Tag Archives for Attorney General Peter Kilmartin

Conference Puts the Spotlight on Financial Exploitation of the Elderly

Published in Pawtucket Times, October 31, 2014

In 2005, 80-year old Jane Jacques suffered her second stroke and was diagnosed with dementia. With no family living nearby, the widow’s physician determined that she could no longer live independently at home. The Department of Elderly Affairs asked the Alliance for Better Long Term Care to find Ms. Jacques a guardian. The probate court appointed Janet Mastronardi, to serve as guardian, making the East Greenwich attorney responsible for the older woman’s personal and financial well-being.

Over the next five years, Mastronardi embezzled and misappropriated approximately $130,000 from Jacques’ accounts, leaving her near penniless. An employee of lawyer noticed the financial irregularities while preparing an accounting of Jacques’ finances for the probate court and contacted the Rhode Island State Police, who conducted an investigation.

Earlier this year, Mastronardi pled guilty to her crimes of financial exploitation and although the Attorney General’s Office sought jail time, the Court ordered her to seven years, with 30 months to serve in home confinement and the remaining 54 months suspended with probation. In addition, the Court ordered her to pay full restitution to Jacques’ estate.

This case clearly illustrates the hidden problem of financial exploitation on older victims who oftentimes are unwilling to report this abuse because for fear of losing support of their family member or caregiver or future retaliation of these individuals. Simply put, this abuse occurs when deception, coercion, undue influence or misrepresentation is used, like the above example, to obtain unauthorized use of the older person’s property, money, pension book or other valuables.

But, the National Center on Elder Abuse, as well as other elder advocate organizations, has called financial exploitation of elders “the crime of the century.”

Aging advocates say there is currently reliable current data available on the precedence of financial exploitation. But, according to a 2010 survey by the Investor Protection Trust (IPT), more than seven million older Americans – one out of every five citizens over the age of 65 – already have been victimized by a financial scam. One year later, a MetLife study reported the huge impact of this problem, noting that the annual financial loss by victims of elder financial abuse is estimated to be at least $2.9 billion dollars, a 12 percent increase from the $2.6 billion estimated in 2008.

Combatting Financial Exploitation in Rhode Island

Just two days ago, the state’s Rhode Island Commission for the Safety and Care of the Elderly, brought together the Rhode Island Division of Elderly Affairs (DEA), local and state police, fire, social service agencies, and banks and other financial institutions to put the spotlight on financial exploitation

The half day event, hosted by the Rhode Island Citizens Commission for the Safety and Care of the Elderly, at the CVS Health Finance Center in Cumberland, provided over 100 attendees an in-depth look at how financial crimes cases against older persons are developed, investigated and prosecuted, as well as a discussion on best practices for financial institutions to identity financial exploitation.

Financial Exploitation a Change to Investigate

Keynote speaker, Attorney General Peter Kilmartin, stated “As striking as that figure is, government statistics estimate that financial exploitation is a highly underreported crime because many of the victims are unaware they are being duped or they are too frightened to even report this crime. Many elders rely on others they believe they can trust to handle their financial affairs, only to be robbed of their hard-earned money. In some cases, the perpetrator leaves the victim penniless. Financial exploitation of elders is one of the most challenging charges to investigate and prosecute,” said.

Recognizing the challenging factors in investigating and prosecuting elder abuse, including financial exploitation, the AG’s Office has created the Elder Abuse Unit, to handle those type of cases, says Kilmartin, noting that the specialized unit was created in recognition of the fact that the proportion of the state’s population over age 60 is dramatically increasing and will continue to do so. The Elder Abuse Unit is responsible for investigative management and prosecution of crimes involving elderly victims of abuse, neglect and financial exploitation

Since it was established in 2006, the Elder Abuse Unit has seen a steady increase in the number of cases reported and prosecuted, noted Kilmartin, adding that the Office in its first year prosecuted 65 cases of elder abuse, including physical and financial exploitation. Last year, 140 individuals were prosecuted, an increase of 115 percent in less than ten years, he says…

Kilmartin credited the dramatic increase in prosecutions to a recognition by society that financial exploitation is a crime and should be prosecuted. “Like other forms of elder abuse, financial exploitation is a complex problem and it is easy for people to have misconceptions about it. I have made it a priority to educate the public, law enforcement, healthcare professionals and the financial industry on the signs of financial exploitation and the numbers prove that increased awareness has directly led to increased reporting and prosecuting,” stated Kilmartin.

