Scam Jam offers advice to protect against fraud

When Shawn Smith was growing up, his mother gave him a common childhood warning: “Don’t talk to strangers and don’t take candy from strangers.”

Smith is now the state director for Virginia Senior Medicare Patrol, which works to prevent, detect and report health care fraud. His mother is 74, and he offers her similar advice.

“I said, ‘Mom, don’t talk to strangers and don’t take free medical equipment from strangers,’” Smith explained.

“When someone’s calling you and offering you something that’s free, there’s no such thing as free. You’re going to pay for it one way or another,” he told attendees at a recent Scam Jam, a series of presentations in Richmond on how older people can protect themselves from fraud.

Speakers at the event at the Annie Giles Community Resource and Training Center described various schemes that criminals use to defraud older Americans. They include low-tech methods, such as stealing mail and cashing checks you have written, as well as high-tech tactics, like using artificial intelligence to impersonate your family members in telephone calls and ask for money.

Smith, who wrote a book detailing tips people can use to protect themselves against fraud, said that “just picking up the phone and answering ‘Yes’ can put you in danger.” Tricksters can manipulate the audio to make it sound as if you authorized them to drain your bank account, he said.

He also described specific scams such as durable medical equipment fraud, in which unscrupulous companies contact Medicare beneficiaries by phone, pressure them to order a wheelchair, braces or other items they don’t need, and then bill the government.

About 30 people attended the Scam Jam, which was organized by AARP Virginia and the Richmond Department of Parks, Recreation and Community Facilities. Afterward, a shred truck provided free destruction of personal documents – one of the many strategies that the presenters shared for staying safe.

The seminar included presentations by representatives of four organizations.

U.S. Postal Inspection Service

Derwin Kinston investigates mail theft, identity theft and other crimes for the Postal Inspection Service, which he noted is the nation’s oldest law enforcement agency. He urged people to protect their personal information, including Social Security number, Medicare number, bank account numbers and date of birth.

Don’t answer unsolicited phone calls, reply to “weird” text messages or open unfamiliar hyperlinks, Kinston said.

“There are people in this country who wake up every day looking for your mistakes” so they can steal your identity, he said. “These mail fraudsters want to target the elderly, the vulnerable.”

They can do that by hacking into your online accounts, infecting your computer with a virus, sending you a bogus email to trick you into divulging sensitive information (a technique called phishing), or skimming (stealing) your PIN when you use a debit or credit card.

Kinston said swindlers also use old-school techniques, such as breaking into mailboxes, sifting through your trash, “Dumpster diving” or stealing your checkbook.

If you are mailing a check, Kinston said, it’s best to take it directly to a post office instead of dropping it into a mailbox that thieves might access. He said hustlers can take a check you’ve written, open an account in another state with the name of the intended recipient, doctor the amount (changing $5 to $500, for example), deposit the check and abscond with the money.

Another common scheme, Kinston said, is for tricksters to notify you by phone or email that you have won a sweepstakes – but that to collect, you must provide a credit card number to cover a processing fee or taxes. This swindle usually involves a contest you didn’t even enter.

“You can’t get something for nothing,” Kinston said. “If somebody says you won a sweepstakes, it’s probably fraud.”

Virginia Senior Medicare Patrol

Smith, who works with Virginia’s local area agencies on aging, said scam artists will impersonate Medicare or other government officials. They might say you need a new Medicare card – but first, you must provide your Medicare number. Using that number, the crooks will submit a fake Medicare claim.

“This is a big scam we see all the time,” Smith said.

The United States spends $800 billion annually on Medicare, he said. “We lose about $60 to $80 billion a year to fraud.”

“Don’t answer unsolicited phone calls,” Smith said. He added, “Don’t automatically trust caller ID” – because with a technique called spoofing, criminals can make it look like they’re calling from a government agency or a local area code.

Medicare, the Social Security Administration and the Internal Revenue Service will not call you to ask for money or personal information, Smith said. “So if you get a phone call from anybody saying they are from any of those agencies, you can hang up the phone because more than likely, you're going to be dealing with a scammer.”

In an increasingly popular scam, crooks may tell you that Medicare is offering free genetic testing that could show whether you are at risk for cancer, dementia, Parkinson’s or other diseases. If you agree, the fraud operation will send a kit for you to submit a cheek swab or saliva sample.

But in fact, Smith said, Medicare covers genetic screening only when prescribed by a doctor. By agreeing to the testing, you can be stuck with a bill for up to $12,000, he said.

City of Richmond Sheriff’s Office

Sheriff Antionette Irving said people can take steps to protect themselves from fraud. When paying for an item, for instance, it’s better to use a credit card rather than a debit card.

“Use credit cards because you may be able to get your money back” if you’re defrauded, Irving said.

Capt. James Pochkar urged Scam Jam attendees to shred documents with personal information and to refrain from posting personal information – such as the fact that you are out of town – on social media.

Pochkar also warned about scams featuring fake celebrity endorsements created by artificial intelligence and even AI-generated products – items that don’t exist.

Impersonating the Sheriff’s Office, scammers have contacted some Richmond residents and threatened them with arrest for missing jury duty, Irving said. “They’re being told that they can pay their way out of having to go to jail” by forking over thousands of dollars.

“People are falling for it,” Irving said.

Pochkar said older people also are falling for the “grandparents scam”: Someone claiming to be your grandchild may call begging for money for bail, to avoid eviction or other supposedly dire reason.

Among the telltale signs that such pleas are a hoax: Callers will insist that you not contact their parents, and they may seek payments as gift cards, which are hard to trace.

Federal Bureau of Investigation

FBI intelligence analyst Heather Harris, who has worked for the agency for 27 years, said several circumstances have created a “perfect storm” for fraud:

• There is a large population of “vulnerable and trusting citizens” over age 60.
• They have accumulated considerable wealth, including equity in their homes.
• Rip-off artists have devised complex schemes using psychological pressure and manipulation – increasingly empowered by artificial intelligence.
• Perpetrating criminal organizations have set up shop overseas – often in Asia and Africa. That makes it hard to prosecute cases and recover stolen funds, Harris said.

She described in detail the romance scam, in which a con artist develops a romantic relationship with the victim. This scheme targets both men and women, Harris said.

She said the fraudster will make the victim “feel like they have this special bond” and that “we are going to spend our life together.” The scam artists will repeatedly offer reasons why they can’t visit you in person – citing, for instance, foreign business activities. (Pochkar recalled investigating the case of a woman who lost her home and other assets after being courted by someone who claimed to be a military doctor living overseas.)

After ingratiating themselves into your life, Harris said, the fake romantic partner will ask for money.

“Do not send money to, or open a bank account for, someone you’ve never met in person,” she said.

Criminal gangs have mastered how to prey on a person’s emotions, Harris said. Moreover, they are ready to play the long game. For example, Harris cited what is called the “pig butchering scam,” in which people are lured into putting their money into a seemingly sound investment, often through cryptocurrency.

The fraud operators might actually pay off on a small initial investment – akin to fattening a pig before slaughter. But after the victim goes all in on a large investment, the impostors will take the money and disappear, Harris said.

Other tips from Scam Jam

• Update the virus detection software on your computer. 
• Consult resources such as the AARP Fraud Watch Network, ScamSpotter.org and Fraud.org.
• Monitor your bank statements, Medicare statements and credit reports for irregularities.
• Report scams to the National Elder Fraud Hotline (833-372-8311), the Federal Trade Commission and your local police.