Our parents and grandparents worked hard their entire lives and saved for retirement. Unfortunately, there are criminals who are targeting them and who want to rob them of their hard-earned savings.
Sadly, older Americans are being financially exploited by strangers over the telephone and in the mail. Too often, they also may be targeted by family members or by people they trust. All too often, these crimes go unreported because the victim is too afraid or embarrassed.
As Ranking Member of the Senate Special Committee on Aging, I, along with Chairman Bill Nelson (D-Fla.), have made consumer protection and fraud prevention a primary focus of our committee’s work. This year, we have held hearings examining tax-related identity theft, Social Security fraud, and the impact of “payday loans” on seniors, among other issues.
One particularly egregious scam was the focus of a hearing earlier this year. It’s often referred to as the “876 scam” because the phone calls originate from an “876” area code based in Jamaica. The scammer tells the victim that they’ve just won millions of dollars in a lottery or sweepstakes and a brand new car. All they have to do to collect is wire a few hundred dollars in upfront processing fees or “taxes” and their “winnings” will be delivered. Often, the criminals will tell their elderly victims not to share the good news with anyone so that it will come as a “surprise” when their family finds out.
Of course, no such winnings are ever delivered, because no such “winnings” exist. The elderly “winners” get nothing but more phone calls — sometimes 50 or 100 calls per day — from scammers demanding more and more money. Behind these calls is an organized and sophisticated criminal enterprise, overseeing boiler room operations in Jamaica. Some Mainers have lost more than $100,000 to this scam.
Our committee investigation drew international attention. Shortly after our public hearing, the new government in Jamaica finally passed new laws targeting scammers. I was also notified that U.S. Immigration and Customs Enforcement officials in New York had arrested four individuals in connection with the fraudulent lottery scam. While this is encouraging, the problem still exists. We need a continued aggressive and coordinated effort on the part of U.S. federal law enforcement officials to protect our nation’s most vulnerable senior citizens.
I am committed to working to heighten public awareness about this, and other scams so you and your loved ones can avoid being victimized. Our committee recently established a new, toll-free hotline to help. The hotline will make it easier for senior citizens, or others, to report suspected fraud and receive assistance. It will be staffed by a team of committee investigators weekdays from 9 a.m. to 5 p.m. The investigators, who have experience with investment scams, identity theft, bogus sweepstakes and lottery schemes, Medicare and Social Security fraud, and a variety of other senior exploitation issues, will directly examine complaints and, if appropriate, refer them to the proper authorities.
Anyone with information about suspected fraud can call the toll-free fraud hotline at 1-855-303-9470, or contact our committee through our website, www.aging.senate.gov /fraud-hotline.
Ensuring that seniors are as equipped as possible to avoid becoming victims of fraud and other scams is among our committee’s top priorities. This new hotline offered by the Senate Special Committee on Aging will help to identify and put a stop to the cruel scams that hurt seniors and their families.
