How to Protect Yourself from Online Fraud

The messages come in through emails, texts, phone calls and pop-ups on computer screens. They pretend to be calling from “tech support,” sometimes claiming to be part of Microsoft or Apple. They speak with authority, according to a recent article titled “Tech Support Fraud Targets Seniors,” from Kiplinger.

There’s nothing wrong with your computer, and they are not calling from Bill Gate’s office. The FBI’s Internet Crime Complaint Center, known as IC3, received 13,900 complaints from older victims who lost a total of $238 million in 2021. Of all losses to tech support fraud, older victims make up 58% of the calls and 68% of the losses.

Scams targeting older adults have risen at an alarming rate, reports the IC3’s Elder Fraud Report 2021. There was a 74% increase in losses in 2021 from 2020. Tech support fraud is the most reported fraud among victims 60+ and older.

Why are seniors so attractive to scammers, and why are they so vulnerable?

Most scammers believe all seniors have substantial retirement funds. It is often true. Seniors may also be isolated from younger generations who are savvier about technology. The past few years have seen an increase in training people actively engaged in the workforce about common security issues and ways to prevent fraud and theft. Retirees are not likely to be exposed to this kind of information on a regular basis.

Tech support scammers typically present themselves as calling from well-known tech companies. They offer help with non-existent problems, demanding payment for renewal for software or security subscriptions. They also impersonate customer support from banks, financial institutions, utility companies or cryptocurrency exchanges.

Adding another layer to the problem: seniors may not have the latest security software or are using outdated desktop computers without current security upgrades, making them an easier target. They simply may not be able to afford to use the costs of some security programs.

Scammers use simple scare tactics, combined with scripts updated to reflect the latest worries and concerns of seniors. Even smart people get scammed. One 80-year old woman was using her computer when a pop-up ad claiming to be from Microsoft appeared and directed her to call a phone number. When she called, the person said they were Microsoft’s scam department and warned her not to continue the conversation on the phone because the scammers could hear the conversation. They gave her an address in another country and instructions to send money by wire. They also gave her all the answers to questions her bank would ask, like why the money was needed and why it was going to a foreign country. She ultimately gave the scammers $20,000.

Equally dangerous is letting scammers have login information. Once they can get into your electronic devices and steal data, they can take personal information and money without the user’s knowledge. They can also hack into the computer and deploy ransom software, blocking you from using your own computer until you pay ransom. Even then, there’s no guarantee of retrieving your information.

How can you protect yourself?

Legitimate companies will not call to tell you there’s a problem with your computer.
A real tech company won’t send a popup ad to your computer and ask for a phone call.
Anything that must be done fast should be considered a scam.
Legitimate companies don’t ask for wire transfers, gift cards or bank account information.
Never, ever, click on a link in an email. Other people’s systems get spoofed (taken over), and their email lists are often used to send out fraudulent emails.
Keep your computer up to date with the latest in security and updating browsers and operating systems regularly.

Reference: Kiplinger (Aug. 5, 2022) “Tech Support Fraud Targets Seniors”

Scammers Try to Take Senior for a Ride

An 80-year-old woman figured out she was being scammed before going to the bank, after receiving an email from fraudsters who hired an Uber to take her there.

However, the story is a stark reminder of the extent to which thieves will go to scam the elderly, says Krebs on Security’s recent article entitled “Scammers Sent Uber to Take Elderly Lady to the Bank.”

Travis Hardaway said his mother last month replied to an email she received regarding an appliance installation from BestBuy. He said the timing of the scam email couldn’t have been worse, since his mom’s dishwasher had just died. She’d paid to have a new one delivered and installed.

“I think that’s where she got confused, because she thought the email was about her dishwasher installation,” Hardaway said.

Hardaway said his mom initiated a call to the phone number listed in the phony BestBuy email. The scammers told her she owed $160 for the installation, which seemed about right. However, they then asked her to install remote administration software on her computer, so that they could control the machine from afar and assist her in making the payment.

After she logged into her bank and savings accounts with scammers watching her screen, the fraudster on the phone claimed that instead of pulling $160 out of her account, they accidentally transferred $160,000 to her account. They said they needed her help to make sure the money was “returned.”

