Research Notes

VB case​ ​Supporting Article

● A 61-year-old businessman did a home improvement loan
● Most of his victims were elderly
● He did this fraud from 2014-2017
● Offered to help them secure loans with the government, only to take the money himself
● Sentenced to 11 years in prison in May 2020

2019 Newport News case​ ​Supporting Article

● An in-home caregiver took her elderly client’s credit and debit card account information
● She pleaded guilty to aggravated identity theft in February 2019 as a part of her plea
agreement
● She spent nearly $21,000 of her client’s money from December 2017 to April 2018
● She ended up getting two years for her crimes
Lottery case
● VB woman (Nena Kochuga) was a part of a scam that called people on the phone and
told them they won the lottery
● They told them they could collect their prize after paying some fees and taxes
● Kochuga was in charge of collecting the money they sent
● She got to keep 25% of it, and forward the rest to her bosses
● Sending ​“more than $16,000 to Jamaica and more than $1,600 to Ghana”
● She was convicted in VB Circuit court in 2011 and 2013 for ​“obtaining money by false
pretense in separate cases”
● In 2018, she pleaded guilty in Colorado for stealing more than $20,000 from an
83-year-old woman who thought she won $9 million
Elder fraud sweep
● The had the largest annual sweep in 2020 that caught more than 400 defendants that
cost people more than $1 billion
● Some of the perpetrators came from a crime ring in Peru that allegedly went after
Spanish speaker in the U.S., most of which were elderly
● Possible connection with the proposal: ​H.R. 8169: Elder Abuse Protection Act of 2020
○ Which wants to add to the ​Elder Abuse Prevention and Prosecution Act​ so that
the resources it provides are also made available in Spanish

2020 Elder Fraud Hotline

● After the national elder fraud sweep this past year, the Justice Department decided to
set up a National Elder Fraud Hotline
● The hotline number is ​1-833-372-8311 
● The hotline has personnel that help each individual person with their situation

Types of Elder Fraud

● Medicare/Health Insurance Scams
○ Most people over 65 have Medicare
○ Scammers say they are a Medicare representative and ask for their personal
information or ask for money for a fake service at a mobile clinic
● Counterfeit Prescription Drugs
○ Seniors buy counterfeit drugs in their search for cheaper prices
○ Will sometimes buy something that is not safe for them to consume
● Funeral/ Cemetery Scams
○ 2 types
■ Go to a cemetery to tell the widow that the deceased owed them money
■ Add unnecessary charges to the bill when families are trying to plan a
funeral
● False Anti-Aging Products
○ Scammers sell seniors fake anti-aging products (i.e. Botox- ​Arizona​ & ​result​)
○ A bad batch of Botox can be toxic
● Telemarketing or Phone Scams
○ Elders more familiar with shopping over the phone
○ Harder to trace
○ The victim’s name might be shared with other scammers as a good target
○ Types:
■ Pigeon Drop
● A scammer has found a lot of money and will share if they receive
a “good faith” payment
● Usually, a second scammer will pose as a lawyer or banker
■ Fake Accident Ploy
● The fraudster tells them they need to send money since their
relative is in the hospital
■ Charity Scam
● Donate to a fake charity
● Usually happens after natural disasters
● Internet Fraud
○ Take advantage of seniors limited knowledge about the Internet
○ Download anti-virus software that is either an actual virus or just cost them a lot
of money to download
○ Example:
■ Email or Phishing Scams
● Email from a seemingly legit company asking them to verify
personal information
● Ex: “IRS” asking about a tax refund
● Investment Schemes
○ Seniors tend to be planning for retirement or managing their accounts afterward
○ Scammers target seniors who are looking to put cash away for later
■ I.e Pyramid schemes (​Bernie Madoff​)
 ● Homeowner/Reverse Mortgage Schemes
○ Fraudsters take advantage of seniors owning homes
○ They will also take advantage of those who have unlocked equity in their homes
(reverse mortgage borrower)
○ Property tax scam
○ Home improvement
● Sweepstakes/Lottery Scams
○ Elder has won the “lottery” or some type of prize and they need to give the
scammer a fee in order to receive their winnings
○ Often, the elder is sent a check that they won’t realize is fake until it is denied a
couple of days later
○ Example
● The Grandparent Scam
○ A scammer calls pretending to be their grandchild
■ They ask “Hi grandma, do you know who this is?”
■ Grandparent guesses and the fraudster now has a fake identity
○ They then ask the grandparent fro money while begging them not to tell their
parents
○ Usually, ask for money through Western Union or MoneyGram- as they do not
always require for your identification to be verified in order to receive the money
○ Sums for this are usually in the hundreds, but the scam requires little cost and
work for the scammer
● If you have been scammed, do not be embarrassed to tell someone you trust or an
organization about it