The Attorney General called on banking and financial industry to understand and know the signs of financial exploitation, as they are most likely to catch irregular transactions by perpetrators. “As many elders still regularly go to the bank, bank personnel are in a good position to notice suspicious activity and behavior,” he added.

John Clarkson, former Pawtucket Police Officer who now serves as Assistant Vice President of Security at Pawtucket Credit Union, led a presentation at the conference discussing how bank employees need to be aware of the various signs that an elder may be being exploited and ways to stop it.

“It’s unfortunate but our elders are a prime target for financial exploitation. It is important that we at Pawtucket Credit Union and at other financial institutions train our front line staff and management to identify when this is occurring, prevent it if possible, and most importantly report it immediately. When discovered we have worked closely with the Attorney General’s Office and law enforcement agencies throughout the state to have those responsible prosecuted,” Clarkson said.

Kilmartin stressed that it is equally important for family members and friends to prevent and report instances of financial exploitation. He urges, family, friends and neighbors to take note of what may be happening with older relatives or neighbors. “If anything seems suspicious, such as the person seems to be withdrawn, nervous, fearful or anxious, especially around certain people, when they have not seemed so in the past, it is important to report the matter to the appropriate authorities,” he recommends.

Abuse and self-neglect reports can be filed 24 hours a day, seven days a week, and on nights, weekends, and holidays, by calling 401-462-0555. Reports can be filed anonymously and are confidential. In filing a report of alleged abuse, you should give as much detail as possible, including the name of the elder, address, and contact information. If reporting to law enforcement, contact your police department, the Rhode Island State Police at 401-444-1000, or the Office of Attorney General at 401-274-4400.

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

Credit Breaches Are Hazardous to Your Financial Health

Published in Pawtucket Times, October 17, 2014

It seems to happen all the time. Just recently Target Corporation, Home Depot, Dairy Queen and Neiman Marcus – followed by Michaels, and more recently JPMorgan Chase and Kmart – found their data systems being breached. I thought that I had dodged the bullet from being a victim until last month when I received a letter from my local savings and loan warning me about a potential security breach affecting my credit card.

Data breaches and hacking annually affect millions of Americans, costing billions of dollars and countless hours for consumers to correct problems resulting from identity theft and fraud that results in their checks bouncing and being accessed late fees.
Data Breaches Not a Rare Occurrence

What exactly is a data breach? Simply put, a data breach occurs when a company’s database, typically containing customer information, is hacked by sophisticated malware programs that can infiltrate a company’s network, sometimes for months before being noticed.

“Not that long ago, we were taught to always know where your wallet or purse was to ensure we didn’t fall victim to a pickpocket. Yesterday’s common street thief is today’s computer hacker, and it is often months before you realized they’ve virtually picked your pocket,” said Attorney General Peter Kilmartin.

According to the Rhode Island Attorney General, his staff has been busy in the past year informing consumers about the data breaches at some of best-known retail and financial companies. He says last year, there were multiple reports of massive data breaches at the nation’s largest corporations. According to a recent survey, 43 percent of companies have suffered one data breach this past year, and 60 percent say they’ve been struck by multiple data breaches in the last two years.
“In today’s technology–driven and paperless retail marketplace, it is inevitable that some, if not all, of your personal and financial information – credit card and banking information, email, and social security number – will be compromised,” warns Kilmartin.

Congressman James Langevin has been a leader on the issue of cyber security, and is leading efforts inside the Washington Beltway. “Stories of public data breaches are becoming increasingly common, and if a Fortune 500 company is susceptible to these types of breaches, we can be sure that similar attacks are possible among other retailers and businesses,” said Congressman Jim Langevin, the co-founder and co-chair of the Congressional Cybersecurity Caucus. “I have been sounding the alarm on cybersecurity for years, and I fear the consequences if we delay any further the steps needed to strengthen our technology infrastructure,” said Langevin.

The Democratic lawmaker, serving the second congressional district since 1991, says, “I am particularly concerned about the potential for cyber attack against critical infrastructure, including our power grid, wastewater management and banking and health care systems, just to name a few. All of these essential services are tied into technology, and it is going to take both a strong commitment from government and a continued partnership between public and private industry in order to get us where we need to be on cyber security. Securing these networks must be a priority, and I believe it is a crucial component of our national and economic security strategies.”