“They took control of her screen and said they had accidentally transferred $160,000 into her account,” Hardaway said. “The person on the phone told her he was going to lose his job over this transfer error, that he didn’t know what to do. So, they sent her some information about where to wire the money and asked her to go to the bank. However, she told them, ‘I don’t drive,’ and they told her, “No problem, we’re sending an Uber to come help you to the bank.’”

Her son was out of town when this happened. Thankfully, his mom eventually grew exasperated and gave up trying to help the scammers.

“They told her they were sending an Uber to pick her up and that it was on its way,” Hardaway said. “I don’t know if the Uber ever got there. However, my mom went over to the neighbor’s house and they saw it for what it was — a scam.”

Hardaway said he has since wiped her computer, reinstalled the operating system and changed her passwords. However, he says the incident has left his mom rattled.

“She’s really second-guessing herself now,” Hardaway said. “She’s not computer-savvy, and just moved down here from Boston during COVID to be near us, but she’s living by herself and feeling isolated and vulnerable, and stuff like this doesn’t help.”

According to the FBI, seniors are often the targets of scams because they tend to be trusting and polite. They also usually have financial savings, own a home and have good credit—all of which make them attractive to scammers.

“Additionally, seniors may be less inclined to report fraud because they don’t know how, or they may be too ashamed of having been scammed,” the FBI warned in May. “They might also be concerned that their relatives will lose confidence in their abilities to manage their own financial affairs. And when an elderly victim does report a crime, they may be unable to supply detailed information to investigators.”

Reference: Krebs on Security (Aug. 4, 2022) “Scammers Sent Uber to Take Elderly Lady to the Bank”

What’s Going on with Marvel Comics Creator Stan Lee’s Estate?

According to a court document filed recently, comic book icon Stan Lee’s estate moved to dismiss claims against Lee’s former business manager, Jerardo “Jerry” Olivarez. Terms of the deal weren’t disclosed. The settlement doesn’t include claims against Lee’s former attorney, Uvi Litvak.

The Hollywood Reporter’s recent article entitled “Stan Lee’s Estate Settles Elder Abuse Suit Against Ex-Business Manager” explains that the four-year legal saga, sparked by The Hollywood Reporter‘s investigation detailing accusations of elder abuse, centers on a fight over Lee’s estate. The battle includes his daughter, J.C., and people who allegedly manipulated her in efforts to exploit her famous father. Lee accused J.C., his only child and heir to his estate, of verbally abusing him.

J.C.’s outbursts turned physical at some points in conflicts over money, reports say.

The executive vice president and publisher of Marvel Comics, Stan Lee sued Olivarez and Litvak in 2018, calling them “unscrupulous businessmen, sycophants and opportunists” seeking to take advantage of him following the death of his wife, Joan Lee. Olivarez joined Stan’s inner circle as a consultant to J.C. and Joan’s various business endeavors before ending up with power of attorney over Lee after Joan’s death. He was given the title of “senior adviser,” handling caregiving duties for Lee.

“Jerry Olivarez and JC Lee, Stan and Joan Lee’s only daughter and Trustee of the Lee Family Trust, are happy to announce the resolution of their Court dispute,” said Olivarez’s attorney Donald Randolph in a statement. “The genesis of this dispute was the unfortunate manipulation of Stan Lee and his family undertaken by certain individuals — not named in the lawsuit — which was intended to unfairly malign Jerry Olivarez. These individuals exerted undue influence on the Lee family to accuse Jerry Olivarez of harmful acts which he did not do.”

According to the complaint, Olivarez fired Stan Lee’s banker of 26 years along with his lawyers and transferred roughly $4.6 million out of his bank account without authorization. After convincing Lee to sign a power of attorney to give him authority, Olivarez allegedly appointed his own lawyer, Livtak, as Lee’s lawyer without disclosing the conflict of interest.

Prior to his death, Lee alleged fraud, financial abuse of an elder and misappropriation of name and likeness, among other claims.

“Olivarez abused his relationship of trust with Lee and JC Lee, knowledge of Lee’s and JC Lee’s confidential business and estate planning operations, and ability to mislead Lee due to his advanced age all in a covert and intentional effort to dupe Lee into a host of schemes and financial missteps that benefited Olivarez and disenfranchised Lee,” reads the complaint.

