Scams targeting elderly on the rise

CONSUMER FORUM

By Russ Van Arsdale, Executive Director, Northeast CONTACT

Posted June 15, 2013, at 12:18 p.m

The call to a woman in eastern Maine last Thursday sounded legitimate. The caller claimed to be with the Eastern Area Agency on Aging (EAAA) and inquired about the woman’s arthritis.

As the conversation went on, the caller claimed to have access to a “tool” that could help relieve the woman’s pain. All the woman had to do, the caller said, was to provide her Medicare number. When the woman refused (smartly), the caller hung up.

The people from EAAA are understandably upset. There’s no way they would call out of the blue and ask for someone’s personal and financial information. They’re doubly angry, because the scammers are preying on seniors.

However, the targets are not just older Mainers. Troy Morton is Chief Deputy of the Penobscot Sheriff’s Department and chairman of the local TRIAD, an alliance of police and senior citizens groups aimed at protecting our older citizens.

“It’s really flooded the area again,” Morton said of the scam calling.

He said on Friday the calls are going to seniors and non-seniors alike, and the scammers are tailoring their sales pitch depending on who answers their call.

He said scammers will use key terms to gain a person’s trust. They might cite “Part B” coverage when referring to Medicare; using such terms tends to make people think the caller is familiar with the subject, and so is trustworthy.

The moment of truth comes when the caller delivers the pitch: “Give me your Medicare number, and I’ll get the paperwork going,” or words to that effect. The insistence for immediate action — divulging personal or financial information, revealing credit card or bank account numbers — is a tipoff that this is a scam attempt.

“If somebody’s trying to sell you a service, they’ll sell it tomorrow too,” Troy Morton said. People should always be suspicious of “cold calls” and doubly so when the caller turns on the pressure to act right away.

Everyone who advocates on behalf of seniors (and consumers generally) urges them to take a breath and say to themselves, “What’s the worst that could happen if I wait?”

Then, as with any purchase, do your research. Call the business or agency where the offer supposedly originated and see if it’s genuine. Check with family, friends or other trusted people and learn from their experiences; if they’ve been burned, leave it alone.

The scam arthritis call came just a day after Gov. LePage signed a proclamation noting that June 15 is Elder Abuse Awareness Day. The Governor called attention to what has been termed “the crime of the 21st century” because it’s so pervasive and potentially disastrous for victims.

The Maine Council on Elder Abuse has just launched a website at http://elderabuseprevention.info/ with information about preventing all types of abuse of seniors.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer 04412, visit http://necontact.wordpress.com or email contacexdir@live.com.

 

Department of Professional and Financial Regulation Encourages Seniors and Caregivers to Utilize State Resources to Protect Against Elder Abuse and to Report Suspected Cases

‘Crime of the 21st Century’ under-reported, causing untold pain & suffering and costing an estimated $2.9 billion nationally each year

GARDINER – Calling elder abuse one of the most under-reported and fasting growing crimes of the 21st century, Commissioner Anne L. Head and other officials with Maine’s Department of Professional and Financial Regulation (DPFR) joined Governor Paul R. LePage in highlighting the June 15th observance of World Elder Abuse Awareness Day by urging seniors and caregivers to utilize state agency resources to protect themselves, and encouraging them to report cases of suspected abuse.

Officials are also highlighting an effort by the Maine Council on Elder Abuse Prevention, which is encouraging businesses and nonprofits to post “No Excuse for Elder Abuse: World Elder Abuse Day, June 15th” on their signage.

“Financial abuse, which includes investment fraud and exploitation, is among the most common forms of elder abuse, costing its victims an estimated $2.9 billion a year,” Commissioner Head said. “Because these crimes are often committed by caregivers, family members or trusted financial advisers, they go unreported in too many cases.”

Maine’s Office of Securities, an agency within DPFR, emphasizes that investment scams targeting seniors are increasingly prevalent and particularly troubling. Securities Administrator Judith Shaw, who co-chairs the Maine Council on Elder Abuse Prevention, noted the importance of reporting suspected cases. “Maine’s Office of Securities is committed to fighting elder financial exploitation, but our efforts are much more successful when people come forward to report their concerns.”

