fraudulent reverse mortgage scheme, the perpetrator will identify a foreclosed, distressed or abandoned property using information obtained from county deed records. The fraudster will purchase the property using a straw buyer -- who commits occupancy fraud by stating they will be using the property as their primary residence. The fraudster then recruits a senior to purchase the property from the straw buyers by transferring the property deed to the senior with no exchange of money. After the senior has occupied the property for at least 60 days, the fraudster arranges for the senior to obtain a reverse mortgage and -- with the aid of a fraudulently inflated appraisal -- encourages them to request lump sum disbursements of the equity. The fraudster, often in collusion with the settlement attorney, absconds with all of the equity at closing.
Red Flags of Elder Fraud
Relatives, friends, neighbors, and others can help fight elder fraud by watching their elderly loved ones for signs of potential victimization. For example, an elderly victim might:
There are many different schemes that can be perpetrated against seniors:
Financial Fraud Against the Elderly
As older adults approach retirement, they might be looking to pad their nest eggs as much as they can. Also, many retirees own their homes outright or have inherited money from other family members who have passed away. Because of these factors, seniors may be the target of advance-fee swindles, Nigerian fraud schemes and pyramid schemes.
Financial fraud is also perpetrated against the elderly by family members or caregivers. The scheme may be as simple as stealing cash from the victim's home, or fraudsters may run far more complex scams, like weaseling their way into a senior's will or living trust.
Contractor Fraud
A contractor might troll neighborhoods looking for homes owned by elderly individuals. Posing as a helpful handyman, the fraudster tells the homeowner he was just passing by and happened to notice that some part of the home -- such as the roof or chimney -- is in danger of falling apart. The contractor offers to fix the “problem” for a modest fee -- even though there was nothing wrong with the home to begin with.
Seniors may appreciate the helpful nature of the visit, and believe the fraudster is truly trying to help. In this scheme the victim may never know he has been defrauded.
Telemarketing Fraud
According to the National Consumer League's National Fraud Information Center, nearly one-third of all telemarketing fraud victims are age 60 or older. There have been many theories as to why the elderly are targeted, but contrary to popular belief, it is not because older victims are lonely, isolated or incompetent. In fact, most seniors who are victims of fraud lead healthy, vibrant lives and are just dazzled by the lure of prize money or too-good-to-be-true opportunities.
Fraudsters often take advantage of the fact that older people tend to be more trusting of strangers and more reluctant to just hang up on a caller. In addition, fraudulent telemarketers know that it's often difficult to tell if a salesperson is legitimate. Seniors are often targeted relentlessly, sometimes receiving as many as 20 calls a day from scammers.
Medicare Prescription Fraud
In 2006, Medicare began offering coverage for prescription drugs, which provided yet one more way for fraudsters to run a scheme. There are several reasons the Medicare drug coverage program is targeted by fraudsters, not the least of which is that the plans are confusing. Fraudsters use this confusion to pressure seniors into purchasing fraudulent drug coverage plans. They might offer bonuses and prizes for signing up, or offer drug coverage for such a low price that it is difficult for an elderly person, surviving solely on Social Security payments, to resist. Another scheme involves offering a legitimate-sounding deal, but requiring payment upfront -- and a credit card number over the phone.
Fraudulent Medicare peddlers may also attempt a door-to-door sales tactic, incorrectly believing that all seniors are lonely and unlikely to shut the door in someone's face. The fact of the matter is that it is illegal to sell Medicare plans door-to-door, though many seniors aren't aware of such legalities.
Fraudulent medical providers may also scam Medicare by billing for services never performed, or by billing for the same thing twice. Medical suppliers may submit reimbursement claims to Medicare for equipment that was never ordered by the victim.
Reverse Mortgage Scams
A legitimate reverse mortgage allows borrowers, who are at least 62 years of age, to convert the equity in their homes into a line of credit or monthly income. In many reverse mortgage scams, seniors are offered free homes, investment opportunities and foreclosure or refinance assistance; they may also be used as straw buyers in property flipping scams.
In a fraudulent reverse mortgage scheme, the perpetrator will identify a foreclosed, distressed or abandoned property using information obtained from county deed records. The fraudster will purchase the property using a straw buyer -- who commits occupancy fraud by stating they will be using the property as their primary residence. The fraudster then recruits a senior to purchase the property from the straw buyers by transferring the property deed to the senior with no exchange of money. After the senior has occupied the property for at least 60 days, the fraudster arranges for the senior to obtain a reverse mortgage and -- with the aid of a fraudulently inflated appraisal -- encourages them to request lump sum disbursements of the equity. The fraudster, often in collusion with the settlement attorney, absconds with all of the equity at closing.
