Recognizing and Avoiding Health-Related Freebie Scams Targeting U.S. Consumers

Scam emails, calls, and text messages about healthcare are happening more and more, including right here in our community. According to the U.S. Federal Trade Commission, in 2024, people across the U.S. lost $2.95 billion to imposter scams alone. This includes people falsely claiming to be a romantic interest, the government, a relative in distress, a well-known business, or a technical support expert to get a consumer's money. Money isn't the only problem. Scam victims also report lower credit scores, which can take up to 200 hours to fix, mistakes in their medical records, high stress or anxiety, and trouble getting healthcare when their records are flagged. Southern New Hampshire Health wants to help you stay safe.

Scammers promise free medical gear, prescriptions, gifts, or money in exchange for your Medicare number. They may text, call, email, or knock on your door. They offer tempting “freebies” like groceries, cooking or cleaning help, medical equipment, protein shakes, or in-home perks. In return, they’ll ask for your Medicare Number or want you to sign a form. What you’re really doing? Unknowingly signing up for hospice care so they can fraudulently bill Medicare in your name. It is important to note that hospice care is for those who are terminally ill. It is a serious and personal decision to be made only between you and your doctor.

Common Health Freebie Scam Tactics

Scammers use various methods to target consumers looking for legitimate free samples and promotional offers. Understanding these tactics is the first step in protecting personal information and avoiding fraud.

Medicare and Insurance Impersonation

Scammers frequently pretend to be Medicare or your insurance provider and ask for personal information. This includes the "Verify your information" scam, where scammers ask you to “verify your info” for an appointment you never made. This is often a pretext to ask for your login information, social security number, insurance details, or Medicare information.

Another variation involves fake bills. Scammers say you owe money for a doctor's visit, test, or treatment and demand fast payment or an unusual form of payment like gift cards or cryptocurrency.

The "Too Good to Be True" Free Medical Equipment

Offers of freebies “paid for by Medicare” are a significant red flag. Scammers sometimes offer free medical equipment, such as a knee brace, as a way to get your Medicare information. You may receive a low-quality device or nothing at all, but the scammers then have what they need to steal your identity.

Fake Hospice Sign-Ups

As mentioned, a specific and predatory scam involves signing consumers up for hospice care without their knowledge. Scammers may offer free services or equipment in exchange for a signature on a form, which is actually an enrollment for hospice care. This allows them to bill Medicare fraudulently.

Telehealth and App Scams

With the rise of telehealth, scammers have created fake websites that look like real telehealth services. Consumers are urged to use only services they know and trust and to always use telehealth on secure Wi-Fi in a private location. Additionally, some scam apps look real but are made to steal your info. Consumers should watch for apps that collect data such as their insurance information or Medicare number and use only apps recommended by their provider.

Triangulation Fraud

While not exclusively health-related, triangulation fraud can involve health and wellness products. This scam works as follows: a consumer orders from a seemingly legitimate seller on a platform like eBay. The eBay seller is fake and does not actually have the product. Instead, they use stolen credit card numbers to purchase the item from a legitimate retailer and have it shipped to the consumer. The consumer receives the product they ordered, but the credit card owner is a victim of fraud. This is particularly hard to detect because the consumer receives what they paid for (though the seller was fraudulent).

Specific Scams Targeting Medicare Beneficiaries

Medicare beneficiaries are a primary target for scammers offering freebies. The tactics are often sophisticated and designed to confuse or pressure individuals.

Medicare Advantage Plan Scams

Sellers of private Medicare Advantage plans sometimes use illegal tactics to get people to sign up. According to Iowa’s State Health Insurance Assistance Program (SHIIP), these agents and brokers may be unlicensed or use prohibited incentives. They are prohibited by law from: - Offering cash, meals, or gifts worth more than $15 to entice you to enroll - Charging an enrollment fee - Asking for contact information for your friends and family members

One reported incident involved a man who called a number from a television commercial for Medicare Advantage plans. He was quickly sold a plan that wasn’t available to people living in his county, leaving him with new out-of-pocket expenses and no medical coverage.

The "New Card" Scam

A scammer may also tell you your new card won’t work because it isn’t the correct one, offering to send you a replacement card if you give them your personal information.

Data Breaches and Medical Identity Theft

There is a broader context of medical identity theft, exacerbated by large-scale data breaches. For instance, United Health Group, the parent company of United Healthcare, was hacked in a massive cyberattack that led to a data breach affecting some 100 million people's personal information. Scammers may use this stolen data to make their offers seem more legitimate. They are looking for a quick way to make some money by stealing people's ID and their medical information.

How to Protect Yourself from Freebie Scams

There are concrete steps consumers can take to verify the legitimacy of free sample offers and protect their personal and financial information.

Verification Steps

Never give personal information over the phone unless you have placed the call to a trusted number.
Verify directly with the company: If you receive an unsolicited offer, contact the company directly using a phone number or website you know is legitimate. Do not use contact information provided in the unsolicited message.
Check for official licensing: For Medicare Advantage plans, verify that agents are licensed by the state in which they operate.
Monitor your accounts: Keep an eye on your benefit statements. Look for anything Medicare paid for that seems incorrect or suspicious, such as supplies you didn’t receive, services you didn’t request, or double charges. Regularly monitor your explanation of benefits statements (EOBs) and check for any unfamiliar activity.

Red Flags to Watch For

Pressure tactics: Ignore pressure tactics or threats to take away your benefits. If you qualify for benefits, you won’t lose them just because you fail to sign up for a plan.
Requests for payment: Be wary of anyone asking for payment via gift card or cryptocurrency.
Offers that sound too good to be true: Be skeptical of offers that sound too good to be true — they usually are. This includes free groceries, cleaning help, or medical equipment in exchange for your Medicare number.
Unusual forms of payment: Scammers want fast payment or an unusual form of payment.
Unsolicited requests for your Medicare Number: Never give out your Medicare Number to anyone offering something “free.”

What to Do if You Suspect a Scam

If you get a strange phone call, email, or text message: 1. Do not respond or engage. Hang up the phone or delete the message. 2. Do not give out any personal information. 3. Report the scam immediately. If you suspect a Medicare scam, call 1-800-MEDICARE (1-800-633-4227) to report it. You can also report it online at Medicare.gov/fraud. 4. If you have already given out information, contact your bank, credit card companies, and the three major credit bureaus (Equifax, Experian, TransUnion) to place fraud alerts on your accounts.

The Impact of Falling for a Scam

Victims of these scams face more than just financial loss. The consequences can be long-lasting and severe: - Financial Loss: Direct theft of money and fraudulent charges. - Credit Score Damage: Lower credit scores can take up to 200 hours of work to fix. - Medical Record Contamination: Mistakes in medical records can lead to incorrect treatments or denied care in the future. - Identity Theft: Stolen Medicare numbers and personal information can be used to commit further fraud. - Emotional Distress: High stress and anxiety are common among victims.

Conclusion

The allure of free samples and promotional offers is powerful, but consumers must remain vigilant. Scammers are increasingly sophisticated, using healthcare-related freebies as a lure to steal valuable personal and medical information. By understanding the common tactics, recognizing red flags, and taking proactive steps to verify offers, U.S. consumers can protect themselves from fraud. Never give out your Medicare number or other personal information in exchange for a "free" offer. When in doubt, verify directly with the official source and report any suspicious activity to the appropriate authorities.