Administrator Shaw noted that the Office recently concluded a case in which a former New Hampshire stockbroker took nearly $200,000 from a senior couple in Aroostook County as part of an investment scheme. The perpetrator was sentenced to time in prison and ordered to pay restitution to the victims. “This case illustrates that strong action can be taken when problems are brought to light,” Shaw said. “Unfortunately, too few people speak up or they come forward after their life-savings has been depleted.”

Commissioner Head and Administrator Shaw encourage seniors and those who care for them to contact the Department for answers to questions or to obtain resources. The Office of Securities offers educational materials and personal assistance to consumers regarding safe investing and investment professionals by calling 1-877-624-8551. Information is also available at http://www.investors.maine.gov.

Additionally, the Downeaster Guide to Elder Financial Protection can be obtained from the Department’s Bureau of Consumer Credit Protection. The 32-page publication is free of charge to Maine residents by calling 1-800-332-8529 (1-800-DEBT-LAW). It can also be found at http://www.Credit.Maine.gov under “Publications”. The Department’s Bureau of Financial Institution offers a comprehensive online Consumer Library (www.maine.gov/pfr/financialinstitutions) with many resources of interest to seniors.

A partial list of State agencies and organizations in Maine providing information, services and education on elder abuse, including financial exploitation, accompanies this release

 ###

 

Partial List of State Agencies and Organizations in Maine providing information, services and education on elder abuse, including financial exploitation:

Maine Office of Aging and Disability Services: www.maine.gov/dhhs/oads

1-800-262-2232 or 207-287-9200

*****

 Maine Adult Protective Services: www.maine.gov/dhhs/oes/aps

Hotline: 1-800-624-8404

*****

Maine Department of Professional and Financial Regulation:

(Five Agencies Offering a Wide Range of Assistance to Seniors and Caregivers) www.maine.gov/pfr

*****

Office of Securities: 1-877-624-8551

(Investment Questions of Concerns) www.investors.maine.gov

*****

Bureau of Financial Institutions: 1-800-965-5235

(Banking Questions or Concerns) www.maine.gov/pfr/financialinstitutions

*****

Bureau of Consumer Credit Protection: 1-800-332-8529

(Credit, Foreclosure, General Financial Scam Concerns) www.maine.gov/pfr/consumercredit

*****

Bureau of Insurance: 1-800-300-5000

(Insurance-related Questions or Concerns) www.maine.gov/pfr/insurance

*****

Office of Professional and Occupational Regulation: 624-8603

(Questions or Concerns Related to Licensed Professionals) www.maine.gov/pfr/professionallicensing

*****

Maine Area Agencies on Aging:

List of regional agencies with full contact information: http://www.maine.gov/dhhs/oes/resource/aaa.htm

*****

Legal Services for the Elderly: www.mainelse.org

1-800-750-5353

 

You may be eligible for Kellogg settlement – WABI-TV

Russ and Joy discuss the Frosted Mini-wheat settlement

The Federal Trade Commission (FTC) filed it’s case against Kellogg in 2009. They charged them with unfair or deceptive advertising. The issue was a series of TV commercials telling moms the cereal could help their children in school. The ads even claimed that Frosted-Mini Wheats had been “clinically shown to
improve kids attentiveness by nearly 20%.

“When the FTC challenged Kellogg to back up their claim the company agreed to tone down their advertising claims, while they denied any wrongdoing.

Boxes of Frosted Mini-Wheats now claim to keep eaters “full and focused all morning.” The proposed settlement orders Kellogg to limit it’s claim to “clinical studies have shown that kids who eat a filling breakfast like Frosted Mini-Wheats have an 11% better attentiveness in school than kids who skip breakfast” or to have similar wording.

Consumers who feel they were misled by the ads that ran from January 2008 to October 2009 may file claims through a website Kellogg created cerealsettlement.com  Forms can be filled out online or printed and mailed. Consumers who file claims may receive up to $5 per box of Frosted Mini-Wheats they purchased up to a maximum of $15.

Kellogg proposes settlement in lawsuit over Mini-Wheats advertising claims

CONSUMER FORUM

By Russ Van Arsdale, Executive Director Northeast CONTACT

Posted June 08, 2013, at 12:52 p.m.

A proposed settlement was announced last week in the class-action lawsuit against Kellogg, the company that manufactures Frosted Mini-Wheats cereal.