Red Flags of Elder Fraud
Relatives, friends, neighbors, and others can help fight elder fraud by watching their elderly loved ones for signs of potential victimization. For example, an elderly victim might:
- Receive lots of mail for contests, prizes or sweepstakes from foreign countries.
- Receive frequent phone calls from strangers offering great deals or asking for donations.
- Make repeated or large payments to companies in other states or countries.
- Have difficulty buying groceries and paying utility and other bills.
- Get calls from organizations offering to recover, for a fee, money lost to fraudulent telemarketers.
- Make frequent large bank withdrawals, including daily maximum currency withdrawals from an ATM.
- Have a caregiver or other individual who shows excessive interest in the elderly person's finances or assets, does not allow the elderly person to speak for himself or is reluctant to leave the elderly person's side during conversations.
- Show an unusual degree of fear or submissiveness toward a caregiver, or express a fear of eviction or nursing home placement if money is not given to a caretaker.
- Avoid existing relationships and move toward new associations with other "friends" or strangers.
- Lack knowledge about his financial status, or be suddenly reluctant to discuss financial matters.
Thursday, July 14, 2011
Bar manager says ministry overboard with training of security guards 5
When Sean Hilliker became a bouncer at a downtown Ottawa bar in 1996 there was no training, testing, or background check needed.
“It used to be, ‘OK you’re big, you’re friendly, you’re hired,’” he said.
“Sometimes you don’t even have to be friendly.” The rules have changed.
Hilliker is now the general manager of Grace O’Malley’s Irish Pub on Merivale Rd.
He said he wants the province to scrap mandatory training for licensed security guards since bars are legally responsible if a doorman assaults a patron.
“No one’s suing the government for not properly training. The lawsuit’s going to come to us,” he said.
“The licensing itself is a good thing but the way they’re going about it is wrong.”
On July 1 and 2, provincial police laid 91 charges at 16 establishments in Ottawa — including 11 bars — for unlicensed security infractions against guards, bars, and security companies.
A similar raid last April uncovered 140 violations, said OPP Staff Sgt. Rick LePage.
Hilliker said the overall attempt by the ministry to clean up the industry is good, because he doesn’t want to hire someone with a violent history.
“They’re a liability to me.”
“It used to be, ‘OK you’re big, you’re friendly, you’re hired,’” he said.
“Sometimes you don’t even have to be friendly.” The rules have changed.
Hilliker is now the general manager of Grace O’Malley’s Irish Pub on Merivale Rd.
He said he wants the province to scrap mandatory training for licensed security guards since bars are legally responsible if a doorman assaults a patron.
“No one’s suing the government for not properly training. The lawsuit’s going to come to us,” he said.
“The licensing itself is a good thing but the way they’re going about it is wrong.”
On July 1 and 2, provincial police laid 91 charges at 16 establishments in Ottawa — including 11 bars — for unlicensed security infractions against guards, bars, and security companies.
A similar raid last April uncovered 140 violations, said OPP Staff Sgt. Rick LePage.
Hilliker said the overall attempt by the ministry to clean up the industry is good, because he doesn’t want to hire someone with a violent history.
“They’re a liability to me.”
Thursday, June 30, 2011
Maberly man warns of Microsoft scam
A Maberly resident is hoping his close call with a Microsoft scam artist will serve as a warning to others.
On June 23, Rob Richardson received a phone call from someone claiming to work for Microsoft. “He asked if I had a Windows Operating System and that they had found a glitch in it and he wanted me to go online,” Richardson said. “I knew where he was going to head with this so I ended the conversation fairly quickly.”
Richardson said he knew it was a scam because his aunt had recently received a similar phone call.
Unfortunately for the scammer, Richardson’s aunt didn’t have the internet. "She isn’t even on the internet so that’s what threw her off,” he said.
Knowing it was a scam, Richardson told the man he was calling the police, which he did.
They directed him to the Canadian Anti-Fraud Centre, formerly known as Phone Busters, and Richardson reported the fraud attempt.
Richardson said he hopes by sharing his story, others won’t falls for the scam. “I thought people in the area should probably know this is going on,” he said. Louis Robertson is the RCMP officer in charge of criminal intelligence with the Canadian Anti-Fraud Centre. He said the centre began receiving reports of the scam last year, but peaked this spring. Approximately 1,992 incidents were reported between January and May of this year.
Scammers use recognizable company names such as Microsoft, Windows, Jars Support or Online PC Care to gain the trust of victims. Robertson said the scam has been executed in a few different ways.