Reference: The Hollywood Reporter (July 27, 2022) “Stan Lee’s Estate Settles Elder Abuse Suit Against Ex-Business Manager”

Can We Prevent the Elderly from Being Scammed?

Just as parents guide their children through adulthood and teach them about finances and how to manage their money, adult children of aging parents need to be alert for their parents before they fall victim to those preying on the elderly. It’s become all too common, according to the article “The Best Way to Protect a Parent from Scammers” from Kiplinger.

There are a few common scams seen across the country. One is to call an elderly person and tell them their beloved grandchild has been arrested and cash needs to be sent immediately to get them out of jail. The grandparents are told the child has told the police not to call the parents, so the call is secret. No police department calls grandparents with a demand for cash, but in the stress of the moment, flustered people often comply.

Another is a thief posing as an IRS agent and telling a surviving spouse that their deceased spouse owed thousands in back taxes and penalties. The senior is told to make a payment or risk being arrested. There is also the scammer claiming to be from the DEA and warning the person their Social Security number and credit card were used to rent a car found abandoned near the Mexican border with suitcases stuffed with drugs. The person is told they need to verify their information to clear their record, or they’ll be arrested for drug trafficking. The voice is always very convincing.

Elderly victims are vulnerable for several reasons. One, the generation preceding the boomers was taught to trust others, especially people in positions of authority. As people age, their ability to think clearly when a dramatic and unexpected piece of bad news is easily shaken. Someone who would otherwise never have given out their personal information or sent cash or purchased gift cards becomes overwhelmed and complies with the scammer.

Taking control of a parent’s financial life is a hard step for both the aging parents and the adult children. No one wants to lose their independence and freedom, nor do adult children want to see their parents becoming vulnerable to thieves. However, at a certain point, adult children need to become involved to protect their parents.

A General Durable Power of Attorney (POA) is a legal document giving another person, typically an adult child, the power to act on behalf of another person immediately, once the document has been signed. It may not be effective in stopping a parent from giving money to a scammer, since the parents still have control of their money. fI transactions are done online, the bank may not have an alert set up for questionable transactions.

That said, having a POA in place and alerting the bank to its use will give the financial institution more freedom to be in touch with an adult child about their parent’s accounts, if fraud is suspected.

Guardianship or conservator is another way to address this issue, although it is far more invasive and brings the court system into the life of the person who becomes a “ward” and requires regular reporting. Guardianship is usually sought when the aging parent is incapacitated.

While we often think of trusts as a means of passing wealth to the next generation, they are also useful for protecting people in general and seniors in particular from scammers. When an adult child or other trusted person becomes the trustee, they gain complete control of the assets in the trust. If the aging parent is a trustee, they have control but someone else can step in if necessary. The co-trustee can see any changes in spending habits or unusual activity and take immediate action, without the delay that applying for guardianship would create.

Speak with your estate planning attorney about your unique situation to learn which of these solutions would be appropriate for your loved ones.

Reference: Kiplinger (July 25, 2022) “The Best Way to Protect a Parent from Scammers”

Why Does Government Deny Social Security Disability Benefits

Kiplinger’s recent article entitled “3 Main Reasons Why the Government Denies Social Security Disability Benefits” says three main issues are the primary contributors to the high denial rates and prolonged appeals process:

