With Tax Day Looming, Watch Out for IRS Imposters

Published in the Woonsocket Call on April 8, 2018

With the April 15th tax filing deadline just around the corner, AARP’s Fraud Watch Network is gearing up to keep taxpayers from falling victim to imposter scams aimed at taking away their hard earned dollars.

Tax fraud and other identity theft schemes are a growing problem, says the U.S. Federal Trade Commission (FTC), a federal consumer protection agency. Last month, FTC released its Consumer Sentinel Data Book 2017 reporting that scammers took $ 900 million away from their victims. Tax fraud ranked second that year in types of identity theft reported, as over 82,000 reports were made. Meanwhile, the Treasury Inspector General for Tax Administration found that as of May 2017, the Internal Revenue Service (IRS) had identified 195,941 tax returns with more than $2 billion in fraudulent refund claims and the agency prevented the issuance of appropriately 92 percent of those refunds.

Don’t fall Victim to the IRS Scammers

Criminals impersonating the IRS often make aggressive threats – of arrest, court action, confiscation of property, or even deportation unless they make immediate payment on back taxes, says AARP fraud expert Kathy Stokes.

“We see repeatedly that scammers who impersonate the IRS work year round at trying to swindle Americans, and they’re particularly relentless in April,” said Stokes, in a statement released with AARP’s new survey, ‘Experience and Knowledge of Tax Fraud.’ “While there’s no simple solution, you can outsmart cons: file your taxes early, before they beat you to it, shred financial documents you no longer need and beware of high pressure tactics. The IRS will not call and threaten arrest for taxes owed, and they certainly won’t ask for a gift card as a form of payment, but imposter’s will,” adds Stokes.

AARP’s new phone poll, released on March 28, 2018, which surveyed 1,005 Americans ages 18 and older to gauge their experience and knowledge of fraud, reveals that people may have a false sense of security, as three-fifths (62 percent) report they’re either extremely confident or very confident in their ability to detect fraud. Despite the confidence expressed by the respondents that fraud and scams are easy to recognize, the data from the survey indicate that most (80 percent) are concerned, with half saying that they are extremely or very concerned about becoming a target or victim of fraud.

But, AARP’s survey findings show that many consumers will fall victim to IRS scammers who will keep calling until they land victims, with one in four respondents (25 percent) receiving a phony call from someone impersonating an IRS agent over the last year. The IRS does not email or text for your information, but more than a quarter of respondents (26 percent) incorrectly believe or are uncertain about whether the IRS can text or email requests for personal or financial information.

Taking Responsibility to Fight Fraud

Although survey respondents say it is important to take precautions to deter scams, many do not putting themselves at risk for being a target or victim of fraud. While most say it is extremely or very important to shred paper copies of financial or personal information, half reported that they only sometimes, rarely or never shred documents. Over one in five indicate that they rarely or never do.

More than eight in ten (79 percent) say that they have not ordered a free copy of their credit report through annualcreditreport.com, this report could alert them if identify theft has occurred.

The survey also found that respondents are putting themselves at risk of fraud or identify theft by leaving valuable personal and financial information in unsecured places, like their car. One in seven respondents admitted to leaving their checkbook in their car, while nearly a third say they left their purse or wallet in their car.

Knowledge Can Keep the Scammers Away

AARP believes that that gaining knowledge on how to avoid being scammed is key to not becoming a victim. This is why AARP continues building on its antifraud efforts, currently a free fraud helpline (877-908-3360), by adding the survey, training webinars, a “Tax ID Theft” tip sheet, and a new podcast series, called “The Perfect Scam.” The series features tips from Frank Abagnale, whose personal story inspired the Spielberg film, “Catch Me if You Can,” who now advises the FBI on how to outsmart con artists. Also, the April issue of AARP Bulletin will more broadly examine fraud, including an exclusive interview with U.S. Attorney General Jeff Sessions.

“The Perfect Scam” podcast was launched on April 6 and will be available AARP’s website and on popular podcasting platforms.

