Category Archives for Consumer Issues

Being Vigilant Keeps Phone Scammers Away

Published in Pawtucket Times, July 18, 2014

When 81-year-old Cincinnati resident Roger W. answered a call in December, he thought it was his grandson on the other end of the phone. The young voice said, Grandpa, this you’re your favorite grandson,” he remembered, replying, “I have six grandsons and they are all my favorites.” Claiming to be the oldest, the “grandson” said he had been arrested for speeding and drug possession and urgently needed money for bail. He then turned the call over to a person claiming to be a police officer. Convinced their eldest grandson needed help, Roger W. and his wife headed to a local retail store to purchase a money-order card to cover the cost of bail.

After sending a total of $7,000 to the supposed police officer, the elderly couple soon discovered they had been conned out of their hard-earned money after reaching their real grandson on his cell phone. They are among an untold number of older Americans who have fallen victim to a commonly used scam known as the “grandparent scam” that experts say is again making a comeback across the nation.

Senate Aging Hearing Puts the Spotlight on Phone Scams

Roger W., who has requested anonymity to avoid becoming a target of other con-artists, testified two days ago at a hearing of the U..S. Senate Special Committee on Aging held at the Senate Dirksen building. The hearing examined the recent rise in imposter scams, particularly the grandparent scam.

Along with Roger W., witnesses at the July 16th hearing included officials from the Federal Bureau of Investigation, Federal Trade Commission (FTC) and the United States Telecom Association, who discussed potential solutions to protecting consumers and curbing phone scams.

According to the FTC, Americans lost more than $73 million to impostor scams in 2013. While the federal agency admits the figure is under reported, accounting for only a fraction of the problem because most victims fail to report the crime, instances of imposter scams have doubled between 2009 and 2013. Senators Bill Nelson (D-FL) and Susan Collins (R-ME), the committee’s chairman and ranking member, called for this hearing after receiving a large number of complaints from victims through the committee’s fraud hotline. The two lawmakers said they’re hoping the hearing will help identify potential solutions to help law enforcement to better detect and prosecute such crimes, as well as encourage retailers and phone companies to do their part to protect consumers.

Phone Scams Commonly Reported in Rhode Island

According to the Rhode Island Office of the Attorney General, the Ocean State is not immune to the financial scam, described at the recent Senate Aging hearing by Roger W. There are slight variations of the “grandparent scam” story where con artists pretend to be a family member and claim they need money to fix a car, get out of jail or leave a foreign country. They will beg you to wire money right away and keep the information confidential. In some cases, the scammers even know the names of family members. In other instances, the person on the other end of the line may pretend to be a police officer or friend calling on behalf of the grandchild.

In 2013, the Attorney General’s Consumer Protection Unit responded to 6,229 telephone calls, 1,144 written complaints, 1,534 email inquiries and 74 walk-ins. While the Consumer Protection Unit does not keep statistics on each scam that is reported, the grandparent scam is no stranger to the employees

“We see a spike in these types of scams during times when a grandchild might be on vacation, like school break or summers, making the story more believable to the person on the other end of the phone,” said Attorney General Peter Kilmartin. The Attorney General’s Office includes a Consumer Protection Unit, which, among other responsibilities, warns the public about such scams and educates consumers on how to protect themselves from being a victim of a scam, he says.

Kilmartin observes that “Con artists have turned fraud into a multi-billion dollar business. Each year, thousands of consumers lose anywhere from a few dollars to their life savings to scams. Once the money is gone, it is very difficult, if not impossible, to recover your funds,” he notes.

There are big hurdles law enforcement must overcome to catch the scammer who is behind these cons. If a scam originated out of the state, or even out of the country, it is often beyond the reach of local or state law enforcement officials, adds Kilmartin. . Complicating matters is technology, he says, noting that long gone are the days when people’s locations could be easily identified and tracked by their phone number. With cellular technology, pre-paid cell phones and “spoofing” apps, a person may be running their con from a foreign country while your caller ID shows an in-state phone number, he says.

AG’s Top Priority to Protect Consumers Against Fraud and Scams

“As Attorney General, it is one of my top priorities to protect all consumers from fraud and scams. Consumer protection is largely self protection. Becoming a smart and savvy consumer does not mean changing your daily routine — it means becoming more aware of how to avoid becoming a victim. As the saying goes, knowledge is power. It is  my belief that consumers and businesses can better protect themselves and their assets if they are aware of their rights and are aware of the fraudulent or deceptive practices scammers use,” said Kilmartin.

Tammy Miller, Director of the Consumer Protection Unit, said the reason that scamming older persons is so prevalent is because it works. “Sadly, con artists prey on older people because they tend to be more trusting. Once the money is wired, it’s gone forever, and it’s only then people realize they have been a victim of the scam. Because these outfits operate outside the state, and often outside the country, there is little law enforcement can do to track them down,” she says.

