Consumer Protection: A Primer on How to Identify, Avoid, and Recover from Consumer Fraud

1. Consumer Protection:A Primer on How to Identify, Avoid, and Recover from Consumer Fraud (Enter Date of Presentation Here) (Enter presenter’s name here) (Enter presenter’s job title here) The views expressed are those of the speaker and not necessarily those of the SMP or any other person.

2. Introduction IDENTIFY AND AVIOD CONSUMER FRAUD • Know the hallmarks of consumer fraud • Know how to respond to a scammer RECOVER FROM CONSUMER FRAUD • Know who to direct consumers to for complaints & refunds • Know consumers’ rights under the law • Know the smart steps to advise consumers to take to avoid repeat victimization

3. INTRODUCTION TYPES OF CONSUMER FRAUD: • Deceptive Telemarketing • Employment and Business Opportunity/Franchise Scams • Charity/Current Event Scams • Deceptive Health Product Advertising • Foreclosure Rescue Scams

4. Deceptive Telemarketing

5. Deceptive Telemarketing What is telemarketing? • “plan, program, or campaign” that is “conducted to induce the purchase of goods or services or a charitable contribution” by use of the telephone

6. Deceptive Telemarketing How do Telemarketers find their victims? • Cold Calls • Direct Mail • Broadcast and Print Advertisements

7. Deceptive Telemarketing Why are the elderly susceptible to deceptive telemarketing? • Targeted based on theory that the elderly are more trusting and polite to strangers Why is telemarketing susceptible to abuse: • No face-to-face contact • Providing unencrypted financial account information • Friendly callers • Difficult to discern legitimacy • Loneliness • Urge to not be rude • Too good to be true offers with urgency

8. Protecting Against Telemarketing Scams Recognizehow to identify common telemarketing scams Report phone fraud to the FTC Register your phone number and the phone numbers of your beneficiaries on the National Do Not Call Registry

9. Recognizing Telemarketing Fraud • Push for money up-front • Requests for financial account information or other personal information, such as Social Security number • Questions intended to get the answer “yes” or “okay” • Too good to be true offers • Requests to verify personal information • Free gift offers • Wire money

10. Recognizing Telemarketing Fraud Examples of Telemarketing Scams • Medical discount plans • Charities & Fundraising Fraud • Government Grant Scams • Credit & Loan Offers • Sweepstakes & Lotteries • Travel Scams • Work-at-Home Business Opportunities

11. FTC v. Med Provisions The Campaign Target: Elderly American Consumers The Pitch: • 30 to 50 percent savings on prescription drugs through online pharmacy, or • Membership necessary to retain Medicare benefits The Cost: $389 The Benefit to Consumers: None. The Benefit to the Defendants: $3.5 Million in Gross Sales

12. FTC v. Med Provisions Hallmarks of Deception: • The pitch is too good to be true • Push for financial account information • Impersonation of government agency or threat to government benefits What can your beneficiaries do? • Hang up the phone • Dispute charges with bank and close bank accounts • Report the fraud to the FTC

13. The Grandparents Scam “Grandma! Hi, how are you?” “Hi, Billy. How are you?” “Actually, I’m in some trouble, and don’t want Mom and Dad to know . . .”

14. The Grandparents Scam How can your beneficiaries avoid this type of scam? • Verify the caller’s identity (personal questions) • Resist the pressure to act immediately. • Call the local police on a non-emergency line • Do not wire money or send money via an overnight courier • Report the fraud to the FTC

15. Defensive Moves Defensive moves you can teach your beneficiaries: • Don’t be pressured to make immediate decisions • Don’t give your financial account information or Social Security number over the telephone • Don’t buy something merely because it comes with a “free” gift • Don’t fall for statements that you have won a prize, especially if you must send money to claim it • Don’t send cash by messenger or overnight mail

16. Defensive Moves Other Defensive Moves: • Do get all information in writing before agreeing to a purchase • Do ask for written information before giving to a charity • If the offer is an investment, do check with the state securities regulator to see if it is registered • Be wary of offers to help you recover money you lost to a previous scam

17. Reporting and Registering To Report Telemarketing Fraud: • Go to www.ftc.gov to file online complaint, or • Call the FTC at 1-877-FTC-HELP To Register Telephone Number on Do Not Call Registry: • Go to www.DoNotCall.gov, or • Call 1-888-382-1222

18. Business Opportunity Scams

19. Employment and Business Opportunities WORK-AT-HOME FRAUD • Medical Billing • Envelope Stuffing • Assembly or Craft Work

22. Avoiding Business Opportunity Fraud • Ask questions and get answers in writing • Distrust unbelievable earnings claims • Distrust claims of low work hours in return for high income • Due diligence – checking with local BBBs, state agencies, and conducting online research

23. CHARITY AND CURRENT EVENT SCAMS

24. Scammers Following the Headlines • Relief Efforts • Product sales • Government Benefits

25. Identifying Valid Charity Telephone Solicitation • Calls between 8:00am and 9:00pm • Prompt identification of the charity and that the call is to ask for money • May not call you again if you ask them not to

26. Warning Signs of Charity Fraud • Refusal to provide written information • Refusal to provide proof that contribution is tax deductible • Uses a name that closely resembles a better-known, reputable organization • Request for donation in cash • Uses high pressure appeals