In some instances, someone claiming to be a Microsoft employee calls the victim and tells them they have a computer virus, or that their computer has somehow been compromised. The victim is then asked to supply personal information such as addresses and passwords so the “technician” can check to make sure everything is in order.
In another instance, victims are instructed to download a software program that will protect their computer; however, the software is actually a program that allows the scammer to gain remote access to the computer. Robertson said the software program is often a completely legal, free download available on the internet.
The program is often used by companies to allow someone, such as a computer technician, to gain access to a computer from a different location.
“If you install it on your PC and you gave me the identification and password, I’ll be able to connect to your PC and see your screen,” Robertson said about the program. “I can control the mouse and keyboard.” In the wrong hands, the program can be used by scammers to gain access to a victim’s home computer from anywhere in the world. “Imagine when you do decide to do your online banking and that little (program) turns on and they basically see all your passwords and all your banking information,” Robertson said. “It’s a good scam.” Sometimes, victims will be asked to send money to ensure their computer is protected from future viruses. Robertson said the amount is usually between $200 and $400.
Robertson said it is believed the calls are originated from a call centre in East Asia, and that the individuals hired to make the phone calls may not be aware they are participating in a scam. “They’re basically hired by fraudsters to pitch the scam,” he said. “There is a strong possibility they don’t have a clue it’s a scam.” John Weigelt, a technology officer for Microsoft Canada, said the company is well aware of the scheme.
Microsoft even performed a survey in Canada, the United States the UK and Ireland to find out how prevalent the scam had become. Out of 7,000 people surveyed, 15 per cent had been contacted by scammers since the beginning of 2010. In Canada, that number was nine per cent of 1,000 people surveyed.
Almost 80 per cent of people contacted were duped by the scammers. Robertson said fraudsters use fear tactics, in this case, the fear of a computer virus, to scare people into following their instructions. “They use that magic word, ‘virus’,” he said. “People are falling for it.”
Robertson said the best defense against this scam is to simply hang up the phone. Corporations such as Microsoft never call individuals at home to let them know they have a problem – unless they are returning a call from a customer who has called them first. Anyone who believes they have been victimized by the scam (if they have provided information or sent money) should call the police, as well as the Canadian Anti-Fraud Centre at 1-888-495-8501. Robertson said victims should also call their bank and other financial institutions to put an alert on their credit profile.
For anyone concerned about computer security, security software is available for free at Microsoft.com/security, Weigelt added.
Robertson said internet fraud has become “the crime of the 21st century.”
“A dumb criminal will take a gun and go to your local Mac’s Milk and see if he can get $50,” he said. “A smart criminal will definitely go online.”
Tuesday, May 17, 2011
OPP lay 76 charges in connection with violations under PSISA
Members of the Ontario Provincial Police (OPP) Anti-Rackets Branch have laid 76 charges in connection with violations of the Private Security and Investigative Services Act (PSISA).
Between April 28th and April 30th, OPP, assisted by members of the South Simcoe Police Service, conducted enforcement initiatives in Ottawa, Bradford-West Gwillimbury, and Toronto, within and near the site of the recent Ultimate Fighting Championship (UFC) venue in Toronto April 29.
Officers attended a number of establishments in Ottawa, Bradford-West Gwillimbury, and Toronto, including licensed premises within each jurisdiction. A number of businesses were found to be in violation of provisions of the PSISA. Det. Staff Sgt. Rick LePage said the names of those charged have not yet been released.
Charges include:
• 16 counts of working as an unlicensed security guard,
• 16 counts of employing an unlicensed security guard,
• 37 uniform violations,
• four (4) counts of being an unregistered business,
• two (2) counts of operating an unlicensed business entity, and
• one (1) count of failing to produce a license.
A total of 28 charges were laid in Ottawa, 12 charges were laid in Bradford-West Gwillimbury, and 36 charges were laid in Toronto , including 16 uniform violations within the UFC venue. The investigations are continuing and further charges may be pending.
The three initiatives bring the total to 21 in terms of law enforcement efforts to ensure provisions of the PSIS Act and Regulations are adhered to within the province of Ontario.