The settlement was years in the making, and it could mean a few dollars back in the pockets of consumers. However, the settlement – if approved by a judge – fails to answer some basic questions about what kinds of claims advertisers can and should make about their products.

The Federal Trade Commission filed its case in 2009, charging Kellogg with unfair or deceptive advertising. At issue was a series of TV commercials designed to boost lagging sales of Mini-Wheats by telling moms the cereal could help their children in school.

The TV ads included the claim that Frosted Mini-Wheats had been “clinically shown to improve kids’ attentiveness by nearly 20 percent.” That seemed a stretch to federal watchdogs, at a time when many consumers had a healthy skepticism about sugary foods (a serving of “original” Mini-Wheats today contains 11 grams, or a little under a half ounce, of sugar).

Now, we all want students to do better in school. Kellogg had hoped mothers who saw their ads would buy Mini-Wheats to help their young scholars. When the FTC challenged Kellogg to back up its claim, the company agreed to tone down the rhetoric while denying any wrongdoing or liability. The company still says it stands by its advertising.

The backed-off ads were termed the “full and focused” campaign. A bowl of fiber-rich cereal will keep the little tummies full, the ads proclaimed, leading to “23 percent better quality of memory” than students who ate no breakfast. Washington Post blogger Jennifer LaRue Huget wrote in May 2009 there was no comparison between the 73 youngsters Kellogg fed and students who ate other kinds of breakfasts, nor was it clear how the company measured its results.

Some nutrition-oriented consumer websites are not all that critical of the content of Mini-Wheats. The Center for Science in the Public Interest says Mini-Wheats meet CSPI’s guidelines for marketing food to children (see www.cspinet.org/marketingguidelines.pdf). Caloriecount.com gives the cereal a nutrition rating of A-, pointing out that it’s high in niacin, phosphorous, riboflavin and vitamins B6 and B12, as well as fiber, and very high in iron. The bad point, according to the calorie counters, is the 11 grams of sugar per serving (21 biscuits).

Boxes of Mini-Wheats on the market now have the pledge to keep eaters “full and focused all morning.” The proposed settlement orders Kellogg to limit its claims to “Clinical studies have shown that kids who eat a filling breakfast like Frosted Mini-Wheats have an 11% better attentiveness in school than kids who skip breakfast,” or similar wording.

Consumers who feel they were misled by the earlier ads, which ran from January 2008 to October 2009, may file claims through a website Kellogg created, www.cerealsettlement.com. Forms can be completed online or printed and mailed. You may also exclude yourself from the settlement or object to the settlement. You can also do nothing.

Consumers who file claims may receive up to $5 per box of Mini-Wheats they purchased, up to a maximum of $15. If the $4 million Kellogg has set aside for these payouts isn’t used up in the first round of claims, it’s possible consumers could receive more.

The settlement should serve as a reminder to food manufacturers that their claims need to pass the straight-face test as well as clearing their lawyers’ desks. Until they do, we should all read food packaging with a healthy dose of skepticism.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer 04412, visit http://necontact.wordpress.com or email contacexdir@live.com.

Seniors should be wary of medical alert device scam

CONSUMER FORUM

By Russ Van Arsdale, Executive Director, Northeast CONTACT

Posted June 02, 2013, at 3:35 p.m.

At first we thought we were out in front of the story: People posing as representatives of a medical alert company were cold calling Maine seniors and offering them free medical alert devices. All the seniors had to do was fork over some personal financial information (and, in the process, open their bank accounts to the callers).

Then, last Wednesday, Maine Attorney General Janet Mills issued a news release calling the whole thing a scam. She cautioned seniors not to give any personal or financial data to these frauds calling their company Life Watch, or anyone else who called out of the blue. Not only that, she said the officers of sound-alike Life Alert are suing a couple of outfits it says are misrepresenting themselves.

“Legitimate companies do not operate like this,” Mills said in the release. “This scam is particularly insidious because it trades on the well-known brand of Life Alert, which is intended for very vulnerable senior citizens.”

There are several tip-offs that the call is not on the level. First, as Mills pointed out, honest companies don’t make random robot calls, putting a sales person on once the phone is answered and turning up the heat. A second clue concerned the pitch itself.

