Indy Standard

On September 19, 2024, the U.S. Senate Special Committee on Aging held a hearing titled "Fighting Fraud: How Scammers are Stealing from Older Adults." The session was led by Ranking Member Mike Braun and Chairman Bob Casey. The focus was on preventing scams, reporting mechanisms for consumers, investigative processes, and resources available to seniors.

In his prepared remarks, Senator Braun highlighted that in 2023, American seniors were defrauded of over $3.4 billion by scammers often linked to transnational criminal organizations based in countries like Mexico and China. These criminals employ various tactics such as impersonation and false promises to deceive seniors into parting with their savings.

Braun emphasized the importance of education and outreach to help older adults recognize scam indicators. He noted that community banks and credit unions play a critical role in identifying suspicious transactions. For instance, a community bank in Indiana successfully intercepted over $1.2 million worth of scams this year.

Local law enforcement also contributes significantly by investigating cases and informing the public about new scams. Braun pointed out that scammers frequently exploit federal programs designed for seniors. In 2023 alone, Medicare suffered an estimated loss of $60 billion due to fraud, errors, and abuse.

Medicare fraud involves using Medicare numbers to purchase unnecessary medical equipment for seniors, leading to extra copayments and faster depletion of benefits. This type of fraud not only affects taxpayers but also harms individual seniors.

To address this issue, Braun mentioned leading a request for a full audit of Medicare fraud by the Government Accountability Office (GAO), which commenced in July. This audit aims to uncover the extent of fraud within the Medicare system.

Furthermore, Braun introduced the Medicare Transaction Fraud Prevention Act alongside Senator Cassidy. This legislation seeks to empower the Centers for Medicare & Medicaid Services (CMS) with artificial intelligence tools for detecting scams quickly.

Braun underscored that frauds targeting seniors continue to rise across various sectors. He referenced the 2024 Fraud Book as a resource providing information on recognizing scam red flags.

The hearing concluded with an emphasis on collaborative efforts to combat these fraudulent activities targeting older Americans.

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