Tis’ the Season to Get Ripped Off, if Your’re Not Careful

 

Published in Pawtucket Times on November 23, 2015 

             With just a little over 30 days left to Christmas, a newly released AARP Fraud Watch Network telephone poll finds that 70 percent of American consumers failed a quiz about how to protect themselves from common holiday scams.  Many of the survey’s respondents, age 18 and over, say they are regularly engaging in risky behaviors which could put them at risk of being victimized by con artists during the approaching holidays..

The 26-page report, “Beware the Grinch: Consumers at Risk of Being Scammed During the Holidays,” details AARP’s random polling results of consumers about their knowledge of the most common scams occurring before holidays, including those related to charitable giving, gift cards, package deliveries, and use of public Wi-Fi.  Seventy percent of the respondents were only able to answer correctly four or fewer questions out of a total of seven questions

“While most of us focus on family and friends during the holidays, fraudsters are zeroing in on our wallets and bank accounts,” warns Nancy LeaMond, Chief Advocacy & Engagement Officer, AARP.  “We’re encouraging consumers to elevate their awareness of some emerging and popular scams, and to also share the information with their families to help keep them safe this holiday season,” she says.

Prompted by the dismal survey results, AARP’s Fraud Watch Network has launched an education campaign, including a new web page, www.aarp.org/money/scams-fraud/fraud-watch-network, specifically designed to educate the public about the top five holiday scams:

Charitable Giving

According to the National Philanthropic Trust, in 2015 Americans gave $358 billion dollars to charity.  Government officials who regulate nonprofit charities and fundraisers say that while most charities are legitimate, there are many fundraisers, especially telemarketers, who keep 85-90% of the money they raise.

AARP’s survey finds that 70 percent of the respondents who donated to a charity or fundraiser in the past 12 months did so without even asking any questions about how that donation would be spent, and 60 percent made donations without verifying that the charity groups were legally authorized to raise money in their state. .

The pollsters say that about a third of the respondents admitted that they don’t know (15%) or aren’t sure (18%) that, in most states, professional fundraisers must be registered with the government and report how much funds they raise and how much goes to the charitable purpose.  Less than one in ten (8%) could correctly name the government agency they should contact to verify the legitimacy of the charity or fundraiser (the correct answer: Office of the State Secretary).

Gift Cards

Fraud experts warn that scammers sometimes hit store gift card racks, secretly write down or electronically scan the numbers off the cards, then check online or call the toll-free number to see if someone has bought the cards and activated them. As soon as a card is active, the scammers drain the funds.

Fifty-eight percent of AARP’s survey respondents say they plan to buy gift cards from a rack at a big box store, pharmacy or grocery store this holiday season for gifts.  Only 54 percent knew that the gift cards purchased from a gift card rack at retail stores are “not safe” from hackers or thieves than gift cards purchased online.

Pull Out that Credit Card

The AARP survey findings note that almost two-thirds of the holiday shoppers surveyed (64%) say they will buy holiday gifts this year using a debit card.  Consumer protection experts advise using credit cards rather than debit cards for most purchases, to better protect the buyer from fraud and theft.  With credit cards, you are financially liable for only up to $50 of fraudulent use.  But with a lost or stolen debit card, the scam can be more costly and hit you hard in your pocketbook

Surf Safely on Public Wi-Fi

The survey findings found that holiday shoppers incorrectly believe that it is safe to access “sensitive” financial information via a free Wi-Fi network.   About 52 percent of internet users in this survey say they will use free public Wi-Fi in making purchases or to do their banking.  Many of them, while using public Wi-Fi, will make purchases (42%), access their bank accounts (28%), and check their credit card accounts (16%).

Package Signoffs Reduce Scams

The AARP survey findings indicate that over 40 percent of holiday shoppers are unaware that package delivery companies are not responsible for stolen packages that are left at your front door without requiring a delivery signature.  Seventy nine percent of the respondents claim that they ship packages to friends without requiring a signature at least some of the time. Seventy-three percent indicate that they have received home deliveries without having to provide a signature “some” or “all of the time.”

