Amid rising reports of fraud and financial scams, experts from four California agencies educated a group of approximately 60 senior citizens at a Senior Scam Stopper Seminar last Friday on shielding their home, medical care and finances from widespread schemes.Although believed to be underreported, a 2009 study by the MetLife Mature Market Institute estimates that seniors lose approximately $2.6 billion a year as a result of financial abuse by way of scams involving home contracting work, property loans, Medicare and telemarketers, among many others.
The seminar was held at the Malibu Senior Center and organized by the Senior Center, the Contractors State License Board (CSLB), Assemblymember Richard Bloom and the State Controller’s Office. It fell a few weeks ahead of Senior Fraud Awareness Day, which is recognized on May 15. Along with guest speakers, the event included informational packet handouts and a “Stop Senior Scam” skit.
Jane Kreidler, outreach coordinator for the CSLB and one of the panel’s speakers, said teaching elder citizens how to shield themselves from falling victims to deception is crucial.
“Seniors are the number one targeted group,” she said. “Seniors are vulnerable and the scammers know it. They can be too trusting, they can be easily confused if they have some mental health issues. They have the money and scammers know it.”
Home repair among common fraud schemes
Speaking about scams involving home repair, Kreidler said that contractors completing work valued at $500 or more in labor and materials should have a proper contractor’s license assigned by the CSLB.
“When you have them come to your house, I want you to ask for their contractor’s license,” she said. “Then, after you interview at least three [contractors], you are going to call us and ask is the contractor in good standing and are there any complaints against the contractor.”
Kreidler said people going door-to-door or calling and saying they are contractors should be especially scrutinized.
“They will try to use scare tactics. ‘Oh, your tree is over your roof, it has to be cut down, your concrete needs repaving,’” she said. “No legitimate contractor has time to go bang on doors. Be very careful of people that are soliciting you.” To verify a contractor’s license, visit cslb.ca.gov or call 800.321.CSLB.
Anna Burns, a consumer protection attorney with Bet Tzedek Legal Services, said her Los Angeles-based agency has seen a lot of home equity fraud in which baby boomers are the victims. These scams are run by family members, persons running home-improvement fraud and strangers taking advantage of others.
“Your homes are really piggybanks to these people because of equity in them,” she said. “If you turned around and sold your home and paid off any loans against it — and many of you have no loans against your home — there is a lot of money to be pulled out, and that is all people are after.”
Burns said she had a client whose grandson stole her home by forging documents and taking the title to her residence. He took out several loans, never paid them back and the woman’s home eventually fell into foreclosure. Thankfully, Tzedek was able to get the home back for the client.
“The saddest part was how heartbroken the grandmother was,” recalled Burns.
Another case involved a blind World War II veteran being solicited to get a new kitchen floor in his home. The man had no clue that the paperwork the shady contractor had him sign involved taking out a $50,000 loan.
“Don’t sign any paperwork on your home unless you have had it reviewed,” she said. “Never pay all the money up front.”
Medicare scams on the rise
Wendy Packer with Senior Medicare Patrol said Medicare scams are becoming one of the biggest scams in the country. Her organization estimates billions of dollars are lost every year due to fraud.
Packer said seniors must protect Medicare cards because that is “your entire identity.” She said people seeking to defraud the government charge seniors for services they did not receive.
“A few years ago the scam was durable medical equipment,” she said. “They were supplying wheelchairs to people who didn’t need them. They made millions off of this.”
Packer advised people 65 and older to fight suspicious medical billing by keeping a written record of their medical services.