Applicants fail to satisfy work history requirements. Anyone who pays FICA payroll taxes long enough, is typically insured for SSDI. However, that doesn’t mean they’re eligible for benefits. To meet the SSA definition of disability, one must have physical or mental impairments that prevent them from being unable to perform any substantial gainful activity (SGA) for at least 12 months or have a terminal diagnosis. SGA encompasses work performed for pay or profit, and for 2022, the monthly benefit one would receive after qualification is set at $1,350 a month, or $2,260 if you are blind.
Applicants provide incomplete documentation. Detailed medical evidence is required to document a disability and its impact on the person’s ability to perform SGA—it’s a crucial part of the SSDI application. This should include diagnoses, medical tests and results, treatment history, prescription drugs, surgeries, ER and doctor visits and other relevant medical details to show not just that you have a problem, but also that you’ve been receiving regular medical treatment for your issue. This, along with details about how a disability influences your activities of daily living, is especially significant if you have an invisible disability, such as mental disorders, neurological conditions or cognitive dysfunctions caused by injury or disease. Regular monthly treatments and drug therapies with specialists and mental health professionals are an important part of your claim.
Applicants not knowing they have the right to an SSDI representative. The SSA doesn’t tell initial applicants they have the right to retain a representative to assist them. As a result, most people try to navigate the complicated program on their own. You need an advocate to tell the story of your disability and its impact on you and your family. Less than 30% of applicants have an SSDI representative to help them apply. Those individuals are 23% more likely to get their application approved. It also means getting benefits in six months compared with a year or two!

Representatives are taking on more SSDI cases resulting from long COVID symptoms that have exacerbated physical and mental impairments. Long COVID may affect up to 30% of COVID patients, or an estimated 25 million people in the United States, especially those with respiratory disease, diabetes and cognitive issues.

Reference: Kiplinger (July 16, 2022) “3 Main Reasons Why the Government Denies Social Security Disability Benefits”

Why Is Medicare Enrollment Confusing?

Seniors enrolling in Medicare experience a process with many challenges. People also have significant gaps in knowledge of plan components and are overwhelmed. This causes them to enroll in plans that fail to best reflect and support their evolving healthcare needs.

Markets Insider’s recent article entitled “New Report Reveals Significant Gaps in Medicare Knowledge Among Older Adults” reports that such issues may jeopardize the ability of seniors to make the best choices for their unique health and wellness needs. Moreover, the results may worsen as they age. That’s what the findings are in a new report, Hidden Crisis: The Medicare Enrollment Maze, issued by national healthcare consultancy Sage Growth Partners. The report is based on a survey of 1,142 individuals ages 64 and older.

The report explores the significant effect of widespread confusion and overwhelming enrollment challenges on the elderly and the entire healthcare system. There were roughly 64 million Americans enrolling in Medicare in 2021 and the U.S. Census Bureau projects more than 73 million Americans will enroll by 2030. Many think the negative effects will only get worse.

“This report shows the striking level of confusion surrounding Medicare enrollment for all ages. While there may be many better plan options, very few enrollees have the necessary knowledge to choose them,” said Dan D’Orazio, Sage Growth Partners CEO. “The level of satisfaction with shopping for Medicare plans lies below the cellar-dwellers of industry satisfaction, such as cable tv providers and internet shopping. This is very troubling considering what is at stake for older adults and their clinical and financial health.”

The report’s key findings include the following:

Only 20% of Medicare-eligible individuals have a solid understanding of Original Medicare, and less than a third (31%) have a good understanding of Medicare Advantage.
63% say they’re “overwhelmed” by Medicare advertising, with just 31% of respondents who “strongly agree” that they can make effective selection decisions.
Over half (58%) stay in their current Medicare plan each year and don’t review their plan options and enroll in the best plan for their evolving needs.

“This report confirms that most older adults find Medicare enrollment confusing and lack adequate resources or support to choose the best plan,” said Dave Francis, CEO of Healthpilot. “Enrolling in Medicare is a pivotal time for millions and the Medicare marketplace is ripe for transformation. I believe that it is possible to make health care better for individuals aged 64 and older throughout the country, but we need dynamic platforms and sincere actions to make this happen.”

Reference: Markets Insider (July 12, 2022) “New Report Reveals Significant Gaps in Medicare Knowledge Among Older Adults”

How Can I Save on Medicare Drugs?

New research by the Senior Citizens League shows comparing plans also works for Medicare Part D plans, which cover prescription drugs for those with Medicare health insurance. The advocacy group found that the price of a particular drug can vary by hundreds or even thousands of dollars from one Medicare Part D plan to another. So, shopping around for the best plan could save you hundreds, says Money Talks News’ recent article entitled “How to Save Hundreds of Dollars on Medicare Drug Costs.”

The best time to do comparison shopping is during the annual Medicare open enrollment period that starts October 15 and ends on December 7.