For more details about the IRS scam and other tax-related frauds, visit http://www.aarp.org/FraudWatchNetwork. Consumers who think that they are being targeted by a scammer may call the AARP Fraud Helpline at 877-908-3360 and speak with a volunteer trained in fraud counseling.

The Federal Trade Commission encourages consumers to file a complaint whenever they have been the victim of fraud, identity theft, or other unfair or deceptive business practices. They can do it online, or by calling the FTC’s Consumer Response Center at 1-877-FTC-HELP (1-877-382-4357).

Senate Aging Panel Releases its 2018 Fraud Book

Published in Woonsocket Call on April 1, 2018

In early March, the U.S. Senate Special Committee on Aging again put the spotlight on common fraud schemes directed at America’s seniors at a panel hearing, “Stopping Senior Scams.” At the Senate panel hearing, held in Dirksen Senate Office Building 562, the Committee officially released its 2018 Fraud Book detailing the Top 10 scams reported to its Fraud Hotline last year. In 2017, the Committee’s Fraud Hotline received more than 1,400 complaints of frauds targeting seniors around the country, clearly revealing the extent of this epidemic.

Last year, the most prevalent scam reported to the Committee’s Hotline, detailed in the Senate Aging Committee’s 56-page 2018 Fraud Book, was the IRS Impersonation Scam in which con artists call, pretending to be IRS representatives, to collect payment of taxes and threaten arrest if payment is not immediately made by phone (During tax filing season, seniors and others should be on high alert for scam artists claiming to be the IRS).

The March 7th hearing was the third hearing this Congress—and the 12th in the past three years—that the Senate Aging Committee has held examining scams affecting older Americans. These hearings c=examined notoriously widespread scams including the IRS imposter scams, lottery and sweepstakes scams, computer tech support scams, grandparent scams, elder financial exploitation, and identity theft.

“This Committee’s dedication to fighting fraud against older Americans is raising awareness and it is making a real difference,” said Chairman Susan Collins (R-ME), of the Senate Aging Committee, in her opening remarks. “Just two weeks ago, the Department of Justice announced it has charged more than 250 people with stealing more than half billion dollars from more than a million Americans. This is the largest ever law enforcement action to protect our nation’s seniors from fraud,” noted Collins.

Seniors Lose Billions in Exploitation Schemes and Scams

Collins called the “stakes extremely high” in fighting against the skyrocketing incidence of senior fraud, noting that according to the Government Accountability Office, older American’s lose a staggering $2.9 billion a year to an ever-growing array of financial exploitation schemes and scams.

Ranking Member, Bob Casey (D-PA), called for more aggressive action to be taken “to ensure that not one more senior loses another penny to a con artist.” The Pennsylvania Senator called for working more closely with businesses to create “another line of defense to help prevent assets from ever leaving the hands of unsuspecting victims.”

Witnesses Stephen and Rita Shiman from Saco, ME, came to share and educate others as to how they fell victim to a grandparent scam. During his testimony, Shiman acknowledged the special bond between grandparents and their grandchildren. “The scammers knew this well and took full advantage of it with my wife and myself. They knew that when a grandchild is in trouble, grandparents go all out to help,” he said.

With over 20 years working as a lead volunteer with Pennsylvania, chairing the nonprofits Consumer Issue Task Force, Witness Mary Bach explained how her 15-member task force team from across the commonwealth keep residents of all ages educated about current scams sweeping the state. She stated, “[w]e know that education is power, and when someone hears the specifics of a scam they are much less likely to be victimized. If you can spot a scam, you can stop a scam!”

Witness Doug Shadel, State Director of AARP Washington State. testified about the current state of fraud targeting seniors and outlined that impostor scams are still the most prevalent.” In the new age of technology, it is easier than ever for scammers to be someone they are not,” he said, noting that “combining this ability with a tactic to incite fear or excitement upon their victim, paints a very convincing picture, one that has enabled scammers to easily take many seniors of their hard-earned savings.”

Finally, Witness Adrienne Omansky of Los Angeles, CA, described how she formed the Stop Senior Scams Acting Program in 2009 after learning from students in her commercial acting class about fraud they had experienced. Over the past few years, this volunteer group has grown significantly and now performs in about 30 venues each year, ranging from small veteran’s halls to a large convention center. As part of her testimony, Omansky played a few clips of the Public Service Announcements her group has recorded and shared several of the lessons the members of her acting program have learned through their own performances, including that seniors are often more comfortable learning about scams from their peers.

