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Illinois SMP Program Fraud Alerts
The Illinois SMP Program sends email Fraud Alerts every Friday. These alerts contain fraud-related news articles, information about current scams in Illinois or other parts of the United States, and useful healthcare or fraud-related resources. If you would like to be added to the Illinois SMP Fraud Alert email list, please contact:
Erin Weir, Healthcare Consumer Protection Coordinator
Phone: (800)699-9043, (708)383-0258
TTY: (708)524-1653
Fax: (708)524-0870
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Illinois SMP Fraud Alert - July 9, 2010
Dear SMP readers,
This week’s Fraud Alert contains warnings about a number of scams reported to the Illinois SMP in the last two weeks, as well as a fair amount of fraud in the news. Have a great weekend!
Sincerely,
Erin Weir, MSW, LSW, Healthcare Consumer Protection Coordinator
AgeOptions
1048 Lake Street, Suite 300
Oak Park, IL 60301
phone (708)383-0258 fax (708)524-0870
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Please share this Fraud Alert with colleagues, consumers, or other professionals in your area. If you have any questions about the Illinois SMP program, or to receive these Fraud Alerts directly, please contact Erin Weir, Healthcare Consumer Protection Coordinator at AgeOptions.
What you will find in this week’s Fraud Alert
- Phone Scammers Claim to be from the Illinois Sheriff’s Association
- Phony Government Grants Scam
- Insurance Agents Trick Seniors Into Buying Annuities
- There is No Such Thing as a “Free Lunch”
- Fraud in the News
Phone Scammers Claim to be from the Illinois Sheriff’s Association
One of our SMP volunteers in Western Illinois recently informed us that Henry County Sheriff Gilbert Cady is advising Illinois residents that a phone campaign is fraudulently using the name of the Illinois Sheriff’s Association. Please note that the Illinois Sheriff’s Association does NOT solicit by phone.
The Illinois SMP program has consistently received a large number of reports like this of phone and door-to-door scams where the solicitor uses the name of a legitimate organization to obtain people’s money and/or personal information. In order to avoid these scams, the ‘best bet’ is always to avoid donating over the phone or at the door to any organization that contacts you. Instead, call the organization yourself, using the organization’s publicly published phone number – that way you know that you are speaking to someone at the real organization.
Phony Government Grants Scams
A colleague of the Illinois SMP program recently received an email offering her “Government Grants” and asking her to click on a link to find out if she qualifies for a variety of grant opportunities. Similarly, the Kansas SMP recently reported a phone scam where the caller said that he works for the federal government and is giving out grant money. The caller then asked the person to wire $99 through Western Union, in order to qualify for a $4,700 grant. The caller stated that the person would receive the $99 back with the $4,700 grant.
These “free grants” offers have been around for a long time. They always seem to offer money, but with a request for payment first. NEVER pay money to get money – it’s a sure sign of a scam!
Insurance Agents Trick Seniors Into Buying Annuities
The Fair Lending Project for Seniors at the Council on Aging Silicon Valley in California is seeking information from older adults who have been sold annuities by insurance agents promising to qualify them for the Veterans Aid and Attendance pension or any other VA pension program.
This scam, which is really just a variation on the trust mill, appears to be spreading, and just yesterday, Montana’s AG put out a warningabout it: http://www.doj.mt.gov/news/releases2010/20100701.asp
If anyone has experienced this scam, please contact the Illinois SMP program at (800)699-9043, so that we may put you in touch with the Fair Lending Project for Seniors.
The California SMP has posted a useful article about a similar issue – insurance agents selling annuities under the guise of selling Medicare supplement plans. Click on the video image on the right side of the article to view a rather disturbing story done by Inside Edition:
There is No Such Thing as a “Free Lunch”
The SMP program coordinator in the Champaign, Illinois area recently saw an advertisement for a “free lunch” where people can sign up for a raffle for a free hearing aid. Please be aware that the two goals of any “free lunch” seminar are generally the following: 1) to convince attendees to purchase something, and 2) to obtain the attendees’ contact information, in order to place them on a marketing list. The lunch attendees will then generally receive phone calls and/or mail with additional solicitations.
While these “free lunch” seminars are often not fraudulent in any way, consumers should remember that they are a marketing ploy. Any time you give your information on a sign-in sheet or for a raffle or other drawing, you may be giving permission to a variety of sales agents and companies to contact you and solicit business. You will also probably have to sit through a lengthy sales pitch at the event, and you may be offered goods or services that you don’t need.
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Fraud In The News
The following are current news articles about health care and fraud issues.
Health Care Fraud:
1. “Health Care Fraud: Trends and Tips” (recent article by the FBI):
http://www.fbi.gov/page2/june10/fraud_062810.html
2. “Why Do We Keep Shrugging off Scam?” (article about the diabetes phone scam reported in Indiana): http://www.journalgazette.net/article/20100629/ LOCAL0201/306299988/1002/LOCAL
3. “Crooks Defraud Health Care System With Fake Insurance Plans and Phony Medicare, Medicaid Claims (summary of articles in Kaiser Health News): http://www.kaiserhealthnews.org/Daily-Reports/2010/ July/07/Health-Care-Fraud.aspx
4. “House Committee Holds Hearing on Reducing Fraud, Waste, and Abuse in Medicare”: http://www.dotmed.com/news/story/13135?p_begin=0
5. “AARP Scam Alert: Medicare Donut Hole Deception”: http://www.aarp.org/money/scams-fraud/info-06-2010/ scam_alert_doughnut_hole_deception.html?cmp=NLC-RSS-DAILY-BULLETIN
Consumer Fraud:
6. “AARP Scam Alert: Skip This Shopping Spree”: http://www.aarp.org/money/scams-fraud/info-07-2010/ skip_this_shopping_spree__.html?cmp=NLC-RSS-DAILY-BULLETIN
7. “Claims of Being Stranded Swindles Consumers Out of Thousands of Dollars” (alert by the Internet Crime Complaint Center): http://www.ic3.gov/media/2010/100702.aspx
8. “In the D.C. Area and Across the U.S., Scams Against Seniors are on the Rise”: http://www.washingtonpost.com/wp-dyn/content/ article/2010/07/06/AR2010070605455.html?hpid=topnews
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Fraud Alerts contain information about current scams taking place in Illinois, announcements and updates about programs or services related to health care and/or fraud protection, and links to news articles about health care and fraud topics. Please forward any recommendations or announcements that you would like to be included in a future Fraud Alert to erin.weir@ageoptions.org.
AgeOptions, the Area Agency on Aging of Suburban Cook County, is committed to improving the quality of life and maintaining the dignity of older adults and those who care about them – through leadership and support, community partnerships, comprehensive services, accurate information and powerful advocacy.
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