The professional crooks are at it again. The U.S. Attorney’s office recently charged six defendants with yet another telemarketing fraud scheme targeting the elderly. The allegations are that the con artists sought out and preyed upon the elderly through their lottery scam. We see these reports often in the news, to the point that they seem very repetitive. The characters and the amount of money stolen from elders changes but the methods are the same over and over. They caught the scammers this time and charged them with theft of a total of $400,000 from various victims. That’s the least of it. Other scams bring in millions from their vulnerable victims.
Why do elders fall for these things? Why don’t they get that the “Nigerian prince” or the “Jamaican Lottery” are clearly bogus and not to be trusted? (more…)
Mom just turned 93 years old. In fact it was her birthday yesterday. I surprised her with an unscheduled visit. She was so very happy to see me and to not have to spend her birthday alone. Once at her home, I noticed a bill from one of her doctors lying on her table. I inquired about why she was seeing a new chiropractor. She proceeded to show me two small red led light boxes she was using, prescribed by the new doctor to decrease the pain in her legs. Mom said she had been going to the doctor for over 3 months and she wanted to surprise me with how much better her balance and walking had become. However, sadly, there was no progress. I felt sad for my mother who has been searching for many years for a cure to her chronic leg pain. But the real surprise came when I looked at her bill from the doctor. The doctor had charged her $3800 for the treatment that claimed to improve her balance and decrease her leg pain. He had charged Medicare for the $3800 and the Government had paid him over $700. He then billed her the balance of $3000. This practice is called “BALANCE BILLING” and is against the law. If the doctor accepts Medicare, he must accept that is total except the 20% Medicare does not cover. When her doctor presented her with the outstanding balance, she said she could not pay that amount, so the doctor suggested that she sign up for “Care Credit” to help her. He told her she could just pay as little as $30 per month and that sounded really good to mom. So mom had been paying 26.99 % APR on the $3000 balance.
Please pay close attention to your aging loved ones especially when it comes to how easily they can get Scammed. This has been another very painful lesson for all of us.
“Unfortunately, no matter whether it’s a specific reason or many, seniors are at risk for fraud and identity theft. It’s important for the people in their lives to understand these risks and do their part to protect seniors they care about from the many scammers that lurk. As aging expert Carolyn Rosenblatt said in a recent Forbes article, it’s not just a matter of law enforcement or the government taking action — seniors and their caregivers also need to be vigilant.” READ MORE
Carrie got concerned when her brothers suddenly began to exclude her from their Mom’s financial affairs. It didn’t feel right, but she wasn’t sure she could do anything about it. When she called, I got that “slow burn” feeling that comes over me when I hear about financial elder abuse. As a consultant for folks with aging parents, it’s not the first time I’ve heard this kind of story. (more…)
As you stay in the financial advising business for a time, you will surely see more aging clients. People are living longer than ever in history. They are part of your practice now or they will be soon enough. With aging come risks: cognitive decline, physical limitations and the need for care that can get very expensive. Will diminished capacity make your client vulnerable to abuse? Can you help protect your client by taking proactive steps right now?
You want to be of service, but you don’t want to go overboard and become someone’s social worker. What can you do to ensure your clients’ safety and well being as they age? Here are five tips for the conscious advisor who knows your client beyond managing the money.
