SENIOR SELF DEFENSE P rotect Yourself From All Types of Fraud

1. SENIOR SELF DEFENSE • Protect Yourself From All Types of Fraud

2. Do You Recognize this face? Mickey Rooney Warns of Financial Abuse Against Seniors in Senate Hearing

3. Fraud Targeting Seniors • 24 million persons/year are victims of fraud crimes • Target: 65 and older (1 in 8 U.S.) • Some environmental factors: • Volatile stock markets • Record low interest rates • Advanced Computer Technologies • Rising healthcare costs

4. The Crime - Financial Elder Abuse • The Crime of Indignity • 1990 - The Crime of Financial Elder Abuse (W&I sect. 15610.30(a). Penal Code Sect. 368(d) • California Elder and Dependent Adult Civil Protection Act (EADACPA) • Enables persons to engage attorneys to take up the cause of abused elderly persons and dependent adults • Establishes civil remedy for physical abuse, neglect and fiduciary abuse • Authorizes award of attorney’s fees and costs and punitive damages under certain conditions • Allows a cause of action to survive if the victim dies

5. Why Are Seniors Targeted? • Have “large equity” in their homes • Easily intimidated to make hasty decisions • Don’t want to be rude; reluctant to question • Need a better rate of return on their money • Impressed with fancy credentials and titles • Difficult to say no

6. Financial Predators Use Fear Tactics • Instill fear senior will run out of money, become a burden on family • Inspire senior to not trust family members concerning their personal finances • Prey upon loneliness and isolation of widowed seniors

7. Common Scams Affinity Marketing and Fraud • Taking advantage of mutual trust • Targeting religious beliefs, cultural values • Dangerous snow-ball effect Bait and Switch Schemes • If it is too good to be true it probably is • Last minute switching of paperwork or product • Be careful of Bogus Credentials or Titles -”Certified” Senior etc. • Religious/Charity Scams

8. Common Scams Foreign Letter Fraud • The “Nigerian Letter” scam • U.S. Mail, e-mail or phone scam • Targeting your cash or your personal account information Pigeon Drop Scam • Scammer pretends to drop wallet nearby; says $2000 in cash but no ID • Suggests a joint account for ‘trust’ • End result: scammer takes your money and victim winds up with nothing

9. Common Scams Free dinner seminars Free evaluation of living trusts • There are no free lunches when it comes to high pressure sales tactics • Never give out personal account information • Always consult your trusted personal financial advisor before you make commitments

10. Common Scams Home Repair Scams • Beware of door-to-door salespersons • Always verify license and business legitimacy • Always check references • Don’t be pressured to sign contracts

11. Common Scams Distraction Burglary • Never open the door to strangers • Keep your doors, side yard doors and garage locked at all times • Beware of the “lost cat” and “need to use the phone” approach

12. Common Scams Medicare Fraud • Check all of your medical charges (Medical Summary Notice) • Don’t give your Medicare card number to anyone except your health care providers • Treat your Medicare Card as your Health Insurance Credit Card! • Many phone scams offering new Medicare card – Medicare will not call you!

13. Common Scams Grandparent Phone Scam • Scammer may get personal information from Facebook or other social media • Caller masquerades as your grandchild • Says they are in trouble; need grandparent’s help • “Don’t tell my parents!” • “Just send me $$”

14. Common Scams Sweetheart Swindle • Older person is courted or befriended by a younger person who later needs to borrow money for an ‘emergency’ Life Insurance Death Benefit Scams • Elderly person sells death benefits of his policy • Broker sells shares in the policy to investors • Promoted as a “guaranteed” high rate of return

15. Annuity Purchases • Complex fixed income investment products • Widely varying fees, costs and features • Invest only what you can afford to “tie-up” • Talk with your trusted financial advisor before you make a commitment

16. Taking Aim at Soldiers • Department of Veteran Affairs warns … • Instant eligibility; additional benefits • Quick overhaul of your investments • It is very lucrative to be unscrupulous • For just a few hours of work, $75,000 in commissions • Always check with Veteran Affairs first

17. Understand What You are Signing! • Powers of Attorney (POAs) are Powerful Documents- Be Careful • POA over Finances • POA over the Person • Immediate vs. Springing • If you are being pressured to sign- Don’t! • Take any important documents home first and read at YOUR convenience. • Underline questions and concerns and discuss

18. Senior Self-Defense Don’t invest until you complete the “four C’s” • Consider your options • Compare the offer to others • Consult with someone you trust • Call the Department of Corporations • (1-866-ASK-CORP) From the California State Bar

19. Senior Self-Defense • Only invest what you can afford to lose • Does the investment meet your needs? • Never meet with a salesperson alone in your home • Don’t be pressured into signing documents • Talk to your trusted financial advisor • Ask how the salesperson is compensated • Don’t be a “courtesy victim” • Check credentials • Review information and ask questions

20. Important Contact Numbers California Department of Corporations Toll-Free 1-866-275-2677 Online www.corp.ca.gov Council on Aging Orange County (714) 479-0107 www.coaoc.org Report Medicare Fraud Toll free 1(855) 613-7080 Senior Medicare Patrol

21. Thank you for your time and attention