AARP Fights Against Senior Fraud

AARP recognized early on that older Americans are extremely vulnerable to fraud and identity theft,” says AARP Rhode Island State Director Kathleen Connell. “It’s a multi-billion-dollar problem and getting worse. That’s why our organization has made a significant investment in public outreach as well as a free alert system available to our members as well as the general public.

“One aspect of prevention that has been our focus is explaining to people how con artists operate. We hired Frank Abagnale, the real-life former con man depicted in the movie Catch Me If You Can, as a national spokesman. His job is to help people spot a con. He goes way beyond “if it’s too good to be true.” Abagnale explains the psychological triggers that con artists employ to snag even the seemingly brightest and most cautious victims. This is laid out in our free publication The Con Artists Playbook. It is a hand out at events and presentations we’ve been conducting across the state the past three years.

“The AARP Fraud Watch Network is a free service,” Connell continued. “Sign up and you will receive email alerts on the latest scams. One of our Fraud Watch presenters is fond of saying that when you hear about a scam on the TV news it is natural to say, ’I’d never fall for that. ’Maybe, he tells audiences, it’s only because you were just warned. That’s the thing. It’s the new scam that you haven’t heard about that is especially dangerous. In addition to the alerts, you can report scans so the word spreads as new cons make the rounds. There’s also a national fraud hotline (877-908-3360) with specialists who take on any questions. And an online map allows you identify scams reported in your area. We urge everyone to check out the Web site (www. fraudwatchnetwork.org) to learn more.”

For a copy of the 2018 Senate Aging Committee Fraud Book, go to http://www.aging.senate.gov/imo/media/doc/Fraud%20Book%202018%20FINAL.pdf.

New Report Says Alzheimer’s Disease Is Now Major Public Health Issue

Published in the Woonsocket Call on March 25, 2018

For the second consecutive year, total payments to care for individuals with Alzheimer’s or other dementias will surpass $277 billion, which includes an increase of nearly $20 billion from last year, according to data reported in the Alzheimer’s Association 2018 Alzheimer’s Disease Facts and Figures report recently released last Tuesday.

According to the Alzheimer’s Association, the annual report, first released in 2007, is a compilation of state and national specific statistics and information detailing the impact of Alzheimer’s disease and related dementias on individuals, families, state and federal government and the nation’s health care system.

“This year’s report illuminates the growing cost and impact of Alzheimer’s on the nation’s health care system, and also points to the growing financial, physical and emotional toll on families facing this disease,” said Keith Fargo, Ph.D., director of scientific programs and outreach for the Alzheimer’s Association, in a statement. “Soaring prevalence, rising mortality rates and lack of an effective treatment all lead to enormous costs to society. Alzheimer’s is a burden that’s only going to get worse. We must continue to attack Alzheimer’s through a multidimensional approach that advances research while also improving support for people with the disease and their caregivers,” he said.

Adds Fargo, “Discoveries in science mean fewer people are dying at an early age from heart disease, cancer and other diseases,” said Fargo. “Similar scientific breakthroughs are needed for Alzheimer’s disease, and will only be achieved by making it a national health care priority and increasing funding for research that can one day lead to early detection, better treatments and ultimately a cure.”

2018 Alzheimer’s Facts and Figures

New findings from the 88-page report on March 20, 2017 reveal the growing burden on 16.3 million caregivers providing 18.4 billion hours of care valued at over $ 232 billion to 5.7 million people with the devastating mental disorder. By 2050, the report projects that the number of persons with Alzheimer’s and other dementias will rise to nearly 14 million, with the total cost of care skyrocketing to more than $1.1 trillion.

Between 2000 and 2015 deaths from health disease nationwide decreased by 11 percent but deaths from Alzheimer’s disease have increased by 123 percent, says the new data in the report, noting that one out of three seniors dies with Alzheimer’s or another dementia. It even kills more than breast cancer and prostate cancer combined. In Rhode Island in 2015, the number of deaths from Alzheimer’s disease was 453, making the devastating brain disorder the 5th leading cause of death in the state.

