ELDER ABUSE & FRAUD


Whenever I hear someone on the local news describe a story about some poor elderly person who was a victim of fraud, well, it really makes my blood boil. Seriously?! What is happening?

Elder abuse rears its ugly head in many forms. A telephone solicitor, insurance fraud, unnecessary repair costs – the list goes on and on. Protecting the elderly may not be a concern to you now but it should. One day in the future, we will all be one of the elderly.

Elder fraud, like most other forms of fraud, can affect every aspect of life. Although when fraud is targeted at the elderly, we tend to attribute this act with more contempt. Perhaps, because as we age, we expect that life should be easier and our senior years a time to be treated with respect and dignity.

I tried to focus this article on one aspect of elder fraud as I thought that there had to be one area where elder fraud is most prevalent. That thought was far from the truth. In fact, our seniors are victims of fraud more often than I thought. An article written in January 2008 for the Washington Post by Marie-Therese Connolly with the Department of Justice’s Elder Justice and Nursing Home Initiative states such statistics. In this article, Ms. Connolly wrote, “Estimates of the prevalence of elder abuse vary wildly, but by some reports there could be up to 5 million cases a year, with 84 percent going unreported”. Five million a year! Need I say more?

Instead of trying to focus on one area of elder fraud, this article focuses on helping the elderly find resources to assist them in fighting fraud and protection from abuse. I came across some interesting information from the Consumer Protection Division of the North Carolina Department of Justice. Their site listed some very good references for targeting fraud for the elderly. One piece of information that I found quite interesting outlined specific signs for identifying and spotting fraud as it applied to being a target of a telephone con artist. They are:
 

• Frequent visits to the person’s home by overnight courier services

• Numerous cheap prizes in the home (e.g., plastic cameras, gold-plated jewelry, vacation certificates, small television sets).

• Phone bills showing a sudden, unexplained increase in long distance calls to Canada, Jamaica.

• Several colorful mailings in the home re international lotteries, puzzle-solving contests.

• Questions about Canada, foreign taxes, wire transfers, Abarristers,” customs duties, registering bonds overseas.

• Checking and credit card accounts showing sudden increases in transactions with wire services, numerous unexplained debits or charges from out of state, purchases of money orders or counter checks in large amounts.

• Wire transfer receipts showing large sums going to metro Atlanta, upstate New York, Florida, California, Canada, the Middle East or the Caribbean.

• Unexpected or unexplained borrowing patterns; an unexpected inability to pay bills or meet living expenses.

• A sudden reluctance to be away from home or to have visitors in the home.

• Visits to wire transfer outlets by a person who normally does not use such services.

• Unexpected secretiveness or defensiveness regarding any of the above.

• Social withdrawal, depression, anxiety that cannot be attributed to other events or conditions, together with any of the above.

In their February 2009 document, the North Carolina Department of Justice also published a report containing information regarding fraud, scams and questionable business practices in relation to senior citizens (see link below). This document contains a vast amount of information relating to various areas of fraud and business scams. In the paper it states that there are several ways to protect you as a consumer – regardless of age. These are:

• Protect your numbers… never give out your Social Security number, credit card or bank account number to a person who contacts you by phone or email.

• Don’t pay money “up front” in order to get a loan, or to collect a prize. It’s illegal to require such a payment. (And if someone says you’ve won a lottery or sweepstakes that you don’t recall entering, they are trying to “win the lottery” by pulling a scam on you!)

• Be wary of door-to-door “contractors” and others offering home repair services.

• Avoid get-rich-quick schemes. If something sounds too good to be true, it probably is.  The National Consumers League’s Internet Fraud Watch website also lists tips on fraud protection from Medicare discount drug card programs.

• Verify the list of approved Medicare prescription drug plans. This is available at www.medicare.gov and by calling toll-free, 1-800-633-4227 (TTY users should call 1-877-486-2048.)

• The Medicare prescription drug benefit is voluntary. If anyone states otherwise, it is fraud.

