How to Identify and Prevent Financial Fraud

John J. ChoiRamsey County Attorney

Consortium of Lake Area Senior Services

Common Types of Elder Abuse

Physical abuse. Use of physical force that may result in bodily injury, physical pain, or impairment. Sexual Abuse. Non-consensual sexual contact of any kind with an elderly person. Emotional abuse. Infliction of anguish, pain, or distress through verbal or non-verbal acts. Neglect. Refusal, or failure, to fulfill any part of a person’s obligations or duties to an elderly person. Financial/Material Exploitation. Illegal or improper use of an elder's identity, funds, property, or assets.

Your Identity Personal

InformationFinancial

Information

Ingredients Needed by CriminalsWhat You Need to Protect . . .

Criminal Activity is EvolvingFinancial Fraud is a growing criminal enterprise

The new medium and domain is your trash, mailbox, telephone, internet, and email.

Criminals are looking to prey on vulnerable targets, which includes elderly populations.

Inherent limitations because of Jurisdictional and International borders

Less likelihood of detection and imposition of penalties, safer criminal activity

Identity TheftOccurs when someone gains access to a person’s basic information:NameAddressCredit card Social Security numbersThey then open a new charge or bank account, order merchandise or borrow money, fraudulently use telephone calling cards, claim tax refunds, etc.The Ramsey County Attorney’s Office has prosecuted numerous cases involving ID theft.

How They Get Your Information

Steal your wallets or purses.Steal your mail - including bank and credit card statements, pre-approved credit offers, telephone calling cards, etc.Trick you to give them your personal information.…Or dumpster dive to find your discarded mail and information.

Four women allegedly stole hundreds of identities,according to Ramsey County charges

By: Chao Xiong -- Star Tribune -- September 7, 2013

Deflorin obtained identities and Social Security numbers from the Minnesota Department of Labor and Industry (DLI) where she

worked from October 1994 to September 2004, and from going through trash.The defendant sold or traded the stolen IDs to three other women for drugs.

Marketplace for Your IdentityState v. Roxanne Deflorin

_______________________________________________________________________________

Ramsey County pursues low-level criminals to keep small theft schemes from spinning into larger ones. 

By: Joy Powell -- Star Tribune -- October 19, 2012

Small Crimes Become Big ProblemsState v. Jerry Thao

St. Paul Police arrest Thao and found the following items in his backpack:• A Minnesota driver’s license• A newly issued Discover credit card• A newly issued Wells Fargo Visa Platinum credit card• A $560 check drawn on the account of a victim• 4 books of TCF checks in a victim’s name• A United States Treasury check in the amount of $644• The Minnesota Certificate of Title for a Motor Vehicle belonging

to a victimThe defendant was charged with stealing the financial information of nearly 200 people.He was sentenced to nearly 5 years in prison and ordered to pay $27,000 in restitution.

Run-Ger Vang Chao Moua

Roseville Mail Thefts

Prosecutors say residents' identities stolen with mail

By: Mara Gottfried -- Pioneer Press -- February 10, 2014

Police received several complaints from residents in January about stolen mail or mailboxes found open.

A resident captured a red Toyota RAV4 on surveillance video stopping at mailboxes at 3 a.m. January 22.

Protect Yourself - Checks

• Do not have any of the following pre-printed on your checks:• Social Security number• Driver’s License number• Date of Birth• Phone number

This will make merchants ask you for more ID to verify the name on the check.• Important: Know when you reorder checks. Make sure you get them or have them sent to your bank to be picked up!

Mail and Paperwork Shred all paperwork- this includes junk mail like credit card solicitations.Use a cross shredder if you have one.Eliminate junk mail by completing an opt-out form and sending it to the Direct Mail Marketing Association.Do not send any mail by putting it in your mailbox at the end of your driveway and raising the red flag.Get your mail as soon as it arrives.

Eliminating Junk MailContact the Direct Marketing Association P. O. Box 643 Carmel, NY. 10512 www.dmachoice.org to stop most junk mail and unsolicited offers.