Kilmartin says make no doubt about it, data breaches are a crime, but law enforcement has significant hurdles to overcome when investigating cyber crimes. “Companies that have been targets of recent data breaches are working with federal law enforcement authorities to investigate how the breach happened and who is responsible,” he notes, stressing that early evidence shows that most of the sophisticated criminal enterprises that commit cyber crimes operate outside of the United States, often in Eastern Europe. “The hackers are out of the reach of traditional law enforcement and US Courts, but that has not stopped local, state and federal authorities from investigating,” he says.

Consumers Must Become Their Own Watchdog

“Consumers in today’s world need to continually monitor their electronic purchases, their personal medical information, as well as their banking records. Consumers can follow all the rules to protect their information, and if a business or other entity entrusted with this information is vulnerable, consumers, through no fault of their own, can still be impacted. Many times, a consumer’s first contact with law enforcement may be dealing with the aftermath of a data breach or identity theft. Please know that we are there to help you and will thoroughly investigate to resolve these crimes,” stated Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police.

Kilmartin also confirmed that he and attorneys general in several states are looking into these data breaches and hope to get answers from the companies targeted as to how and why they took place. “There are multi-state investigations by attorneys general into how these companies left consumer information vulnerable to an attack,” he said, noting, “as consumer advocates, we are determined to get to the bottom of these data breaches and to work with the companies to better protect the consumer.”

Kilmartin believes it is up to consumers to be their own watchdog: “While companies and law enforcement officials are trying to put an end to this trend, the only way someone can protect themselves is to be vigilant in monitoring their personal and financial information. And by that, I mean check your banking and credit card statements regularly and limit how much information you share with companies.”

Keeping Credit Card Thieves At Bay

Kilmartin says, “I always tell consumers that the best way to protect yourself from scams is education. Being wary of potential scams, and being a savvy consumer is the best way to stop a scam artist in their tracks.” He offers the following common sense tips to protect your credit:

Check your credit card and debit card statements regularly, and on a line-by-line basis. One may think to only look for large unauthorized charges, but thieves may place a small charge – only a few dollars – to check if the card is active. If that charge goes unnoticed, thieves will then make a large unauthorized purchase. Report all suspicious charges, no matter how small. And, check your statements every day if possible. “It may be too late to recoup some or all of your money if you don’t report it immediately,” said Kilmartin.

If you notice an unauthorized charge, report it to your financial institution immediately, cancel the card and have the bank issue you a new one.

Kilmartin recommends consumers take advantage of free credit monitoring many affected companies are offering. “Companies who have been impacted by a data breach don’t want to lose customer loyalty. Many offer up to one free year of credit monitoring for any consumer who shopped there during the breach,” he adds.

Consider adding a fraud alert to your credit report file to protect your credit information. A fraud alert can make it more difficult for someone to get credit in your name because it tells creditors to follow certain procedures, which may include contacting you directly, before authorizing the credit card, says Kilmartin, noting that while this may delay your ability to obtain credit immediately, it will protect you from someone fraudulently opening a credit card in your name.

Kilmartin urges Rhode Islanders to be suspicious of emails, phone calls, or text messages claiming to be from your bank or a retailer you shopped at. Hackers may not have gained access to all the information they need, and will often use the information they do have, like name, date of birth or credit card number to convince you to part with even more sensitive information, such as passwords or social security numbers. When in doubt, call your financial institution directly with questions. The phone number is usually on the back of credit cards and debit cards.

Update your computer’s anti-virus software. Just as hackers have wormed their way into secure databases at large-scale companies, they can worm their way into your computer.

Change your passwords. The most basic way to stop an intruder is to lock the door. Set strong passwords and don’t reuse them for different accounts, especially for accounts that involve your banking or credit card information.

Go “old school” and pay with cash or check. While we have become accustomed to using credit and debit cards to make everyday purchases, every company still takes U.S. currency.

Under federal law, you are entitled to one free copy of your credit report every 12 months from each of the three nationwide credit reporting agencies. You may obtain a free copy of your credit report by going to http://www.annualcreditreport.com or by calling (877) 322-8228.

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

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.