• Don’t give out your personal information. If a plan is legitimate, a request for you Social Security number will only be requested when you are actually enrolling.

• If anyone calls asking for your account, credit card, or life insurance policy numbers, and state that they are from the Social Security Administration, it’s a scam.

• Medicare prescription drug plans can be marketed in numerous ways. Guidelines are set up and organizations area allowed calling you to promote their drug plans. If you receive a call remember that it is illegal for those companies to sign people up during those calls.

• Don’t be fooled by official government looking documents. Promotional materials usually do not come from the government.

• Only approved Medicare prescription drug plans can be marketed by Medicare. Make sure you check with Medicare before you approve a prescription drug plan.

• If you suspect a Medicare drug plan is a scam, contact the Office of Inspector General at the Department of Health and Human Services, 1-800-447-8477, TTY 1-800-337-4950. You can also report Medicare-related fraud to HHSTips@oig.hhs.gov.

If you believe that an elderly family member, friend, or loved one, has been victimized by fraud and want to report suspected fraud, contact the Federal Trade Commission (FTC). The FTC works to prevent fraudulent business practices and provides information that is helpful to consumers in avoiding fraud. To file a complaint or get free information, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261.

Sources:
AARP Fraud Fighters
North Carolina Senior Frauds List
ACFE
Medicare Fraud Tips
FBI
Memory Care -  Fraud and Aging
 

Author

Judith A. Botham, MBA, CFE
2010-2011, Director Tampa Bay Chapter ACFE
Coordinated Childcare of Pinellas, Inc.

Next Dinner Meeting will be in September, 2010

Dates still have to be finalized but our next dinner meeting will be in September.  Meeting dates will be posted on the website and emailed to members as soon as they have been confirmed.  Membership renewal notices will be mailed out during July and the updated membership form is available on the website here.  Please encourage your colleagues to become involved with our Chapter together we are stronger in the fight against Fraud.

Call for Speakers 2010 - 2011

We are always on the lookout for new and informative sources of information for our members so please help us bring you the topics you want to hear about.  If you or someone you know would like to present at one of our dinner meetings or our annual seminar please email Christine Dever at cdcfe1@verizon.net with details of the presentation.

Comments and Suggestions Sought

Please let us know what you would like to see more of in our Newsletter so we can provide information, which is useful to you.  We would like to see more member articles and featured members so please email your comments, ideas and submissions to Sharon Shaw at smshawcfe@gmail.com.  The deadline for submissions is the 15th of each month so they can appear in the following months Newsletter.

CFE Exam Prep Study Group

Our CFE Exam Prep Study Group is going strong with participants attending the weekly three-hour session. The Group meets every Tuesday (except on dinner meeting nights) at 6pm at the Fifth Third Bank on Kennedy Blvd, which is close to the Westshore Blvd intersection. The Group is facilitated by two distinguished CFE members, Pamela Ranney and Consuelo Herrera who volunteer their time each week. If you are interested in joining us, contact Steve Hooper at hooper@hillsclerk.com or at the chapter email address tampacfe@tampabaycfe.org.

The sessions are open to anyone, member or not, who is interested in pursuing the CFE designation. We systematically cover all four-parts of the exam, through presentations, discussion, and reviews of exam questions and answers.  

NEWS FROM ACFE INTERNATIONAL

Board of Regents

The application period for the board of regents is open until July 31, 2010 click here for the application form.

Any CFE in good standing may apply for a position on the Board of Regents. New Regents are elected each year by the Certified members of the ACFE. The Regents represent a cross-section of CFEs with experience in diverse types of fraud examination.  For more information click here.

Fraud Magazine Site

We are proud to announce the launch of the all-new Fraud-Magazine.com, a site dedicated to the ACFE's flagship publication that will not only highlight stories appearing in the magazine but also include features such as exclusive, web-only content, videos, archives and more. It is packed with all the insight and cutting-edge information you've come to expect from the print edition.