AARP Fraud Watch Protects Consumers

In Rhode Island, AARP has deployed a corps of volunteers who travel around the Ocean State, with a presentation introducing the Fraud Watch Network and offering attendees free copies of “The Con Artist’s Playbook, a brochure written by former con artists, revealing their techniques they use to steal identities. Fraud Watch was AARP’s central theme at last summer’s tournament week at the Newport-based International Tennis Hall of Fame and volunteers were enrolling people as recently as last week at a Providence Bruins game. To date, more than 1,200 Rhode Islanders have signed up for the free fraud alert this year.

“Con artists think they can bully people into forking over their hard-earned money,” AARP Rhode Island State Director Kathleen Connell said. “That’s why today, we’re turning the tables on them and arming Rhode Islanders with the information they need. This require constant vigilance, and the upcoming holiday season is a time when con artists up their game,” she says.

Connell notes that groups of a dozen or more can request a Fraud Watch presentation by calling the AARP state office at 401-248-2671. In 2016, AARP wants to train more volunteers to present Fraud Watch in their communities and to point people to AARP resources designed to combat fraud.

People are more aware of telephone and online scams than ever before,” Connell said. “But the con artists manage to keep one step ahead, inventing new and disarming ways to punch people’s emotional buttons and lead them to a place where they make bad and sometime terribly costly decisions.”

Attorney General Peter F. Kilmartin whose office works to alerts and educate consumers about the latest scams making their way through Rhode Island noted that despite the news of increased scams during the holidays, a little perspective is important, “the true meaning of Christmas is about celebrating family and friends and being thankful for what we have.”

 

Make sure abuse of the elderly is no longer a ‘dirty little secret’

Published in Pawtucket Times on October 5, 2015 

Last September, 86-year-old Martha Smith (not her real name) woke up in the middle of the night to a loud noises coming from the first floor of her East Bay apartment. When she went to investigate the commotion, she found her granddaughter in the kitchen. When Martha asked her granddaughter what was going on, the young woman started to verbally and physically abuse her. At one point, she even tried to suffocate Martha with a pillow.

Martha’s other granddaughter came to her aid, only to be assaulted as well. When the police arrived after Martha had tried to call 911, the phone had been ripped out of her hand by her abusive granddaughter, but they heard Martha’s screams of help coming from the house.

According to the Rhode Island Attorney General’s Office, the granddaughter was arrested and is now awaiting trial.

We grow up being taught to respect our elders. But, it seems these lessons are not learned or even followed. Martha’s abuse by her granddaughter is a sad tale, but it happens all too often to our nation’s elderly.

Elder Abuse Growing The National Committee for the Prevention of Elder Abuse defines domestic violence on elders as “an escalating pattern of violence or intimidation by an intimate partner, which is used to gain power and control.” And the perpetrator of the violence is not always a spouse, but more often than not it is a family member, as was the case with

Herb Weiss Martha Smith. Victims may be fearful to report the abuse to doctors or law enforcement for fear of the violence escalating, or because the victim relies on the abuser or their family for caregiving.

The National Center on Elder Abuse has reported that during calendar year 2010, there were nearly six million reported cases of elder abuse, representing nearly 10 percent of that year’s elderly population. The Center acknowledged that it really have a handle as to how many people are suffering from elder abuse and neglect, either because signs of abuse and neglect are missed by professionals working with older persons, or because of a reluctance on the part of the abused person to file a report.

America’s “dirty little secret” is getting worse by the graying of America’s population. The numbers are growing – the 2010 United States census recorded the greatest number and proportion of people 65 and older in its counting history: 40.3 million or 13 percent of the population.

Attacking Elder Abuse in R.I. In Rhode Island, cases of domestic violence against older people are handled by specially trained prosecutors and victim advocates at the Office of Attorney General. And, there are special laws on the books that provide for enhanced criminal penalties for assault of a person of 60 years of age.

“We have specialized prosecution units for those who commit domestic violence against older people,” said Attorney General Peter Kilmartin. “The dedicated prosecutors, victims advocates and support staff in our Domestic Violence and Sexual Assault Unit and Elder Abuse Unit deal with these cases each and every day, working to bring justice for victims while minimizing their emotional trauma. Our domestic violence and elder abuse prosecutors and victim advocates are all specially trained to handle the highly sensitive details of domestic violence cases, which are often extremely emotionally charged,” he notes.

In 2014, the General Assembly passed legislation that allows the release of patient records for investigation and prosecution of physical assault on an older person if a health care provider believes, after providing services to the elder patient, is or has been physically, psychologically or sexually abused.