When the first call came to our home, a heavily-accented seller needed prompting before revealing that, while the alert device itself is “free,” my service plan would cost about a dollar a day. The second flag went up when, asked about the cancellation policy, she said, “Just give us a call.” That’s scammer code for, “We’ll just ignore you.”

I asked to speak with a supervisor, and another thickly accented person (who told me his name was “Mr. Lennie Allen”) said his firm was the “only EMT-certified” provider of “the preferred medical alert monitor” (EMS officials we spoke with weren’t sure what those terms meant). “Lennie” added that his firm had “100 percent customer satisfaction” (probably the first ever in our notebook) and that it was “endorsed by the American Diabetes Association.” A call to that organization confirmed that it “does not test advertised products, does not conduct independent scientific reviews and does not ensure the safety and efficacy of their claims.” Pants on fire, Lennie.

A second caller to our home asked for my wife by her legal name, which she never uses. “Where did you get my name?” she asked.

“Uh, well, we make random calls…”

“But I’m on the National Do-Not-Call list.” A hurried apology, and away the caller went.

The people who really run Life Alert are so steamed they’re suing the folks they say are responsible for thousands of seniors nationwide being ripped off and their company’s reputation suffering “tremendous” damage. They’ll have lots of ammunition; the Better Business Bureau says in February 2011 it requested that Life Watch “cease and desist all unauthorized use of the BBB name and logo in its promotional materials.” During our conversation, “Lennie” told me his firm had an A-plus rating from the Bureau (pants now in ashes).

Maine seniors who believe they have been a target of this scam should call the A.G.’s Consumer Protection Division at 1-800-436-2131 or email consumer.mediation@Maine.gov.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer 04412, visit http://necontact.wordpress.com or email contacexdir@live.com.

Summer Scams – WABI-TV

Joy and Russ discuss the scams that recur each summer: gypsy pavers, chimney liners, tree trimming, etc.

One of Northeast CONTACTs resources

Maine to benefit from disability claims settlement

CONSUMER FORUM

By Russ Van Arsdale, Executive Director, Northeast CONTACT

Posted May 26, 2013, at 6:48 p.m.

Working Mainers whose disability insurance coverage is provided by one of three companies will likely be treated differently if they file claims in the future.

Maine’s Superintendent of Insurance, Eric Cioppa, announced last week that Maine is one of five states that settled a dispute with Life Insurance Company of North America (LINA), Connecticut General Life Insurance Co. and Cigna Health and Life Insurance Co. (formerly known as Alta Health and Life). In some cases, those companies will be taking a second look at claims they had previously denied.

Cioppa said Maine and the four other states (California, Connecticut, Massachusetts and Pennsylvania) all took close looks at the three Cigna companies and found that “they were not using available information to appropriately process disability income insurance claims.” While the companies admitted no wrongdoing by entering into the negotiated settlement, they did agree to change the way they decide whether to approve claims. (Some disability attorneys have alleged that the companies deny benefits without examining a claimant’s physical condition and that the companies use unauthorized video surveillance to show that claimants should be able to go back to work.)

As part of the multistate agreement, the companies are re-evaluating certain claims; they have set aside $48 million in case the reviews show that they need to pay additional benefits. The companies have also set aside an additional $29 million for claims that are open now.

During an interview, Cioppa was unable to estimate how much of that money might be coming to Mainers. He said denied claims from all five states will be sampled for review, and Cioppa said Maine will be “actively reaching out” to other states to become parties to the agreement.

Another part of the agreement requires the companies to pay Maine $175,000 in fines. The state will get an additional $100,000 to cover costs associated with examining cases.

There will be a 24-month monitoring period, during which the insurance departments of the five states will conduct random sampling of claims. They’ll be checking to see that the companies have improved the claims handling process for current policyholders. There will also be a remediation program, with the improved procedures applied to “certain previously denied or adversely terminated claims” for residents in participating states.

Following the monitoring period, Maine and other monitoring states will conduct what’s called a re-examination. That process is designed to measure the effectiveness of the companies’ improved claims review process and could take up to six months.

Eric Cioppa says the Bureau of Insurance is willing and able to help people who feel they may have been wronged in the past. “If they know they have some rights they may not have been aware of, they can always call us,” he added.

You can reach the Bureau at 1-800-300-5000 or online at www.maine.gov/pfr/insurance.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer 04412, visit http://necontact.wordpress.com or email contacexdir@live.com.