Who would’ve thought that people could stoop so low as to turn life-saving personal emergency response systems into a scam?
Believe it or not, this is happening right now. Medical alert scams have siphoned millions of dollars into the accounts of fraudsters, and they take place so often that the government has had to intervene to protect some of the most vulnerable sectors of our population.
The fact that seniors are often the ones being victimized makes these scams even more upsetting. Fraudsters know that many of our elderly are already struggling with the rising costs of healthcare, so having access to personal emergency services would be hard to resist.
Free Medical Alert Systems
In a report released by the Council of Better Business Bureaus (BBB), medical alert scams were among the more common scams in the US. Every day, millions of calls are made by telemarketing companies informing seniors that they have been miraculously enrolled—and completely free of charge!—in a personal medical alert service.
One of the major scams that have been circulating lately involves “Robocalls” or automated calls offering “free” medical alert systems. These automated messages often appear to be local phone calls and claim that either a loved one or your personal physician has purchased this service for you or that you’re eligible for an upgrade on a system you already have. They’ll ask you to press a number on the phone to talk to an operator and will try to persuade you into disclosing your bank account, credit card, or Medicare number, along with an address for shipping.
The best way to handle this is by simply hanging up, not pressing any numbers, and not speaking to an operator. People who have given them information are then hit with a service fee of $35 or more. The saddest part is that, of course, they were left waiting for necessary equipment that never arrived.
If you have already given your information to one of these callers, check your account statements as soon as you can. If you see any unusual charges, raise the issue with your bank or credit card and dispute them.
Also, make sure to contact the Federal Trade Commission (FTC), the federal agency tasked with consumer protection, and let them know what happened. You can contact the FTC online or at 1-888-382-1222 to report your experience. By doing so, you could help track these scammers and put them out of business.
Lastly, it’s a good idea to sign up for the National Do Not Call Registry offered by the FTC, which can significantly reduce the number of sales calls you receive. If a telemarketing company is still calling you after your number is in the registry and you have not given them written permission to do so, their phone call is illegal and you can be sure that what they’re offering is a scam.
The "No Long-Term Contract" Terms
Some medical alert system providers offer the option of a month-to-month payment contract with “no strings attached”. This can be tempting for seniors who would like to try a service before signing up for the long term.
The truth is that many of these companies require a minimum lock-in period, which means that those who sign up for their service will likely be forced to continue paying for a fixed period of time before they qualify for a monthly plan.
A company that labels its product as a no long-term contract service should not require you to be locked into a plan for months.
Identity Theft
There are other ramifications to this and other medical scams, with one of the most common ones being identity theft. As stated above, during these phone calls the agent on the line will often request bank account numbers, credit card information, and Medicare or other health insurance details.
This information can then be sold or used for identity theft scams. While the most well-known types of identity theft schemes usually involve taking out credit cards or loans under your name, there is also such a thing as medical identity theft, in which someone steals your personal info in order to obtain medical services or prescription drugs. Criminals can also use this information to defraud insurance providers or government programs.
Seniors have been big targets of this over the years. Aside from the usual bank and credit card information, their medical information, in particular, has proven to be quite lucrative.
There are, however, plenty of ways to avoid this. There are many affordable identity theft protection services you can sign up for, but most importantly, we strongly urge consumers to never, EVER share personal information via unsolicited calls or emails.
Grandparent Scam
Obtaining your information can also help these people carry out a different, more personal kind of scam. Using the information you provide along with that provided on social media sites like Facebook—which offer tons of family and personal life information—scammers have been known to target seniors by playing on their love for their grandchildren.
In these schemes, con artists call posing as a grandchild or relative in need of help. They will tell seniors stories about being involved in a car accident or some other emergency. They then ask for financial help, telling the grandparent to not tell their parents that they’re in trouble.
Some of these calls can be extremely disturbing, with fraudsters going as far as pretending the grandchildren have been kidnapped in order to extort money or bank account information from the grandparents.
The best way of not falling prey to this type of scam is to share this information with the children’s parents immediately. A situation where your grandchildren call for help is certainly a possibility, but major crises are best handled by the entire family and should always involve the parents.
Secrecy is a common marker of scams so, if the person on the other end of the line insists that the situation should be kept just between you two, it’s best to be skeptical about their claims. Don't be afraid to ask questions to confirm if the person on the other line is indeed who they claim to be, just be sure not to give any of your information away in the process.
Another red flag is a request to wire money, as this is the preferred method of money transfer for con artists of all stripes.
No Long-term contract Scams
Some medical alert system providers offer no long-term contracts and advertise that all it takes is for you to pay on a monthly basis. This can be good for seniors who would like to try a service before finally signing up for a long-term contract.
But the truth is that these companies require a minimum lock-in period. These can go for a few months before you could avail of their no-long term guarantee.
So how can a company that requires you to lock-in for a couple of months label this as a no long-term contract service?
Medical Alert Scams, Protecting our Loved Ones
As Hilary Young from Medical Guardian reminds us “Senior scams are a huge problem in this country right now. It’s important for seniors to educate themselves about these cons so that they can remain one step ahead of these scammers.”
We all know how upsetting it could be to either fall for one of these schemes, or have a loved one be a target. And the fact is that, although anyone—no matter the age—can fall prey to fraud, it’s particularly disturbing when thieves prey on seniors who are already struggling with paying for their day-to-day expenses.
However, as with everything, information is power and the best way of protecting ourselves and our loved ones is to educate ourselves on how these tricks work. Checking the FTC website for common scams and how they operate is an important step.
And, when in the market for medical alert services, working with top-rated, well-reviewed medical alert providers is another excellent way of protecting yourself from this growing concern.