The Senior Citizens League’s analysis identified several reasons for which drug prices can vary so much for Medicare recipients, including the fact that most people on Medicare rarely shop around during open enrollment. each Part D plan also has its own formulary, a list of prescription drugs that a plan covers. The federal government, which runs the Medicare program, doesn’t negotiate drug prices on behalf of Medicare recipients. Each private insurance company that offers Medicare drug coverage does its own negotiating.

There are two main types of Medicare health insurance: Original Medicare, which is offered directly by the federal government, and Medicare Advantage plans, which are offered by private insurers that contract with the federal government’s Medicare program. Note that original Medicare doesn’t include prescription drug coverage. Seniors on Original Medicare who want drug coverage must buy a separate Medicare Part D plan from a private insurer.

Here’s a checklist for the process:

Review your current coverage. Look at the Annual Notice of Change (ANOC) that you get from your Medicare Part D plan or Medicare Advantage plan. This will include changes to your current plan that take effect in the new year, if you stay on that plan.
Do an inventory of your prescriptions. Make a list of all prescription meds you take. For each drug, include the name, dose, quantity taken per day and quantity required per month. You’ll need it to compare drug plans. It is also handy to take with you on each visit to your physician.
Consider getting help. Medicare recipients have access to free, one-on-one Medicare insurance counseling from State Health Insurance Assistance Programs (SHIPs). To find the SHIP for your state, visit the national SHIP website.
Narrow down your options. When you know what your Medicare Part D plan or your Medicare Advantage plan will cover next year, and you have a detailed list of your medications, compare that coverage with other drug plans to determine if they’d provide better or cheaper drug coverage. To compare plans, use the Medicare Plan Finder feature at Medicare.gov, the federal government’s official Medicare website.

If you choose to switch to a new plan, go through the Medicare website rather than the insurer.

Reference: Money Talks News (Nov. 11, 2019) “How to Save Hundreds of Dollars on Medicare Drug Costs”

Can My Pet Help Me in Old Age?

Seniors who own a pet may slow their rate of cognitive decline, according to a preliminary study recently presented at the American Academy of Neurology’s 74th Annual Meeting.

Money Talks News’ recent article entitled “Sharp Mind in Old Age? Thank Your Pet” reports that the positive effect appears to be particularly pronounced for those who own a pet for at least five years.

The study looked at data from 1,369 older adults with an average age of 65.

All had normal cognitive skills at the outset of the study. Of the adults in the study, 53% owned pets, with 32% having had their pet for five years or longer.

After examining cognitive test data, the researchers found that after six years, long-term pet owners had a cognitive composite score that was 1.2 points higher compared than those who did not own pets.

In a press release, study author Dr. Tiffany Braley of the University of Michigan Medical Center in Ann Arbor remarked that the positive impact of pets may stem in part from the animals’ ability to reduce our levels of stress:

“As stress can negatively affect cognitive function, the potential stress-buffering effects of pet ownership could provide a plausible reason for our findings. A companion animal can also increase physical activity, which could benefit cognitive health.”

However, Braley — who also is a member of the American Academy of Neurology — said more research is needed to both confirm the results and identify underlying mechanisms that may be responsible for the link.

Earlier studies have found that the presence of pets can help reduce their owners’ levels of stress and even lower their blood pressure.

Reference: : Money Talks News (May 5, 2022) “Sharp Mind in Old Age? Thank Your Pet”

Estate Planning Tips for Solo Seniors

The people who typically think the most about estate planning are those in a traditional nuclear family unit, with spouses, adult children, grandchildren and a clear idea of how they want to pass along assets and who can be trusted to carry out their wishes. It’s easier to plan ahead, reports a recent article titled “Elder Care: Estate planning when you are on your own” from The Sentinel, when the right person to put in charge is easy to identify.

When more and more families do not fall into the traditional nuclear family unit, how should they proceed with estate planning?

This can be a challenging scenario, especially if the person is not married and has no children. It’s hard to know who to name for important roles, like who will take charge if the person becomes ill or dies.

Some single people may think it doesn’t matter, because they don’t care about who inherits their possessions. However, estate planning is not just about distributing property. Planning for incapacity may be the most important part of estate planning—making legally enforceable decisions about medical care, end-of-life care and managing the business aspect of your life if you are incapacitated.