According to Miller, Attorney General Kilmartin has made educating consumers a priority. As such, members of the Consumer Protection Unit provide approximately 150 outreach presentations each year to senior centers, community groups and organizations throughout the state in an effort to educate and protect Rhode Islanders from scam artists.

In addition, several consumer alerts/advisories are issued annually. The advisories cover a wide range of topics such as fake invoices, phishing scams, a fake jury duty and arrest scam, a “car wrap” scam, possible scams related to sporting events, consumer settlements and holiday shopping tips.

“Although it is very difficult to measure, I believe our consumer outreach program has made a difference in lowering the number of victims of scams in Rhode Island. A good indicator is the increase in phone calls we receive from consumers alerting us whenever a scam pops up, which gives us a chance to get ahead of it, issue an alert and warn other consumers. I think that’s a positive sign that we are making headway and creating confident and well informed consumers,” said Miller.

Miller says that Kilmartin has done a terrific job as Attorney General in making the public aware of scams that are going around the state, which reduces the chances of someone else becoming a victim.”

Quick Actions to Protect Yourself Against Phone Scams

So, what do you do if you receive a phone call from someone pretending to be a family member in need? Miller recommends that you first verify that it is your grandchild. Always ask for a phone number of the person on the other line. Before calling them back or wiring them money, contact the family member directly. If you cannot get a hold of them, contact their parents or another family member to confirm their location.

Miller warns older persons to resist the intense pressure to send money quickly and secretly. Refuse to send money through wire transfer or overnight delivery. After you’ve thwarted the scam, Tammy Miller suggests you let your local police and the Consumer Protection Unit know about the call. Alerting the Attorney General’s Office will allow them to alert the public that the scam is making the rounds and what to be on the lookout for.

To report a consumer-related issue, to speak with a consumer protection specialist at the Attorney General’s Office, or to schedule a consumer protection specialist to speak before your community group or organization, call 401-274-4400, send an email at contactus@riag.ri.gov, or visit http://www.riag.ri.gov.

To watch the Senate U.S. Special Committee on Aging hearing and to access witness testimony, go to http://www.aging.senate.gov/hearings/-hanging-up-on-phone-scams-progress-and-potential-solutions-to-this-scourge.

Herb Weiss, LRI ’12, is a Pawtucket-based writer covering aging, health care and medical issues. He can be reached at hweissri@aol.com.

 

 

The Best of…Baby Boomers Tighten Belts to Pay for Rising Food Costs, Says AARP

Published August 4, 2008, All Pawtucket All the Times    

         A soft economy, combined with stagnate wage increases and skyrocketing fuel prices, are hitting aging baby boomers right in their wallets. On top of this they must also juggle their household budgets to pay for rising food costs, too, impacted by egg, dairy and poultry price increases.  According to a June 2008 AARP Bulletin on Rising Food Costs, older consumers are taking the necessary steps to rein in their rising household food expenses.   

            The AARP telephone survey findings, taken from a nationally represented sample of 1,009 people ages 45 and older, revealed that over fifty percent responding to the survey have taken the necessary steps to cope with rising food prices.  Slightly half of the respondents believe that there is a global food shortage.  However, less than half of those surveyed think that certain food items may need to be rationed within the next year.  Most of those surveyed blame the government directly for food cost increases 

            The June telephone survey found that almost half of those polled (49%) believe that food prices have caused a hardship on their budget.  Consumers, ages 45 to 49 (69%) were more like than those age 50 and over (49%) to report that they have started cutting back on summer entertaining to cope with rising food prices.  In addition, almost four out of five respondents (78%) ages 45 to 49 said that they have started eating out less, compared to over half of those 50 years old and over (54%).

Boomers Dining Out Less

            Just over half of those polled (53%) do not think it is likely that certain food items may need to be rationed within the next year.  Four out of five (81%) reported that they have not started eating fewer meals in the past six months.  However, over half have started using discount coupons at grocery stores (57%) and started buying generic grocery brand items (56%), and one in five (19%) have started eating fewer meals.

            Meanwhile, the majority of respondents (71%) think that the government is responsible for rising food prices.  Two out of five respondents (44%) think that national disasters play a role in rising food costs.  Respondents were less likely to think that restaurants (11%), farmers (16%), grocery stores (28%), or food processing plants L(29%) were responsible for these rising costs. 

            Slightly over half of the respondents (52%) think that there is a global food shortage. Respondents ages 50 plus (55%) are more likely than those ages 49 to 49 (38%) to think there is a global food shortage.  However, those age 50 and over (39%) are less likely than those ages 45 to 49 (51%) to think that certain food items may need to be rationed within the next year.