Social Security Cards

Don’t ever carry them with you.Only give the number to your employer or the Social Security Administration - no one else needs it!Immediately contact the Social Security Administration if you believe your number has been compromised and used to obtain goods, services, etc.Do not have your SSN printed on your checks!

Protect Yourself - Credit and Debit Cards

If your bank statements don’t come on time- call and inquire why.Limit the number of credit cards you carry.Understand debit cards and consider a cash card instead.Do not pick easy passwords/PIN numbers.Print “check ID” in the signature box with a permanent marker.Look out for card service scamshttp://www.ag.state.mn.us/Brochures/pubCardServicesScams.pdf

Telemarketing FraudWhat seems too good to be true usually is: Ask to receive the “unbelievable deal” or the “amazing prize offer” in writing so you can read it carefully before making a commitment.

Never give out your personal information: Whether over the phone or Internet, unless you have initiated the contact. Legitimate business callers will never ask you for this information over the phone.

Don’t give out personal information over the telephone: If a caller asks you to pay for an offer in advance or asks for your credit card number or worse yet your Social Security number, tell the person no.

Phone Scams to Watch Out ForCallers often pressure you into taking quick action on a “great deal” or to avoid an imminent consequence. Common tactics include:You must act now or the offer will expire.You must act now or you will be arrested and or prosecuted (IRS Scam)You must send in money or have a check picked up by a courier.You can’t afford to miss this one-time offer.You don’t need to check out this company, we’re famous.

Preying on Grandpa/GrandmaThis scam always entails a call or an email from either a crook posing as your grandchild or someone claiming to be helping your grandchild. It goes like this.

Criminal: “Grandma, do you know who this is?

Senior: “Joey?” “Susie?”

Criminal: “Yes, Grandma, it’s me. I’m in a jam in (Canada, Mexico or Europe) and I need you to send me money ASAP! Also, please don’t tell Mom or Dad as I’m too embarrassed. You’re the only one I can trust”.

What to do About the Grandma/Grandpa Scam

This is terrifying to hear, but don’t fall for it! Ask for a return phone number and other identifying information from the caller. Never give out a bank or credit card number!Verify that it is your grandchild by calling the parents or asking the “grandchild” questions about the family that only the real person would know. Refuse to send money through wire or overnight delivery.Call the police when you suspect this is a scam.

Tips For Avoiding Any Scam

Who called who? Be suspicious and on alert if they called or contacted you.Always ask for written materials about any offer or charity.Verify if you get offers for investments, check out the offer with a reputable financial advisor.Before giving to a charity, ask what percentage of your donation goes to “overhead”. Never give out bank account numbers or social security numbers.Never pay for a “free prize” despite warnings that a deposit or fee is necessary to win.

National Do Not Call RegistryScammers sometimes call claiming to represent the National Do Not Call Registry. The caller will offer to sign you up for the Registry. These calls are not coming from the Registry or the Federal Trade Commission, thus you should not respond to these calls. Steps you can take to protect yourself:• To add your number to the Do Not Call Registry, call 888-382-1222 from the phone you wish to register.• If you wish to register your phone number via the internet, go to www.donotcall.gov/.• Your registration will not expire. Telephone numbers placed on the National Do Not Call Registry will remain on it permanently due to the Do-Not-Call Improvement Act of 2007.

Some calls are still permitted:• Political organizations• Charities• Telephone surveyors• Companies with which you have an existing business

relationship.

A Popular Email Scam - Phishing• You get an email from what appears to be a company with whom you regularly do business(Wells Fargo, Ebay, Amazon, etc.).

• You are asked to update your membership information or your account will be closed.

• Or , you are advised that your account has been compromised and you need to verify your account number and password.

Other Email ScamsYou get a frantic email from a trusted friend telling you they are in dire need of funds as they are in a hospital/jail/custody in another country.Look for a friend’s name and an urgent request to wire transfer money to him or her.Very likely your friend’s email was compromised by crooks.

