The internet connects us with great people and helpful services 24/7. Unfortunately, it can also expose us to scams that threaten our personal information, privacy, and safety. That’s why it is essential to stay informed about the latest scams. With that in mind, we’re bringing you new insights on some of the latest scams affecting the golden generation.
-The Editors

🏥Medicare Watch:

The Dark Side of Medicare Fraud—How Consumers Pay the Price

Medicare fraud is a growing problem in the United States, and it’s not just the government that suffers. Consumers like you can face serious consequences when fraudsters exploit the system. From being denied critical health care services to having your benefits exhausted by fraudulent charges, the impact can be devastating. Understanding how these schemes work and taking steps to protect yourself is crucial.

How Medicare Fraud Hurts You

Imagine someone stealing your Medicare number and using it to bill the government for services or equipment you never received. Not only could this deplete your benefits, but it could also lead to your Medicare account being flagged for overuse. As a result, you might find yourself unable to access the care you need when you need it most.

This is not just a theoretical risk. Fraudulent schemes are flourishing across the country, with criminals finding increasingly sophisticated ways to game the system. One particularly brazen example occurred in a quiet Miami suburb, where a medical supply company rented office space in a nondescript building. What seemed like a legitimate business was actually a front for a massive Medicare fraud scheme, attempting to bill over $500,000 for equipment like braces and wheelchairs for patients who didn’t exist. The company was conveniently located just two floors above a regional office of the U.S. Department of Health and Human Services (HHS) criminal investigative unit.

Fortunately, special agents from HHS’s Office of Inspector General (OIG) uncovered the scam during a routine check. They discovered that the company was no more than a shell corporation, a physical location designed to appear legitimate on paper. The fraudsters behind the operation used a fake owner to conceal their identities, but the scheme was shut down before Medicare lost any money.

The Scope of the Problem

This case is just the tip of the iceberg. According to the National Health Care Anti-Fraud Association, taxpayers lose more than $100 billion a year to Medicare and Medicaid fraud, and that’s likely a conservative estimate. The types of fraud are as varied as they are inventive—billing for unapproved COVID tests, phony charges for medical equipment, and even schemes involving the reselling of prescription drugs.

One Miami man, a convicted felon, described how easy it was to defraud Medicare. For over a decade, he raked in millions by recruiting patients to get prescriptions, filling them, and then reselling the pills multiple times under different names. Even after being caught and serving time, he admitted that many continue these schemes because the rewards often outweigh the risks.

In another shocking case, federal agents found $2.5 million in cash hidden inside PVC pipes under the home of a man running a fraudulent Medicare company. This operation was part of a larger scheme involving durable medical equipment fraud, where criminals create shell companies to bill Medicare for items that are never delivered to patients.

How You Can Protect Yourself

With fraud so widespread, it’s essential to protect yourself. Here are three steps you can take:

1. Protect Your Information: Treat your Medicare, Medicaid, and Social Security numbers like you would a credit card number. Never share them with strangers, and don’t carry your Medicare card unless you need it for an appointment. Remember, Medicare will never call or visit to sell you anything.

2. Detect Fraud Early: Review your Medicare statements closely, looking for charges for services or equipment you didn’t receive. Keeping a journal of your medical visits can help you spot inaccuracies.

3. Report Suspicious Activity: If you suspect fraud, report it immediately. Contact your health care provider, and if necessary, reach out to your local Senior Medicare Patrol (SMP) for free, confidential support.

Final Thoughts

Medicare fraud isn’t just a crime against the government—it’s a crime against you. It can rob you of your benefits, your peace of mind, and even your health. By staying vigilant and taking steps to protect yourself, you can help fight this growing problem.

Read more.

🚦 Poll time

Scams are unfortunately always on the rise. In 2023, Statista reported that 82.6 percent of people lost money due to an online scam.

🛑Scam City:

The Growing Threat of Cryptocurrency Scams Targeting Older Adults

When you think of cryptocurrency, older adults navigating the world of bitcoin might not be the first image that comes to mind. However, according to recent reports from the FBI, scams involving cryptocurrencies and older adults are becoming alarmingly more common.

Understanding Cryptocurrency: What Makes It Attractive to Scammers

Cryptocurrency, as defined by Forbes, is “a digital, encrypted, and decentralized medium of exchange.” Here’s what that means:

• No Physical Currency: Unlike cash or coins, cryptocurrencies exist only in digital form. You can’t hold them in your hand.

• Secure and Unique: Each transaction is secured through blockchain technology, making it nearly impossible to replicate or double-spend funds.

• No Central Authority: Cryptocurrency operates independently of any government or centralized authority, which can make it harder to regulate.

The very features that make cryptocurrency unique also make it appealing to scammers. The encryption that secures these transactions is a double-edged sword, as it makes fraudulent activities difficult for law enforcement to track.

How Cryptocurrency Scams Prey on Older Adults

The FBI’s annual Elder Fraud Report revealed a staggering statistic: older Americans lost over $3 billion to cryptocurrency fraud in 2022 alone.

These scams often begin on social media, where paid ads target older adults with promises of incredible investment opportunities. These offers are crafted to appear legitimate, but a closer examination often reveals them as too good to be true.

In other cases, scammers reach out directly via phone or email, posing as bank representatives or other trusted entities. They claim there’s an urgent issue with the victim’s bank account and instruct them to invest in cryptocurrency to resolve it. The unsuspecting individual is then guided to convert their cash into cryptocurrency and upload it to an unsecured digital wallet controlled by the scammer.

For example, one recent case involved a scammer convincing an older adult to withdraw $20,000 from their bank account and convert it into crypto assets. In another, a victim was manipulated into withdrawing $60,000, converting it to cryptocurrency, and transferring it to a scammer’s digital wallet.

Protecting Yourself from Cryptocurrency Scams

If you suspect that an older adult you know has been targeted by a cryptocurrency scam, here are some steps you can take:

1. Stay Calm: There may still be time to help recover some or all of the lost funds.

2. Cancel and Protect: Immediately cancel any credit cards or accounts that might have been compromised. Change passwords and report suspicious phone numbers or email addresses.

3. Involve Law Enforcement: Contact the authorities to report the scam and get guidance on next steps.

4. Communicate with Care: It’s important not to undermine the financial independence of the older adult involved. These scams are sophisticated and can fool anyone. Approach the conversation with understanding and ask non-accusatory questions to determine how best to assist them.

Cryptocurrency scams are just one of the many ways that criminals target older adults. By staying informed and vigilant, we can help protect our loved ones from falling victim to these and other fraudulent schemes.

Check out this article from AAA.

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