What Is the Elder Fraud Industry? 1 Kirkman Elder Fraud Wars - - PDF document

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What Is the Elder Fraud Industry? 1 Kirkman Elder Fraud Wars - - PDF document

May 20, 2023 280 likes •399 views

Kirkman Elder Fraud Wars 7/17/2020 (Courtesy Chapel Hill CROP Walk Facebook Page) What Is the Elder Fraud Industry? 1 Kirkman Elder Fraud Wars 7/17/2020 Foreign Sweepstakes (Spain, Jamaica, UK, Russia, Grandparent Scams Moldova,

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Kirkman – Elder Fraud Wars 7/17/2020 1

(Courtesy Chapel Hill CROP Walk Facebook Page)

What Is the Elder Fraud Industry?

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Kirkman – Elder Fraud Wars 7/17/2020 2

Foreign Sweepstakes

(Spain, Jamaica, UK, Russia, Moldova, Canada, Costa Rica)

Grandparent Scams

(U.S., Canada, Russia)

Home Repair

(U.S.)

IRS, Treasury Agent Scams

(India, Pakistan)

Medicare Scams

(India, China, U.S.)

Driveway Paving Scams

(U.S.)

Sweetheart Scams

(U.S., Nigeria, Ghana, UK)

Financial/Estate Planning Fraud

(U.S.)

Money Transfer Schemes “Nigerian 419 Fraud”

(Several W. African countries)

Foreign Lotteries

(Spain, Jamaica, UK, Russia, Philippines, Canada)

Foreign Sweepstakes

$900,000 – plus, Asheville

Grandparent Scams

$65,000, Charlotte Area

Home Repair

$275,000, Cary

IRS, Treasury Agent Scams

$60,000, Charlotte

Medicare Scams

$25,000, Durham

Driveway Paving Scams

$80,000, Greensboro

Sweetheart Scams

$1.2 million, Triad area

Financial/Estate Planning Fraud

$ 2 million – plus, Durham Area

Money Transfer Schemes “Nigerian 419 Fraud”

$3.2 million

Foreign Lotteries

$600,000 – plus, Jacksonville

Worst Individual NC Victimizations

“Because that’s where the money is.”

Willie Sutton, upon being asked why he robbed banks The Saturday Evening Post, Jan. 20, 1951

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Kirkman – Elder Fraud Wars 7/17/2020 3

Forbes Magazine 5-16-18

Hallmarks of the Elder Fraud Industry

  • Repeat

Victimization

  • “Super Victims”
  • Typically More

Than 75 Years Old

  • Seldom Reported or

Prosecuted

  • And…

…the Deliberate Exploitation of Age-Related Vulnerabilities

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Kirkman – Elder Fraud Wars 7/17/2020 4

Vulnerabilities Elder Fraud Criminals Exploit*

  • Fixed income,

financial insecurity

  • Easy access to

funds, equity, credit

  • Desire to be a

“Decision Maker” Again

  • Obsessions
  • Accessible/at home
  • Loneliness/Isolation
  • Depression
  • Med Cycles
  • Impaired vision,

hearing, mobility

  • Age-related

cognitive decline

*Templeton V, Kirkman D, “Fraud, Vulnerability and Aging,” Alzheimer’s Care Today, Nov. 2007.

COMMONLY EXPLOITED MILD COGNITIVE IMPAIRMENTS

  • MEMORY LOSS
  • SLOWER TO PROCESS INFORMATION
  • IMPAIRED JUDGMENT WHEN

EXCITED OR UPSET

  • OBSESSIONS & COMPUSLIVE

BEHAVIORS

“I Make ‘em Feel Like They Are Somebody Again.”

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Kirkman – Elder Fraud Wars 7/17/2020 5

“I make them feel like they are Somebody again!”