In Rhode Island…

            Like those polled by AARP, Rhode Islanders are also seeking ways to lower their household expenses, by eating out less.  As reported by the Providence Journal on July 22, 2008 (Down Turn Eats into Restaurant Sales), the state’s Division of Taxation has reported a drop of 9 percent in the state’s meals and beverage tax, when compared with the same time period a year ago. Providence,Warwick,Newport and Cranstonhad a decrease of 10.5 percent, 2.9 percent, 8.0 percent and 13.7 percent, respectively. Pawtucket’s numbers decreased by 5.3 percent.

             Lay offs, and food and fuel increases are bringing more families into the state’s food stamp program.  A March 31 article in The New York Times (As Jobs Vanish and Prices Rise, Food Stamp use Nears Record) reported that Rhode Island saw an increase of 18 percent in the state’s food stamp recipients over the last two ears, to more than 84,000 as of February, or about 8.4 percent of the population.

             “Clearly the economy is hurting both [Rhode Island’s] poor and middle class,” says Kathleen Connell, AARP State Director. “People are just tightening their belts and many are struggling to spend their money on just the essentials to make ends meet,” she says.

             Connell says that when people go out to eat they may now choose less costly items off the menu, or even cut down on the number of trips to their favorite local restaurant.  Grocery shopping lists may well include cheaper food items, too, she says.  “It remains to be seen what the winter will bring to baby boomers struggling to pay rising food costs with the expected National Grid utility increases.”

             Herb Weiss is a Pawtucket-based writer who covers aging, medical and health care issues. This article appeared in the August 4, 2008 issue of All Pawtucket All The Time.  He can be reached at hweissri@aol.com.

Better Business Bureau Resource Book Offers Seniors Valuable Tips

Published in Pawtucket Times on March 29, 2004

Everyone has probably heard the old adage…If you don’t pay for it, you won’t appreciate it.”

Maybe this is true in some situations, but this is not the case should you pick up a “free” issue of the Rhode Island Senior Citizens Edition 2004, published by the Better Business Bureau Book (BBB) series.

The 53-page resource book is free and available at local grocery stores and retail sites throughout the state. It was written to address special needs of seniors by using reliable information.

Seniors and caregivers can become savvy shoppers by simply skimming through this annually updated publication when they seek out products and services.

Do you need to modify your home to adapt it to promote greater independence or to prevent falls?  BBB’s 2004 senior edition gives you sound advice when you begin your home fixups.

When shopping around, make sure the contractor you will use is both licensed and bonded.  Always get a written down payment and only make it a small down payment.

Your final payment should be made when the contractor completes the project to your satisfaction. Always contract Rhode Island’s Better Business Bureau (785-1212) for a reference.

While many may consider BBB’s useful recommendations as common-sense advice, sadly some seniors don’t follow the advice and become victims to unscrupulous contractors.

BBB’s 2004 senior edition is jam-packed with useful information, from outlining senior housing choices to tips on choosing a nursing home, medical insurance and long-term care insurance, eye care and dental prosthetics.

Do you need help with managing your assets or spending within your means?  Are you seeking a lawyer to write your will , creating a trust, durable power of attorney or advance directives?  Have you considered pre-planning your funeral. Yes. BBB’s senior 2004 edition gives timely suggestions on hiring financial planners, lawyers, or even choosing a funeral home.

About 30 percent of the nation’s seniors and 50 percent of those over 85 suffer from hearing impairment. Buying a hearing aid can be a frustrating, intimidating experience for many seniors.  BBB’s 2004 senior edition walks seniors through the process of purchasing a hearing aid.

The publication gives an easy-to-understand explanation of the types of hearing losses and where to turn to for treatment – an otologist, audiologist or a hearing aid retailor. Seniors can turn to page 27 to learn the  specifics about hearing aid products, what to expect during the hearing examination, what to look for in contracts and warranties and service and repair issues.

BBB’s 2004 senior edition warns that Rhode Island is now considered a “target state” for scams because of the state’s high percentage of seniors – 16 percent of the Ocean State’s population is over age 55. The resource book warns about seniors about Canadian telemarketing scams, thieves posing as utility workers or inspectors or Nigerian “fund transfer” scams and how to avoid them.

Finally, seniors are taught how to successfully complain via writing effective complaint letters.  Effective complaining begins by sending a letter addressed to the person in charge of the company, not the consumer protection agency. Always allow the company an opportunity to fix the problem.

When corresponding be courteous, describe the problem clearly and be reasonable when requesting your solution, and enclose “copies” of all appropriate documents. Most importantly, always give the company a reasonable amount of time to respond to your complaint. These are not bad suggestions for seniors or caregivers to follow when attempting to resolve a consumer issue.

In his forward to BBB’s 2004 senior edition, A. Michael Marino, BBB’s president, calls on the reader to keep this handy resource book in a very convenient location for easy reference.  You’ll be able to truly appreciate the sound advice and information this free BBB publication offers, despite the old adage about appreciating only the things we pay for.

Call 785-1212 for a copy of BBB’s senior edition, for pickup locations or for detailed information on how seniors can access BBB services.