27. Avoiding Charity and Fundraising Fraud • Donate to recognized charities with a history • Be skeptical if someone thanks you for a pledge you do not remember making • Do not do business with a charity offering to send a courier or overnight delivery service to collect payment • After receiving a call for a donation, call the charity in question to ask if it is aware of the solicitation

28. Checking up on Charities BBB Wise Giving AllianceAmerican Institute of Philanthropy 4200 Wilson Blvd, Ste 800 PO Box 578460 Arlington, VA 22203 Chicago, IL 60657 (703) 276-0100 (773) 529-2300 www.bbb.org/charitywww.charitywatch.org Charity NavigatorGuide Star 1200 MacArthur Blvd 4801 Courthouse St, Ste 220 Mahwah, NJ 07430 Williamsburg, VA 23188 (201) 818-1288 (757) 229-4631 www.charitynavigator.orgwww.guidestar.org

29. DECEPTIVE HEALTH PRODUCT ADVERTISING

30. Signs of a Health Product/Treatment Scam • No on treatment works for every cancer or every body • Natural does not always mean effective • Bogus marketers use trickery and vague language • Technical jargon ≠ proven effectiveness • Money back guarantees ≠ proven effectiveness

31. Avoiding Health Product and Treatment Scams Five questions to ask your doctor: • Does this product work? Is there any research to support its effectiveness? • What are the possible risks, side effects, or benefits in my specific case? • Will it interfere with my current treatment plan? • Has this product been proven to be safe? • Can we talk about other treatments or products that could reduce my discomfort of some of my symptoms?

32. Resources for Patients and Families • Local Library • National Center for Complementary and Alternative Medicine (NCCAM). • http://nccam.nih.gov/health • info@nccam.nih.gov • 1-888-644-6226 • National Cancer Institute • www.cancer.gov/cancerinformation • www.canncer.gov/clinicaltrials • 800-4CANCER (800-422-6237)

33. Resources for Patients and Families • MedlinePlus.gov • HealthFinder.gov • Food and Drug Administration • www.fda.gov • ClinicalTrials.gov • National Institute of Health, Office of Dietary Supplements • www.ods.od.nih.gov

34. Reporting Bogus Health Product Claims Federal Trade CommissionFood and Drug Administration -- www.ftc.gov or -- www.fda.gov or -- PHONE -- 1-888-463-6332 State Attorney GeneralAmerican Cancer Society -- www.naag.org -- www.cancer.org or -- 1-800-227-2345

35. FORECLOSURE RESCUE SCAMS

36. Types of Scams • False Promises • An actual FTC Case • Earmarks of the typical phony company • Where to get help

38. Foreclosure Rescue Scams • Sale/Leaseback • Bait & Switch • Phantom Help -- Loan Modification -- Saving Home from Foreclosure -- Bankruptcy

39. Common Sales Slogans • “We have special relationships within many banks that can speed up case approvals.” • “We Can Save Your Home. Guaranteed. Free Consultation” • “We stop foreclosures everyday. Our team of professionals can stop yours this week!”

41. Loan Modification • Modify existing mortgages by: • Reducing the interest rate and/or • Reducing the principal in order to -- LOWER MONTHLY PAYMENTS • Making Home Affordable Program • Free • Based on lender participation and specifics of the mortgage at issue

42. Red Flags of a Mortgage-Related Scam • Advance Fees • Guarantees • Money Back Guarantee • Advice To Stop Paying Mortgage • Advice To Not Contact Lender • Collecting Little To No information On The Mortgage

43. Legitimate Help • Contact Local Community Not-for-Profit Housing Assistance Groups • Contact Lender Directly • Lender’s modification programs • Making Home Affordable Program • Contact HOPE NOW • www.hopenow.com • 888-995-HOPE • Delaware Attorney General • www.deforeclosurehelp.org • 800-220-5424 • Federal Trade Commission • www.ftc.gov/yourhome • 877-382-4357

44. FUNERAL GOODS AND SERVICES

45. Funeral Rule Regulations • Disclosures: Itemized Pricing and Other Information • Unbundles Services and Goods • Prohibits Misrepresentations • Prohibits Mandatory Purchases of Goods and Services

46. Required Disclosures • General Price List – itemizes and identifies the prices for certain goods and services • Casket Price List – price list of the caskets and alternative containers offered by the funeral provider • Outer Burial Container Price List – price list of the vaults offered by the funeral provider

47. General Price List When must a funeral provider give it? • Face-to-face inquiries (whether at the funeral home or elsewhere) • As soon as the discussionbegins on: • Funeral arrangements • Funeral goods or services offered, or • The prices of goods or services offered Who receives it? • Anyone who inquires in person about funeral goods or services OR the prices of such goods or services What do they receive? • A copy to take home

48. General Price List Mandatory Disclosures: • Right of Selection • Basic Services Fee • Embalming • Alternative Containers for Direct Cremation • Casket Price List • Outer Burial Container Price List

49. General Price List Required Itemized Prices: 1. Forwarding of remains to another funeral home 2. Receiving remains from another funeral home 3. Direct cremation 4. Immediate burial 5. Basic services of funeral director and staff, and overhead 6. Transfer of remains to funeral home 7. Embalming

50. General Price List Required Itemized Prices: 8. Other preparation of the body 9. Use of facilities and staff for viewing 10. Use of facilities and staff for funeral ceremony 11. Use of facilities and staff for memorial service 12. Use of equipment and staff for graveside service 13. Hearse 14. Limousine 15. Casket prices: either individual or range of prices 16. Outer burial container prices: either individual or range of prices