“Due to the nature of elder abuse crimes, time is of the essence. The victims in these cases are often vulnerable and face a myriad of health challenges, thus making a timely investigation more critical to ensure the victim’s availability to participate in the investigation and prosecution” added Kilmartin. “Moreover, the perpetrator of elder abuse is most often known to the victim, making it less likely for the victim to report,” he says.

AARP Tackles Elder Abuse Across the United States “Abuse of older Americans, whether it be physical or financial, is unconscionable. That’s why AARP is fighting in states across the nation for new laws to crack down on abuse and financial exploitation and strengthen protections for victims so all Americans can live with dignity and independence as they age,” says AARP Executive Vice President Nancy LeaMond.

AARP national staff, state chapters and volunteers are in the trenches fighting against elder abuse and exploitation. According the nation’s largest aging advocacy group, adequate funding must be given to preserve and strengthen the states adult protection services agencies. These agencies investigate complaints about abuse, neglect and exploitation of adults who are unable to care for themselves or make decisions due to mental or physical impairment, illness or a crisis in their lives.

In 2014, AARP advocated for increased funding and to ward off efforts to cut funding for the agencies in five states: Arizona, Ohio, Oregon, Utah and Wyoming.

AARP also calls for better prevention and detection of financial exploitation of the nation’s elderly. While states legislatures look at different ways to addressing this issue, many create task forces, even enact new legislation to address this abuse. According to the Washington, D.C. based nonprofit, last year, seven states enacted bills to protect their older residents against abuse and exploitation: Florida, Kansas, Massachusetts, New Hampshire, Oregon, Virginia and here in Rhode Island.

In 2014, the General Assembly passed a law supported by AARP Rhode Island that extended the statute of limitations for cases of financial crime against the elderly from three years to 10 years.

Meanwhile, both Iowa and West Virginia adopted legislation last year to increase criminal and civil penalties against perpetrators of financial exploitation and to update the definition of financial exploitation.

Finally, uniform laws focused on adult guardianship and power of attorney not only support those who provide caregiving across state lines, but also create processes to help protect older people against abuse and exploitation. Six states, including Rhode Island, passed uniform adult guardianship or power of attorney laws in 2014, and this year additional states have already introduced legislation. Abuse at Any Age No matter a victim’s age, domestic violence and abuse is about the perpetrator trying to gain power and control over their victim. Domestic violence against older people can include physical, psychological, sexual and economic abuse, stalking, and tactics meant to isolate the victim from other people and supportive services October is Domestic Violence Awareness Month, and the statistics are alarming. According to the National Resource Center on Domestic Violence, 24 people per minute are victims of physical violence, rape or stalking by an intimate partner in the United States. One in four women, and one in seven men, will be a victim of domestic violence at some point in their lifetime. On average, three women are killed every day at the hands of a current or former intimate partner. Being in Rhode Island, with statistics like that, chances are you know someone who has been abused.

Help is available. In 2014, over 400 senior Rhode Islanders received domestic violence victim services from the Rhode Island Coalition Against Domestic Violence (RICADV)’s six member agencies. The RICADV’s member agencies provide a wide array of services for victims, including hotline support, emergency shelter, support groups, counseling services, and assistance with the legal system.

In addition, specialized shelter and other services are available for older victims of domestic violence through a partnership between the RICADV and the Saint Elizabeth Community. For more information about these organizations and services, call the statewide Helpline at 800-494-8100. If you hear or see someone being hurt, call 911 immediately.

AARP Pushes for Higher Standards When it Comes to Financial Advisors

Published in Woonsocket Call on June 28, 2015

AARP continues its efforts to push for a proposed U.S. Department of Labor (DOL) Fiduciary Rule that would require financial advisors to put their client’s interests first when giving retirement advice.  In advance of last weeks hearing, before the House Education and Workforce Committee, the nation’s largest aging advocacy group delivered nearly 60,000 petitions containing the signatures from every state to support a higher standard in financial advising to prevent conflicts of interest.    .

In a June 16 release, the Washington, D.C.-based AARP stated that the June 27th Congressional hearing only showcased financial firms and their concerns, but did not provide much of an opportunity to hear directly from consumers about how the new proposed rule would benefit them.  But, AARP’s petitions drive should send a powerful message to Congress, that the nonprofit group, representing 37 million older Americans, and 60,000 voters identified on those petitions want to have their voices heard by Congress on this very pressing retirement issue.