In 2017, 53,000 Rhode Island caregivers provided an estimated 61 million hours of unpaid physical and emotional care and financial support – a contribution to the nation valued at $768 million dollars. The difficulties associated with providing this level of care are estimated to have resulted in $45 million in additional healthcare costs for Alzheimer’s and other dementia caregivers in 2017.

State Updates Battle Plan Against Alzheimer’s Disease

“The Alzheimer’s Association’s most recent report about Alzheimer’s Disease in Rhode Island illustrates the need to take swift action in updating our State Plan to ensure Rhode Island is prepared to provide the necessary resources to families, caregivers and patients who are struggling with the disease,” says Lt. Governor McKee,

McKee adds that the updated State Plan will be a blueprint for how Rhode Island will continue to address the growing Alzheimer’s crisis. “It will create the infrastructure necessary to build programs and services for the growing number of Rhode Islanders with the disease. The updated Plan will also outline steps the state must take to improve services for people with Alzheimer’s and their families. After the update is complete, my Alzheimer’s Executive Board will seek legislative and regulatory changes to carry out the recommendations of the Plan and ensure that it is more than just a document,” he says.

“One of the many types of caregivers benefiting from AARP’s caregiving advocacy in Rhode Island are family members who care for those with Alzheimer’s,” said AARP Rhode Island State Director Kathleen Connell. “They are among the army of 10 million wives, husbands, sons and daughters nationwide. The majority are women and according to researchers, especially when it comes to dementia and Alzheimer’s care. Approximately 40 percent of those caregivers say they have no other options or choices, and a third say they provide care 24/7.

“The latest report indicates what we already know,” Connell added. “This will continue to be rising challenge in Rhode Island as our population ages. The disease will place more stress on our Medicaid-funded nursing home capacity, which should make this a concern for taxpayers. There is a strong case for increasing research funding so that someday we may reverse the tide.

“Our Web site, http://www.aarp.org, provides abundant resources for these dedicated caregivers. AARP in states across the nation, including Rhode Island, have worked to pass legislation that provides paid respite for caregivers who have jobs as well as caregiving obligations. We have supported the Alzheimer’s Association here in Rhode Island for many years and, last year, a small team of AARP volunteers participated in the Alzheimer’s Walk. Joined by others, they are gearing up for this year’s walk.”

Increased Research Funding Needed Now

Donna McGowan, Alzheimer’s Association, RI Chapter Executive Director, says that the 2018 Alzheimer’s Disease Facts and Figures report should send a very clear message that Alzheimer’s disease is an issue that policy makers cannot ignore. “This is an urgent public health crisis that must be addressed. Early detection and diagnosis of the disease leads to better planning, avoiding preventable hospitalizations, and over all a better quality of life for the patient and the caregiver,” says McGowan.

McGowan warns that the health care system is not ready to handle the increased cost and number of individuals expected to develop Alzheimer’s disease in the coming years. “With a vigorous National Plan in place to address the Alzheimer’s crisis, and annual budget guidance for Congress, it is essential that the federal government continue its commitment to the fight against Alzheimer’s by increasing funding for Alzheimer’s research,” adds McGowan.

Rhode Island Congressman David Cicilline sees the need for increased funding for direct services for those afflicted with Alzheimer’s disease. He voted for H.R.1625, the omnibus spending bill that increases funding for the National Institute of Health’s Alzheimer’s research by $414 million. And two years ago, Cicilline worked to pass H.R.1559, “The HOPE for Alzheimer’s Act,” which President Obama signed into law to expand Medicare coverage for Alzheimer’s treatment.

If Cicilline succeeds to get the Republican-controlled Congress to have a vote on H.Res.160, his bill to reestablish the House Select Committee on Aging, it will allow House lawmakers to hear expert testimony and make new policy recommendations to improve the delivery of care to those afflicted with Alzheimer’s and to assist caregivers, too.

For details, go to http://www.alz.org/facts.