“Super Victims”

  • $10,000-plus in losses to same scam
  • A new super victim reported every 2-3 days
  • Repeat victimization
  • The more the victimizations, the harder it is to

stop

  • 10-12 victims with $100K - $500K in losses

reported to the Atty. Gen. Office per year

“RELOADING”

The Key to Repeat Victimization

  • Variations on the same scam, or
  • A Variety of different scams
  • Each scam sets the table for the next one
  • “I didn’t want the one-time victim. I

didn’t want the two-timer. I wanted to sell these people 10 times!” (Shover N., Coffee GS, The

Origins, Pursuits and Careers of Telemarketing Predators, Final Report to the National Institute of Justice, US Dept. of Justice 2002)

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Kirkman – Elder Fraud Wars 7/17/2020 6

Foreign Sweepstakes

Commercially available lead lists, Press-1 robocalls (random)

Grandparent Scams

Social media

Home Repair

Visual surveillance

IRS, Treasury Agent Scams

Press-1 Robocalls (random), Commercially available lead lists

Medicare Scams

Commercial list brokers

Targeting Techniques

Driveway Paving Scams

Visual surveillance

Sweetheart Scams

Social media, Dating websites Obituaries

Financial/Estate Planning Fraud

Commercially available lead lists

Money Transfer Schemes “Nigerian 419 Fraud”

Spam emails

Foreign Lotteries

Commercially available lead lists, Press-1 robocalls

Targeting Techniques (Cont’d)

The Narrative

  • Must be exciting or alarming
  • “Rinse and repeat”
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Kirkman – Elder Fraud Wars 7/17/2020 7

Foreign Sweepstakes

Enormous prize heading to NC Succession of fees, taxes, expenses

Grandparent Scams

Child is in BIG Trouble! Growing list of fees, fines, expenses

Home Repair

Extensive water damage, mold and other problems

IRS, Treasury Agent Scams

You are in BIG trouble; more violations

Medicare Scams

“You’re not getting all benefits!”

Typical Narratives

Driveway Paving Scams

Pave, repave, seal, reseal

Sweetheart Scams

Fiancé is in BIG Trouble! Only you can help

Financial/Estate Planning Fraud

“Getting you to financial independence!” “The government will try and tax your children’s inheritance!”

Money Transfer Schemes “Nigerian 419 Fraud”

Millions heading to your bank acct. More unexpected fees, expenses.

Foreign Lotteries

Huge prize heading to NC Succession of fees, taxes, expenses

Typical Narratives (Cont’d)

Tricks to Sell the Narrative

1. Impersonation of police or banking officials 2. Official-looking documents, congratulatory messages 3. hecks (often counterfeit) 4. Partial payment to victim – cash, check, 5. Detailed facts gleaned from Social Media (Grandparent Scam)

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Kirkman – Elder Fraud Wars 7/17/2020 8

“Mrs. Smith, this is David Kirkman from the Attorney General’s Office again. I was wrong before. That is a legitimate sweepstakes

  • company. Feel free to wire

the $30,000 to Toronto.”

THREATS

  • Angry Man at the Door: “You haven’t paid

me for repairs!!”

  • Caller: “This is the IRS…We will arrest you

if you don’t pay now!”

  • Overseas jailer claims grandchild being

beaten up by jail inmates.

“They are my killers. I will send them to your house if you don’t send the money!”

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Kirkman – Elder Fraud Wars 7/17/2020 9

Cross-Border Fraud Traditional Payment Methods

Your State Attorney General Can Request Interdiction of All MoneyGram and Western Union Wire Transfers by An Older Repeat Victim of Fraud.

Bank-to-Bank Wire

Deposits Into Specified Accounts

Recipients = “Money Mules” Who Forward $$$ Overseas

Recent Trends in Money Transfer

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Kirkman – Elder Fraud Wars 7/17/2020 10

Hillsborough Paver Jimmy Stevens

Cashing Victim’s Check After Violating Court Order Financial Capacity = the ability to independently manage one’s financial affairs consistent with personal self - interest.

30

  • Multidimensional, broader scope than

medical decision-making capacity. Able to exercise prudent judgment in conducting financial activities. Able to avoid financial abuse.

ref: NEUROLOGY 2009;73-928-934// Widera JAMA Feb 16, 2011

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Kirkman – Elder Fraud Wars 7/17/2020 11

Preclinical AD (asymptomatic) Mild Cognitive Impairment

Prodromal AD (symptomatic)

Dementia

fully expressed AD (dementia stage illness)

(*) Mayo Clinic on Alzlheimer’s Disease 2002; pg 32 31

Mayo Clinic on Alzheimer’s Disease 2002; pg 32

Financial Capacity and AD

  • Early AD - Financial Capacity already

significantly impaired.

  • Mild AD - Impaired in most financial

activities.

  • Moderate stage AD - Severe impairment in

all financial abilities is usually present

  • Ref: ARCH NEURO.2000;57:877-884.