Fraud and Consumer Alerts

FRAUD ALERT
A company called Survey Trust is asking seniors to provide extensive personal information, including social security number, Medicare number, financial details, and all health information.  The senior also completes an IRREVOCABLE Durable Limited Power of Attorney that gives the company the right to lifelong access of the individual’s medical records, and signs a form authorizing and directing his heirs to provide a copy of the Death Certificate.  In exchange for completing this “survey” and participating in the program the senior is given $1000 immediately and will receive $250/year for the rest of his life. The packet is extensive and confusing.  Improper use or disclosure of the information will put seniors at risk for financial exploitation and identity theft.

This appears to be a STOLI (Stranger Oriented Life Insurance) and while distasteful, it does not appear to be illegal. This seems to be a company that purchases information, then may insure the individual or sell the information to a speculator who insures the individual.  This company is operating all over the U.S. right now. While there is a possibility of personal identity theft related fraud, this really seems to be phishing for medical identity theft.  Essentially what happens is a bogus clinic with access to real medical information starts billing insurance companies and Medicare/Medicaid for treatment and services that were never delivered.  Often the patients are not swindled out of money, but their medical records have fraudulent treatments and conditions listed on them.  Once on the records, they are exceptionally difficult to remove because of HIPAA.  These altered records are the ones used for emergency treatment for the actual person.  This can be problematic and even life threatening!

CONSUMER ADVISORY
Don’t borrow your own money! The Office of Consumer Affairs advises taxpayers to steer clear of tax refund loans also known as refund anticipation loans (RALs).  RALs are secured by and repaid from a pending income tax refund. Because the loans are short term, the annualized interest rates are very high. A refund anticipation loan is a risky proposition because it must be repaid even if the taxpayer’s refund is denied, less than expected, or frozen.   If the taxpayer cannot pay back the RAL, the lender may send the account to a debt collector.