Click here to visit the site

MEET A MEMBER

Joe Miller, CPA, CFE

To read more about Pershing, Yoakley & Associates click here
To read the latest edition of The Point Pershing, Yoakley & Associates Newsletter click here 

Joseph L. Miller, CPA, CFE
Pershing Yoakley & Associates P.C.
2963 Gulf to Bay Boulevard Ste 267
Clearwater, FL 33759
(727) 450 6947
(727) 288 7205
jlmiller@pyapc.com
www.pyapc.com

COMPLIANCE CORNER

Disaster Recovery Planning

Focus: How to build a DR plan quickly and effectively

Affected Industry’s: All

Issue: One need only looking at the current issues of British Petroleum (BP) to understand all companies should have a Disaster Recovery Plan (DR).

Risk: If your firm, small or not, does not have a DR plan then you are running the risk of being out of business if you cannot survive the “disaster” effectively. FEMA: Determine your Risk

Solution: Begin to get everyone involved within senior management that can offer strategic thinking and start to build a plan which includes all business units to assist in building a plan that is workable and cost effective.
Guidance comprises the following:

The current Guidance that has been enacted includes Sarbanes Oxley, which in most cases requires that the criteria being used for testing include COBIT, which is based on the British Standard (BS) 7799 (Introduction to BS-7799 and ISO-17799), the COBIT standard can be found at ISAC - COBIT and is internationally recognized standard.
RISK – A Balanced Approach Just about every DR plan is based on RISK, there are a number of helpful websites to give the reader an understanding of how to create an overview of the RISK and apply that to the DR plan. Each company must decide on what the risk and impact are before they can proceed to creating an effective DR plan.
Consequences for not having a DR Plan We can see from recent news that companies have been financially affected by not having an effective DR plan. The consequence can range from loss of life, monetary loss, and reputational loss. All the consequences have serious long term consequences on a firm’s ability to carry on after the disaster and have a serious impact on employees, as well as vendors and stock holders.

More Reading:
Disaster Recovery Planning Process
How to Create a Disaster Recovery Plan
IBM has solutions for small and large businesses
Lessons Learned – What to do and What may not work
MIT – Good detail and covers many areas
ABOUT.COM – Informative with resources
SBA – How to create a plan and includes SBA loan process if you require assistance

Author

George B. Tselentis

FRAUD NEWS AND TRAINING

News

Mortgage fraud scammer Sonny Kim pleads guilty, will name wider network

TAMPA — A federal investigation into mortgage fraud widened Tuesday when Sang Min Kim pleaded guilty to money-laundering and conspiracy to commit mail fraud.

The U.S. Attorney's Office already calls the prosecution of Kim one of the biggest mortgage fraud cases it has ever investigated. With Kim's guilty plea, he has agreed to cooperate and testify against the accomplices who helped him, potentially making the case even bigger.

Tampa speeds by Miami as Florida's new capital for staged auto accidents

Now Tampa is the No. 1 city in Florida, having seen a 290 percent jump in 2009 over 2008 when the city ranked third, according to NICB data released Monday.

Even at the national level, Tampa is second only to far larger New York City for staged auto accidents. Rankings are based on a national database of questionable insurance claims.

Stolen Accounts Database launched by Microsoft

Every year, millions of people become victims of Internet fraud and the problem is growing. To help protect consumers from this increasingly-common crime, Microsoft has joined forces with the National Cyber-Forensics & Training Alliance (NCFTA), to develop the Internet Fraud Alert.

Internet Fraud Alert creates a trusted and effective mechanism for participating researchers to report stolen account credentials discovered online – such as username and password log-in information for online services or compromised credit card numbers – to the appropriate institution responsible for that account. Through a centralized alerting system powered by Microsoft technology developed specifically for this program, Internet Fraud Alert will quickly inform companies about compromised credentials, allowing them to take the appropriate action to protect their customers.

$9 million in homebuyer tax credits went to inmates

WASHINGTON - Living in prison didn't stop nearly 1,300 inmates from cashing in on a popular tax break for first-time homebuyers, a government investigator reported Wednesday. Their take: more than $9 million.

