There are a lot of people who try to take advantage of older adults through scams and frauds. If you have saved up money for retirement and pay your credit cards on time-that's great. But it also puts you at risk, as a con person has a lot to gain if they are successful. Keep your money, assets and your identity safe by knowing common ploys and reporting suspicious behavior.
10 Tips to Protect You from Con Artists
Medicare Fraud
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Helpful Links
10 Tips to Protect You from Con Artists
The world is a different place than when you were growing up. If you were raised in the 1930s, 40s or 50s, odds are you were taught to be polite and trusting, even when it came to strangers. You might have trouble saying "no" to someone or hanging up the phone because you think it's rude. But a scam artist will try to use your manners to their advantage. Below are some tips to keep in mind to protect yourself from con artists.
- You probably did not win a million dollars. Do not believe anyone who tells you that you have won a lottery, free gas or any other little perk. Beware of "get rich quick" schemes. If it were really that easy, everyone would be rich. If it sounds too good to be true, it probably is.
- Never give money to win money. If you have won a prize for a contest you entered then it should come to you at no cost including shipping and taxes.
- Read the contract. Remember to thoroughly read all contracts before signing them. Make sure you understand every sentence. If there is something you don't understand, ask a lawyer for help. If a salesperson asks you to leave blanks on a contract to be filled in later, say no.
- Get that handshake in writing. Make sure that anytime someone makes an oral promise that you get it in writing right afterwards. Always demand a copy of any written agreement for your records. If someone cannot provide you completed copy, don't do business with them.
- Get referrals. Do not pick a vendor just because they seem competent or they have a nice website or you've seen an ad for them on TV. Do your research before you give anyone money, place an order or any work takes place. Check the company's track record with the Better Business Bureau and ask them for references you can call. You should also ask your family and friends to recommend trustworthy companies that they've used in the past.
- Don't pay for anything in advance. Do not pay for anything in advance unless you have a signed contract that specifically lays out a payment plan. If a contractor asks for money for supplies it means they do not have good credit or enough money to support their own business.
- Keep personal information secret. Never give out your Social Security number, any pin numbers or passwords, or other personal information over the phone or in an email.
- Shred it. Buy a shredder and use it to destroy documents that contain personal information, like credit card offers. Identity theft is big business and there are people who dig around trash looking for personal information they can use.
- There ain't no such thing as a free lunch. If you are invited to learn about financial investments or new Medicare programs, odds are you will hear a sales pitch from people who want your money.
- Keep a copy. Make sure you keep copies of all receipts, refund information and any other documents that you exchange with a company. It helps to have back-up copies in case you have a problem.
Sometimes, however, even the wisest consumers are scammed. If you think you have been scammed, speak up! Being conned is nothing to be embarrassed about as thousands of people are scammed every year. It doesn't mean that you can't take care of your own finances. But it does mean that you have to take action. Write down all of the details so you can recall them when talking to the police. The more information you can provide, the more likely the police will be able to catch the crook and put an end to their tricks.
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Medicare Fraud
Did you know that consumers themselves lose more than $10 billion each year in health care fraud?
Most Medicare payment and billing errors are simple mistakes. It's often just a careless error, not someone trying to take advantage of the Medicare system. Unfortunately, there are people out there who try to take advantage of the Medicare system.
How It Works
Most instances of fraud involve someone pretending to deliver services to older adults without ever providing them, providing services the older adult does not need or embellishing the services delivered. The criminal then gets Medicare to pay them for these falsified treatments or services, managing to cheat the program out of billions of dollars every year. To compensate for these losses, Medicare increases premiums for everyone.
Examples of Medicare Fraud
Examples of Medicare fraud include:
- Scam artists posing as service providers and offering you home health care when you do not qualify for it
- Individuals wanting to give you a scooter whether you need it or not
- Someone clipping your toe nails at a health fair and charging Medicare for "foot" surgery
- Ambulance companies saying they will take you to the doctor or dialysis for free but charging Medicare hundreds of dollars for the non-emergency trip
- Fraud artists offering you FREE Medicare Approved Arthritis Kit. The person then charges Medicare for items such as a back brace, knee brace (one for each knee), wrist brace (one for each wrist), elbow brace (one for each elbow), ankle brace (one for each ankle), then they throw in a heating pad and heat lamp. Total cost to Medicare is over $1,000. The value of the items you receive...probably less than $100.
What To Do If You Suspect Fraud
If you have a question about a Medicare claim, talk to the person who provided the service and sort things out with them directly.
Whenever you receive a statement or Medicare Summary Notice (MSN), review it for errors. The statement shows the treatments and services that providers billed to Medicare, what Medicare paid and what you owe. Look to make sure that you really did receive all the services listed
If you suspect fraud, you should report the situation to Medicare fraud unit (see helpful links). You can also call the Office of the Inspector General at 1-800-447-8477.
Six Helpful Tips to Avoid Medicare Fraud
Here are six tips that can help you avoid Medicare fraud:
- Keep your Medicare number secret. Do not give out your Medicare number except to a trusted physician or Medicare provider. Safeguard it as you would your Social Security number or credit card number.
- Keep your medical records private. Do not allow anyone, except the appropriate medical professionals, to review your medical records or recommend services.
- Only ask for services you need. Do not contact your doctor to request a service that you do not need.
- Beware of 'free' services. Be careful when accepting Medicare services or screenings that are advertised as free, especially if you're asked for your Medicare card number. If you feel uncomfortable or unsure about something contact your Medicare provider or doctor.
- Ask for proof. Beware of a provider that says they have been endorsed by the U.S. federal government or Medicare. Ask for proof.
- If it sounds too good. Avoid a healthcare or service provider who tells you that a service you require isn't usually covered, but they know how to get Medicare to pay for it. You can never be too careful. Report any suspected fraud to: Medicare fraud unit (see helpful links). You can also call the Office of the Inspector General at 1-800-447-8477.
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Order Resources
Click here to order resources on being a wise consumer.
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Helpful Links
Better Business Bureau
Federal Bureau of Investigations
Federal Trade Commission - Consumer Protection
National Consumer Protection - Resource Center
Official U.S. Government Website for Medicare - Reporting Fraud
Securities and Exchange Commission - For Seniors
Texas Attorney General Consumer Protection
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