How to protect yourself against fraud

● Avoid scams
○ Be aware you are at risk
○ Not isolating yourself, interact with others
○ Tell them you want something in writing if it is an unfamiliar company
○ Shred receipts with your credit card number
○ Sign up for the “Do Not Call” list
○ Use direct deposit for checks
○ Never give sensitive information over the phone
■ Unless you called them
○ Be suspicious of all calls and research the company
● Signs your loved one has been scammed
○ Unusual changes in their accounts
○ They are suddenly afraid or acting differently than usual
○ Some of their bills are not paid, when they have the necessary income
○ Their caregiver will not let you near them
○ Pilled up sweepstakes magazines- meaning they might be on “sucker lists”
● What to do after you have been scammed
 ○ Get in touch with your bank and/or credit card company
○ Cancel any cards linked to the account they took over
○ Reset your personal identification number
○ Contact legal services and the ​Adult Protective Services​ in your area
FBI Information on Elder Fraud
● Scammers will communicate with people through a computer, phone and mail, or
through the TV and radio.
● Seniors are good targets as they are more trusting, have good credit, and have money
and assets
● Seniors are also less likely to report the crime either because they do not know how or
they are embarrassed
○ Even when they report it, they do not remember the details of the encounter as
well as someone younger might
● Costs more than $3 billion in losses each year
● If scammed contact your local ​FBI field office​ or the FBI’s Internet Crime Complaint
Center
○ How to report
■ Keep track of as much information about the exchange as you can
■ Such as:
● Name of the company or scammer that was given to you
● When the contacted you
● How they got into contact with you
● The scammer’s phone number, email address, mail address, and
how they wanted to be paid
● Instructions you were given, including where you sent the funds to
● How the scammer interacted with you during the fraud
■ Keep all documentations of your transactions with the scammer
● Common Types:
○ Romance Scams
■ A scammer pretends to be interested in romantic relations with the person
(pose as a potential partner on social media or dating websites)
○ Tech Support Scams
■ A fraudster pretends to be tech support, offers to fix nonexistent computer
problems
■ They gain access to private information on the computer
○ Grandparent Scams
■
○ Government Impersonation Scam
○ Lottery Scam
○ Home Repair Scam
○ TV/Radio Scam
○ Family/Caregiver Scam
● Precautions
 ○ Once you recognize any signs you are being scammed, end all communications
with the scammer
○ Look the information up online to see if anyone else reported being scammed by
a company or person of a similar name
○ If they say something about you or your family being in danger, contact your
family to collaborate whether or not they are in trouble. If you feel like you or your
family is in danger contact the police
○ Always be skeptical about things that come to you (through mail, phone, or email)
when it is not something you requested come to you
○ Do not give personal information or anything of value (money, gifts, jewelry) to an
unknown person
○ Make sure anti-virus programs are up to date on your electronics
○ Put pop-up blockers on your computer
Older Adult Financial Exploitation

Signs of Scam
Messages
● Scam messages can from from a previously legitimate number
● Scams do not give you any specifics on your account, tends to send a link which
legitimate places do not usually
● It has a link attached
○ Never use link sent to you
● Scam sites tend to have http not https
○ But it is still possible for sites to have https
● They will try to impose a sense of urgency on you
○ Don’t rush
Website
● Look for https and padlock on website url
● Often too good to be true
● Not secure paying method (money orders, gift card, bitcoin, wire transfers)
○ Secure include Paypal and credit card