Advisory on Newly Released Mexican Regulations Imposing Restrictions on Mexican Banks for Transactions in U.S. Currency

On June 15, 2010, the Mexican finance ministry announced new anti-money laundering (AML) regulations that will restrict the amounts of physical cash (banknotes and coins) denominated in U.S. dollars that Mexican banks may receive. These new Mexican regulations are intended to mitigate risks of laundering proceeds of crime tied to narcotics trafficking and organized crime. The regulations state that the restrictions on U.S. currency transactions by banks with individuals will go into effect four business days after official publication on June 16, 2010.

FinCEN Releases 14th SAR Activity Review-By the Numbers

FinCEN has released its 14th edition of the SAR Activity Review-By the Numbers covering suspicious activity reports (SARs) filed in 2009. The report shows the total number of all SARs filed by financial institutions declined from 1.29 million in 2008 to 1.28 million in 2009. This is the first time since 1996 that the total number of SARs filed declined over a one-year period. SARs filed by depository institutions declined for the first time from 732,563 in 2008 to 720,309 in 2009.

THE LATEST PHONE SCAM - Targets Your Bank Account

Imagine getting hundreds or thousands of calls on your home, business, or cell phone, tying up the lines. And when you answer, you hear anything from dead air to recorded messages, advertisements, or even phone sex menus.

It’s annoying, no doubt. But it could be more than that—it could be a sign that you’re being victimized by the latest scam making the rounds. This ”telephone denial-of-service attack“ could be the precursor to a crime targeting your bank accounts.

Denial-of-service attacks, by themselves, are nothing new—computer hackers use them to take down websites by flooding them with large amounts of traffic.

In a recent twist, criminals have transferred this activity to telephones, using automated dialing programs and multiple accounts to overwhelm the phone lines of unsuspecting citizens.

Why are they doing it? Turns out the calls are simply a diversionary tactic: while the lines are tied up, the criminals—masquerading as the victims themselves—are raiding the victims’ bank accounts and online trading or other money management accounts.

Here, in a nutshell, is how the whole thing works:

Weeks or months before the phone calls start, a criminal uses social engineering tactics or malware to elicit personal information from a victim that this person’s bank or financial institution would have—like account numbers and passwords. Perhaps the victim responded to a bogus e-mail phishing for information, inadvertently gave out sensitive information during a phone call, or put too much personal information on social networking sites that are trolled by criminals.

Using technology, the criminal ties up the victim’s various phone lines.

Then, the criminal either contacts the financial institution pretending to be the victim…or pilfers the victim’s online bank accounts using fraudulent transactions. Normally, the institution calls to verify the transactions, but of course they can’t get through to the victim over the phone.

If the transactions aren’t made, the criminals sometimes re-contact the financial institution as the victim and ask for it to be done. Or they add their own phone number to victims’ accounts and just wait for the bank to call.
By the time the victim or the financial institution realizes what happens, it’s too late.

The FBI first learned about this emerging scheme through one of its private industry partners, which told us how a Florida dentist lost $400,000 from his retirement account after a denial-of-service attack on his phones.

And as of April of this year, there has definitely been a noticeable surge in telephone denial-of-service attacks, with numerous incidents having been reported in several Eastern states.

To help fight these schemes, the FBI has teamed up with the Communication Fraud Control Association—comprised of security professionals from communication providers—to analyze the patterns and trends of telephone denial-of-service attacks, educate the public, and identify the perpetrators and bring them to justice.

Ultimately, though, it’s individual consumers and small- and medium-sized businesses on the front line of this battle. So take precautions: never give out personal information to an unsolicited phone caller or via e-mail; change online banking and automated telephone system passwords frequently; check your account balances often; and protect your computers with the latest virus protection and security software.

And if you think you may have been targeted by a telephone denial-of-service attack, contact your financial institution and your telephone provider, and file a complaint with the FBI’s Internet Crime Complaint Center.