When Advising, Do No Harm

“While a number of investment advisers also support a rule requiring advice to be in the best interest of clients, some opponents have recently weighed in with comments that offer time worn code words for harming consumers,” said Nancy LeaMond, Chief Advocacy and Engagement Officer, AARP.  She says that the delivered petitions would ensure “that all, not just some, financial advisers put their clients’ interests first.”

“Many opponents of the proposed new rule, who are asking for delays or say the regulatory costs are too high, are simply looking to protect high fees at the expense of consumers.  But consumers deserve advice in their best interest, not advice that benefits the adviser,” says LeaMond.

In addition to forwarding petitions to the Department of Labor, AARP volunteers continue their efforts to call on Congress to prevent legislation that seeks to stop or slow an updated “best interest” standard.  According to the AARP, “each year hidden fees, unfair risk and bad investment advice rob Americans of $17 billion of retirement income.”

LeaMond says that AARP plans to submit comments to the DOL on the proposed rule in the weeks ahead. The nonprofit group’s petition delivery included over 33,000 signatures and follows an initial petition delivery last month that included over 26,000 signatures that support eliminating conflicts of interest in retirement advice.  “It is important that the Department hear from individuals who are negatively impacted by the current standard, not just financial firms who benefit from it,” she said.

AARP’s petition drive efforts followed President Obama’s February visit to AARP Headquarters where he used the opportunity to publicly support the proposed DOL rule, endorsed by a coalition of aging, labor and consumer groups that limits conflicts of interest, increases accountability, and strengthens protection for Americans receiving retirement investment advice.

At the AARP press event, Obama called for the updating of DOL rules and requirements that would mandate higher standards for financial advisors, requiring them to act solely in their client’s best interest when giving financial advice.

Obama noted that the existing rules governing retirement investments written over 40 years ago “outdated,” filled with “legal loopholes,” and just “fine print,” to be in need of an overhaul.  The existing rules governing retirement investments were written “at a time when most workers with a retirement plan had traditional pensions, and IRAs were brand new, and 401ks didn’t even exist,” said the President.

According to Megan Leonhardt, senior editor for WealthManagement.com, in a June 15th article, “New Coalition Pushes for DOL Fiduciary Rule,” DOL’s proposed rule has “been delayed multiple times since the agency first rolled it out in 2010.  It was expected to be released in August according to the agency’s regulatory agenda, but an update in May pushed back the date to January.”

“Industry lobbyists have mounted significant pushback. The Securities Industry and Financial Markets Association and the Financial Services Institute have argued a rule similar to the DOL’s initial proposal could limit the public’s access to quality financial advice,” says Leonhardt.

Acting in the Client’s Best Interest

“Rhode Island has been part of the national effort to move the Labor Department rule forward,” said AARP Rhode Island State Director Kathleen Connell. “We’ve talked to people who have been quite surprised to know that their savings could be at risk by having an adviser fail to act in their client’s best interest. The response to the petition campaign is a measure of the concern. Retirement planning is daunting for the vast majority of Rhode Islanders. There’s plenty to worry about. Having confidence that your financial adviser is working in your best interest would relieve some of the anxiety.  That’s why there seems to be overwhelming support for the rule change.”

Along with AARP, Rhode Island federal lawmakers are weighing in on this key retirement issue, seeing its importance to older Rhode Islanders.

Rep. David N. Cicilline (D-RI) says, “Protecting the financial well-being of our seniors is a top priority for me, and ensuring that they have access to complete and accurate information before making investment decisions is an essential component of that effort.  President Obama and Labor Secretary Perez are leading a good faith effort to protect consumers, including seniors and I look forward to evaluating the final rule after the public comment period ends and I have had the benefit of considering these comments.”

Adds, U.S. Senator Sheldon Whitehouse (D) “Investors should have the security of knowing that the advice they receive is in their best interest.  I applaud the Obama Administration for updating regulations on retirement investments and for working with a wide range of stakeholders to ensure the new rules help Americans save more for retirement.”

For this writer, hiring a financial advisor is like purchasing a used care, that is you always feel that you might have made the wrong decision.   New DOL requires that call for higher standards for financial advisors, who would be required to act solely in their client’s best interest when giving advice, just might give me peace of mind, when planning my retirement…and probably to millions of older Americans, too.

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