Charges by location:
Ottawa (28 Charges) - April 28, 2011
• Eleven (11) counts of working as an unlicensed security guard
• Eleven (11) counts of employing an unlicensed security guard
• Four (4) uniform violations
• One (1) count of being an unregistered business
• One (1) count of operating an unlicensed business entity
South Simcoe (12 Charges) - April 29, 2011
• Three (3) counts of working as an unlicensed security guard
• Three (3) counts of employing an unlicensed security guard
• Four (4) uniform violations
• Two (2) counts of being an unregistered business
Toronto (36 Charges) - April 30, 2011
• Two (2) counts of working as an unlicensed security guard
• Two (2) counts of employing an unlicensed security guard
• 20 uniform violations, including 16 inside the UFC venue
• One (1) count of being an unregistered business
• One (1) count of operating an unlicensed business entity
• One (1) count of failing to produce a license
Under the Private Security & Investigative Services Act, individuals performing security work in Ontario must be licensed. Additionally, establishments employing in-house security guards must be registered with the Private Security and Investigative Service Branch.
Business entities selling the services of security guards are required to be licensed by the ministry and responsible to ensure their security guards are licensed. Persons convicted of working as unlicensed security guards are subject to a maximum fine of $25,000, under the PSIS Act and up to one year in custody.
Between April 28th and April 30th, OPP, assisted by members of the South Simcoe Police Service, conducted enforcement initiatives in Ottawa, Bradford-West Gwillimbury, and Toronto, within and near the site of the recent Ultimate Fighting Championship (UFC) venue in Toronto April 29.
Officers attended a number of establishments in Ottawa, Bradford-West Gwillimbury, and Toronto, including licensed premises within each jurisdiction. A number of businesses were found to be in violation of provisions of the PSISA. Det. Staff Sgt. Rick LePage said the names of those charged have not yet been released.
Charges include:
• 16 counts of working as an unlicensed security guard,
• 16 counts of employing an unlicensed security guard,
• 37 uniform violations,
• four (4) counts of being an unregistered business,
• two (2) counts of operating an unlicensed business entity, and
• one (1) count of failing to produce a license.
A total of 28 charges were laid in Ottawa, 12 charges were laid in Bradford-West Gwillimbury, and 36 charges were laid in Toronto , including 16 uniform violations within the UFC venue. The investigations are continuing and further charges may be pending.
The three initiatives bring the total to 21 in terms of law enforcement efforts to ensure provisions of the PSIS Act and Regulations are adhered to within the province of Ontario.
Charges by location:
Ottawa (28 Charges) - April 28, 2011
• Eleven (11) counts of working as an unlicensed security guard
• Eleven (11) counts of employing an unlicensed security guard
• Four (4) uniform violations
• One (1) count of being an unregistered business
• One (1) count of operating an unlicensed business entity
South Simcoe (12 Charges) - April 29, 2011
• Three (3) counts of working as an unlicensed security guard
• Three (3) counts of employing an unlicensed security guard
• Four (4) uniform violations
• Two (2) counts of being an unregistered business
Toronto (36 Charges) - April 30, 2011
• Two (2) counts of working as an unlicensed security guard
• Two (2) counts of employing an unlicensed security guard
• 20 uniform violations, including 16 inside the UFC venue
• One (1) count of being an unregistered business
• One (1) count of operating an unlicensed business entity
• One (1) count of failing to produce a license
Under the Private Security & Investigative Services Act, individuals performing security work in Ontario must be licensed. Additionally, establishments employing in-house security guards must be registered with the Private Security and Investigative Service Branch.
Business entities selling the services of security guards are required to be licensed by the ministry and responsible to ensure their security guards are licensed. Persons convicted of working as unlicensed security guards are subject to a maximum fine of $25,000, under the PSIS Act and up to one year in custody.
Saturday, May 14, 2011
Police Issue Scam Warning
St Thomas police are warning city residents about an e-mail scam that is making province-wide rounds. In it, victims are messaged that Canada Revenue Agency is checking company tax returns and needs personal information. "Do not respond to these requests," Const. Cam Constable says. "If you have, . . . contact your local police agency, and the Canada Anti Fraud centre at info@antifraudcentre.ca."
In the fake CRA e-mail, recipients are told, "While checking your company tax reports, several discrepancies were found by comparing the real and declared profit. An investigation has been started to determine if this is a mistake or a tax evasion attempt. A new revised tax form, with additional fields is attached to this message."
Victims are asked for social insurance numbers, bank account information, and passport numbers. The attachment is then to be e-mailed to a specified address.
"Remember, the Canada Revenue Agency does not request personal information by e-mail, nor do they divulge personal information to another person unless formal authorization is provided by the taxpayer."
Tuesday, May 10, 2011
Fake Cheese
For years, inferior cheese masquerading as the finest from Switzerland has snuck onto the shelves of stores around the globe. You might think that slice of holey cheese is authentic – but it may be the food world equivalent of a Louis Vuitton knock-off.
Dairy counterfeiters, however, should watch their backs. Cheese detectives are on the case.
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