Source: FBI

Professional Training

ISACA Joint Social/CPE Event with IIA - Sponsored by KPMG, LLP

HTCIA International Training Conference & Expo September 20-22, 2010

DFI News Summer Free Webinar Series

Recommended Reading

No One Would Listen by Harry Markopolos, CFE, CFA, The Madoff Whistleblower

An excellent book, which gives the first hand account of the investigation conducted by Markopolos and his team.  A must read for anyone in the financial industry.  You will find yourself wondering how the scheme continued for so long when there was so much evidence presented on numerous occasions, which clearly demonstrated the unlikelihood of the scheme being legitimate.  Well written and informative with an amazing insight into Wall Street.

Snakes in Suits: When Psychopaths Go To Work by Paul Babiak, PH.D., and Robert D. Hare, PH.D.

We all know someone who fits the description now learn about what makes them tick.  Easy to read with multiple case examples.  Learn how to deal with these destructive individuals before you fall prey to their charm.

Making Crime Pay: How to Locate Hidden Assets

Informative and interesting learn first hand from fraudsters and how they hide assets and then learn from anti-fraud experts on how to locate these hidden assets.  Numerous tips and resources for tracing hidden assets and income.  Workbook and DVD available.  Exam grading now online with instant results for 20 hours of CPE.

Send your recommended reading list to Sharon Shaw at smshawcfe@gmail.com by July 15, 2010 to be featured in our next Newsletter on August 1, 2010.

PRESIDENT'S MESSAGE

Dear Members,

As the season ends on our chapter year, we will continue to work through the summer. We will be working through some exciting changes over the summer. In our most recent newsletter, you may have noticed a few slight changes, but our most dramatic changes will be in the website. We will be adding new sections and features for our members so stay tuned!

We are looking forward to a new year continuing our goals from the past year and adding more.  Our core focus will be on getting you to volunteer your time. There are so many opportunities, with just a little time and assistance, you can make a difference!

There are so many ways to volunteer such as:

• Several committees including the Community Committee, the Membership Committee, the Student Board Committee, etc.

• Assisting with the dinner meetings and seminars

• Writing articles for the newsletter and websites

• Sponsoring an Intern or participant in the Shadowing Program

• Participating in the Mentor Boot Camp

We will be adding detailed descriptions of the various areas to the website sections soon. In the interim, please let us know if you are willing to participate! The more we have the more we can achieve!

It is with a heavy heart that I must notify you that we did not win the ACFE Chapter of the Year or the ACFE Newsletter of the Year. I would like to thank all of you for submitting all the events that you participated in, the articles you have written, and the presentations you have made. I would like to thank the board for the review and assistance with the Chapter of the Year application, and especially to Laura Brock for pulling it all together. We have an amazing Chapter and I look forward to growing even more. We will continue to submit our application to the ACFE and share our awesome Chapter with our community.

We have hit an all time high of 215 members and will strive to increase that number and our services to the community! In the upcoming months we will share our goals for the year. We will also be asking you to participate in a survey very soon to share what you would like to have as members. We ask that you participate as this is the only way we can make the Chapter work for you!

We wish you fun memories and safe travels as you enjoy your summer with your family and friends. I look forward to serving you as President. All the best and stay tuned!                                                                                 

Christine Dever, CPA/CFF, CFE
                                                                                  President, Tampa Bay Chapter - ACFE

2010-2011 TAMPA BAY ACFE CHAPTER BOARD

PRESIDENT

VICE PRESIDENT

SECRETARY

TREASURER

Christine Dever, CPA/CFF, CFE
City of Tampa
(813) 274-7166

Sharon M. Shaw, CFE
OAG Statewide Prosecution
Tel: (813) 287-7960

Ellen Wilcox, CFE
Florida Department of Law Enforcement
(813) 878-7893

Laura Krueger Brock, CPA/CFF, CFE, CVA
Kirkland, Russ, Murphy & Tapp, P.A.
(727) 572-1400

TRAINING DIRECTOR

DIRECTOR

DIRECTOR

DIRECTOR

DIRECTOR