Scam Mailings and Charity RequestsSorry, you did not win a sweepstakes prize because you cannot win a contest you did not enter. These are always bogus!

Foreign lotteries are illegal. You will be told you won but need to pay the tax on the prize, etc. Remember, You can’t win a prize if you did not enter.

Bogus charities. Be wary of the emotional appeal for a worthy sounding charity. Tell them to send you something in the mail and then call the Minnesota Attorney General’s Charity watchdog group at 651-296-3353 or go online at: www.ag.state.mn.us/Charities/CharitySearch.asp

Advance Fee SchemesYou are asked to pay money in anticipation of receiving something of greater value—such as a loan, contract, investment, or gift.You will receive little or nothing in return.The variety of advance fee schemes is limited only by the imagination of the con artists who offer them. They may involve the sale of products or services, the offering of investments, lottery winnings, “found money,” or many other “opportunities”.

Nigerian Letter or Email ScamsIf you receive a letter from Nigeria (or some other country such as Bulgaria or Albania) asking you to send personal or banking information, do not reply in any manner. Send the letter to the U.S. Secret Service, your local FBI office, or the U.S. Postal Inspection Service. Do not believe the promise of large sums of money for your cooperation.Guard your account information carefully.

Tips to Avoid Health Care ScamsNever sign a blank insurance claim form.Never give blanket authorization to a medical provider to bill for services rendered.Do not do business with door-to-door or phone sales reps who tell you that services or equipment are free.Give your Medicare number or insurance information only to those who have provided you with medical services.

Common Types of Health Care Fraud

“Free” equipment offers. Your insurance company will get billed for the product. Manufacturers offer “free” use of equipment in exchange for your Medicare #. Fraudulent doctors either approve the device or the MD’s signature is forged sticking you with an unnecessary medical device.“Rolling labs” are unnecessary and sometimes fake “medical” tests are offered at retirement homes, shopping malls, etc. and are billed to your insurance.

Social Security and Medicare Scams

You get a call from someone claiming to be from Social Security Administration or Medicare.They advise that new benefit cards are being distributed and your file must be updated to be eligible for new or expanded benefits.Crook asks for your social security number to “verify” your account or ask for personal banking information, etc. Just say “No thank you.” and hang up.

Avoiding Medicare and Social Security Fraud

Medicare and Social Security Administrations NEVER call you to give you a new card or to ask for personal information!Call the Center for Medicare and Medicaid Services at 1-800-633-4227or Social Security Administration at 800-772-1213 orFBI at 763-569-8000

On-line ShoppingBe safe when ordering on-line. Secure pages begin with “https” instead of “http”. A picture of a lock in a locked position should appear in your browser.

Reverse Mortgage ScamsLegitimate reverse mortgages are insured by the Federal Housing Authority. Don’t respond to unsolicited offers.Be suspicious of anyone who tells you that you can own a home with nothing down.Don’t ever sign anything you do not fully understand.Seek out your own reverse mortgage counselor or the Better Business Bureau or your family to discuss the offer with them before signing anything.

Living TrustsLiving trusts organize your finances and living wills (now called health care directives) declare your health care wishes. Do not confuse the two!Be very careful when a salesperson asks for personal financial information so that they can evaluate whether a living trust is right for you.The sales pitch often claims to avoid probate costs or inheritance taxes.Seek advice from a licensed attorney if you have an interest in one, but be very wary of signing anything- especially when you may pay thousands of dollars for nothing more than legal forms.

Credit BureausEquifax 1-800-525-6285 www.equifax.com

TransUnion 1-800-680-7289 www.transunion.com

Your personal bank will conduct one

free credit report per year.

More InformationFederal Trade Commission www.ftc.govSocial Security Administration www.ssa.govInternet Fraud Complaint Center www.ic3.govID Theft Resource Center www.idtheftcenter.orgPrivacy Rights Clearinghouse www.privacyrights.orgNational White Collar Crime Center www.nw3c.org Ramsey County Sheriff/ local police 911Ramsey County Attorney’s Office 651-266-3222