Two of the most important documents for a person who cannot speak for themselves are a Financial Power of Attorney and a Health Care Power of Attorney. These are the critical documents giving the person you designate the ability to manage your affairs and be involved in your medical care.

Without them, someone will need to take over for you. Who will it be? The process begins in the court, with a legal proceeding called guardianship. There are any number of reasons to avoid this. First, it takes a long time and any actions or decisions requiring a legal guardian will not be made with any speed. Second, guardianships are expensive. The process of having a guardian named and the fees paid to the guardian will be paid by you, whether you are conscious or not. While many people who act as guardians for others are trustworthy and kind-hearted, there are many horror stories—including several true stories made into movies—where guardians are more focused on enriching themselves than their ward’s best interests.

Guardianship can be easily avoided. Meeting with an estate planning attorney to prepare your last will and testament, Power of Attorney and Power of Health Care Attorney gives you control over who will be in charge of your life if you are incapacitated. Having these documents properly prepared by an experienced estate planning attorney ensures that you can be admitted to a hospital or facility offering the care you need, your bills will be paid and if your situation requires filing for long-term care benefits or disability, someone can do it for you.

If you don’t have a spouse or children, you probably have a healthy network of friends and extended family members you trust and are your “family by choice.” If you don’t feel these people are trustworthy or capable, think further afield—someone from your community, a neighbor who you respect and trust, etc.

If possible, name a few people in succession (your estate planning attorney will know how to do this) so if one person cannot serve, then there will be a next-in-line to help.

The next step is to speak with these individuals and explain what you are asking them to do. They need to be comfortable with the responsibility you’re asking them to undertake. You’ll also want to tell them your wishes, perhaps drafting a letter of intent, so they will know what to do in different circumstances. Make sure they know where these documents are located, so they can find them easily.

Once your estate plan is in place, you’ll breathe a sigh of relief, knowing the future is taken care of.

Reference: The Sentinel (June 17, 2022) “Elder Care: Estate planning when you are on your own”

State Bolsters Nursing Home Oversight

The New York State Assembly recently gave final legislative approval in a unanimous vote to a bill requiring the Long-Term Care Ombudsman Program (LTCOP) to publicize, as part of its annual reports, the kinds and patterns of complaints received by its regional offices and the number of ombudsman visits to each long-term care facility.

Harlem World Magazine’s recent article entitled “NYS Lawmakers Move To Strengthen Nursing Home Oversight From Care, To Complaints And More” reports that the New York State Senate passed the companion bill on May 24 with a strong, bipartisan vote.

The move follows a $2.5 million increase in state funding in the 2022 state budget for the federally-required program – more than doubling its previous state-funded budget.

LTCOP has lagged in other states’ programs, while more than 15,000 people have died in New York nursing homes since the start of the COVID-19 pandemic.

“This bill would arm policymakers with the information they need to ensure the Long-Term Care Ombudsman Program is as effective as possible in advocating for and speaking on behalf of our society’s most vulnerable population: nursing home residents,” said AARP New York State Director Beth Finkel.

“After over 15,000 deaths in New York nursing homes and counting since the start of the pandemic, we need a strong advocate. AARP New York thanks Senator Rachel May and Assembly Member Sarah Clark for steering this bill through their respective houses, and we strongly urge Governor Kathy Hochul to sign it into law.”

The New York Ombudsman Program is an advocate and resource for seniors and people with disabilities who live in nursing homes, assisted living and other licensed adult care homes. Ombudsmen help residents understand and exercise their rights to good care in an environment that promotes and protects their dignity and quality of life.

The legislation was supported by the Center for Elder Law & Justice in Buffalo, New York.

Although LTCOP can’t sanction long-term care facilities, it’s the only agency authorized to visit facilities on a regular basis to observe conditions, monitor care and help residents and families resolve problems.

In addition to helping individual residents and families, LTCOP is required by federal rules to act as an independent voice for residents with respect to laws and policies that impact their care.

Reference: Harlem World Magazine (June 4, 2022) “NYS Lawmakers Move To Strengthen Nursing Home Oversight From Care, To Complaints And More”

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